The Ultimate Guide to Opening a LLC (Limited Liability Company) in Croatia

The Ultimate Guide to Opening a LLC (Limited Liability Company) in Croatia

Understanding DOO in Croatia

In Croatia, a DOO stands for a limited liability company. The acronym in full is Drustvo s Ogranicenom Odgovornoscu. In the country, limited liability companies are the most popular business structures. Small-sized companies mostly use them as they attract a more straightforward incorporation procedure than any other business formation.

To start a limited liability company in the country, they must get the minimum share capital. It comes to a minimum of EUR 2500 or an equivalent of HRK 20,000. This contribution can be in material goods, commercial rights, and cash. The initial capital must be deposited in Croatia's national currency for all start-ups. According to the laws in a DOO in Croatia, one or two shareholders can start up a limited liability company. Depending on the preferences, the shareholders can be corporations or individuals with foreign residence or citizenship. It is worth noting that the shareholders' liability is limited when looking at the company's loans, debts, and obligations. This extends to their contributions.

Understanding the Management of a Limited Liability in Croatia

The management of limited liability in Croatia is by the director or the president. This person is vested with the authority to manage the business by signing all legal documents. This is also the person who must record all transactions in the company's ledgers. The director or president of limited liability can be Croatian or a foreigner as long as they are appointed by the shareholders. This is the person who also represents the company in third party operations.

Understanding How a Limited Liability Company in Croatia can be Verified

A company must have reliable management, which is a prerequisite to the integrity of its activities. In Croatia, the authorities measure the management and check it through a periodic examination. The Croatian laws verify the management using an annual business plan and through the company's bank account. These companies must submit annual financial statements regarding their commercial activities and all other transactions. The financial statements should be audited and checked by authorized public accountants in the country for verification.

DOO stands for a limited liability company. The acronym in full is Drustvo s Ogranicenom Odgovornoscu. In the country, limited liability companies are the most popular business structures. It is mostly used by small-sized companies as they attract a more simple incorporation procedure than any other business formation.

To begin a limited liability company in the Croatia, they must get the minimum share capital. It comes to a minimum of EUR 2500 or an equivalent of HRK 20,000. This contribution can be in material goods, commercial rights, and cash. The initial capital must be deposited in Croatia's national currency for all startups. As per the laws in a DOO in Croatia, one or two shareholders can start up a limited liability company. Depending on the preferences, the shareholders can be corporations or individuals with foreign residence or citizenship. It is worth noting that the shareholders' liability is limited when looking at the company's loans, debts, and obligations. This goes all the way to their contributions. As you begin forming your company, our company formation agents can effectively help you or foreigners set up a DOO in Croatia in 2022.

The Major Steps for Setting up a Limited Liability Company in Croatia


Choose Your Business Structure

First, you need to decide whether you want to run your company through a sole proprietorship or partnership. This choice will impact all the other decisions that follow. For most business owners, it makes more sense to choose a partnership due to its benefits. The major benefit of setting up an LLC in Croatia is that its members benefit from limited liability while liable for their debts. Having a separate legal entity also allows them to protect their assets by establishing an insurance policy.

Prepare Your Documents

Next, you need to prepare your documents. The LLC you form should have the following features:

• An owner/manager designated by the company owners

• A description of each member's role in the company

• Its address

It should also have the company's activities, rights, and responsibilities.


Apply for All Licenses and Permits

You can apply for the relevant licenses and permits when you are done with all the above. Depending on your company's type, you need to acquire different kinds of licenses. You should get a nonresident tax identification number to qualify as a company and an enterprise tax number before starting business operations. Additionally, you need to prepare an employee register to retain the right to deduct taxes from employee wages. In the case of sole proprietorships and partnerships, prepare your annual reports, and maintain valid insurance coverage and payroll administration records to deduct income tax from your employees' wages. In Croatia, the corporate tax is 25% and applies to the income generated in the country.

Obtain the Company Seal

There are different types of seals, so choose the one that best suits your business type. You then need to apply for a registration certificate and issue a license for the seal. With this, the registration process for your LLC is complete.

What Other Requirements are needed for a Limited Liability Company in Croatia?

When choosing a limited liability company's name, it must be unique. It should not be similar to any other company in Croatia. To know whether it is unique, you need to perform a search on the Croatian Register of Companies database. It will help you know whether your selected name is safe.

Opening a Private Limited Liability Company in Croatia


In Croatia, a private LLC is the type of company that cannot trade shares in a public setting. The business structure is usually controlled by a board of managers appointed by the company's shareholders. It is worth noting that the rules are still the same for 2022. As for the registration process, it takes place at the Trade Register in Croatia once all the Articles of Association are submitted. Once you fulfil all the institution's requirements, you can now complete the process. Some of the most crucial details in these documents include:

• Information about all the owners (full names and nationalities),

• Information on the minimum share capital as well as the contributions of the owners,

• The date when the company was opened in Croatia, and

• Full information on the owners' and directors' responsibilities.

Who Can Open a DOO in Croatia in 2022?

To open an LLC in Croatia, you must be 18 years of age. You may also need to be a citizen or permanent resident of Croatia; it is open to domestic and foreign investors. The law provides that the minimum share capital for a DOO is HKN 2,500. However, the company can raise more capital than the minimum requirement if it is approved by its shareholders at a general meeting. After passing the formalities at the Trader Register in Croatia, the company should be operational in a few working days.

Everything You Need to Know About Managing a DOO in Croatia

The DOO is presented and operated by a manager. The manager must be one of the company's owners or an employee appointed by the owners. The manager is responsible for all administrative and clerical work, including financial controls, budgeting and upkeep. A DOO in Croatia is required to have at least one director. The director acts as the interface between the firm's owners (the shareholders) and the government bodies that provide business licenses, such as tax authorizations.

After-Registration Requirements for DOOs in Croatia

Once all the formalities are accepted by the Trade Register in Croatia, the company gets a certificate of incorporation. Before going on the market, the company should be registered with the tax authorities in Croatia. It is even more particular when it is subject to VAT payments. The company's transactions should be made via the firm's bank account, which is different from other minimum share capital accounts. However, this is not a must.

Can I Buy a Shelf Company in Croatia?

Yes, you can buy a shelf company. These companies are already incorporated as limited liability companies, which is the most popular structure of businesses in the country. These ready-made companies have fulfilled all the requirements and can be bought by foreign and domestic investors who want to quickly start the business. They do not have to begin the company or establishment from scratch. It is a perfect option for business people from abroad.

A Recruitment Company in Croatia

Foreign investors can set up any business in Croatia as long as it is under the limited liability umbrella. It applies to recruitment companies in Croatia, which is a perfect business idea that continues to grow. Some of the most important things for a recruitment company registration are the information on the owners, a bank account for making deposits, the taxation registration, and the required licenses and permits.

The company can offer different companies HR (human resources) services and consultancy. It also offers support for the employees in these firms. A good company needs to have quality staff members in IT, medicine, e-commerce, retail, and engineering. Such companies hugely benefit from the support from a recruitment company.

Can I Change the Company Structure in Croatia?

You can easily change the company's structure. Your DOO company can be changed into a joint-stock company, private, or public enterprise. As a business person, you must pay attention to all the formalities, especially in the documents. For example, you need a financial report, a declaration of the business' expansion, and a resolution from the company's managers and directors.

Closing a DOO in Croatia

If you want to close your DOO for any reason, you must remember all the requirements in place. Some of these include a document that needs to go to the Commercial Court in Croatia. This document determines the liquidation process. At this stage, the company will change its name, verify its accounts, the other assets or debts collected, and check financial documents. You will then submit all these details to Trade Register. It is worth noting that a particular fee is required to liquidate the company.

Investments in Croatia

Croatia has so many advantages for international entrepreneurs. They will get enticing operational costs, low taxation rates, exciting tax incentives, and support for creating new opportunities in the Croatian market. In addition to this, foreigners get a straightforward incorporation process in the country and the protection of the double taxation agreements. These agreements have been signed with the different countries. Some of the most profitable business establishments include pharmaceuticals, tourism, engineering, ICT, textiles, food, and automotive.

It is worth noting that a limited liability company or DOO is the simplest business form in Croatia. Even better, it can be ready to use within a few days. Here are some quick facts and figures on the country's business and economics.

• Approximately $30 billion was the total FDI stock for Croatia in 2019

• Close to 30% of the Croatian's FDI is in the financial services sector

• The major investors in Croatia come from the Netherlands, Austria, Italy, and Germany

• According to the World Bank, Croatia is number 51 out of 190 economies in the world

• Croatia ranks number 63 as per the Global Competitiveness Index shown by the World's Economic Forum

• Close to $1.4 million was the total value of the greenfield investments in Croatia in 2019

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