Guide for starting a business in Croatia

Basic information regarding the establishment of companies in Croatia

General on Company formation in Croatia

Mosty used type of company in Croatia is d.o.o. - similar to English limited company. Such company has limited liability up to the minimal amount of its share capital of 20,000 HRK (around EUR 2,700). It must have at least one member of the company - natural person or legal entity - and at least one director.

Name of the company can be in any official language of an EU member state.

Business activities are already included in the Articles of Association of the company and there is no need to register them additionally as it is the case in some other European countries (Czech Republic, Germany, etc.). Nevertheless, in order to carry out certain activities it is necessary to have an authorized representative, insurance or special state license. However, in case that company is active in the tourism business, renting business or in trading activity it is not necessary to additionally register those activities.

Founder of the company can be any legal entity or natural person. No special requirements exist. A valid passport and identity card are required by Companies register. In case that the founder of the company is a legal entity it is necessary to provide a certificate of good standing (extract from the Companies register) of the company founder.

Director can be any natural person (no legal entity can be director of Croatian company) competent for legal acts. Every citizen of EU can be director of the company. Special rules apply if the director is a non-EU citizen.

The seat of the company is needed for registration of the company in Companies register. A virtual office can be provided practically anywhere in Croatia.

Accounting service is mandatory for every company regardless of the activity.

COMPANY FORMATION PROCEDURE

After checking availability for company name and obtaining Personal ID number , application form for registration into Company register is notarized, together with Memorandum of Association and director’s statement of acceptance of the appointment. In the bank Deposit account is open and minimum Base capital should be deposited in.


Transaction can be made electronically or in cash. Base capital remains blocked during company formation procedure.

After the company is registered, company Seal is made and the company is registered on National Statistic Office, after which Business account is open.

It takes between 1-2 weeks for the overall procedure to finish and for you to be able to create your own Croatian company.

During formation procedure, we walk along your side. All you need to do is spend a few hours with us in Zagreb - after that we will take over and deliver your company to you.

VAT REGISTRATION

Even though in most of EU countries VAT registration is a long and complicated process in Croatia we can register your company for VAT within 2-3 days. Service for VAT registration is
included in company formation price.

SEAT, VIRTUAL OFFICE

The seat of the Croatian company has to be registrated at the national Companies register.

Fantastic solution used by business people all over the world is to lease a virtual office together with the accompanying services. By doing this you will cut your cost to minimum assuring that you are only paying services you really need for your business.

We offer first class virtual office in Croatian capital Zagreb, with services such as:

  • document scanning and sending them to desired email address
  • accepting and forwarding mails to any address you provide us with
  • accepting incoming calls during work hours (from 9:00 AM to 5:00 PM)
  • with previous announcement it is possible to use office areas for business meetings

If required, we can also provide you with the seat of the company practically anywhere in Croatia.

ACCOUTING SERVICE

Good accountant makes the difference and saves your money!
Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis. Therefore, for our clients we provide a full range of cost effective accounting services.

BANK ACCOUNT

We are co-operating closely with Primorska Banka, part of CIM Banque leading Swiss Private Bank based in Geneva, Lugano and Wollerau. Bank is mainly focused on corporate clients resulting that approach is unique towards each client offering exclusivity and individual financial solutions. We are accompanying the client to the bank located in Zagreb centrum. There are no waiting or delays, meaning that Bank personnel is immediately handling your case only.

SPECIAL LAWS AND REGULATION CHECK

Have you ever wanted to start a company in another country but you were unsure if there are special Laws and Regulations applying to your business activity? In Croatia you don’t have to be worried about it because you have us.
On your request, we will check if your business activity is subjected to any special regulations and we will make sure that once you open a company you can run your business smoothly.


If you decide after our check to establish the company, cost of the performed check will be fully deducted from company formation costs.

REALESTATES

Do you want to buy a real estate in Croatia ?


If you are EU citizen:

  • As EU citizen you are eligible to buy real estates in Croatia under the same conditions as Croatian citizens. You cannot buy agricultural land and real estates within Parks of Nature, as well as protected real estates (e.g. historical buildings, castles, etc.).
  • After the real estate is bought you can: use it, rent it, sell it, pawn it, give it, renovate, build and do anything as any Croatian owner.
  • You just need as EU citizens, before you sign Purchase Contract, obtain Personal ID number in Tax Office (it is formality done within 1 day) for eventual tax payments etc. Same Law applies on you as for any Croatian citizen.

If you are not EU citizen:

  • Non-EU citizens can buy real estates in Croatia based on Reciprocity agreement between two countries. That means that if Croatian citizen is allowed to buy real estate in your home country you can also buy real estate in Croatia.
  • To buy a real estate in Croatia you need to have consent of Ministry of Justice. Only citizens of countries with Reciprocity agreement with Croatia can obtain that consent.
  • If your home country doesn’t have signed Reciprocity agreement with Croatia, you can incorporate company in Croatia and then buy a realestate on company name. In that case you don’t need a consent from Ministry of Justice.
  • If you are non-EU citizen and you want to rent out your real estate then it is advisable to incorporate a company in Croatia and rent a realestate through the company.

Purchase of land and real estate is exempt from VAT and is subject to 5% transfer tax, paid by a buyer.

BUSINESS VISA

Do you want to own a company in Croatia and work and live here?

For citizens of non-EU and non-EEA countries:
  • Citizens of the countries that need visa to enter Croatia should apply for Travel visa first in nearest embassy to come in Croatia and start formation procedure.
  • In order to own a company in Croatia and be employed in it as Director, company must have base capital of 200,000 HRK (around EUR 26,500) and at least 3 Croatian citizens should be employed.
  • If you do not own a company but you will be the Director, company must have base capital of 101,000 HRK (around EUR 13,300) and at least 3 Croatian citizens should be employed.
  • After company is registered, and 3 Croatian citizens are employed we can submit on your behalf through POA application for Temporary Residence. Waiting period for approval is around 45 days.
  • Director’s salary should be at least high as average salary in Croatia for previous year.
If you need assistance through business visa application process contact us and we will lead you the way.

TAXATION IN CROATIA

Corporate tax
Corporate income tax rate is 20%. The corporate income tax base is the accounting profit adjusted for deductions and disallowed items. Expenditures are considered to be expenditures if they are related to the taxpayer's business activity.


Value Added tax (PDV)
Being an EU member state Croatia falls under the EU VAT regime meaning that it has adopted EU VAT Directives into their own legislation.

  • Standard VAT rate is 25 %.
  • Reduced rate of 13% applies to all tourist accommodation services and catering services.
  • Some services are VAT exempt, e.g. insurance and financial services, medical services, education, welfare etc.
  • VAT registration is compulsory when the annual turnover exceeds HRK 230,000.

Croatia Real Estate Transfer Tax
Purchase of land and real estate which is exempt from VAT are subject to 5% transfer tax.

Contact now an expert about opening a company in Croatia!

 

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