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Benefits of registering a company in Croatia

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Registering a company in Croatia in 2020

The advantages of this jurisdiction are: 

  • Actively developing economy;
  • Favorable territorial position;
  • Availability of free economic zones;
  • Access to the EU market;
  • Low tax rates.

Registration of a business – from €5,900

Company registration period – from 14 days

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If you have looked closely at this jurisdiction for a long time, intending to register a company in Croatia or open a corporate account with a Croatian bank, then in 2020 you will have better conditions for making such decisions.

Croatia is a country in southern Europe, located on the Adriatic coast. The Croatian Republic is a country with a steadily developing competitive economy. Among leading industries are: a chemical, a textile, a woodworking, electrical and electronic industries, a mining, an engineering, a shipbuilding, pharmaceuticals and a tourism.

The capital of the state is Zagreb. The official language is Croatian. The state currency is Kuna (HRK). The Croatian Republic is a member of the Council of Europe, the European Union and other major world organizations.

Key benefits of the jurisdiction

According to results of annual research by Doing Business magazine and the international organization Transparency International, in 2019, the Republic of Croatia ranked 28th in the ranking of “The Best European Countries for Doing Business”, 25th in terms of enforcing contracts and 1st place in international trade.

Also, it is worth noting, that registering a company in Croatia remotely will be an excellent solution, for several reasons:

  • a dynamic economic growth;
  • a stable socio-political situation;
  • a developed banking infrastructure;
  • the positive attitude of authorities towards foreign investment;
  • a favorable taxation system;
  • the relatively short period of obtaining a residence permit (2-3 months), a permanent residence (5 years);
  • a good ecology: the blue flag of UNESCO for the cleanest waters of the Mediterranean.

Do you want to register a Croatian company? In this case, the best ideas for investing in 2020 will be: residential real estate, a hotel business, a medicine, a shipbuilding, a production of building materials, electronics.

Main types of companies in Croatia

If you intend to set up a Croatian commercial firm, you will need to choose the most suitable type of legal form:

  • a Joint Stock Company (d.d.);
  • a Limited Liability Company (d.o.o.);
  • a Branch;
  • a Representation.

It is worth noting, that the most popular among foreign entrepreneurs is a Limited Liability Company (d.o.o.).

Business conditions

If you want to establish a company in Croatia as quickly as possible and without any questions, first make sure, that the following requirements are met:

  • A unique name in Croatian or Latin, with the obligatory ending in the form d.d. or d.o.o.;
  • The authorized capital of the company is from 20 thousand HRK;
  • The number of directors is at least one (only an individual, a non-resident);
  • The number of shareholders is at least one (legal entities are allowed);
  • Company participants are from one to several persons (individuals and companies, without restrictions on the status of tax residency);
  • Data on directors and shareholders should be entered an open register;
  • The presence of a local registered office;
  • An annual filing of financial statements.

It is worth adding, that when opening a company in Croatia, unequal contributions of the founders are acceptable, and there are no requirements for an annual audit.

Read also:
A taxation in Croatia

Those, who wish to register a company in Croatia remotely expect quite favorable conditions for business development, in particular, due to the low corporate tax rate of 18%. In special cases, for example, if the company's annual turnover is less than 3 million HRK, it is possible to reduce the income tax rate to 12%.

Resident companies pay tax on profits, made in Croatia and abroad, and non-residents (for example, branches) pay tax only on profits, made in Croatia. The tax base includes profits, arising from the liquidation, sale or change of a legal form.

In addition, pay attention, that a 5-year tax exemption is available in case of investing in the infrastructure of 13 free zones.

Other taxes in the country:
  • a VAT is 25% (a reduced rate is 13%, 5%);
  • dividends, interest are 12%;
  • a property tax is 5%;
  • an inheritance tax is 5%;
  • a personal income tax is 15-45%.
How to register a Croatian company?

If you are looking for an opportunity to quickly, profitably and completely legally register a company in Croatia, obtain a Croatian business license or open an account with a Croatian bank, then the best solution would be to contact IQ Decision specialists for help. Our lawyers will advise in detail on the selection of the most suitable legal form, provide a legal opinion on the analysis of the business scheme with European partners and suppliers, and complete all necessary documents as quickly as possible.

  • The information outlined in the article is actual at the time of its publication.

  • Please refer to our specialists for checking possible solutions for your business.

  • Still have any questions?

    Fill out the form or contact us as you find convenient: skype, telegram, etc. Our experts will help you resolve the issue.

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