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Types of Croatian Companies

Updated on Friday 15th December 2017

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types-of-croatian-companies.jpgForeign investors come to set up a company in Croatia due to the friendly business environment and the prosperous economy. Anyway, they must firstly make up their mind about which type of company structure in Croatia suits their objectives best based on the characteristics of each business structure:

- limited liability company in Croatia

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.

- joint stock company

Entrepreneurs who wish to establish large companies choose joint stock corporations in Croatia. The minimum capital required is 200,000 HRK, 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 partnership

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 are general and have full liability for the company, as well as full management responsibility. All partners must give consent for a member to dispose of his interest in the general partnership in Croatia.

- limited partnership

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 general partners. No minimum capital is required.

- 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.

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.

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