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Croatia Company Registration

In this article, we’ll be going to discuss in-depth about Croatia company registration and various documents required for forming a company.

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Croatia Company Registration in 2023-24

A country which is home to around 4 million residents in total, and there is about the same amount of Croatian people who speak English in other countries. A small, but diverse country located in the middle of Europe and attracting tourists from across the world. Being a member of the EU, Croatia has access to the open market of the European Economic Area (EEA). 

croatia company registration

The laws for business are comparable to most of the European countries. The country of Croatia has its own currency called KUNA which was introduced in the 1990s. 

Eventually, in this article, we’ll be going to discuss more in-depth Croatia company registration and various documents required for forming a company. 

Why register a company in Croatia?

While registering a company in Croatia, entrepreneurs and individuals need to be aware of the various possibilities and attain benefits of Croatia company registration.

  • Lowest business operation costs in Europe
  • Access to the major European markets as well as the rest of the globe is easy
  • Attractive tax incentives and a low tax rate
  • Multilingual, highly qualified workforce
  • Transport infrastructures modern
  • Stable business environment

Steps to company registration in Croatia

These are the most important actions to be taken into account when Croatia company registration:

Step 1:- Choose the best business structure according to the purpose and objectives of the business.

Step 2:- Come up with at least three names for your business and check the Croatian Company Registry to make sure they are allowed.

Step 3:- Create a bank account in Croatia to make a deposit of the minimum share capital and utilize it for other financial transactions.

Step 4:- Create and file your Articles of Association and the Memorandum which are the main documents, to Croatian Company Registry. Croatian Company Registry.

Step 5:- The company must be registered in Croatia’s Pension Insurance Fund in Croatia.

Step 6:- Register for tax-related reasons (including VAT) when an incorporation certificate has been issued.

Eligibility Criteria for Croatia Company Registration

While establishing a company in Croatia, it is necessary to be in compliance with EU standards. Eventually, Croatian law allows all firms to have an accountant (a person who will submit a tax statement, communicate with the government, and do payroll accounts).

It is essential to have a registered address for your company in Croatia, and you must make sure you won’t change the address repeatedly. However, the firm needs to have a facilitation  program that automatically informs authorities about every cash transaction.

The Croatian government expects firms to have at least one Director and one Shareholder in any country to operate a business in Croatia lawfully.

However, the initial amount which is required to perform the business activity in the territory of Croatia is 2800 euros, which needs to be paid to the financial agency before company registration.

Documents for Croatia company registration

The following documents are essential for Croatian company registration:

  • The articles of Association can be signed by an attorney’s power of attorney
  •  Passports of shareholders of the newly formed firm in Croatia;
  •  Employer Tax Registration (SARS)
  •  The signatures of the sample (legal assistance in this regard could be provided);
  •  The forms are specific to the registration office (certain charges could be imposed in this context).
  • Shareholder agreement

In any case, it’s crucial to remember that all business formation proceedings in Croatia must be handled by a public notary. Additionally, a registered office is required to form a business in Croatia. Before forming a corporation in Croatia, you must also have a bank account and a local accountant.

 

Business structure for Croatia company registration

business structures of croatia company registration

When establishing a company in Croatia you must be aware of the business entities for Croatia company registration.

PLLC

The Private limited liability corporation formed in Croatia is an entity legal for medium and small-sized businesses with a minimum of one shareholder who has a minimum share capital of 20000 HRK divided into stakes. 

In particular, under Croatian Law on Foreigners, those who are not EU citizens and wish to form a Croatian D.O.O must have a minimum share capital amount of 200000.

Members’ liability is limited to the number of funds they have invested. If the Croatian D.O.O. has problems such as bankruptcy or liquidation, the personal assets of members are secured.

PLC

A public-liability company (A.D.) is established by the government of Croatia with at minimum one founding member with a maximum share capital of around HRK 100,000 split into shares, and it is specifically designed for big companies. 

The resemblance to that of the Croatian private limited liability corporation comes in its liability to members is limited by the amount they contribute to the capital. 

This kind of company is ensured with the help of the managing board (with at minimum one manager) as well as the supervisory board (with at minimum 3 members) as well as the annual meeting of shareholders. 

General Partnership

A Croatian general partnership is a kind of partnership that has at least two partners that are accountable to pay using their assets, the business’s debts in the event of liquidation, and profit from the earnings after having paid all corporate taxes. 

The names of the members must be included in the Croatian general partnership’s name, preceded by the letters “JTD.” Share capital is not required for the establishment of this type of company.

Limited partnership

The Limited partnership is a type of business that is formed in Croatia with two or more people with different laws in the business. There must be at least one general partner who is completely liable for his assets to pay the company’s obligations and one restricted partner who is liable only for their contribution to the business’s capital. 

The general partner is the only person who can represent the partnership in the marketplace. Similar to the situation for general partnerships, you do not require to provide the minimum capital amount when registering.

Costs for Croatia company registration

Here are the costs of Croatia company registration, which you need to be aware of as either a local or foreign business person:

  • Registration costs around EUR 90, for companies to register with Croatia (company certification, procedure for registering a company, etc. ).
  • Virtual office costs about $300 per month if you’d have a well-known business address and an assistant for future activities.
  • The share capital minimum is Croatian rupiah 20,000 (EUR 2,700) for a private LLC, or HRK 200 000 (EUR 277,000) for an open-ended public limited liability company in Croatia.
  • The cost of Croatia company registration is estimated at EUR 834. Accounting expenses Start at EUR 100 for bookkeeping services, tax consultation, and numerous other services.

Advantages of Croatia Company registration

  • A dynamic economic growth with a stable socio-political environment and a well-developed banking infrastructure.
  • A young and well-experienced workforce is an additional benefit of Croatia.
  • The positive attitude of the authorities toward foreign investments.
    A favorable taxation system.
  • Comparatively, it takes lesser time to get a residence permit (2-3 Months), and a permanent residence (5 Years).
  • A good ecology is the blue flag of UNESCO that signifies the Mediterranean’s cleanest waters.

Things to Consider Before Setting up Company in Croatia

When you think of setting up a company in Croatia, it is advised to choose the right type of business entity as per your firm’s requirements. While keeping in mind the number of shareholders or owners you wish to include. 

It is important to decide beforehand what type of business activities will you be registered for. Also, a Croatian company must have a registered office within Croatia, this is where you rent or own an office. Eventually, your registered office/seat will determine the local taxes and fees.

You should then decide on the company title. It can be in any EU language, Latin, or Greek. However, the honorable court may ask for the source if it is not a Croatian word.

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Conclusion

A limited liability company is a popular business structure for entrepreneurs from any country. It is easy to register your company. This allows you to quickly get started on the market. 

The first steps to business registration are choosing the name of your company, deciding what type of activities you want, and creating the Articles of Association, the Board of Managers, and the company seat. After that, the minimum share capital must be deposited into a local financial institution.

 

FAQ’s

It is true that international investors can create businesses in Croatia and could direct the focus toward restricted liability businesses that are ideally suited for their needs and activities.

Foreigners must create a local office in Croatia before releasing their goods to the public.

Foreign investors can create Limited liability corporations as well as joint stock companies limited or general partnerships or operate as a sole trader in Croatia.

Companies with limited liability in Croatia could be created with a share capital minimum of HRK 20,000 or EUR 2,700. A company with joint shares that exist in Croatia can be set up with several shares equal to HRK 200000.

Registering a corporation in Croatia begins by confirming the name and registration with an official trade registry. 

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