Eternity Law International News Company formation in Croatia

Company formation in Croatia

September 9, 2022

Considering Croatia is a nation with a continually growing economy, establishing a business there is a decision that many business owners make. There are a bunch of various reasons, such as the country’s convenient location, the existence of 13 free economic zones, the government’s welcoming attitude toward foreign investors, and the possibility of obtaining a residence permit there.

What documents for company registration are needed?

  • a request made to the regional representative authority, which issues authorisation;
  • evidence of Croatian firm registration;
  • a registration form for each person who is going to take part in the business;
  • copies of the passport of the recipient;
  • the company’s name;
  • activity descriptions;
  • official address;
  • notarized foundation agreement.

Those who want to create a Croatian corporation must also pay a state tax, register with the tax, insurance, and social services departments, and invest the firm’s permitted capital. The type of business you select will determine the allowed initial investment.

Types of companies

  • an LLC. The only founder is a non-resident. The smallest permissible capital is equivalent to about 2850 €.
  • a private limited liability company, which is registered in Croatia, is an organization for small-sized and medium-sized businesses with not less than one investor. The quantity of the invested capital serves as the maximum obligation for each member.
  • a joint stock corporation. At least one investor is required. There should be at least one director. The approximate charter capital is €25,000.
  • a Croatian branch of a foreign corporation.
  • a general partnership. This kind of company is founded by co-founders (at least two people). Members can receive earnings once all corporate taxes have been paid, but they entirely have to pay the company’s obligations with their property in the case of bankruptcy. Specially that a name of a general partnership is obligated to consist of the n members’ names, followed by the initials “JTD”. No authorized funds are required to launch this kind of business.
  • a holding company. This kind of business controls domestically registered businesses’ shares and management. Among the benefits are the absence of corporation tax, the protection of the investor’s assets, and the lack of withholding tax. Investors can also raise money and employ a variety of debt instruments. The firm’s owners are free to judge how well the business is performing inside the holding company and they also have the power to fire employees in the event of subpar T

The process of company enrollment in Croatia

The whole course of forming a corporation in Croatia must be handled by a local agent. Additionally, a registered office is needed for a company to be incorporated in Croatia. Besides, having a banking account and a local bookkeeper is also a plus.

Founders should first verify that the name they have selected for their company is distinctive. The foundation agreement and the statute, a request for court registry, and a declaration from the director accepting the assignment should all be notarized by the founders if the name is available. Every document is obligated to have a translation that has been validated. After that create a banking account with a bare minimum of permissible capital in it.

The firm gets added to the registry of the jurisdiction’s Chamber of Commerce after completing all the required paperwork. The approval from the tax authorities to pay VAT and payroll tax is the next stage in the enrollment of a corporation in Croatia. There are some government departments spread out over the state where the application may be approved. A Croatian corporation that registers is given a special taxpayer identification number.

For the majority of businessmen, both local and international, an LLC is a widespread type of business. In Croatia, the procedure of forming a corporation may be completed swiftly, enabling businessmen to launch their operations on the market right away. The initial stages in starting a business in Croatia include selecting a firm name, determining the kinds of activity, writing a charter, and electing a board of directors. After that, the required issued capital stock is placed into an account of a local financial institution.

The key steps to starting a business in Croatia are:

  • To select an appropriate juridical structure for the company’s objectives and operations;
  • To choose at least 3 company names for your potential business;
  • To deposit the minimal permissible investment and utilize it for additional financial operations, open a  savings account in a Croatian bank;
  • To prepare the foundation agreement and the statute.

Please contact us to get more information.

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