1. Who can register company in Croatia?
Every individual as well as the legal entity can register a company in Croatia; as well as foreign nationals and foreign corporations (providing they have clear or no history with Croatian legal and tax authorities).
2. What is the most common form of incorporating a company in Croatia?
Most common form of incorporating a company in Croatia is a Limited Liability Company- LTD (in Croatian - d.o.o.)
3. Can a foreign corporation form a subsidiary company in Croatia?
Yes, a foreign corporation can form a subsidiary company in Croatia that will act as separate legal entity operating under the Croatian legislation.
4. What documents need to be presented for incorporating LTD company in Croatia?
You need to present following documents for incorporating LTD company in Croatia:
- valid ID card or passport for foreign citizens (photocopy but you will still need to present the original documents)
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proof of the starting capital of 20 000 HRK paid in onto temporary account
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name for the company (acceptable only in Croatian or Latin language)
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upon the above mentioned documents, your lawyer and the notary will prepare the contract for the trade court and all other documentation needed.
5. Is there a minimum number of shareholders when incorporating LTD company in Croatia?
No, a Croatian LTD company can have one or more shareholders.
6. What is the minimum starting capital for LTD company in Croatia?
Minimal share capital in Croatia is 20.000 HRK (approx. 2.700 EUR) which is recovered after the incorporation of the company.
7. What are the other costs for incorporating LTD company in Croatia?
Additional costs are:
- solicitor's fee,
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registration tax with the county Commercial Court
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notary fee
8. How long does it take for the company incorporation to be complete?
On average 10 working days but allow period of 3 weeks.
9. When can the company claim refund on the VAT paid for the property purchase?
When the property was purchased from the Croatian corporation for commercial use, a VAT can be deducted from the company's next VAT obligation. Since the VAT has been paid for in the purchase price of the property, the next VAT statement will be prepaid for 23%. The company can then decide if it wants to withdraw the amount overpaid or use it for the future VAT payments. In case that company decides to withdraw the overpaid VAT, local Tax authority will conduct a brief inspection and finally credit the company's bank account with the overpaid VAT amount. The VAT can not be recycled for properties purchased for residential use.
For more information on company incorporation, VAT and taxes in Croatia contact us by email
