Company Law in Croatia

The Company law in Croatia is based in German and Austrian law and was adopted in November 1993. It is considered that the company law in Croatia is flexible for all sizes of a business. The Companies’ Act in Croatia regulates the formation of a company in Croatia. The basic rules on structure and organization of businesses are included in the Companies Act. All Croatian companies must be registered, according to the Court Register Act and the rules of Court Register Entry Procedures. The corporate law in Croatia mentions that it is possible to start a company only after deciding which type of business suits your interests best.

TYPES OF COMPANIES

The Croatian Company law admits companies and partnerships from the following categories: private limited company or Limited Liability Company, public limited company or Joint Stock Corporation, general partnership, limited partnership and silent partnership.

The most frequent type of companies is the private limited company (d.o.o.) in Croatia. At least one founder is required for establishing this type of business in Croatia and a minimum share capital of 20,000 HRK is necessary. A public limited company (d.d.) or a joint stock company is a legal entity that has a share capital divided in share. It needs an initial capital of at least 200,000 HRK in order to be incorporated in Croatia.

Partnerships in Croatia are formed under the Croatian law between two or more individuals who run the business together under the common name of the company.

OTHER RULES

A company’s name has to be available, according to the Croatian company law, but the founder may check by himself online if the name of the company already exists.

Under the law of employment in Croatia, foreign employees can perform work in Croatia based on an issued business permit or a work permit. It is the employer’s obligation to report the new employment contract to the Health and Pension Fund in Croatia and also provide a copy of this report for the employee.

BridgeWest offers company registration in Croatia, including virtual office and other related services.