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Set up Limited Liability Company in Croatia

Set up Limited Liability Company in Croatia

Foreign investors can set up companies in Croatia with fewer formalities and less bureaucracy, in agreement with the laws governing this country. Our company formation agents in Croatia are at your disposal with complete information about how you can open a limited liability company in Croatia or any other business structure in this country.

What is a DOO in Croatia?

A DOO in Croatia defines as a limited liability company, that is called Drustvo s Ogranicenom Odgovornoscu. Limited liability companies in Croatia are the most common structures used for businesses, especially by small-sized companies, due to their simple incorporation procedure in Croatia. The minimum share capital which must be provided in order to set up a limited liability company in Croatia is EUR 2,500.

The contribution can be made in cash, material goods, or commercial rights. The initial capital must be deposited in the national currency of Croatia. As for the owners of a DOO, one or more shareholders can set up a limited liability company in Croatia. They can be individuals or corporations and they can have any foreign citizenship or residence. Shareholders’ liability is limited when it comes to the company’s debts and obligations and it is extended up to their own contributions. Our company formation agents can help foreigners open a DOO in Croatia in 2024.

Even though an LLC is quite easy to register, in the case of foreign businessmen, the authorities might ask for extra information, like if they have connections in Croatia, business plans, or any related information.

We can help foreign entrepreneurs open a company in Croatia, regardless of the business area they choose in this country.

What is the management structure of a limited liability company in Croatia?

The minimum management structure of a limited liability company in Croatia is a director or president. He must be appointed by the shareholders and he can be Croatian or a foreign citizen. The manager can also represent the company in Croatia in front of third parties whenever it is the case.

The director or the president of an LLC in Croatia is in charge of the daily management matters and of signing varied business documents and contracts.

Have you decided on establishing a company in Croatia? We advise you to consider the services offered by our accountants in Croatia. Bookkeeping, payroll, and annual financial statements come under the attention of our specialists and represent important tasks for the smooth running of the company, from a financial point of view.

Controlling an LLC in Croatia means respecting the provisions of the Company Act in this country. The board of directors is in charge of the company’s decisions, in compliance with the owner’s requirements or needs. A DOO in Croatia has directors with full liabilities for their actions and are in charge of the company’s operations.

One should note that private LLCs in Croatia cannot trade shares in a public background. The business structure is typically controlled by a board of managers, normally chosen by the shareholders of the LLC established in Croatia. We mention that the same rules apply for business in 2024.

How can a limited liability company in Croatia be verified?

All limited liability companies in Croatia must submit annual financial statements regarding their commercial activities and all their transactions. These statements must be audited and approved by authorized public accountants in Croatia. Below is an infographic with information about setting up companies in Croatia:


Are there other requirements for a limited liability company in Croatia?

As far as the name of the limited liability company in Croatia is regarded, it must be unique and not similar to any other name of a Croatian company. In order to check if the chosen name for the limited liability company in Croatia has already been used, one can search the database of the Croatian Register of Companies.

25% rate is the corporate income tax in Croatia, which must be paid by the companies registered here and having activities in this country. Another type of tax is the VAT which is set at 25% rate in Croatia.

We suggest you discuss more about company formation in Croatia, if a DOO is your business choice in this country.

What is the information comprised by the Articles of Association?

The base of establishing a private limited liability company in Croatia in 2024 is the Articles of Association (when there is more than one founder) or the statement of the establishment (when there is only one founder). These documents must provide information regarding:

  • the company’s name and registered business address in Croatia;
  • the name and details of the founders (nationality, residency, etc.);
  • the minimum share capital deposited in a Croatian bank account;
  • details regarding the company’s stakes and rights and obligations attached to it;
  • information about the responsibilities and rights of each member of the business;
  • an availability date, if necessary, and details regarding the liquidation procedure.

This type of company may start to operate a business in Croatia only after it is registered in the Court Register based on the articles of association or the statement of establishing the business and a standard completed application. All the formalities can be managed by one of our local specialists, you have experience in company incorporation in Croatia.

Opening a private limited liability company in Croatia

A private LLC in Croatia is a type of company that cannot trade its shares publicly. This type of business structure is normally controlled by a board of managers appointed by the shareholders of the company, and the rules remain the same for 2024. The registration process takes place at the Trade Register in Croatia if the Articles of Association are submitted in accordance with the requirements of this institution. Such documents need to contain:

  • information about the owners (their names and their nationality);
  • details about the minimum share capital and the contribution of the owners;
  • the date when the private limited liability company opens in Croatia;
  • complete information about the responsibilities of the owners and of the directors.

If you would like to know the rules for registering an LLC in Croatia in 2024, please talk to our specialists. If you need accounting in Croatia, our specialists can offer professional services. 

Who can open a DOO in Croatia in 2024?

Both domestic and foreign investors looking for business in Croatia and an easy structure should decide on a limited liability company. Being subject to fewer formalities at the Trader Register in Croatia, a DOO is in most cases ready to operate within a few working days. Our consultants can handle the registration process of a  DOO in Croatia, so do not hesitate to get in touch with us.

Post-registration requirements for DOOs in Croatia

The certificate of incorporation is issued as soon as all the documents and formalities are accepted by the Trade Register in Croatia. Before going on the market, the company needs to be registered with the Croatian tax authorities, especially if it is subject to VAT payments. The future transactions of the firm are made through the company’s bank account which is different from the one opened for the minimum share capital, but not mandatory. Find out information in this sense from our advisors.

Can I buy a shelf company in Croatia?

Yes, shelf companies or vintage companies are already incorporated as limited liability companies, the most common business structure available in Croatia. Ready-made companies are already registered and can be purchased by both domestic and foreign entrepreneurs wanting to start activities fast, without opening a company from scratch. This is often the choice of businessmen from abroad who want to open their companies right away. The only thing to consider is to sign the documents of ownership of the shelf company. Our team of agents receives all the necessary documents for the purchase of a vintage company in Croatia, so make sure you address your requests to us. We will explain to you all you need to know about limited liability or DOO in Croatia.

Can I change the company structure in Croatia?

Yes, if you believe that the limited liability company no longer aligns with the business development and direction of your firm, you can simply change the structure. This means that your DOO in Croatia can transform into a joint-stock company, private or public, to give an example. This kind of business transformation requires attention to the formalities involved, mostly referring to the documents. For instance, a financial report is needed, plus a declaration showing the expansion of the business and the resolution made by the company’s directors. If you believe it is time to change the limited liability company into another business structure, you can get in touch with our specialists and ask for support.

Closing a DOO in Croatia

If for varied reasons, mostly financial, an entrepreneur decides to close the company, it is suggested to bear in mind the requirements in this matter. Among these, the decision, in this case, is comprised by a document that needs to be provided to the Commercial Court in Croatia that decides on the liquidation process date. In this stage, the company will change its name by adding liquidation next to it. The company’s accounts need to be verified and closed, the remaining assets or debts need to be collected, and the financial documents summing up all the operations of the firm must be submitted to the Trade Register.  A certain fee is required for the company liquidation procedure, but for more details in this sense, you may address to our consultants.

How you can set up a j.d.o.o. in Croatia

Croatian j.d.o.o. is a simple limited liability company that can be set up with EUR 1. This structure can have no more than 5 shareholders. Concerning the formalities for the incorporation of j.d.o.o. in Croatia, the following information is important:

  • A j.d.o.o. it can be opened online, but also in person, with specialized support provided by one of our agents.
  • First of all, you have to choose a name for the company, then check it with the relevant authorities. The court register portal allows complete name checks.
  • The minimum share capital is EUR 1, deposited in a local bank account in Croatia.
  • The necessary documents for a j.d.o.o in Croatia are then being prepared: the Articles of Association, Record of Founding, notification to register a company in Croatia, a declaration of the non-existence of outstanding debts. These documents must be legalized and notarized.
  • Foreign citizens must also prepare copies of their identity documents.
  • Proof of payment for j.d.o.o. registration is also required in Croatia.

If the documents prepared and presented to the company registration authority are accepted, the company can be registered in Croatia. A decision in this regard can be given in approximately 24 hours, after which the Certificate of Incorporation will be issued.

We recommend that you seek the help of our local agents for the incorporation of the desired company. You can thus overcome possible misunderstandings or complexities if you are a foreign entrepreneur. We are here to help you set up a company in Croatia.

Company stamp for your j.d.o.o. in Croatia

Once registered your j.d.o.o. in Croatia you have to get the company stamp. This is called “pečat” and must include the company name, the registration number, and your signature, as a shareholder of the firm. This seal can cost around EUR 25 and is issued after you present a legalized copy of the Certificate of Incorporation.

Registration for payment of taxes of j.d.o.o. in Croatia

A j.d.o.o. in Croatia must be registered for the payment of taxes in this country. This is done by the local administrations for the payment of taxes, depending on the registered business address. We also recommend here the support offered by our agents with experience in the field. On the other hand, our specialists can take care of the online registration of your company, respecting the required formalities and without the need for your physical presence.

Costs for opening a j.d.o.o in Croatia

If you choose to register a j.d.o.o. in Croatia with the help of the dedicated online platform, the cost reaches somewhere around EUR 26.55. Also, registration is done in a maximum of 5 days. Here are other costs for a j.d.o.o in Croatia:

  • Notary public costs – around EUR 66.
  • Judicial registration fee – around EUR 7.96.
  • Company seal – About EUR 25.

Registration for pension and health insurance in Croatia

Your company must be registered with the health insurance and pension fund offices in Croatia before starting the desired activities.
Thus, both employees and owners of a j.d.o.o in Croatia must pay the social contributions attributed to them. We advise you to discuss these important aspects with one of our company formation agents in Croatia to see what the formalities are in this regard.

Closing of j.d.o.o in Croatia

If you want to close a j.d.o.o. in Croatia, you should know that the process can take about 2 months. If the members of the company have signed an agreement regarding the closure of the company and if there are no debts, then the necessary liquidation formalities are carried out, with the commercial court in Croatia.

Company services provided by our team in Croatia

Our company formation agents in Zagreb are at your service with comprehensive support and guidance if you are interested in opening a DOO in Croatia in 2024. We can handle all the formalities as we work closely with the Croatian Trade Register. Furthermore, you will receive help with company name verification, opening a bank account for your firm, obtaining the necessary licenses and permits, registering for taxation in Croatia, and many more. We can also provide payroll in Croatia if you decide on working with our local firm.

Investments in Croatia

Croatia offers numerous business advantages for international entrepreneurs, such as appealing operational costs, low taxation, attractive tax incentives, and support for creating new jobs on the market. Additionally, foreigners benefit from a simple incorporation process in Croatia, plus the protection of the double taxation agreements signed with numerous countries. The pharmaceutical industry, tourism, engineering, manufacturing, automotive, ICT, textile, and food are quite developed and great sources of profits in Croatia. 

We remind that the limited liability company or DOO is the simplest business form in Croatia and can be ready for use in just a couple of days.

Below you can find useful information about Croatia’s economy if you have decided on doing business in this country and selected the LLC structure:

  • Croatia became the 20th EU Member State, in January 2023, and also a Schengen member.
  • In 2022, the GDP per capita was around USD 18,368.9.
  • The real GDP growth in Croatia in 2022 was supported by investments and robust personal consumption. The growth was approximately 6.3%.
  • Around USD 657 million was the total value of the greenfield investments in Croatia in 2021.

For more information about setting up a limited liability company, feel free to contact our company incorporation specialists in Croatia.