Setting Up a Company in Croatia
Company Types in Croatia
This form of company corresponds to a limited liability company. The minimum share capital is HRK 20,000, although citizens of non-EU countries must pay in HRK 200,000.
This form of company corresponds to a joint-stock company. The minimum share capital is HRK 200,000.
This form of company corresponds to a general partnership.
This form of company corresponds to a limited partnership.
Taxation in Croatia
We have prepared an article for you on taxation in Croatia
Corporate income tax is charged at 18%; however, where turnover does not exceed HRK 3 million (approx. €400,000), the rate is 12%. Dividends are taxed at 12%, but only above HRK 12,000.
The standard VAT rate is 25%.
Fees for the registered office and the companies register are payable every year.
Form and fees
Setting Up a Company in Croatia
Croatia is best known for its coastline and tourism, but its economy offers opportunities in many other sectors, including logistics, technology, food production and property. As a member of both the European Union and the euro area, Croatia offers a familiar framework for businesses from other EU countries. Understanding local procedures helps make the process of forming a company smoother.
Choosing a Legal Form
The limited liability company, known locally as d.o.o., is the most common form for small and medium-sized businesses. A simplified version, j.d.o.o., is also available for smaller ventures, with lighter capital requirements but certain restrictions. For larger businesses, a joint-stock company may be appropriate. Partnerships exist as well, but they involve personal liability.
Steps in the Process
- Checking the availability of the company name
- Preparing the founding documents, usually with a notary
- Obtaining a personal identification number for foreign founders and directors
- Paying in the share capital
- Registering the company with the court register
- Registering for tax and, if required, VAT
Euro Adoption
Croatia adopted the euro at the beginning of 2023. Older information may still quote amounts in kuna, so make sure you are working with up-to-date figures in euros when planning capital, fees and taxes.
Tax and Accounting
Croatian companies are subject to corporate income tax, VAT and other obligations. The rate of corporate tax may depend on the company’s revenue, and dividends may be subject to withholding tax. Because rules have changed in recent years, always check the current position before making decisions.
Tourism and Seasonal Business
Many foreign entrepreneurs in Croatia are involved in tourism, such as renting accommodation. These activities can have specific registration and tax rules, so seek advice before starting.
Language and Documents
Official procedures are conducted in Croatian, and foreign documents usually need legalisation and translation.
If you are considering a company in Croatia, contact eTuls. We can help you choose the right structure, prepare the documents and guide you through registration.