Set up a Company in Croatia

Doing business in Croatia offers plenty opportunities for success, as the country has an increasingly powerful economy, based on a high level of professionalism and geographical and geopolitical advantages. Foreign investors are welcome, being equally treated, and encouraged to develop business. Due to the membership with NATO and EU, foreign investment in Croatia is increasing gradually. Although there is plenty of paperwork to be completed, entrepreneurs could find establishing a Croatian company very rewarding.

Preliminary activities before registering limited liability and joint stock companies in Croatia
Prior to registration of Croatian limited and joint stock companies, founders must choose a company name and verify its uniqueness. This procedure implies inquiring to the Financial Agency of Croatia. The institution verifies the name and, if it's available, provides it to the prospective founder. Also, the founders must notarize the memorandum of association, or the company charters. Also the application for Court Registration must be notarized, along with the director’s statement of acceptance of the appointment. If there are relevant documents in another language, then the founders must obtain a certified translation into Croatian. A bank account must be opened, in which the minimum capital must be deposited, prior to registration with the Financial Agency of Croatia. Also the founders must find a legal address, as in Croatia a company cannot exist without an authorized address on its territory.

Registering the Croatian Company with the Croatian Commercial Court
In order to engage in commercial activities, a company must be registered with the Commercial Court in Croatia. The founders submit the application to the Financial Agency of Croatia, which then forwards it to the Commercial Court. A complete application must contain the notarized documents, which include the company name, and its certificate, the amount of capital, the list of owners and shareholders and another list of the members of the board. If all the legal requirements are fulfilled, then the Commercial Court proceeds with the registration process. If not, the solicitors may be asked to provide additional information. Upon registration the company automatically becomes member of the Chamber of Commerce in Croatia.

Obtaining statistical registration in Croatia
Entrepreneurs obtain statistical registration by applying at the Financial Agency of Croatia. The company must obtain a Statistical File number from the State Office for Statistics. This is done with the submission of relevant company documents, including the court decision on the registration of the company in Croatia.

Registering with tax administration office in Croatia
The company founders must also incorporate their company with the tax administration office in Croatia. There are several administrative offices located throughout Croatia where the entrepreneur must submit an application containing relevant information on the company. After the registration is complete, the Croatian company is provided a tax identification number.

Registering with the Croatian pension and health insurance fund
Within 15 days of incorporation, the company members must register the company with the Croatian Pension Insurance Institute and the Croatian Institute for Health Insurance. The founders may do so, by filling and submitting applications, along with proof of incorporation, tax identification number and registration form for each employee.

Set up a Croatian company from abroad
Foreign investment in Croatia is widely encouraged, and due to the stable economy, establishing a company is an option many foreigners take. There is no discriminatory treatment, and the laws are the same for Croatian investors as for foreign investors. However the process of incorporation is a little stricter, as a company must have a legal residence in Croatia and company documents must be translated into Croatian. A company may be set out by an authorized assignee, which carries out the incorporation procedures, provided that specimen signatures are included in the documents.

How long does it take to incorporate a Croatian company?
Most of the procedures are quickly completed, many of them being finished in the same day of application. However applying for registration with the Financial Agency of Croatia, and the incorporation process may take up to 16 days. A Croatian company may take up to 25 days to be established.

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