A Croatian holding company is a legal enterprise that controls the policies and management of other companies. A foreign investor can expand his/her business activity in Croatia by acquiring enough stocks or assets from a Croatian company. A guide through the entire process of creating a holding company can be provided to you by our specialists in company formation in Croatia.
| Quick Facts | |
|---|---|
| Legal entities used | Private Limited Liability Company, Joint-Stock Company |
| Incorporation method | With the Trade Register |
| Incorporation time | Around 15 days |
| Advantages | Taxation, fast incorporation, low maintenance costs |
| Precautions | Legal address in Croatia needed |
| Shareholding structure | At least 1 shareholder |
| Minimum Capital | HRK 20,000 |
| Taxation | No withholding tax on annual distributions to shareholders |
| Control | Foreign ownership available |
| Accounting and Reporting | Standard regulations, no audit required |
| Number of double taxation treaties | 66 |
Table of Contents
Types of holding companies in Croatia
There are varied types of holding companies available for businessmen looking to extend their activity in Croatia. Here are some of them:
- The intermediate holding company channels investments made by the controlled companies and has no staff or management activities.
- The ultimate holding company has complete control over the subsidiaries and their assets and it’s normally owned by a sigle owner or group of legal entities. The employees are supervising the activity of all companies under the control of a holding company in Croatia.
- A financial holding company holds stakes and assets in banks and/or other financial institutions.
- The intellectual property holding company controls and holds the intellectual property assets, like trademarks, patents, and licenses.
A Croatian holding company can also hire and dismiss managers, without being responsible for the management decisions made by the directors. A holding company does not manage the day-to-day operations of the Croatian companies it encompasses, but it still holds the right to evaluate their business performance. Detailed information about the advantages of a holding company can be given to you by our agents in company registration in Croatia. They can also help foreigners register vor VAT.
Documents required for opening a holding company in Croatia
Completing a standard form to enter the court register is the first step in incorporating a holding company in Croatia. In addition, the following are also required:
- Articles of Association signed by founding members,
- A decision appointing the board members,
- Management board and directors’ signatures,
- Documents comprising details about the holding company address in Croatia.
- ID/passports in the care of foreigners opening a holding company in Croatia.
Documents can be filed with the Croatian Court Register with the help of our specialists in company formation, which will then be forwarded to the commercial court for approval and decision.
It is worth noting in this case that all documents for forming a holding company in Croatia must be presented in a certified form by a notary public. In the case of those in a language other than Croatian, a certified translation will be required. If you need representation in opening a Croatian holding company, we are at your disposal with full services. We can also put you in touch with our partners for the notarization/legalization of documents or other legal matters.
Advantages of a Croatian holding company
A holding company in Croatia presents various business benefits compared to other types of companies. Here is a list of the main advantages of a Croatian holding company:
- Zero withholding tax on annual distributions to shareholders;
- Limited financial and legal liability;
- No corporate income tax on annual net profits;
- Access to the financial benefits of double taxation treaties;
- Protection for the investor`s assets;
- The possibility of selling a Croatian subsidiary while legally minimizing capital gains;
- Raising funds, using debt instruments and private equity.
About Croatia’s economy in a few lines
Opening a holding company in Croatia can be a good business decision for both local and international entrepreneurs. Croatia continues to perform on the parameters and is among the European countries with the highest economic growth in recent years. Here are some details in this regard:
- The Croatian GDP of around 3.1% registered in 2023 was mostly sustained by household consumption and various investments.
- About 4% was the economic growth in Croatia in Q4 in 2024, while about 3.9% was registered in Q3 of the same year.
- An economic growth of around 3.3% in 2025 in Croatia is estimated.
- On the other hand, the credit ranking of Croatia was raised to the A category by all top global rating agencies.
If you want to set up a company in Croatia, it would be good to consider other services. For example, you can opt for our team of accountants in Croatia and choose the services necessary for the company you own. Among these, payroll in Croatia is extremely necessary for the company. But more details about our services of company incorporation in Croatia can be provided to you if you contact us.