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Company Formation Croatia



Establish a Branch in Croatia

Updated on Tuesday 19th June 2018

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establish-a-branch-in-croatia.jpg Foreigners in Croatia have several ways of doing business and set up companies, among which a branch is a representative one. The registration process of a branch in Croatia is easy, with less bureaucracy and fewer formalities. Investors in Croatia can benefit from the company formation services offered by our team of company formation agents in Croatia who can also handle the requirements for establishing a branch in this country.


What is a branch in Croatia?


A foreign company may choose to perform business activities on the Croatian territory through a branch which is not considered a legal entity and all its actions are controlled by the parent company which has full liability on it. There are certain conditions which have to be accomplished before registering a branch in the Croatian Chamber of Commerce:
  • the parent company must be legally registered in the country of origin and proof of its existence must be available;
  • the branch can be represented by an appointed agent with residency in Croatia;
  • a guarantee that the investor wants to open a branch under the same circumstances as the parent company;
  • the branch needs to respect the rules and regulations of the Croatian Companies Act.

How can I register a branch in Croatia?


The registration of a branch in Croatia is made based on a notarized application which contains:
  • the name and registered office of the parent company that intends to set up a branch in Croatia;
  • the name and the registered office of the branch in Croatia;
  • the type of business performed by the parent company and the branch;
  • if the parent company is based on a share capital, details about the amount of this capital need to be provided;
  • if it’s a partnership, the name and details of the general partners must be mentioned;
  • the name and details of the branch’s appointed representative in Croatia.


The documents containing information about the registration date of the parent company, the decision of incorporating a branch, the articles of association or the memorandum of association of the foreign company, the previous year’s balance sheet of the parent company need to be translated into Croatian. The above -mentioned documents must be deposit at the Croatian Chamber of Commerce. Any action performed by the branch before registration is considered void.


Can I open more than just one branch in Croatia?


Yes, if a foreign company decides to open more than one branch in Croatia, it must apply for registration for each one of them and it has the obligation to nominate a representative in each of these branches. In special circumstances, the same person may be nominated for all these branches.


Accounting requirements for branches in Croatia


The Croatian Accounting Act and the International Accounting Standards stipulate that the branches must keep records of the financial transactions, just like other registered companies in Croatia. Also, a bank account must be opened in order to perform financial operations and to deposit the initial capital. It’s the foreign company’s responsibility to open these bank accounts.


The benefits of branches in Croatia


Among the benefits of branches in Croatia, we mention that the operations can be established in a wide range of prolific business sectors, among which the banking field is a very important one. Also, it is good to know that the registered losses of a branch in Croatia can be compensated by the profits of other similar branches established in other countries. As for the profits of branches in Croatia, these can be reinvested in the company’s’ equipment or in any other field of interest.
For more details about setting up a branch in Croatia, you may contact our specialists in company formation in Croatia.



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