The Republic of Croatia sits at the crossroads of central and southeast Europe, sharing borders with Slovenia, Hungary, Serbia, Bosnia, and Montenegro. From a trade perspective, it has a strategically important location in terms of accessibility to the regional markets, availability of skilled human resources, and the precious raw materials required for construction and other industries.

A South Asian man hand holding wooden blocks with the inscription Fees and Increasing fees symbol.

The tax regime and overall business environment are conducive to economic growth, both for companies and the country alike. Thus, having a company registered in Croatia has a high probability of success due to contributing factors such as the ones mentioned earlier.

The commercial policies permit various business structures and formats for foreign and local investors; depending on the business activity and the size of the investment, investors may choose which format will favor them the most. The below table represents some of the most popular business types and basic details permitted in Croatia.

S#Business TypeLocal nameMin.required paid up capital
1.Limited Liability Co.Društvo sa Ograničenom Odgovornošću (D.O.O)€2,500
2.Simple Limited Liability Co.Jednostavno društvo s ograničenom odgovornošću (J.D.O.O)€1
3.Joint Stock Co.Dioničko društvo (D.D)€27,000

Note where a foreigner wishes to register an LLC for the sake of obtaining a residence permit, the minimum paid-up capital required in that case is €26,000 approximately.

Limited liability company – DOO

An LLC, or DOO as it is locally known, is the most preferred choice for small and medium enterprises due to its robust features and ease of registration & operations. Since 2019, an LLC can easily be registered online; however, this service is exclusively available for Croatian citizens only.

The other reason investors choose an LLC structure is that the liability of the business does not fall on the owners/partners directly. In fact, it is the company that assumes all liabilities in case of debt or insolvency to the extent of its assets and capital.

The approximate basic costs involved in the registration process of a DOO are listed below:

  • Court fees for registration – €55
  • Fees for entering the company in the Bureau of Statistics – €8
  • Company registration fee – €120
  • Notarization – €65

Process

The process for registering a DOO is quite simple and straightforward. Below are the steps involved in the order of occurrence.

  1. Naming the company: name must be unique and available
  2. Complete the paperwork such as:
    1. Application for entry in the court register
    2. Attach the proof of paid taxes to FINA
    3. Fill out RPS-1 form
  3. Register with the Bureau of Statistics on the basis of documents approved in the previous steps

Simple limited liability Co – JDOO

As far as the operations and registration process is concerned, JDOO is similar to DOO. A JDOO is for smaller enterprises with very little investment ante. Secondly, a JDOO can have a maximum of 5 founders, unlike DOO which has no limit.

To register a JDOO, investors can expect the below basic costs:

  • Paid-up capital – €2
  • Notarization – €66
  • Court registration fee – €8
  • Company stamp – €25
  • DZS fee (entry in Bureau of Statistics) – €8

Process

The process to register a JDOO in person is listed in order of occurrence below:

  1. Naming the company
  2. Visit to notary
  3. Assemble documents for submission, such as:
    1. Application for founding the company
    2. List of members of the company
    3. Receipt of the initial paid-up capital payment
    4. Receipt of court fee payment
    5. Receipt of publication payment to Narodne novine
    6. Debt clearance certificate from bank
  4. Create the company stamp
  5. Open the company’s bank account
  6. Registering with the tax office

Joint stock company – DD

A Joint-stock company, also known as a public limited company is a format of business that includes the general public as the company’s shareholders. A company’s capital is distributed into shares of a certain denomination and put afloat on a stock exchange. Generally favored by businesses that require large capital in a short time.

Unlike an LLC, a JSC or DD has a complex management structure that includes a board of directors, a chairman, a legal representative, and a company auditor. All these and other managing persons are appointed by resolution in the board meeting. Similarly, a JSC is obligated to make all its financial transactions, production, sales, P&L, and other statements, and all such activities that relate to the performance of the business, and public.

The head of expenses involved in the registration process of a DD in Croatia is to a large extent similar to that of a DOO or JDOO; however, the amount may vary from case to case.

Major expenses involved during business operations

While the state and local fees remain constant over a period of time, and to a large extent can be predicted long before registration, the costs involved in the business operation are often variable. We have selected a few expenses that most businesses are likely to incur.

  1. Commercial electricity – €0.15 kW/h
  2. Rental for a serviced office in Zagreb – €185-€500/month
  3. Serviced office rent in Rijeka – €500 – €700/month
  4. The minimum wage for workers- €500/month
  5. Commercial internet connectivity – €16 for 8Mbps /connection
  6. Cost of living (standard lifestyle) per person – €600/month

Advantages of registering a company in Croatia

There are numerous factors that contribute to the notion that Croatia is an ideal location to register a business. From barrier-free communication to ease of doing business, Croatia certainly has all the ingredients to create a successful business empire, below are some of the advantages of registering a company in Croatia.

  1. Economic stability
  2. Security and safety
  3. Availability of experienced and skilled workforce
  4. The positive perception among investors, global business centers, and the public at large
  5. The strategic location enables trade within Europe and beyond
  6. Profitable industrial sectors such as pharma, food, IT, etc.
  7. Favorable tax system and rates
  8. Attractive incentives for foreign investors
  9. Double tax treaties with many countries
  10. Ease of registering and operating business, even remotely
  11. Excellent standard of living at a nominal cost

You may also find these articles helpful

Guide on company registration in Croatia

Registering limited liability company in Croatia – full guide

Guide on obtaining EORI number in Croatia

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