A Croatian holding company is a legal enterprise which controls the policies and management of other companies. A foreign investor can expand his/her business activity in Croatia by acquiring enough stocks or assets from a Croatian company. A guide through the entire process of becoming a holding company can be provided to you by our specialists in company formation in Croatia.
According to the provisions of the commercial legislation in Croatia, a holding company has several advantages compared to other types of companies. Here is a list of the main advantages of a Croatian holding company:
• No corporate income tax on annual net profits;
• Access to the financial benefits of double taxation treaties;
• Zero withholding tax on annual distributions to shareholders;
• Protect the investor`s personal assets;
• Limited financial and legal liability;
• The possibility to sell a Croatian subsidiary while legally minimizing capital gains;
• To be able to raise funds, debt instruments and private equity.
A Croatian holding company can also hire and dismiss managers, without being responsible for the management decisions made by the directors. A holding company does not manage day-to-day operations of the Croatian companies it encompasses, but it still holds the right to evaluate their business performance. Detailed information about the advantages of a holding company can be given to you by our agents in company registration in Croatia. They can also help foreigners register vor VAT.
According to the Company Act in Croatia, there are several types of holding companies available for businessmen looking to extend their activity in this country. These types are the following:
• Ultimate holding company – it has complete control over the subsidiaries and their assets. This type of holding company is usually owned by the individual owner of the group of legal entities and has employees supervising the activity of all companies under its control;
• Intermediate holding company – it channels investments made by the controlled companies and has no staff or management activities;
• Intellectual property holding company manages and holds the intellectual property assets, such as patents, trademarks and licenses;
• Financial holding company holds stakes and assets in banks and other financial institutions. It is usually known as bank holding company.
If you want to buy assets from a local business and establish a holding company, feel free to contact our experts in company formation in Croatia for professional advice.