Companies from abroad have two important options for placing their activities in Croatia, as branches or as subsidiaries. Establishing a subsidiary in Croatia is subject to easy incorporation with the institutions in charge, and furthermore, the entire procedure can be assisted by our team of specialists in company formation in Croatia. Regardless of the type of business you intend to open in Croatia, our advisors can provide you with the necessary information and guidelines.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) |
Croatian Company Law |
|
Best used for |
– financial and insurance activities, – banking, – IT |
|
Minimum share capital |
Yes |
| Time frame for the incorporation (approx.) |
Around 2 weeks |
| Management (local/foreign) |
Local |
| Legal representative required |
Yes |
| Local bank account |
Yes |
| Independence from the parent company | No |
| Liability of the parent company | Each subsidiary is liable for its debts and obligations |
| Corporate tax rate | 18% |
| Possibility of hiring local staff | Yes |
Table of Contents
Who can set up subsidiaries in Croatia?
All foreign companies with extensive activities in the home country can decide on Croatia for opening a subsidiary. Such an entity can run under the rules of a limited liability company which can be established private or public, depending on the activities, and the minimum share capital that needs to be submitted at the time of registration.
Founders of subsidiaries in Croatia are liable for the obligations and activities of the structure. Subsidiaries in Croatia can set up operations under the name of the parent company or another one, depending on the business plans for this country.
How can a subsidiary be opened in Croatia in 2025?
Opening a subsidiary in Croatia in 2025 requires a good knowledge of the Commercial Law of this country and a minimum share capital that has to be deposited before starting the business. A subsidiary is a company registered in Croatia but beneficiating from foreign capital, as a separate legal entity. The advantages of owning this type of business are numerous, especially from a tax point of view; thanks to the vast network of double tax treaties, a subsidiary registered in Croatia must pay taxes on profits only in the country of origin and minimized taxes on dividends paid to those countries.
Please explore this infographic with details about subsidiaries in Croatia:
Information is comprised by the Articles of Association of a subsidiary in Croatia
The Articles of Association are the main documents of a subsidiary in Croatia which comprise complete information about the parent company which intends to set up such entity, the purposes and the activities of the subsidiary, the name of the representative agent, the board of managers, the capital contribution, the responsibilities of each member that forms the entity, and details about business address and the date of incorporation.
We remind you that your company in Croatia can be represented by our team of company incorporation representatives in Croatia who can act on behalf of your firm, in compliance with the applicable legislation. One of our specialists can tell you more about how to register a subsidiary in Croatia in 2025.
Do I need a representative for my subsidiary in Croatia?
Yes, a subsidiary in Croatia must have a representative which can be a natural person or a company registered in this country. Legal assistance is also recommended at the time the subsidiary is incorporated in Croatia, in order for foreign entrepreneurs to skip any misunderstandings regarding the legal requirements for business. You can also ask for legal advice from our local team of lawyers in Croatia when establishing a subsidiary in Croatia.
Subsidiaries registered in Croatia can have their own brand because there are no restrictions in this sense. This allows international entrepreneurs to establish workplace business customs.
How much does it take to register a subsidiary in Croatia in 2025?
The registration of a subsidiary in Croatia in 2025 takes around one week and consists in the following steps: first of all, the company must be sure that its name is unique and not similar to one already registered. The articles of association must be notarized and then submitted to the Commercial Court. The registration is made electronically and takes around two days. As a result, the company will receive a certificate of registration.
Every company registered in Croatia must have a statistical number so the application for this number is the next step. This is based on the certificate of registration and the application is accepted in one day. The following steps are also part of the registration procedure for a subsidiary in Croatia:
- the company seal must also be obtained in order to be used in the daily subsidiary’s operations;
- a bank account for the company must be opened and the minimum share capital must be deposited;
- registration at the tax authority for VAT and employee income tax is the next step;
- enrolling at the Croatian Pension Insurance Fund is necessary at the time of incorporation.
Additionally, you can watch the following video presentation on this topic:
The corporate tax for subsidiaries in Croatia
Subsidiaries in Croatia are treated like any local company from a taxation point of view. This means that the corporate income tax needs to be observed, and in Croatia, this is set at an 18% rate. Foreign entrepreneurs should know that the dividends in Croatia are not subject to taxation, however, a withholding tax is imposed, except for the dividends which are paid to a resident company.
Let us remind you that our team of advisors is at your disposal with complete accounting services and tax management if you decide on opening a subsidiary in Croatia.
3 essential aspects of subsidiaries in Croatia to consider in 2025
Although the process of incorporating a subsidiary in Croatia is quite simple, entrepreneurs, through the company representative, must take into account the verification of the business name with the Croatian Trade Register. Once verified and accepted, the business name can be reserved.
A second important aspect regarding the opening of a subsidiary in Croatia is the fact that the liability of shareholders is limited to the capital contribution in the firm, both for private and public limited liability companies.
A third essential aspect of subsidiaries in Croatia is the permissiveness in creating their brand and developing other activities too, plus implementing their own business customs.
Making investments in Croatia
The strategic geographic location of Croatia represents a great plus in the eyes of foreign investors looking for business formation. In addition, the country provides excellent infrastructure, permissive legislation related to foreign investments, an experienced and multilingual labor force, a great business climate with competitive operational expenses among the countries from the EU, and varied tax incentives for foreign and local entrepreneurs. Many subsidiaries are activating in sectors like the textile, food industry, pharmaceutics, telecommunication, and many more. Choosing Croatia for business as a foreign investor means taking advantage of an appealing business climate among other things.
Entrepreneurs looking for a team of accountants in Croatia can discover our personalized services. More about how to set up a company in Croatia can be found if you may contact our experts in company incorporation in Croatia.