Establishment of companies and subsidiaries
After decision of starting a business in Croatia was made, new questions appeared.
How to start a business?
Which legal form of company (Joint Stock, LLC, simple LLC, sole traders) is best for my business?
What are the costs of opening a company?
What fixed costs can I expect in the first year of operation?
Do I need to have an address to open a company?
Do I need to have any employees?
What is the proccess of opening a branch company?
Do I need a work permit to work in Croatia?
How to get a work permit?
These are just some of the common questions. A foreign investor, under the condition of presumed reciprocity, establishes or participates in the establishment of companies in the Republic of Croatia, acquires rights and assumes obligations in them under the same conditions and has the same position as a domestic person.
However, foreign companies and foreign individual traders may not permanently perform activities in the territory of the Republic of Croatia until they establish a branch office. Performing an activity is not considered, for example, occasional or one-off activities, i.e., carrying out a particular job (the notion of freedom to provide services in accordance with the acquis).
„Establishing a company requires the fulfillment of certain conditions. They differ depending on the legal type of the company and whether the founder is a citizen of the European Union or a citizen of so-called third countries.“
TT Ekonom is all-in-one solution if you want:
• to start a business in Croatia and to have success with them
• professionals who will do the paperwork and bureaucratic work for you
• have accounting and bookkeeping in accordance with Croatian laws
The process of opening a company can be briefly summarized in the following steps:
✓ MEETING AND CONSULTATIONS
✓ APPLICATION FOR OIB (PERSONAL IDENTIFICATION NUMBER)
✓ PREPARATION OF DATA AND DOCUMENTATION
✓ STARTING THE PROCEDURE OF OPENING A COMPANY
✓ COMPANY REGISTRATION
✓ OPENING BANK ACCOUNT
✓ SETTING UP ACCOUNTING AND STARTING A BUSINESS
ESTABLISHMENT OF A COMPANY JOINT STOCK COMPANIES
(D.D. companies) Foreign investors may acquire ownership and shares in joint stock companies.
The minimum amount of share capital for establishing a joint stock company is HRK 200,000, where the nominal value per share may not be less than HRK 10.
LLC (d.o.o. companies)
The minimum share capital for establishing a limited liability company is HRK 20,000, where the nominal amount of a business share may not be less than HRK 200. Before registering a company in the court register, every founder must pay at least one quarter of share capital in cash, where the total amount of all payments in cash may not be less than one quarter of the share capital.
SIMPLE LLC (j.d.o.o.)
The company with a maximum of five members and one member of the management board may be established in a simplified manner as a simple limited liability company. The minimum amount of share capital of such a company is HRK 10.00, and the lowest nominal amount of the business share cannot be less than HRK 1.00. To establish this type of company, incorporation must be in the form of minutes drawn up by a notary public, which such minutes become annexes to the Articles of Association.
Establishing a Branch Office (Subsidiary)
Companies may have branch offices outside their registered seat in which they perform their activities. A branch office is not a legal entity. The branch office is established by decision of the competent company body in accordance with the articles of association or company contract.
The decision to establish a branch office must be notarized. Branch offices operate under their own company and should state their registered office and the registered office of the founder. Their operations do not create rights and obligations for themselves, but those rights and obligations are acquired by the founder of the branch office.
Foreign companies and individual traders may also operate in the Republic of Croatia through a branch office, whereby the same regulations apply to their establishment and registration as for branches established by domestic companies.
„TT Ekonom represents the first choice of accounting and consulting services by US, EU and other clients in the area of Split, Dalmatia and southern Croatia.“
We assist and advise when setting up a company, we guide you carefully through each phase of starting a business, and after setting up a company we support you with accounting, bookkeeping and tax consulting services.
Simplifed & effective services
We offer simplified monthly accounting, bookkeeping, payroll and tax reports and statements to provide a quick and accurate picture of your business activity.
If you have any questions, or would like to speak to us in person, please do get in touch. We’re here to help.
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