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HOW TO OPEN A COMPANY IN CROATIA

STEPS FOR COMPANY FORMATION IN CROATIA

• Provide the denomination of the company.

• Prepare the documents needed for incorporation.

• Obtain the initial confirmation of the Croatian court with respect to the stated

documents and the name of the company.

• Notary procedures.

• The company director accepts the appointment and signs certain statements.

• The shareholder is required to obtain a Tax ID number.

• Open a bank account for future injection of the share capital.

• Register the company with the Trade Register.WWW.BRIDGEWEST.EU

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LEGAL FACTS

• The new Croatian Law on Foreigners (January 1st 2012) imposes new requirements on non-EU citizens.

• For EU citizens, the standard share capital amount is approx. 2,850 EUR.

• For non-EU citizens, the required base capital is around 13,500 EUR.

• A company of a non-EU client wishing to work in Croatia (as director) is required to employ at least 3 Croatian citizens.

• If two non-EU citizens wish to work as directors in the company, then 10 Croatian citizens must be employed.

COMPANY TYPES IN CROATIA

• Drustvo s Ogranicenom Odgovornoscu (D.O.O. - limited liability company)

• Dionicko Drustvo (D.D. - joint stock company)

• Croatian Branch, Subsidiary or Representative Office

• BridgeWest is also able to offer ready-made Croatian companies.

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CROATIAN LIMITED LIABILITY COMPANY - D.O.O

• Can have one shareholder and one director.

• It must maintain a local address (office).

• For E.U citizens, the minimum share capital required is HRK 18,700

(approx. EUR 2,850).

• For non-EU citizens, the required base capital is around 13,500 EUR.

• This amount needs to be paid in full, prior to incorporation.

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THE JOINT STOCK COMPANY – D.D

• This type of Croatian company must have at least one shareholder.

• One director is required.

• The company must hold a local address.

• The minimum share capital is around HRK 188,000 (approx. EUR 25,000).

THE CROATIAN BRANCH, SUBSIDIARY OR REPRESENTATIVE OFFICE

• Any foreign company is able to set up branch entities in Croatia.

• These can be set up as:

- separate entities from the parent company (Croatian companies having

the foreign company as shareholder);

- extensions of the parent-company in Croatia.

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NOTES

• Any person of any nationality or residence can be director or shareholder in a Croatian company;

• The shareholders can be both natural persons or legal entities;

• A company registered in Croatia must hold a local registered office (service provided by BridgeWest)

• The registration of a D.O.O (Limited Company) requires the injection of a share capital amounting to 2,850 EUR.

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• Drafting the Articles of Association

• Drafting all other documents required for the incorporation of the Croatian

company

• Arranging Public Notary procedures

• Obtaining a Tax ID number for the director/s

• Offering a Registered Office in Croatia for your company (if required)

• Setting up a bank account for your Croatian company

• Accounting and Payroll Services in Croatia

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CROATIA KEY FACTS

• The standard VAT rate in Croatia is 25%.

• Several goods and services are only subject to a 10% or even 0% VAT rate.

• The corporate income tax rate for legal entities that are registered in Croatia is 20%.

• The dividend tax does not apply to any type of company, be it resident or non-resident in Croatia.

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THANK YOU FOR YOUR ATTENTION!

Please feel free to contact us at

office@bridgewest.eu+442032870408

www.companyformationcroatia.com/ www.bridgewest.eu