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Company Formation Croatia



Types of Croatian Companies

Updated on Monday 19th November 2018

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Company-Formation-Services-in-Rijeka.jpgForeign investors come to set up a company in Croatia due to the friendly business environment and the prosperous economy. First of all, they must make up their mind about which type of company structure in Croatia suits best their objectives based on the characteristics of each business structure. In this direction, our company formation agents in Croatia can help foreign investors set up companies in this country.

Can I open a limited liability company in Croatia?

Yes, you can open an LLC in Croatia, as this is the most frequently established type of company in Croatia due to its simple incorporation procedure. It is mainly destined for small and medium-sized companies since it can be formed by at least one shareholder, be it an individual or a legal entity. At least 20,000 HRK must be provided as an initial capital. The management consists of a managing board and a supervising board.

How can I open a joint stock company in Croatia?

Entrepreneurs who wish to establish large companies choose joint stock corporations in Croatia. The minimum capital required is HRK 200,000, a sum that can be provided by the shareholders in exchange for shares. Each share has a nominal value that is established by the managing board. Members of the joint stock company in Croatia have limited liability for the company’s obligations.

General and limited partnerships in Croatia

At least two persons are necessary to form a partnership and this is the case for a general partnership in Croatia too. No minimum capital is required. All partners have equal liability for the company's obligations, as well as a full management responsibility. All partners must give consent for a member to dispose of his interest in the general partnership in Croatia.
Just like a general partnership, the limited partnership in Croatia can be established by at least two members, individuals or legal entities. The difference is that at least one partner has limited liability up to his own contribution, while at least one member is fully liable for the company’s obligations and management as a general partner. No minimum capital is required.

What is a silent partnership?

The silent partnership in Croatia makes no difference in terms of requirements for establishment. At least two partners are required and no minimum capital is necessary. The main characteristic is that this type of partnership has a silent partner who is excluded from the obligation to cover the losses of the company. It is not necessary for this partnership to register with the Commercial Court in Croatia.

Can I open a subsidiary in Croatia?

Yes, companies from abroad and their legal representatives can establish subsidiaries in Croatia under the rules of limited liability companies or joint stock companies. Due to their simple registration procedures, a subsidiary can rapidly set up the operations on the market. This is also the case of branches in Croatia.

Sole proprietorships in Croatia

Another preferred form of business in Croatia is the sole proprietorship which can be easily registered, with respect to the Companies Act and the Crafts Act in Croatia. There are varied types of activities you can perform as a sole trader in Croatia, and the registration procedure of this business forms starts with the Croatian Trade Register. Also, such business is subject to low taxes compared to those imposed for medium and large companies. Let our company incorporation specialists in Croatia provide you with the necessary assistance and supervise the formation of your business, plus support for tax registration as a sole trader in Croatia.

The characteristics of an LLC in Croatia

A limited liability company in Croatia is often the choice of entrepreneurs, whether local or foreign, who want to start the activities in a fast manner and who want to benefit from a series of advantages mostly related to the costs of the business. Knowing the attributes of a limited liability company in Croatia will help investors decide on their future activities and investments:
  • the name of the company must be unique and reserved by the Croatian Trade Register;
  • an LLC can be formed with at least HRK 20,000 as the minimum share capital;
  • a legal entity or an individual can decide on creating an LLC in Croatia;
  • the owners of the business can appoint a single director who can be Croatian or a foreign citizen;
  • the company needs to submit the annual financial statements which are normally approved by the authorized accountants in Croatia;
  • an LLC can be private and requires the same registration process;
  • each LLC registered in Croatia is subject to taxes and social contributions;
  • a bank account in Croatia is necessary for future financial transactions in the firm.
The support in company formation in Croatia can be obtained at any time from our team of company incorporation agents who can guide local and foreign investors throughout the entire procedures.

Economic interest associations in Croatia

Individuals or legal entities in Croatia can decide on creating an economic interest association to promote the future business activities. Freelance employed individuals can decide on such legal entity and can develop specific marketing plans without any other activities meant for profit purposes. There is no need for a minimum share capital to open an economic interest association in Croatia, as the main purpose of such entity is to make and develop marketing and business promotions. Feel free to address to our consultants and find out more details about the main company types in Croatia, including information about the economic interest association.
For more details about the types of companies that can be set up in this country, you may contact our specialists in company formation in Croatia.

Meet us in Zagreb

Call us now at +385 95 9981 628 to set up an appointment with our consultants in Zagreb, Croatia. Alternatively you can incorporate your company without traveling to Croatia.

As a Law Firm Ivan Župan client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Croatia.

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The team from CompanyFormationCroatia.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.

Mihai Cuc, Partner of
Enescu&Cuc; Law Firm

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