BUSINESS GUIDELINES AND MARKET ENVIRONMENT OF CROATIA

INTRODUCTION

Bordered by Herzegovina, Bosnia, Serbia, and Hungary while being close to the Mediterranean; Croatia is a strategic trade country. The country of Croatia currently commends with the highest rates of Human Development Index and is classified as an emerging and developing economy by the World Bank.

TYPES OF BUSINESSES IN CROATIA

• PUBLIC LIMITED COMPANY (“DD”)
  Dionicko Drustvo (“DD”) is a public limited company where the shareholders in the share capital are divided into shares. This has only one shareholder. It is a good way to establish protection from liabilities and debt. The obligations of the company are not the responsibility of the shareholders.
  
  
• LIMITED LIABILITY COMPANY (“DOO”)
  A Društvo s Ograničenom Odgovornošću (“DOO”) is the most common type of business in Croatia which can be owned by one or multiple persons. The minimum capital for such companies is 2500 Euros. The accessibility increases as it can be both opened online and in person.
  
  
• ECONOMIC INTEREST ASSOCIATION (“GIU”)
  Gospodarsko interesno udruženje is found by two or more individuals to promote the economic activities that are the objects of their business. These companies are not meant for profitisation but rather for extending business relations.
  
  
• SIMPLE LIMITED LIABILITY COMPANY (“JDOO”)
  Jednostavno Društvo s Ograničenom Odgovornošću (“JDOO”) is similar to DOO but is mostly used for companies with limited start-up capital. The required start-up capital for these companies is only one euro.
  
  
• GENERAL PARTNERSHIP (“JTD”)
  Javno Trgovačko Društvo (“JTD”) is the type of company where two or more persons join for the permanent performance of activities under a joint company. Each person’s liability is unlimited to the company’s creditors and to the assets.
  
  

• LIMITED PARTNERSHIP (“KD”)
  Komanditno društvo is a company that requires at least one partner to be responsible for the company’s obligations unlimitedly and jointly with all its assets.
  
  

• TRADE BUSINESS
  It is not a traditional company but rather a specialized business based on a set industry and on the assets of an individual – the owner. This person stabilizes and majors in bringing profits based on the ‘craft’ of their company.

ECONOMIC INTEREST ASSOCIATIONS IN CROATIA

For individual entrepreneurs who want to establish new business endeavours or refine into a new industry; there are the attractive options of economic interest associations. There is no need of minimum share capital to make and prosper these marketing and business promotions that are an aid to early entrepreneurial efforts.

STEPS

To register a company in Croatia or have a startup is to invest in a rapidly growing economy that is rapidly withstanding the growing Gross Domestic Product (“GDP”).

Here are the following steps in order:

• MINIMUM SHARE CAPITAL
  For an LLC to establish, the domain minimum share capital is 2500 Euros. If a citizen is a non-EU/EEA citizen and if the company is eventually going to get a residence permit, then the share capital required can be as much as 25000 Euros or more. The accessibility is at ease the company can be opened in person or online.
  
  

• NUMBER OF DIRECTORS REQUIRED
  The number of directors required to take charge of a startup in Croatia is a minimum of one.
  
  

• REGISTER YOUR BUSINESS
  The articles of Association are the documents that are required for the registration of a company in Croatia which can be encompassed by one local agent that can carry on the formalities.
  
  

• OFFICE MANDATES
  The company is then required to gain a license in Croatia and registration then eventually conjures up tax benefits and a mandate of social contributions are in line.
  
  

CONCLUSION

Croatia is not subject to complex formalities or bureaucracies, allowing foreign investors to easily start a business in the nation. Croatia has been reducing regulatory compliances in recent years to invite more foreign investments and has incentivized even setting up businesses by reducing notary fees. Their new electronic customs service’s allow for a seamless cross-border trade.