If you are a foreign entrepreneur looking to open a holding company in Croatia, this article outlines the key steps for incorporation. You may explore this page and also access our online services to start the registration process for this business structure, guided by our specialists in the field.
| 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
What is a holding company, and who can set up one in Croatia?
Foreign and local businessmen can set up holding companies in Croatia to own shares in subsidiaries, intellectual property, receive dividends, and participate in corporate groups for various business decisions.
Can a group of assets be managed through a holding company in Croatia?
Yes.
Are there any restrictions on foreigners opening holding companies in Croatia?
No, everyone can set up a holding company in Croatia.
Please also explore this infographic with information about holding companies in Croatia:
What is the optimal legal entity to set up a holding company in Croatia?
The limited liability company; however, the joint stock company is also a proper business entity for opening a holding company in Croatia. Simple administration and flexibility are appreciated when opening such a business structure.
Can foreign entities establish holding companies in Croatia?
Of course.
How many shareholders are required to start a holding company in Croatia?
At least 1.
How many types of holding companies are available in Croatia?
- 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 its subsidiaries and their assets, and is typically owned by a single owner or a group of legal entities. The employees supervise the activities of all companies under the control of a holding company in Croatia.
- financial holding company holds stakes and assets in banks and/or other financial institutions.
- the intellectual property holding company controls and holds intellectual property assets, such as trademarks, patents, and licenses.
What are the main conditions to start a holding company in Croatia?
- deposit the minimum share capital of EUR 2,500 for an LLC in Croatia in a local bank account,
- prepare and submit the incorporation documents of the holding company,
- obtain the tax ID (OIB in Croatia),
- implement the Anti-Money Laundering and Know Your Customer policies, etc.
NOTE: Foreign documents must be translated and notarized before submission to the Commercial Court in Croatia.
Do I need to travel to Croatia to open a holding company?
Not required. We can manage the formalities via a power of attorney on behalf of our customers.
What are the benefits of holding companies in Croatia?
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.
If you want to set up a company in Croatia, it’s worth considering additional services, including for holding enterprises. For example, you can opt for our team of accountants in Croatia and choose the services your company needs. Among these, payroll in Croatia is extremely necessary for the company. However, we can provide more details about our company incorporation services in Croatia if you contact us.