Company Registration in Croatia


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Uploaded on May 2, 2020

Category Business

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Category Business

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Company Registration in Croatia

COMPANY REGISTRATIONS IN CROATIA INCORPORATION IN CROATIA  Croatia is located in South East Europe and borders the Adriatic Sea. It also borders Bosnia and Herzegovina and Slovenia and serves as a crossroad of Central Europe.   The main sector of Croatia’s economy is the service sector, followed by the industrial sector and agriculture. Tourism is a major source of revenue during the summer, with Croatia ranked the 18th most popular tourist destination in the world. ...CONTD.  The Croatian government encourages foreign company formation in Croatia and offers important incentives for developing the business environment. ADVANTAGES OF INCORPORATION IN CROATIA  Easy to incorporate. Easy incorpor  Low industrial and - ware housing space ation cost. Low Access industria to EU l costs Countrie  Great infrastructure. Advantag s es  Access to other countries of EU. Great Rich in Infrastru Natural  Rich in oil, natural - Resourc cture es gas and hydrocarbon resources. DISADVANTAGES OF INCORPORATION IN CROATIA  Limited market Limited opportunities. Market Opportu  Country under public debt. - nities  Document approval is Commu Public ni- hard. Debt cation Disadvantag issues  Most of the people do not es speak English; therefore, Corrupti communication may harm Hard docume on & nt Political the business approval Instability  Corruption and political instability. WHAT ARE THE REQUIREMENTS FOR INCORPORATION IN CROATIA?  One Shareholder, who may be a foreigner and not residing in Croatia.  One Director, who may be a foreigner and not residing in Croatia.  A minimum paid-up capital of 2,500 Euros. This minimum paid-up capital amount must be paid before the registration of the company. WHAT TYPE OF COMPANIES ARE BEST SUITABLE FOR CROATIA?  Croatia is highly suitable for Manufac- manufacturing companies, turing Compani es because of the low manufacturing costs and access to European Best markets. Suitable Compani es  A tourism-oriented company may also be highly suitable as the number of tourists have also boomed in the Tourism Company recent years. DIFFERENT TYPES OF COMPANIES IN CROATIA  There are two different type of companies that can be established in Croatia.  Firstly, you can establish a Limited Liability Company(Drustvos Ogranicenom Odgovornoscu – DOO) in Croatia.  Secondly, you can start a Joint Stock Company (Dionicko Drustvo – DD) in Croatia as well. FEATURES OF LIMITED LIABILITY COMPANY  The minimum amount of the original stock is HRK 20,000 Types of Companies (approx. EUR€ 2,700). Limited Joint Stock  This must be paid Liability before the Company Company company is registered. FEATURES OF JOINT STOCK COMPANY  The Joint Stock Company can be founded by one person only.  The founder is liable with all of its property.  The shareholders are not liable for the company.  Minimum amount of the original stock is HRK 200,000 (approx. EUR€ 27,000).  The company can issue denominated shares or non-denominated. The denominated value of the share cannot be lower than HRK 10 (approx. EUR€ 1.35). PROCEDURE FOR INCORPORATION IN CROATIA 1. Check the court registry for a company name. 2. Take a temporary seat of the company for the first 12 months. 3. Draft all necessary documents for establishing a Ltd company with a minimum share capital of 20,000,00 Kuna and 1 shareholder. 4. To carry forward the procedure, you need to present before the public notary, commercial court, and other relevant bodies. ...CONTD. 5. Obtain a statistical (tax) registration. 6. Obtain a company stamp for your Croatian company. 7. Open a bank account. 8. Find an accountant in Croatia. CONCLUSION Therefore, we can conclude by saying that Croatia provides us with a great opportunity for investment in the sectors of tourism and manufacturing. Also, the country has several laws that prove to be of great benefit to the investors and incorporators.