If you want to set up a sole proprietorship in Croatia, this article helps you create a clear picture of the process. You may explore the following information and then get in touch with our Croatian agents for assistance in business registration.
| Short Facts | |
|---|---|
| Who can act as a sole trader in Croatia? | Any local or foreign citizen who wants to do business on his/her own in Croatia. |
| Also known as | OBRT |
| Registration is done with | Croatian Trade Register |
| Name requirements | Must be verified first and then reserved |
| What is OIB | The ID attached to the sole proprietorship in Croatia |
| Bank account | Separate from the personal one |
| Registration conditions | – complete a standard application form, – provide a valid ID/passport, – register for taxation, – provide a rental contract, – apply for a business license. |
| Can hire staff | Possible |
| Cost for establishing a sole trader | From EUR 1,800 |
| VAT registration | If exceeding EUR 60,000 as annual turnover |
| Can issue invoices | YES |
| Accounting recommendations | – maintaining income/expense records, – filing personal income tax on a quarterly/annually basis |
| Business insurance | Recommended |
| Tax deduction for sole traders in Croatia | For office rental, equipment, utilities, etc. |
| Costs for opening a sole trader in Croatia | Lower compared to opening a limited liability company in Croatia. |
| Working with our Croatian agents | For sole proprietorship registration with the local authorities. In-depth company formation services are offered to our clients. |
Table of Contents
How is a sole proprietorship known in Croatia?
OBRT. This is the simplest business structure available in Croatia.
Who can establish a sole proprietorship in Croatia?
Any EU and non-EU entrepreneur who wants to start activities in Croatia.
NOTE: Non-EU residents must obtain a residence permit first.
What is the cost of your package for sole trader formation?
Our company formation package for a sole trader starts from EUR 1,800. The amount is exclusive of VAT and official fees; notarial costs and certified translations are charged separately at actual cost.
Are there any specific types of OBRT in Croatia?
Yes, these are:
- Tied craft,
- Seasonal sole trader,
- Income tax sole proprietorship,
- Free craft,
- Privileged craft,
- Profit tax sole proprietorship, etc.
Here is an infographic with details to explore on this topic:
Is a minimum share capital needed for a sole trader in Croatia?
No.
What are the documents needed for opening a sole proprietorship in Croatia?
- valid ID/Passport,
- OIB – the personal identification number,
- proof of registered business address in Croatia,
- proof of professional qualifications,
- details about the business activities, etc.
Where do I register a sole trader in Croatia?
At the Croatian Crafts Chamber and at the local State Administration Offices.
NOTE: Online registration is highly recommended. Our specialists in company formation in Croatia can represent clients in online and in-person registration of a sole trader.
Do I need to register for VAT as a sole trader in Croatia?
- yes, if you exceed the EUR 40,000 annual threshold.
- 25% is the standard VAT rate in Croatia.
What is the taxation of sole proprietorships in Croatia?
There are two tax regimes available:
- flat-rate regime – Ranging between EUR 169 and EUR 900/year, plus monthly EUR 290 as social contributions
- standard income tax regime – 25%-33% for revenues exceeding EUR 60,000, plus EUR 472 for monthly social contributions.
IMPORTANT: Accounting services are recommended. We can put you in contact with our local specialists.
Can I hire staff when opening a sole trader in Croatia?
Yes. You will have to pay attention to the Labor Law in Croatiaand respect the rules imposed.
What is the time frame to register an Obrt in Croatia?
A few business days.
How can I be assisted when opening a sole trader in Croatia?
Our company incorporation specialists in Croatia can:
- prepare the documents,
- register the firm for taxation,
- open a bank account for your Obrt,
- provide you with a local business address or a virtual office, etc.
Ready to explore your business options in Croatia? Would you like to set up a sole proprietorship in Croatia? You are welcome to contact our specialists today and benefit from full support.