Establishment of a company
Forms of companies recognized by the Croatian legal system are determined by the Companies Act, and we divide them into personal companies: public companies, limited liability partnerships and economic interest associations, and capital companies: joint-stock companies and limited liability companies.
In practice, the most common form of companies is a limited liability company (Cro. društvo s ograničenom odgovornošću – d.o.o.), so our parties, whether Croatian or foreign citizens, natural or legal persons, most often choose this form of company to carry out their economic activities.
Do you want to start a d.o.o. and don’t know how? In this text you will find information on everything you need to successfully establish a company. In this process, our law firm provides its clients with the necessary legal assistance and consulting, and prepares the documents necessary for the establishment.
Establishing a company is a process in which a good preparation of the necessary documentation is important. To start, you need to choose the company name, i.e. the so-called “tvrtka”. This is the name under which the company operates, and it must be in Croatian or in an official language of one of the EU member states. It must also be different from other company names that have been previously registered in the court register. The lawyer can check the availability of the name for you in advance by inspecting the court register. It is therefore best to prepare alternative options if the first choice of name is taken.
After choosing the company name, it is necessary to determine the address of the company’s registered office, and the following documentation is required:
- Application for entry into the court register
- Memorandum of association (articles of association or statement of incorporation if the company is founded by only one person)
- Statement of the acceptance of members authorized to represent
- Decision on the appointment of members of the management board
- If the company has a procurator, then the decision to appoint the procurator
- Decision on determining the business address.
The mentioned documentation can be prepared for you by the law office, and you will need to sign and certify it (execute it as a notarial deed) with a notary public.
So, you will take the listed documentation and go to a notary public to certify it. For these purposes, the law office arranges an appointment with a notary public. The presence of the founder and other persons whose signatures need to be certified is therefore required by the notary public, as well as their personal documents (identity card, i.e. passport for foreign nationals).
Furthermore, it is necessary to go to a HITRO.HR office or to the bank where you will make the payment of the founding deposit and court fees. In the HITRO.HR office you will receive a notice of classification according to the National Classification of Business Activities.
The share capital for the establishment of a limited liability company is at least HRK 20,000.00 and can be paid in cash or in cash and in property/rights.
The decision on entry into the court register is made by the competent commercial court.
After receiving the court decision, a request is submitted to the Croatian Bureau of Statistics for the classification of activities according to the National Classification of Business Activities, and a registration number and an activity code are obtained.
Your chosen accountant will make further necessary applications for the company to the Tax Administration, then to the Croatian Pension Insurance Institute, and the Croatian Health Insurance Fund.