Establishing a business in Croatia

Limited Liability Company (D.O.O.)

Mosty choosen type of company in Croatia is limited company d.o.o. Minimum capital amount is 20.000 HRK. At least one shareholder should be in the company company – individual or legal entity – and the company should have minimum one director.

Joint Stock Company (D.D.)

Minimum capital to set up a joint stock company is HRK 200.000 (appr. 27.000 Euro) and at least one shareholder an done director are needed to open a joint stock company (d.o.o.)

Foreign nationals can be shareholder and director in Croatian companies in the conditions they comply with some certain regulations.

Limited Partnership (K.D.)

It is founded by two or more persons with different statutes in the business. There is at least one general partner, fully liable with his assets for the company’s debts and one limited partner with liability limited by his contribution to the entity’s capital.

Only the general partner may represent the partnership on the market. Just like in the case of the general partnership, there is no need to submit a minimum share capital at registration.

Taxation in Croatia

Corporate income tax

Standard corporate tax rate is 18% in Croatia and for the companies whose annual income below 3 millions HRK is 12%

VAT Registration

VAT registration is required if your turnover for the past year has exceeded the £85,000.However you can voluntary register for VAT in the UK. An advantage of voluntary VAT registering is that the company can avoid any late VAT registration penalties if the company exceeds the VAT registration threshold in the future without realising. Therefore it is beneficial to voluntarily VAT register in order to avoid any ongoing concern about exceeding the VAT registration threshold.


General value added tax rate is 25% in Croatia and lower rates are 13% and 5%