The Croatian Company Act is known for its flexibility in terms of setting up companies in Croatia. It mainly comes from the German and Austrian legislation. Company Act was adopted in November 1993 and it regulates all types of company formation in Croatia. It contains all the requirements for opening a company in Croatia, as well as all rules for running a company in this country.
Company Act in Croatia mentions the great importance and obligation for all types of companies to register with the Trade Register, before starting their activities. It is actually a requirement that comes from the Court Register Act and the Court Register Entry Procedures rules. Also, the Company Act reminds of the necessity to know the particularities of all types of companies before choosing one structure.
Company Act in Croatia stipulates the rules for companies such as:
- private limited company,
- limited liability company,
- public limited company,
- joint stock corporation,
- general partnership,
- limited partnership,
- silent partnership.
However, the most popular business structure is the limited liability company in Croatia.
According to the Company Act in Croatia, the name of the newly set up company is very important as well. For that matter, the company needs a name when the procedures for company registration in Croatia are started. It is the duty of the founder to check if the chosen name for the company is already used by another legal entity and this verification can be performed online.
Together with the Company Act in Croatia, the legislation regarding employment is also important. According to the legislation, foreign employees must obtain a business permit or a work permit before finding a job in Croatia. The employer has the obligation to register the employment contracts with the Health and Pension Fund in Croatia. A copy has to be kept by the employee.