Croatia is a small state located on the Balkan Peninsula. It is located next to Slovenia, Serbia, Montenegro, and some other fairly developed countries. The capital of Croatia is Zagreb, a city with good infrastructure and favorable climatic conditions for a comfortable stay.
The country is home to 4.5 million people, of which 78% are indigenous people. Among the population, there are Orthodox Christians, Catholics, Islamists, and adherents of other religions. Officially, the Croatian language has the status of the state language. The state uses its currency – the Croatian kuna.
Usually, non-EU companies are registered in Croatia to acquire real estate. These are countries whose residents do not have the right to carry out such transactions in Croatia.
The rights of companies registered as Croatian citizens and foreign persons with the involvement of foreign capital are equivalent. This means that such a company, owned by a foreign person, has the right to purchase immovable objects and obtain ownership of them.
In Croatia, it is allowed to set up companies, the capital of which consists of 100% of funds attracted from abroad. State legislation provides for the possibility of granting patents for certain types of activities, for example, journalism or the medical field.
Benefits of registering a company in Croatia
A republic with a steadily developing economy. Novice and experienced businessmen decide to register a company in Croatia for several reasons, including:
- Croatia is a state with a rapidly developing economy and a rapidly growing business area.
- The owner of the company has the right to liquidate it. Even in this case, the real estate objects acquired by the owner of the liquidated company remain in his ownership.
- Foreign individuals who are founders of an organization in Croatia are granted the right to obtain a residence permit in this country. As a director of a company in Croatia, such a person can invite citizens of any other country. Their stay in Croatia is limited to 90 days.
- Convenient geographic location;
- The presence of 13 free economic zones (quick registration, the ability to legally reduce the tax rate, etc.);
- The positive attitude of the authorities towards foreign investors;
The company registration process in Croatia
It is important to remember that all procedures for setting up a company in Croatia must be carried out through a local representative. A registered office is also required to register a company in Croatia. It is also advisable to have a bank account and a local accountant after the registration of the business in Croatia has taken place.
First, entrepreneurs should check the uniqueness of the name chosen for the business with the Croatian Financial Agency. If a name is available, founders should notarize the memorandum or articles of association of the company along with a statement of registration in court and a statement of the director’s acceptance of the appointment. All documents must be accompanied by a certified Croatian translation. After that, you should open a bank account and deposit the minimum authorized capital.
After submitting all documents, the company is entered into the register of the Chamber of Commerce jurisdiction. The next step in registering a company in Croatia is an authorization from the tax administration to pay VAT and employee income tax. The application can be made at several administrative offices located throughout the country. As a result of registration, a company in Croatia receives a unique taxpayer identification number.
A limited liability company is a common business structure for most entrepreneurs, both domestic and foreign. The process of establishing a company in Croatia can be carried out in a short time, which allows businessmen to quickly start their activities on the market. Choosing a company name, deciding on activities, and creating a charter and a board of directors are the first steps to registering a business in Croatia.
Required documents for setting up a company in Croatia consist of:
- The application is registered with the local representative where the authorization takes place.
- Proof of registration of the company in Croatia (certificate of incorporation).
- Registration form for each employee you want to hire for the company.
- Copies of the beneficiary’s passport.
- Company name of the enterprise.
- Descriptions of activities.
- Legal address.
- Memorandum of Association certified by a notary.
Besides, those wishing to register a Croatian company must pay a state fee, register with the tax, insurance, and social services, and contribute the authorized capital of the company. The amount of the authorized capital depends on the form of the company you have chosen.