January 01, 2024
To open a company in Croatia involves a series of legal steps designed to ensure that your enterprise operates in compliance with national regulations. Here’s a step-by-step guide to navigating the legal framework for establishing a business in Croatia:
Choosing the Legal Form of the Business
When you decied to open a company in Croatia, first choose on the type of business entity. Common forms include:
- Simplified Limited Liability Company, suitable for small businesses.
- Limited Liability Company, preferred by many entrepreneurs due to its structure and limited liability.
- Joint Stock Company, ideal for large businesses with the intention to trade shares on the stock market.
Preparing the Founding Documents
Draft the necessary founding documents, which typically include the Articles of Association or a Decision on Establishment (for single founders). For a d.o.o., a notary public must notarize the signatures on the founding documents.
Registering the Company with the Commercial Court
Submit the application for registration to the Commercial Court’s registry (Trgovački sud). This process includes registering the company’s name, its business address, details about the founders, and the scope of business activities.
Obtaining an OIB (Personal Identification Number)
Every company in Croatia needs to obtain an OIB for legal and tax purposes. This can be done simultaneously with the registration at the Commercial Court.
Opening a Corporate Bank Account
After receiving the court’s decision and OIB, open a corporate bank account. A minimum capital is required, depending on the type of company:
- For a j.d.o.o., the minimum capital is 1 EUR.
- For a d.o.o., the minimum capital is 2500 EUR.
Registering with the Tax Authorities
Register your business with the Tax Administration to obtain a VAT number if your company’s turnover is expected to exceed 60.000 EUR in a calendar year. Even if not mandatory, voluntary VAT registration can be beneficial.
Registering Employees
If your business will have employees, register them with the Croatian Health Insurance Fund (HZZO) and the Croatian Pension Insurance Institute (HZMO).
Obtaining Necessary Permits and Licenses
Depending on the type of business activities, various permits and licenses may be required. These can range from safety permits to industry-specific licenses.
Reporting and Compliance
Ensure compliance with all legal and financial reporting requirements. This includes annual financial statements, tax returns, and other regulatory filings.
Data Protection Compliance
If your business will process personal data, ensure compliance with the General Data Protection Regulation (GDPR) and the Croatian Personal Data Protection Act.
The process of starting a business in Croatia is structured to streamline legal and administrative procedures. However, it is advisable to seek legal counsel to navigate the specifics pertaining to your business sector, ensuring compliance with all local and EU regulations. Engaging with legal professionals can provide valuable guidance through each step, helping to mitigate risks and laying a strong foundation for your business venture.
If you are abroad, find out here how to open a Company in Croatia remotely.
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