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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.

Benefits & opportunities of doing business in Croatia

Real estate market in Croatia is booming. This makes it a perfect timing to invest in this sector.
Croatia become a Schengen country 01. January 2023.
As of January 2023. EUR currency was adapted as official currency.
As of 2021., Croatia has become one of the 40 countries in the world that have no visa requirement for their citizens to enter the USA, so visa is also not required for US residents to enter Croatia.
Main industry is Tourism – every year the percentage is in raise. There are plenty of business opportunities in this sector.
Work permits through the prescribed quota for the employment of foreigners were abolished in 2021. There is no quota any more due to very big demand for workers mainly in construction and hospitality which is every year growing.
Has highly qualified and multilingual workforce which is still less paid than in most of the EU countries.
The technology industry is booming.
Excellent geographical position. It serves as a gateway between Western Europe, Central Europe, and the Balkans, with excellent transport links.
English is widely spoken language in Croatia.
High quality of life standards and great climate. Croatia ranks as the safest country to walk at night.
No capital gains tax on cryptocurrencies, attracting blockchain and fintech startups.

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, one of the cleanest sea’s in the world and proximity to the popular ski destinations for winter sports enthusiasts who aren’t willing to compromise their beach tan. With its many islands and mainland harbours, 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 and highly educated, low-cost workforce, is waiting to be discovered by foreign investors. You will be surprised by English language skills among middle-aged and younger people and you will discover how doing business in Croatia can be productive with a mixture of leisure lifestyles.

Forms Of Companies In Croatia

d.o.o. “društvo s ograničenom odgovornošću”
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. company. The minimum capital deposit of 2,500 EUR must be paid up in full in the process of company registration in Croatia. The company must have a 1 director, this can be the owner or only shareholder and it must have Registered office address in Croatia. However, there is a small limited liability company, called j.d.o.o. where the share capital is 1 EUR.

A Croatian d.d. company may trade at the Public Exchange Market, and requires a minimum share capital of 25,000 EUR. It must have a shareholders’ board, at least one director, and a supervisory board. Also, registered office address is mandatory in Croatia.

Fundamentals Of Limited Liability Company in Croatia

Corporate Tax in Croatia	VAT in Croatia
18% but 10% for under 1M EUR	25%

Limited liability company	d.o.o.
Minimum Share capital	2500 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 must obtain tax number (OIB)
Bank signatory must travel	Yes
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	Yes

How can I set up my company in Croatia?

CompyCo simplifies the process of setting up your business outside your jurisdiction by coordinating full-service, custom solutions through our extensive network of trusted local experts.

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 must be opened in the process of company registration in Croatia for the purpose of share capital payment. 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 a bank account for a company in Croatia, 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 Croatian company register may take up to 3 weeks to issue the certificate of incorporation, but in most of the CompyCo cases, this process is done much quicker!

Company registration fees in Croatia will be determined by the: form of the company, number of shareholders and directors, choice of banking, residency of shareholders and directors, and business activity. If you wish to find out the exact process, requirements, and fees for your specific case, complete this simple online form and we’ll send you an offer within 24 h. Setting up a business in Croatia is our specialty.

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 an experienced team in Croatia waiting to find solutions for any business needs and to 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 within any sector 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.

(check our title at a bottom of the page: Doing business in Croatia)

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, English-speaking and affordable service-based workforce are 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 working with us, you gain access to a carefully coordinated network of licensed local professionals who handle employment and HR matters in compliance with local requirements. Our role is to simplify the process for you—coordinating with payroll specialists, recruiters, and employer-of-record providers, while ensuring instructions and communication remain consistent. This way, you save valuable time and benefit from seamless correspondence without having to manage multiple providers on your own.

That’s right! Setting up a company in Croatia can be avoided in some cases where the only plan is to employ Croatian residents. We can set up your foreign company as Employer in which case you will avoid company maintenance costs and pay only salary, contributions and taxes on salary. In case you must register a Croatian company, the process of Employer registration is the same after the company has been formed.

We will advise whether you need to register a company in Croatia to be able to employ locals or you can avoid that step and register as a Foreign employer.

However, if you are choosing between a few countries in Europe and you are not sure where to incorporate, have a look at our tips how to make the right choice, or talk to us today for free.

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 or wider!

Head to our HR services page for more information about our International HR services!

Doing business in Croatia

Company formation in Croatia is a starting point for starting a business in Croatia. process with a visit to our lawyer’s office in Zagreb…or without a visit. We have enough solutions for you to get you started. However, we would recommend visiting Zagreb, as not only you will register a company faster, but you will also enjoy beautiful city and feel the coffee culture. You will need assistance with that, but let’s look at what’s best for doing business in Croatia.

If you are looking to invest in real estate and tourism, this is the right time for you to register a company in Croatia. Tourism is growing each year in the capital Zagreb, as well as on the sea coast. There is a highly qualified IT skilled force that you can consider employing. Easiness of trading with other countries will be a good advantage in case you plan to sell outside Croatia. There is a huge demand for foreign construction workers at this stage (2021.) due to the real estate market which is in constant growth.

Talk to us today about investing and company registration in Croatia.

Next: Find out how can CompyCo help you set up a company in Germany, Netherlands or Malta.