Company formation in Croatia
Croatia is a booming tourist destination in Southeast Europe. Although ruled by different foreign powers throughout its history, Croatia maintained its rich Western-oriented culture.
Why set up business in Croatia? The Croatian market is a great option for foreign investors looking for business opportunities within the medical, educational, and transportation sectors. Since Croatia is about to enter the Schengen area and the real estate market is starting to boom again, it is advisable to investors in real estate to have a look at this small, beautiful, and safe country as an opportunity to achieve high ROI in the next few upcoming years.
As a European tourism Mecca, Croatia is a top-class travel and housing investment venue. The beautiful Slavic country offers investment opportunities in attractive coastal hotels and rentals, lucrative island getaways, and proximity to the French Alps for winter sports enthusiasts who aren’t willing to compromise their beach tan. With its many islands and mainland harbors, Croatia has a developed maritime shipping network, as well as a system of leisure ports where yachts and cruise ships can dock.
The Croatian business market with its skilled, low-cost workforce, is waiting to be discovered by foreign investors.
Forms Of Companies In Croatia
- d.o.o. “društvo s ograničenom odgovornošću”—Croatia setting limited liability company
- j.d.o.o. “jednostavno društvo s ograničenom odgovornošću”—simple private LTD
- d.d. “dioničko društvo”—public limited liability company
- j.t.d. “javno trgovačko društvo”—general partnership
- k.d. “komanditno društvo”—limited partnership
- “zadruga” —cooperative
What is the difference between d.o.o and d.d. companies in Croatia?
In Croatia, most foreign investors opt for one of the limited company types.
Most entrepreneurs choose to establish a d.o.o. companies. The minimum capital deposit of approximately 2,700 EUR must be paid up in full. The company must have a director, this can be the owner or only shareholder.
A Croatian d.d. company may trade at the Public Exchange Market, and requires a minimum share of 200,000 HRK (approximately 27,000 EUR). It must have a shareholders’ board (glavna skupština), at least one director, and a supervisory board (nadzorni odbor).
Fundamentals Of A Limited Liability Company
Corporate Tax in Croatia
VAT in Croatia
18% but 12% for under 3M HRK
Fundamentals of limited liability companies in Croatia
|Limited liability company||D.O.O.|
|Minimum Share capital||21000 KN (around 2700 EUR)|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Other requirements||Company and directors have to obtain tax number (OIB)|
|Bank signatory must travel||Mostly no|
|Timescale for company formation||20 days|
|Timescale for bank account opening||7 day|
|Timescale for obtaining VAT number||7 days|
|Statutory audit requirements||No|
|Shelf companies available||No|
How can I set up my company in Croatia?
CompyCo simplifies the process of setting up your business outside your jurisdiction by providing full-service, custom solutions.
The process of company formation in Croatia starts with obtaining the OIB (tax ID number) for the directors and the company. This can conveniently be done remotely and will be issued in a few days.
The bank account opening is a must to be able to pay the share capital. In most bank opening situations, traveling to Croatia is essential, especially if you’re working with a high street bank. However, in some cases, CompyCo can open your business bank account remotely and then the whole process can be done remotely.
To open your bank account, we’ll require you to provide the necessary documents and complete our application form. After we receive those documents, which are commonly notarized and even apostilled in some cases, we will draft the company documents and instruct you to sign them.
Once the documents have been received in Croatia by our lawyer, we will submit them to the Register. The Register may take up to 3 weeks to issue the certificate of incorporation, but in most of CompyCo cases, this process is done much quicker!
A wholly foreign-owned company can be difficult to set up without adequate assistance from experts who specialize in incorporations. Take advantage of the growing Croatian economy by working with CompyCo, we’ve got experience in helping out business owners start a business in Croatia.
The process of setting up a business in Croatia is still bureaucratically complicated. However, our simple instructions will turn this process of company formation in Croatia into straightforward and easy steps for you. Our experts will help you get acquainted with the tax and administrative systems here so your company is up and running promptly!
We’ve developed a valuable network of experts in the country to assist you to start a business in Croatia every step of the way. Not only will you be informed about the best practices for your business, we’ll also educate you on the basics of the Croatian business environment.
Bank Account Opening
Setting up your company’s bank account is essential to getting your company formation in Croatia off the ground. Why set up business in Croatia? Take advantage of the various financial institutions operating in the country, with numerous international and local banks offering world-class banking solutions.
CompyCo takes your preferences into account when suggesting the ideal bank for you. With an array of banks to choose from, you’ll have the option to pick the most viable one that’s most likely to approve you for a bank account.
Some of the documents you’ll need to open your Croatian bank account are:
- Some form of identification. This could be a driver’s license, national ID card, or passport.
- The minimum deposit to activate your account. This amount varies between banks.
- Company registration documents
Need more information about opening a bank account? Head over here.
Accounting & Taxation
Some of the key features of account and taxation to take into account are:
- Every company must appoint an accountant
- Once your business reaches the amount of 300,000 HRK in revenue in a year, you must register with the VAT system (PDV)
- The tax year is the calendar year in Croatia
- Investments, the sale of assets at more than their original cost, and trading profits are all taxable in Croatia
- Every business must keep updated accounting books
- All annual financial statements and auditor reports are publicly disclosed
How can you employ staff in Croatia?
A highly-skilled, well-educated, and affordable service-based workforce is awaiting you in Croatia. The competitive labor market ensures your business can hire top talent at affordable rates and, thus, enjoy considerably low business costs!
To stay compliant with the country’s unique laws, regulations,and Croatian business culture work with experts who have extensive experience with Croatia’s labor market. We can take care of all the aspects of employment and let you have more time to dedicate to your business activity in the new location.
By trusting us with your employment and HR functions, you can take advantage of our range of services that are geared toward hiring and retaining the right people for your company. Among our international HR services are payroll management, recruiting, PEO or direct employing, and registering your non-resident company as an employer.
If you’d like to have an in-depth understanding of requirements in a country foreign to you, we’ll promptly set up an account with software that provides in-depth knowledge of HR and payroll requirements and obligations. With it, you will have full control of all your obligations as an employer in Croatia!
Head to our HR services page for more information about our International HR services!