Foreigners in Croatia have several ways of doing business and set up companies, among which a branch is a representative one. The registration process of a branch in Croatia is easy, with less bureaucracy and fewer formalities. Investors from abroad can benefit from the services offered by our experts in company formation in Croatia who can also handle the requirements for establishing a branch in this country.
| Quick Facts | |
|---|---|
| Applicable legislation |
For foreign countries |
|
Best used for |
– banking, – financial operations, – insurance |
|
Minimum share capital |
No |
| Time frame for the incorporation (approx.) |
Around 2 weeks |
| Management |
Local for non-EU companies |
| Legal representative required |
Yes |
| Local bank account |
Yes, but not mandatory |
| Independence from the parent company | No |
| Liability of the parent company | Full liability on the branch office's debt and obligations |
| Corporate tax rate | 18% |
| Possibility of hiring local staff | Yes |
Table of Contents
What is a branch in Croatia?
A foreign company may choose to perform business activities on Croatian territory through a branch that is not considered a legal entity and all its actions are controlled by the parent company which has full liability on it. Certain conditions have to be accomplished before registering a branch with the Croatian Chamber of Commerce in 2025:
- the parent company must be legally registered in the country of origin and proof of its existence must be available;
- the branch can be represented by an appointed agent with residency in Croatia;
- a guarantee that the investor wants to open a branch under the same circumstances as the parent company;
- the branch needs to respect the rules and regulations of the Croatian Companies Act.
How can I register a branch in Croatia in 2025?
The registration of a branch in Croatia in 2025 is made based on a notarized application that contains:
- the name and registered office of the parent company that intends to set up a branch in Croatia;
- the name and the registered office of the branch in Croatia;
- the type of business performed by the parent company and the branch;
- if the parent company is based on a share capital, details about the amount of this capital need to be provided;
- if it’s a partnership, the name and details of the general partners must be mentioned;
- the name and details of the branch’s appointed representative in Croatia.
The documents containing information about the registration date of the parent company, the decision of incorporating a branch, the articles of association or the memorandum of association of the foreign company, the previous year’s balance sheet of the parent company need to be translated into Croatian. The above -mentioned documents must be deposit at the Croatian Chamber of Commerce. Any action performed by the branch before registration is considered void.
Pleas explore this infographic with information about branch registration in Croatia:
Can I open more than just one branch in Croatia?
Yes, if a foreign company decides to open more than one branch in Croatia, it must apply for registration for each one of them and it has the obligation to nominate a representative in each of these branches. In special circumstances, the same person may be nominated for all these branches. Our company formation agents in Croatia can help foreigners establish a branch in Croatia in 2025.
Accounting requirements for branches in Croatia
The Croatian Accounting Act and the International Accounting Standards stipulate that the branches must keep records of the financial transactions, just like other registered companies in Croatia. Also, a bank account must be opened in order to perform financial operations and to deposit the initial capital. It’s the foreign company’s responsibility to open these bank accounts.
If you are interested in accountants in Croatia, you have the support of our experienced team. This service involves a series of procedures related to the payment of taxes related to salaries, as well as the distribution of the respective incomes, according to the internal regulations of the company. It is good to know that our specialists use different programs, with the help of which the payment states are established, depending on the working hours, medical, rest, maternity leaves, etc.
Obligations of a branch in Croatia
Regardless of the operations involved in a branch, such an entity will have to comply with the requirements imposed by the Commercial Code and the Company Act in Croatia. We remind that the local legislation presents the same rights for both domestic and foreign investors who decide for business in Croatia, whether it is a branch or a subsidiary. You are invited to watch the video presentation we prepared:
Differences between branches and subsidiaries in Croatia
A branch is fully dependable on the foreign company, compared to subsidiaries which are independent legal entities in Croatia. In other words, the parent company is liable for the obligations and debts encountered by a registered branch in Croatia. A subsidiary, on the other hand, is completely liable for the gains and losses in the firm. As for the mutual advantage of such entities, we mention that the registration process is subject to fewer formalities and it respects the same rules and regulations as for opening a company in Croatia (LLC, joint stock, sole proprietorship).
The benefits of branches in Croatia
Among the benefits of branches in Croatia, we mention that the operations can be established in a wide range of prolific business sectors, among which the banking field is a very important one. Also, it is good to know that the registered losses of a branch in Croatia can be compensated by the profits of other similar branches established in other countries. As for the profits of branches in Croatia, these can be reinvested in the company’s equipment or in any other field of interest.
FAQ about branches in Croatia
Here are some frequently asked questions about branches in Croatia:
The registration process is the same as for a normal company if all the requirements about the needed documents are properly prepared and submitted to the authorities in charge.
Yes, the registered business office will represent the branch’s main office in Croatia.
Yes, foreign companies can establish more than just one branch in Croatia, as long as it appoints one of them as the main branch.
The Croatian Chamber of Commerce is the institution that solicits all the necessary documents for opening a branch. If the documents are in the right order, the Chamber of Commerce in Croatia will issue the necessary approvals for establishing the branch.
Yes, a branch cannot be formed without appointing a representative agent with residency in Croatia. We remind you that you can also talk to our specialists in company formation who can also represent your branch office in Croatia.
No, a branch is not an independent legal entity like a subsidiary is. The parent company is fully liable for the operations and activities of a branch in Croatia.
All foreign companies who decide on Croatia as the proper business climate for their affairs can establish branches in this country. Such an entity can be registered in complete agreement with the provisions of the most important set of laws in Croatia: the Company Act and the Commercial Code.
No, a director is sufficient for establishing a branch in Croatia. The manager will be appointed by the owners and will have a series of business activities in the company.
Approximately one week is necessary for registering and opening a branch in Croatia. Feel free to address to our team of company formation agents in Croatia and find out more about the necessary documents for opening a branch or a subsidiary in Croatia.
No, a branch cannot develop other operations than the ones imposed by the foreign company. We remind that all the activities are mentioned in the documents of the newly established branch in Croatia.
Croatia’s economy in numbers
If you want to establish your business presence through a branch in Croatia, the following data about the country’s economy could help you make an important decision:
- GDP growth in Croatia was around 3.1% in 2023. This was largely supported by a wide range of investments, alongside household consumption.
- In Croatia, economic growth was recorded at around 4% in Q4 and at around 3.9% in Q3 of 2024.
- Also in 2024, there was an increase in average salary of around 32%.
- All 3 leading global rating agencies have raised the credit ranking of Croatia to the A category.
- According to estimates, Croatia’s economic growth of around 3.3% is expected in 2025.
For more details about setting up a branch in Croatia, you may contact our specialists in company incorporation in Croatia. We assist international investors in setting up a company in Croatia in a fast and reliable manner.