A Comprehensive Guide on Company Registration in Croatia
Croatia, situated in Southeast Europe, is a land of immense potential for foreign investors and entrepreneurs looking to establish a presence in Europe. Its favorable business environment, skilled workforce, and strategic location make it an attractive destination. If you’re considering company registration in Croatia, 3E Accounting India is here to guide you through the essential steps and considerations.
Types of Businesses in Croatia
Before delving into the process of company incorporation, it’s crucial to understand the three primary types of businesses in Croatia:
Simple Limited Liability Company (JDOO)
A Simple Limited Liability Company (JDOO) is an ideal choice for small and medium-sized businesses in Croatia. This business structure requires
a minimum share capital of EUR 2,500 and offers flexibility along with limited liability protection.
Limited Liability Company (DOO)
The Limited Liability Company (DOO) is a popular option among foreign investors entering the Croatian market. With a minimum share capital of EUR 2,500 and a single shareholder requirement, DOOs provide versatility and limited liability protection.
Joint Stock Company (DD)
For larger enterprises with significant operations, the Joint Stock Company (DD) is a suitable choice. It mandates a minimum share capital of EUR 25,000, making DDs attractive for substantial investments and robust business ventures.
Steps to Incorporate a Company in Croatia
Setting up a company in Croatia involves several key steps:
Choose a Business Name and Reserve It
The first step is selecting a unique business name, followed by reserving it through the Financial Agency of Croatia (FINA). The application fee is approximately EUR 90.
Prepare the Articles of Association
These governing documents outline the company’s name, purpose, registered office, share capital, and management structure. All shareholders must sign the Articles of Association.
Register with the Commercial Court and Obtain TIN
After incorporation, you’ll need to obtain a tax identification number (TIN) and a business registration certificate. Registration with the Croatian Chamber of Commerce and the Croatian Social Security Agency is also necessary.
The cost of setting up a company in Croatia varies based on the business type and location. However, it’s generally considered affordable, with a straightforward incorporation process that can be completed in a few weeks.
Here are some important factors to keep in mind when establishing a company in Croatia:
Corporate Tax Rate
Croatia’s corporate tax rate is currently 18%.
Foreign nationals require a business visa, with specific requirements varying by nationality. Generally, you’ll need a valid passport, visa application, a company letter explaining the business purpose, and proof of financial resources.
Croatia’s minimum wage is EUR 700 per month.
All Croatian companies must have a registered office within the country. Changing the registered address in the future can be costly and involves notarial processes.
Certain sectors in Croatia are restricted and reserved for Croatian citizens or predominantly Croatian-owned companies. These sectors include banking, insurance, telecommunications, and air transport. However, there may be exceptions, with the Croatian government occasionally granting waivers to foreign investors.
Additionally, it’s advisable to seek the assistance of an accountant to handle various financial aspects of your business. An accountant can help with tasks like tax returns, liaising with government authorities, submitting PDV (Croatia’s VAT), and facilitating invoices. The cost of accounting services starts at EUR 126.
3E Accounting India – Your Partner in Croatia
Croatia offers promising opportunities for entrepreneurs and investors. With 3E Accounting India’s support, you can efficiently navigate the company incorporation process and focus on growing your business in this dynamic European market. Contact us today to begin your business journey in Croatia.