Open Company Branch or Subsidiary in Croatia

Foreign entrepreneurs who wish to invest in Croatia may choose from a number of business forms, including setting up a company or a branch of a foreign company. The incorporation process is straightforward and foreign entrepreneurs are welcome in Croatia. A Croat branch is not a separate legal entity from the parent company and its debts and obligations are responsibility of the foreign legal entity. In order for the Croat branch to be operational it must register with the Court Registry and several other institutions.

Preliminary activities prior to registering a branch in Croatia
Before a Croat branch can apply for registration it must prepare its foundation deeds, articles of association and other significant documents and notarize them. As the branch functions through a representative, which can be a legal entity or an individual, the power of attorney must be prepared. The branch must open a bank account for the initial deposit, and obtain a certificate which will be attached at the registration application. After these procedures are completed the branch is ready to file for registration with the Court Registry.

Registering a Croat branch with the Court Registry
In order for the branch to be fully operational, it must register with the Court Registry and obtain a registration certificate. For that purpose the founders must submit an application at the Court Registry. The application must contain the company charter, articles of association, decision of the foreign founder company to open a branch, its certificate of registration issued by the relevant authority of the respective country and the power of attorney issued to the chief representative with an excerpt from the corresponding register in the country of registration of the foundation where the name of the person authorized to represent foreign foundation is included. The registration certification is usually issued in a couple of days, and therefore the company comes into existence.

Although the branch comes into existence upon issuance of the registration certificate, there are some other procedures that need to be completed before the branch is fully operational. The branch must register with the Croat tax authorities and each employee must be enrolled for social security.

Setting up a Croat branch from abroad
Foreign investment is generally regarded as valuable, and there are no major restrictions for establishing legal entities. Setting up a Croat company is done through a representative authorized through power of attorney. It is necessary for the Croat branch to establish a registered office for tax purposes.

How long does it take to set up a Croat branch?
The whole process for setting up a company branch does not imply many complex procedures, but the documentation required is more complex. Preparing the documents needed for registration usually takes a couple of days same as obtaining the certificate of registration. However obtaining all the required certificates and authorizations from other institutions may require a week or so. Setting up a company branch in Croatia is usually finished in approximately 10 days.

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