Eternity Law International News Business and life in Croatia

Business and life in Croatia

Published:
September 9, 2022

Croatia attracts international investment due to its established infrastructure, stable political environment, and favorable investment climate. Additionally, Croatia might be a great place to immigrate for commercial purposes.

However, there are many opportunities to buy a ready-made business or firm on the local market, so it is not essential to start from scratch. Thus we would like to present “Croatia business and life guide” for a better comprehension of how to become an entrepreneur in Croatia.

Permission to live in Croatia

Creating a business in Croatia enables the owner to remain there for a whole year. Nevertheless, only the owner of the business, who controls at least 51% of its capital, is eligible to apply for a residence permit.

Foreigners can open a trading company, a civil law business, or a capital company (limited liability company/joint stock company).

The “Law on Foreigners” (Zakon o strancima), passed in 2012, governs foreign nationals’ stays on Croatian territory.

Residence permission

A foreign firm owner may apply for a residence permit if the following criteria are satisfied:

  • Poslovna dozvola (business license) must be available.
  • The authorized capital of the company must be at least €13,210.
  • The balance of the company’s activities must be positive
  • At least three citizens of Croatia must work there (earning salaries above the national average).

Visa

A short-term Schengen visa of category C is necessary for business travel to Croatia. You must pay €70 for enrollment which is essential (3 days or fewer before the planned trip). For residents of other nations, the consular charge is €60. The visa agency charges €26 for its services if the visa is granted through them.

The term of the visa is up to 90 days. It has a 180-day expiration date.

The package of documentation required to apply for a business visa to Croatia:

  • a passport and a copy of the passport’s major pages;
  • foreign passport and a replica of its front page and any previous visas;
  • a letter from the business of the employer;
  • a business offer from Croatia, if one is accessible;
  • a copy of an extract from the register of Croatian companies containing information on the organization issuing the invitation and the signatories (issued after six months);
  • filled-out and signed survey;
  • a photo of the sample that was installed;
  • a certificate from the administrator detailing the position, the start date of employment, and the wage;
  • confirmation of house rental or hotel room reservation;
  • confirmation of financial capacity;
  • healthcare insurance;
  • approval for the use of personal data.

Start a business in Croatia

To establish a foreign corporation in Croatia, you will require certain paperwork (in the case of documents issued in another country the original paperwork and all copies must be translated into Croatian and notarized):

  • a duplicate of the founder’s passport;
  • paperwork that will identify the name, nominal director and legal location of the firm, stated areas of its activities;
  • documentation attesting to the capital contribution of permitted funds;
  • receipts for paying for notarial and state duty;
  • details on the founders (if they are legal entities, they provide their statutory documents and the decision to create a subsidiary company).

The procedure’s key steps:

  • deciding on the company’s name, the nature of its operations, and the founders’ list.
  • selection of a notary and accountant.
  • determining the future company’s legal address.
  • obtaining each founder’s OIB (Osobni identifikacijski broj – Personal identity number) from the neighbourhood tax office;
  • purchase of a Croatian phone number for use in communicating with HITRO (a service provided by the Republic’s government intended to facilitate contact between individuals and businesses and state administrative agencies);
  • visiting HITRO, paying taxes to the Financial Agency of Croatia (FINA), and submitting paperwork to register a business;
  • obtaining a company’s personal identity number (OIB);
  • acquiring Matični Broj (a statistical registration number for a corporation);
  • establishing a business account with a Croatian bank;
  • the making of seals.

The demands of foreigners

  • Employment of at least 10 non-EU citizens if there are two directors, and at least 3 Croatians if there is only one;
  • Foreign directors receive a salary in Croatia;
  • The founders’ contributions shouldn’t be equal, but any percentage is acceptable.
  • Deposits must match the authorized capital’s size in cash amount. A person who serves as a director must also contribute a minimum of 51% of the authorized capital;
  • The business must also have a local legal address;
  • A name of a company has to be in Croatian or use the Latin alphabet;
  • Governing bodies in the form of the director and the general assembly;
  • Companies with more than 300 employees or those engaged in activities requiring a license are required to establish an observation commission;
  • Foreign nationals serving as directors of foreign corporations are obligated to have work authorization in Croatia;
  • Maintaining a register of company participants.

Please contact us to get more information.

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