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Set up Limited Liability Company in Croatia

Updated on Wednesday 16th September 2020

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The generous business market in Croatia is reflected by the stable economy and the well-developed industries. Foreign investors can set up companies in Croatia with fewer formalities and less bureaucracy, in agreement with the laws governing this country. Our company formation agents in Croatia are at your disposal with complete information about how you can open a limited liability company in Croatia or any other business structure in this country.
 

What is a DOO in Croatia?

 

A DOO in Croatia defines a limited liability company, that is called Drustvo s Ogranicenom Odgovornoscu. Limited liability companies in Croatia are the most common structures used for businesses, especially by small-sized companies, due to their simple incorporation procedure in CroatiaThe minimum share capital which must be provided in order to set up a limited liability company in Croatia is EUR 2,500 or HRK 20,000. The contribution can be made in cash, material goods or commercial rights. The initial capital must be deposited in the national currency of Croatia. As for the owners of a DOO, one or more shareholders can set up a limited liability company in Croatia. They can be individuals or corporations and they can have any foreign citizenship or residence. Shareholders’ liability is limited when it comes to the company’s debts and obligations and it is extended up to their own contributions.

 

What is the management structure of a limited liability company in Croatia?

 
The minimum management structure of a limited liability company in Croatia is a director or president. He must be appointed by the shareholders and he can be Croatian or a foreign citizen. The manager can also represent the company in Croatia in front of third parties whenever it is the case.
 

How can a limited liability company in Croatia be verified?

 

All limited liability companies in Croatia must submit the annual financial statements regarding their commercial activities and all their transactions. These statements must be audited and approved by authorized public accountants in Croatia.
 
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Are there other requirements for a limited liability company in Croatia?

 

As far as the name of the limited liability company in Croatia is regarded, it must be unique and not similar to any other name of a Croatian company. In order to check if the chosen name for the limited liability company in Croatia has already been used, one can search the database of the Croatian Register of Companies.

 

Opening a private limited liability company in Croatia

 
A private LLC in Croatia is the type of company which cannot trade its shares publicly. This type of business structure is normally controlled by a board of managers appointed by the shareholders of the company. The registration process takes place at the Trade Register in Croatia if the Articles of Association are submitted in accordance with the requirements of this institution. Such documents need to contain:
 
  • information about the owners (their names and their nationality);
  • details about the minimum share capital and the contribution of the owners;
  • the date when the private limited liability company opens in Croatia;
  • complete information about the responsibilities of the owners and of the directors.

 

Who can open a DOO in Croatia?

 
Both domestic and foreign investors looking for business in Croatia and an easy structure should decide on a limited liability company. Being subject to fewer formalities at the Trader Register in Croatia, a DOO is in most cases ready to operate within a few working days. Our consultants can handle the registration process of a  DOO in Croatia, so do not hesitate to get in touch with us.
 

The management of a DOO in Croatia

 
Controlling an LLC in Croatia means respecting the provisions of the Company Act in this country. The board of directors is in charge of the company’s decisions, in compliance with the owner’s requirements or needs. A DOO in Croatia has directors with full liabilities on their actions and in charge of the company’s operations. They can represent the firm and its interests in the market and they can decide on the direction of the business. If you would like to know more about the company management in Croatia, we invite you to talk to our team of advisors at any time.
 

Post-registration requirements for DOOs in Croatia

 
The certificate of incorporation is issued as soon as all the documents and formalities are accepted by the Trade Register in Croatia. Before going on the market, the company needs to be registered with the Croatian tax authorities, especially if it is subject to VAT payments. The future transactions of the firm are made through the company’s bank account which is different from the one opened for the minimum share capital, but not mandatory. Find out information in this sense from our advisors.
 

Can I buy a shelf company in Croatia?

 
Yes, shelf companies or vintage companies are already incorporated as limited liability companies, the most common business structure available in Croatia. Ready-made companies are already registered and can be purchased by both domestic and foreign entrepreneurs wanting to start the activities fast, without opening a company from scratch. This is often the choice of businessmen from abroad who want to open their companies right away. The only thing to consider is to sign the documents of ownership of the shelf company. Our team of agents receives all the necessary documents for the purchase of a vintage company in Croatia, so make sure you address your requests to us. We will explain to you all you need to know about the limited liability or DOO in Croatia.
 

A recruitment company in Croatia

 
Foreign entrepreneurs can start any kind of business in Croatia, under a simple business form, the limited liability company. This is also the case for recruitment companies in Croatia, a great business idea that continues to develop. The Articles of Association with information about the owners, a bank account for depositing the minimum share capital, the registration for taxation, and the required licenses and permits are important aspects for a recruitment company registration in Croatia
 
A recruitment company in Croatia can provide human resources services and consultancy for small, medium, and large companies, plus the needed support for hiring the proper employees for firms. Having a qualified staff in fields like medicine, IT, retail, e-commerce, engineering is extremely important, so the support of a recruitment company that knows the attributes of the local workforce is needed. You can talk to our company formation representatives in Croatia and solicit information about how to register a recruitment company in this country.
 

Can I change the company structure in Croatia?

 
Yes, if you believe that the limited liability company no longer aligns with business development and direction of your firm, you can simply change the structure. This means that your DOO in Croatia can transform into a joint-stock company, private or public, to give an example. This kind of business transformation requires attention to the formalities involved, mostly referring to the documents. For instance, a financial report is needed, plus a declaration showing the expansion of the business and the resolution made by the company’s directors. If you believe it is time to change the limited liability company into another business structure, you can get in touch with our specialists and ask for support.
 

Closing a DOO in Croatia

 
If for varied reasons, mostly financial, an entrepreneur decides to close the company, it is suggested to bear in mind the requirements in this matter. Among these, the decision, in this case, is comprised by a document which needs to be provided to the Commercial Court in Croatia that decides on the liquidation process date. In this stage, the company will change its name by adding liquidation next to it. The company’s accounts need to be verified and closed, the remaining assets or debts need to be collected, and the financial documents summing up all the operations of the firm must be submitted to the Trade Register.  A certain fee is required for the company liquidation procedure, but for more details in this sense, you may address to our consultants.
 

Company services provided by our team in Croatia

 
Our company formation agents in Zagreb are at your service with comprehensive support and guidance if you are interested in opening a DOO in Croatia. We can handle all the formalities as we work closely with the Croatian Trade Register. Furthermore, you will receive help for company name verification, opening a bank account for your firm, obtain the necessary licenses and permits, register for taxation in Croatia, and many more.
 

Investments in Croatia

 
Croatia offers numerous business advantages for international entrepreneurs, such as appealing operational costs, low taxation, attractive tax incentives, support for creating new jobs on the market. Additionally, foreigners benefit from a simple incorporation process in Croatia, plus the protection of the double taxation agreements signed with numerous countries. The pharmaceutical industry, tourism, engineering, manufacturing, automotive, ICT, textile, and food are quite developed and great sources of profits in Croatia. 
 
We remind that the limited liability company or DOO is the simplest business form in Croatia and can be ready for use in just a couple of days. We have gathered some facts and figures about Croatia’s business and economy direction that you might find it useful:
 
  • About USD 30 billion was the total FDI stock for Croatia in 2019;
  • Approximately 30% of the FDI in Croatia is directed to the financial services sector;
  • The Netherlands, Austria, Italy, and Germany are Croatia’s main investors;
  • The World Bank ranks Croatia 51st out of 190 economies in the world.
  • On the Global Competitiveness Index, Croatia Ranks 63rd, as stated by the World Economic Forum.
  • Around USD 1,4 million was the total value of the greenfield investments in Croatia in 2019.
 
For more information about setting up a limited liability company, feel free to contact our company incorporation specialists 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
www.romanianlawoffice.com

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