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Open a Startup in Croatia

Updated on Wednesday 15th July 2020

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According to statistics for 2019, Croatia ranks 50th out of 202 startup systems in the world, considering the strength and the interest of this important sector. Both local entrepreneurs and foreigners in Croatia can easily open startups in Croatia and can be helped by one of our company formation agents in Croatia who can provide guidance, information, and many more. Let one of our specialists handle the registration process of your startup in Croatia.
 

What kind of fields can I choose for my startup in Croatia?

 
There are no restrictions in terms of business in Croatia, as long as the applicable laws are respected. Most of the startups in Croatia are found in the tourism sector, digital industry, software and data, manufacturing, design, e-commerce, retail, medicine, automotive, and many more. The interest in opening a startup in Croatia is quite big because great business ideas are supported and developed through all sorts of governmental programs. In matters of regulations, there are a few things to consider and pay attention to, such as:
 
  1. Choose the field in which you think you can develop your ideas and business.
  2. Prepare a solid business plan and make sure you hire a specialist to help you.
  3. Open a limited liability company for your startup in Croatia – this is the simplest business form available.
  4. Make sure you understand the hiring conditions, plus the ones related to accounting.
 
Opening startups in Croatia requires not only maximum attention to each step involved but also assistance and guidance from a specialist who can handle the entire process. This is where you can hire the services of our company formation representatives in Croatia, as they have experience in the startup sector. They can also help you prepare all the needed documents, plus the business plan which requires complete attention. Here is an infographic with details about startups in Croatia:
 
How to incorporate a startup in Croatia2.png
 

How can I access funds for my startup in Croatia?

 
A good business plan that turns into a company will have to be promoted to attract investors. The main idea is to sign contracts with potential investors interested in the products or services you offer through your startup. There are lots of chances for success for those who develop applications meant to support the education system, not only locally, but also on an international scale. This means that your startup needs to be visible and must provide access to information to all those interested in your idea. The startup program in Croatia also comprises a section with details about how you can promote the business, plus the costs involved. You should talk to one of our specialists and find out more about how you can prepare a business plan and about how you can start a company in Croatia.
 

Steps in opening a startup in Croatia

 
The registration of a startup in Croatia is not complex, however, some steps and conditions should be noted:
 
  • First, a name verification is necessary. This can be made with the Croatian Trade Register.
  • Drafting the Articles of Association, the main documents of the firm can be made with our help. Our specialists will then submit these documents.
  • Next, a local bank account must be opened. This will serve the company’s financial operations.
  • The registration for taxation and obtaining the company seal will close the registration process of your startup in Croatia.
 
The limited liability company is the main business structure that suits most of the needs of foreign entrepreneurs in Croatia, including for startups. The Trade Register in Croatia has a large database with information about all the companies registered in this country, so you can verify the chosen business name for your future startup prior to the incorporation. One of our specialists in company formation in Croatia can help.
 

Short facts about the tax system in Croatia

 
The taxation structure in Croatia is appealing to foreign investors who are interested in a specific tax regime before setting the operations. The corporate income tax in Croatia, for instance, is set at specific rates, the taxation being imposed on the registered amount. As an example, the 15% tax rate applies to incomes not exceeding HRK 36,000, while foreign investors must pay a 45% tax rate for incomes exceeding HRK 252,000. One should know that there is no dividend tax in Croatia, as such tax has been eliminated in 2005. As for the VAT in Croatia, the standard tax rate is set at 25% for most goods and services, mentioning that lower rates apply for food, medicine, utilities, etc. There are also tax exemptions in Croatia: there is no wealth tax and no interest payments on loan and investments. There is no income tax for capital gains derived from trading activities in Croatia. If you would like to know more about the tax regime of Croatia before opening a startup, we kindly invite you to talk to our team of consultants.
 

Can I buy a shelf company for my startup in Croatia?

 
Yes, if you are interested in an already incorporated company, you can consider a vintage company and skip the registration formalities. This is often the choice of foreigners who would rather purchase a registered company instead of incorporating a new one from scratch. However, it is recommended to solicit company due diligence and make sure that the firm has no liabilities or other problems.
 

Can I open a recruitment company in Croatia?

 
Yes, a recruitment company can be a great option for young entrepreneurs in Croatia. With a minimum share capital of EUR 2,500 deposited in a local bank account and a website to sustain the business, a recruitment company in Croatia can be an ideal choice for both local and foreign investors. A business like this can offer a wide range of services, for employees and employers too. This will act as a human resources company that helps small and medium firms in Croatia choose the candidates and then hire staff. There are many companies in Croatia that do not have a human resources department and prefer to hire the services of a recruitment company in Croatia. If you would like to know more about this kind of business, please feel free to talk to our company formation agents in Croatia.
 

Can I open a truck company in Croatia?

 
Yes, a truck company can be an excellent choice for young entrepreneurs in Croatia. Truck companies can be established if all the licenses and permits are obtained. This means that you will have to collaborate with the Ministry of Maritime Affairs, Transport, and Infrastructures in Croatia, the institution that issues the needed licenses and permits. Truck companies can be established by any local or foreign investor in Croatia as long as they respect the startup conditions imposed by the legislation. Among these, one must prepare a solid business plan that should cover all the aspects, including the risks. Feel free to talk to one of our company formation specialists in Croatia and find out all you need to know about how you can open a startup in this country. Our consultants can provide in-depth support for the entire formation process, starting with the business plan.
 

Why make investments in Croatia

 
Croatia is a large business hub and a solid FDI recipient, according to the latest information and statistics. There are numerous tech companies that successfully opened the doors in Croatia, and then all over the world, registering profits of millions of euros on a yearly basis. The Croatian economy is stable and the business conditions are extremely competitive and appreciated on a global level. Foreign investors might be interested in the following facts and figures:
 
  1. Croatia ranks 51st out of 190 economies in the world, as stated by the 2020 Doing Business report issued by the World Bank.
  2. The total FDI stock registered in Croatia in 2018 was approximately USD 33,000 million.
  3. Most of the FDIs registered in Croatia in 2019 were directed to the financial services sector (around 30%).
  4. The high-quality infrastructure, the skilled workforce, and the economic stability are important benefits for foreigners looking to open startups in Croatia.

 

FAQ about startups in Croatia

 
1. Is it hard to open a startup in Croatia?
No, the registration process of a startup is not complex, however, one must respect the steps involved, starting with a business plan that needs to be created.
 
2. Are there any restrictions for startups in Croatia?
No, there are no restrictions for startups in Croatia, as long as the legislation is respected. There are many government programs that sustain this kind of business in Croatia.
 
3. Do I need a business plan for a startup in Croatia?
Yes, it is a mandatory condition to create a business plan for your startup in Croatia. One of our company formation agents in Croatia can help you make the business plan, guiding you step by step.
 
4. Can I access funds for my startup?
Yes, it is important to promote your business and get in touch with investors. Being visible on the market means having lots of chances to develop and be successful in the chosen business field.
 
5. Can I solicit support for opening a startup in Croatia?
Yes, you can talk to our company formation representatives in Croatia and ask for support and assistance for opening a startup in this country. We can help you right from the beginning, and guide you throughout the entire process.
 
 
 
If you want to open a startup in Croatia, feel free to contact our team of company formation agents in Croatia.

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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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Testimonials

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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
www.romanianlawoffice.com

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