Guide to Company Incorporation in Croatia

1. What is the minimum share capital of a Croatian Limited Liability Company?
Limited Liability Companies are the most common form of business in Croatia due to the straight-forward incorporation process and low initial capital required, which is 20.000 HRK.

2. What is the minimum share capital for a Croatian Joint Stock Company?
The Croatian Joint Stock Company is designated for business at a larger scale, and therefore it has a more complex structure and incorporation process. The starting capital should be no less then 200.000 HRK.

3. Are there any special requirements for establishing a Limited Liability Company in Croatia?
The Limited Liability Company in Croatia is the most common form of business organization. There are not many regulations as to the citizenship of the directors. Any citizen, foreign or national and legal entity can establish a limited liability company, provided they have no history with the Croatian legal or tax system. In order to incorporate the company a foreign citizen will only need his or her ID or passport and a proof of payment of the initial capital. The Croatian Law requires, on the other hand, that any company functioning under the regulations of Croatia have a registered address in the country. Usually there is no need for the presence of the company owners, unless the bank specifically requests it for the opening of the bank account. Only some banks make this request and shareholders are usually able to open an account in their own country, at a bank that has a branch in Croatia.

4. How can I register for VAT in Croatia?
After obtaining the registration certificate companies that commercialize products or services taxable for VAT need to register for VAT. In order to do so the Croatian Tax Authorities need to be notified of the company's intention to register through an application. Usually it is sufficient for the application to contain only a copy of the founder's ID or passport and it can be submitted by the representative authorized with power of attorney. After the application is accepted the company is issued a VAT number.

5. How can I open a bank account in Croatia?
Prior to registration companies that are requested an initial capital are obliged to provide a minimum amount and deposit it in a temporary bank account. The bank account is unblocked upon registration and becomes the official company account in which transactions are operated. In order to open a bank account the applicant should complete an application and provide documents that vary from bank to bank. Another issue that differs is the presence of the founders. While some banks are satisfied with the verification via internet of the shareholders' existence some require the presence of the founders to sign the contract. However most banks allow the opening of a bank account by a representative authorized with power of attorney.

6. How can I recruit personnel in Croatia?
Recruiting personnel for a brand new Croatian company is quite simple. Companies create company profiles on websites that specialize in job placement and use certain criteria to analyze and select their employees. Another possibility represents working with a recruitment agency which offers best suited candidates, following the requests of the company.

7. What is the average salary in Croatia?
Croatia is a powerful country, in terms of development and productiveness. Therefore the country has a skilled workforce, withstanding great loads of responsibilities. As a result, Croatian workers are paid with an average salary of 700 EUR.

8. What is the overall economical situation in Croatia?
Croatia is one powerful country economically, basing most of its profits on production, trading and tourism. With some outstanding natural resources, Croatia has one of the highest production rates in Europe. Unemployment is still rather high, suffering from the global crisis, yet growing in the last year. Foreign investment is at high value, the Croatian government making sustained efforts to encourage it with incentives and a welcoming and non-discriminatorily environment.

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