Croatia company structures: at a glance

Hawksford

Last updated: 15 December 2025 |

Europe | Croatia

Options for registering companies in Croatia

As an EU member state, Croatia is attractive due to its stable economy, membership in the Eurozone (using the Euro, EUR) and a competitive tax structure, particularly for smaller businesses.

Croatia offers international companies the following legal structures for establishing a local presence:

Private limited company (Društvo s ograničenom odgovornošću - D.O.O)

The Croatian D.O.O is the most common and flexible legal entity for foreign investors, offering limited liability to shareholders.
The minimum share capital required for a standard D.O.O. is kn20,000 HRK / €2,650 (this must be paid up before registration).
It can be established by a minimum of one shareholder (natural person or legal entity) and is fully governed by the Croatian Companies Act.
All incorporation documents, including the Articles of Association, must be prepared as a notarial deed and submitted to the Commercial Register.

Representative office (Ured predstavništva)

The representative office is a non-commercial entity intended strictly for representation, market research, promotion and information dissemination.
It is prohibited from engaging in any commercial transactions or revenue-generating activities in Croatia.
It is not a legal person and does not pay corporate profit tax but must still register with the Ministry of Economy.
All operating costs must be covered by the foreign parent company.

Free zone company (Slobodna zona)

Croatia no longer maintains a traditional free zone tax exemption regime in the way that other countries do, due to harmonisation with EU law.
Instead, companies can benefit from comprehensive Investment Promotion Act (IPA) incentives, which are generally available nationwide.
For large investment projects (e.g. over €3 million and 15 new jobs), companies can qualify for a 100% reduction in the corporate income tax (CIT) rate for up to 10 years.
Smaller investments (e.g. over €150,000 and five new jobs) can qualify for a 50% CIT reduction for up to five years.
Additional benefits include cash grants for job creation and equipment costs.

To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to setup or expand a business in Croatia.

Comparison of the common types of companies in Croatia

Key information	Private limited company (D.O.O)	Representative office	Free zone company
Commonly used for	All purposes	Marketing and research	Manufacturing / export trading
Minimum capitalisation	kn20,000 HRK	None	€10,000 (recommended, dependent on activities)
Limited liability	Yes	No	Yes
Time to incorporate	Two weeks	Two weeks	Four weeks
Tax rate (CIT)	18%	Not applicable (cannot trade)	18%, tax incentives available subject to conditions
Resident management	No	No	No
Cost indication (€)	€6,000	€6,000	€8,000