Croatian law provides for a number of forms of business for investors, including:

Limited Liability Company
Joint Stock Company
Partnerships

Limited Liability Company

A limited liability company (LLC) is the most common business form used in Croatia for small and medium sized businesses, and for subsidiaries.

Key aspects of an LLC include:

May be formed by 1 or more shareholders
Shareholders can be natural persons or legal entities
Minimum capital is HRK 20,000
Minimum ownership by a single shareholder is HRK 200, and any ownership of any shareholder must be divisible by 100
A shareholder's liability is limited to their contribution to the company
The supreme body of an LLC is the assembly, which must be held at least once a year
An LLC is managed by a management board which may consist of 1 or more directors

Joint Stock Company

Joint stock companies in Croatia are typically used by larger business. The share capital of a joint stock company is divided into stock, which can be publically traded.

Key aspects of a Joint Stock Company include:

May be formed by 1 or more shareholders
Shareholders can be natural persons or legal entities
Minimum share capital is HRK 200,000, which is divided into shares of equal value
Minimum value of a share is HRK 10, and share values must be divisible by 10
A shareholder's liability is limited to their contribution to the company
A joint stock company has three mandatory bodies: the general assembly, the supervisory board and the management board
The general assembly of shareholders is the supreme corporate body
A supervisory board consists of at least 3 members and may not exceed, 9, 15 or 21 members depending on the company's share capital amount
The management board is appointed for a maximum term of 5 years, with the possibility of re-appointment, and must report to the supervisory board on the management, business policies and the overall financial position of the company

Partnerships

Croatia allows for the formation of two types of partnerships, the general partnership and the limited partnership.

Key aspects of a General Partnership include:

Formed by at least 2 partners, which can be natural persons or legal entities
No minimum capital requirements
Partners are fully liable for the partnership
Contributions to a general partnership may be in kind, cash, rights, work or services
Share of a general partnership may not be transferred without consent of all partners
Cessation of the membership of one partner leads to the termination of the partnership

Key aspects of a Limited Partnership include:

Formed by at least 1 general partner and 1 limited partner, which can be natural persons or legal entities
No minimum capital requirements
General partners are fully liable for the partnership, while limited partners are only liable up to the amount of their contribution
The general partners are responsible for the management of the partnership, while limited partners may not engage in the management

Further information on the general investment, tax and regulatory regime about the country is available at the following external references:

“Doing Business” report from World Bank – click here.
Reports and publications from OECD – click here.
Reports and publications from IMF - click here.
Invest in Croatia – Croatian Chamber of Economy – click here.

Powerful Tax Solutions

Tax Rules Engine

Collaboration Tools

Latest Tax News