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Company Act in Croatia

Updated on Friday 13th July 2018

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Shelf-Company-in-CroatiaThe 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. The Company Act was adopted in November 1993 and it regulates all types of companies 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. For a better understanding of how companies can be registered in Croatia and what the rules are in this direction, we recommend you talk to one of our company formation agents in Croatia.

 

Where can I register my company in Croatia?

 

The 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.

 

What types of companies can I register in Croatia?

 

The Company Act in Croatia stipulates the rules for the following types of companies which can be registered by investors in this country:

 

  • private limited company (the shares of the company are not traded publicly);
  • limited liability company (it can be established with a minimum share capital of HRK 20,000);
  • public limited company (the shares can be traded publicly);
  • joint stock corporation (available for large companies from abroad);
  • general partnership (the owner/managing partner has unlimited liability)
  • limited partnership (the limited partner has limited liabilities);
  • silent partnership (the silent partner provides capital for the company or business).

 

What is the most popular business structure in Croatia?

 

The limited liability company in Croatia is the preferred type of business in this country, mostly for the easy way of the structure and also the incorporation. Our company incorporation consultants in Croatia can help local and foreign investors set up an LLC in Croatia or OOD (Drustvo s Ogranicenom Odgovornoscu) as it is known.

 

Choosing the name for your 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.


Employment conditions in Croatia

 

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.

 

How can I open a DOO in Croatia?

 
Foreign entrepreneurs can easily register a DOO in Croatia, with a minimum share capital of HRK 20,000, a legal representative, one manager appointed by the shareholders of the company and after a name verification with the Croatian Trade Register, which needs to contain the letters DOO at the end of it. All the paperwork and the requirements of DOO registration in Croatia can be handled by our team of consultants at any time.
 

Can open a branch in Croatia?

 
Yes, foreign companies can establish branches in Croatia and can commence the operations from abroad, under the rules of a limited liability company. Branches in Croatia are mostly met in the banking system but not limited to this.
 

Sole proprietorship in Croatia

 
Investors from overseas can perform their operation as sole traders in Croatia and can benefit from the same simplified business registration in this country, in respect to the Company Act. Also, such business owners need to observe the rules and regulations of the Handicraft Act in Croatia and must incorporate as sole proprietorships with the Register of Craftsmen in Croatia.
 
For more details about the Company Act, you may contact our specialists in company formation in Croatia.

 

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