Includes steps involved in establishing a local office.
Last Published: 5/30/2019

An excellent first stop for information on establishing a Croatian company is the "Hitro" office (HITRO), established by the Croatian government to assist citizens and businesses in communicating with government entities. The Croatian Companies Act regulates the establishment and organization of business entities in Croatia. All firms must register according to the Court Register Act and the Rules of Court Register Entry Procedures. The most common types of companies in Croatia include:

Private Limited Company (d.o.o.)
Private limited companies are the most common type of company in Croatia. It is one in which one or more legal entities or natural persons invest in initial authorized stakes, with which they participate in the total authorized capital. Owners may be domestic or foreign legal entities and natural persons. Company assets are strictly separated from the personal property of the owners. The company is liable for its debts with all its assets. The initial authorized capital of a private limited company must be shown in Croatian currency – Kuna (HRK). The minimum amount of initial authorized capital may not be below HRK 20,000.

Public Limited Company (d.d.)
A public limited company is based on capital, with owners (shareholders) investing in authorized capital divided into shares. The company is liable for its debts with all its assets. Shareholders are not liable for the debts of the company. The basic document for a public limited company is the articles of association, as it specifies the internal organization of the company. Authorized capital and shares must show par value in Croatian currency. The minimum amount of authorized capital is HRK 200,000. The Companies Act provides for a simultaneous and successive establishment of a public limited company. Company founders are the shareholders who have adopted the articles of association.

Branch Office
Under Croatian legislation, foreign companies and sole traders may conduct business in Croatia by setting up a branch office. The start-up and operation of branch offices owned by foreign companies are governed by the same regulations that apply to the establishment of branches by domestic companies.
A branch office is not a legal entity. The liabilities and rights stemming from its operation do not belong to the branch office but to the founder. The founder legally holds all rights and obligations of branch offices. In case of a dispute with third parties, the branch is not a party to it, but the company or sole trader that owns the branch. The branch office operates under its own name. The name should indicate both the branch’s and the founder’s registered office. If the same founder intends to establish several branch offices, the establishment procedure is carried out separately for each branch.
 

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