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
Information verified against Croatian Commercial Register