The Croatian legal framework governing foreign investment has been designed in a way that does not make any difference between domestic and foreign investors. All possibilities in relations between domestic investors are also open to foreigners investing capital in Croatia, provided reciprocity principle is met.
Moreover, foreign investors enjoy additional guarantees that are not given to domestic investors. The Constitution of the Republic of Croatia provides that no law or other legal document shall reduce the rights granted to a foreign investor at the time of investment in Croatia. It also guarantees the free repatriation of profits or capital upon fulfillment of all legal obligations.
The Croatian Chamber of Economy supports potential investors from the very beginning of entrepreneurial journey in Croatia. Find out what is needed to successfully start an entrepreneurial activity and run your own business, connect with other entrepreneurs and take advantage of the entrepreneurial infrastructure.
According to the Companies Act, domestic and foreign companies operate under equal conditions. If you are EU/EEA or a third-country national, you have a freedom of establishment a legal form of a craft business or a company, i.e. a branch office.
Foreign investors may acquire ownership and shares in joint stock companies. The minimum amount of share capital for founding a joint stock company is EUR 25,000.00 where the nominal value per share may not be less than EUR 1.00. The minimum share capital for founding a limited liability company is EUR 2,500.00, where the nominal amount of a business share may not be less than EUR 10.00.
A limited liability company (d.o.o.) is a type of company founded by one or more persons who want to do business under a common name (company). This is the most common form of company in the Republic of Croatia, and it can be founded by one or more natural or legal persons who contribute to the pre-agreed share capital.
The company with a maximum of five members and one member of the management board may be founded in a simplified manner as a simple limited liability company. The minimum amount of share capital of such a company is EUR 1.00, and the lowest nominal amount of the business share cannot be less than EUR 1.00.
Foreign companies and individual traders may also operate in the Republic of Croatia through a branch office, whereby the same regulations apply to their founding and registration as for branches founded by domestic companies.
A representative office in Croatia may be founded by a foreign person performing an economic activity, or a national or international economic association from countries that are not members of the European Union or of the European Economic Area.
Business activities in Croatia can be financed either through standard loans of commercial banks or institutions offering more favourable interest rates or issuing guarantees for bank credits. Consisting of 21 banks and 3 housing savings banks, a traditionally stable and highly developed sector, the Croatian banking system offers high diversification and good quality of financial products and services. The list of commercial banks in Croatia can be found here.
An important role in helping companies in their further developing and exporting activities has the Croatian Bank for Reconstruction and Development (HBOR). Through its specialized programs HBOR provides support to start-ups, exporting companies, new production and companies from different sectors of economy such as industry, tourism, environmental protection and energy efficiency, agriculture, etc. More information about HBOR programs can be found on its web site www.hbor.hr.
Additional support to business activities is provided by the Government Agency for SMEs, Innovations and Investments (HAMAG-BICRO). HAMAG-BICRO issues guarantees for bank credits approved by credit institutions and other legal entities approving loans to SMEs and makes direct financial contributions to SMEs in a form of grants. More information about HAMAG-BICRO guarantees and grant schemes can be found on its web site www.hamagbicro.hr.
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Name of the company
First it is necessary to choose a name for you company. When chosing a name for your company, it is advisable to use the website of the Ministry of Justice: https://sudreg.pravosudje.hr and
https://digitalnakomora.hr/e-pokreni-poslovanje in order to check whether the name of your choice or similar name has already been chosen and used by another company. For this reason it is advised to prepare alternative names in addition to the proposed company name.
Verification of documents
The Application for Entry in the Court Register (PO Form) and some of its enclosures have to be verified by a notary public. When paying a visit to the notary public, you should take your ID or passport (obligatory for the foreign citizens). The presence of all founders and other persons whose signatures sholuld be verified is obligatory. N.B. – If you are a foreign national and don’t speak Croatian, a presence of court interpreter for the language is required.
Submission of documents/fee payment
Registration documentation sealed by the Public notary is submitted to the HITRO.HR counter that can deliver documents for court registration and the National Bureau of Statistics for you. You can make the payment of court fees and the initial capital at FINA’s branches.
If the delivered documentation is correct and complete, the Commercial Court shall register the company in the court register within 24 hours, and electronically deliver the Decision on the establishment and Confirmation of OIB (Personal identification number) of the newly formed company to the Office HITRO.HR.
At the HITRO.HR counter you will receive an RSP Form which you will have to fill out in order to obtain a Notification of Classification pursuant to the National Classification of Activities of the Central Bureau of Statistics. HITRO.hr will, after receiving the Court’s decision on the establishment automatically and electronically obtain a Notice of classification of the business entity within 1 day period
After registration is completed it is necessary to make an official company stamp and open a business account so that the initial capital could be transferred into company account. That, as well as the necessary first registrations of the company, its owner and employees with the Croatian Pension Insurance Institute (HZMO) and the Croatian Health Insurance Institute (HZZO) can be arranged and executed electronically at the HITRO.HR counter.