All citizens of the European Union have the right to set up their own company or a subsidiary or branch of an existing company already registered in one of the EU countries. And it is no different if you decide to open a company in neighbouring Croatia, which is interesting for many International entrepreneurs and those who are venturing on an entrepreneurial path for the first time due to its proximity and good understanding of its situation.
A limited liability company is the most interesting form of a company in Croatia
Many English people set up a company in Croatia to be able to rent their apartments legally, as the legislation there does not allow them to do so as individuals because English citizens are foreigners.
The formation of a company in Croatia is regulated by the Companies Act, which recognizes five different types of companies: a general commercial partnership, a limited partnership, a silent partnership, a joint-stock company and a limited liability company. For English citizens, the most interesting is the limited liability company.
What are the conditions for establishing a limited liability company
A limited liability company may be established by one or more domestic or foreign legal persons, who become partners upon the formation of the company. All important decisions of the company are made at the general session, convened at least once a year. The company can, therefore, be established and led exclusively by a English manager. It is also not a condition that at least one member of the management board be a company employee, which makes the process of setting up a company much simpler and operating costs lower.
If you want to open a limited liability company, the minimum amount of funding capital is around EUR 2,700 or HRK 20,000, and each contribution must be at least EUR 27. Before the company’s entry in the register, at least a quarter of the contribution must be paid, with the total amount of all payments not being less than EUR 1,350.
Where to complete the business start-up process the fastest
If you are not skilled and have no experience in the corporate world, we advise you to seek help from special government service to open a company in Croatia, which provides you with simple and fast procedures for setting up a company. There are about 20 government service offices, which you can find in all major Croatian cities.
Most importantly, you can now complete the entire process of setting up a company and registering it in one place. You will only have to go to a notary to verify the application for entry in the court register and the association’s memorandum. You may also need a certified translation in Croatian language, with which we will gladly help.
How much time and money will the whole process take
If you decide to open a company in Croatia, it will cost you around EUR 900 plus the founding capital that needs to be deposited. If you meet all the conditions, you will receive a commercial court decision on the entry in the register within one month.
After entering in the court register, the company founders must make a seal, and the Central Bureau of Statistics will issue a notice on the classification of your company, which you can pick up at the counter of one of the government services. Founders can open a bank account with this notice, note on the entry in the court register, seal and passport.
Following all these procedures, the company can start operating. The only thing left to do is submit an application for payment of pension and health insurance within 15 days of starting the operations, which can be done at the Pension Insurance Institute or the Health Insurance Institute. At the end of the procedure, do not forget to report the company to the tax administration for entry in taxpayers’ register.
Leave A Comment