If you’re exploring Croatia as your next business base, you’re probably looking for a structure that is safe, credible, and aligned with long-term plans. For many founders evaluating how to register a company in Croatia, the d.o.o. – Croatia’s standard Limited Liability Company – is the most common route. Still, some entrepreneurs wonder whether the more simplified j.d.o.o. could be a workable starting point.
The truth is: both structures have their place, but the best choice depends on your goals, your residency plans, and whether you want your company to act as a serious EU-facing entity. If you’re still evaluating the bigger picture of doing business here, our Starting a Business in Croatia Handbook offers a broader overview of the entire ecosystem before you dive into formation details.
Why the d.o.o. Is the Gold Standard for Foreign Nationals
A d.o.o. (društvo s ograničenom odgovornošću) is Croatia’s full Limited Liability Company and the structure most foreign nationals rely on when they decide to register a company in Croatia. It offers strong legal protection, full foreign ownership, credibility with banks and government authorities, and a clear framework that works well for EU-facing operations or long-term relocation plans.
Most international founders from the US, UK, Canada, Australia, New Zealand, the EU, and beyond choose the d.o.o. because it signals stability and commitment. When you register a company in Croatia for investment, expansion, or residency purposes, banks and authorities expect to see a d.o.o. structure, not a simplified alternative. If your plans involve investment in Croatia, choosing the right corporate form from the outset is critical.
While a j.d.o.o. may look attractive due to its €1 capital requirement, it rarely aligns with serious business goals for foreign nationals, especially non-EU founders. If your objective is to register a company in Croatia that supports growth, compliance, and credibility, the d.o.o. is almost always the correct choice.
Opening a limited liability company in Croatia (d.o.o): The 10 steps Process
Step 1: Choose a Name That Can Pass Croatian Registration
You’ll need a company name that is:
- Unique
- In Croatian or an EU language
- Written in Latin script
- Ending with “d.o.o.”
If you’re abroad, your Croatian lawyer can check, reserve, and clear the name for you.
Step 2: Define Your Business Activities
Using Croatia’s NKD classification, you’ll select the activities your company will perform.
A smart strategy – especially for foreign founders – is to register several activities early, because amending them later is slower and more expensive.
Step 3: Obtain Your OIB (Personal Tax Number)
Every founder must have a Croatia OIB number before incorporation.
If you’re not in Croatia, your attorney can obtain it remotely with a power of attorney and apostilled documents.
Step 4: Sign and Notarize Incorporation Documents
A Croatian public notary oversees the signing of:
- Articles of Incorporation (or Statement of the Founder)
- Director appointments
- Registered address details
If you don’t speak Croatian, a certified court interpreter must be present. Any foreign documents require apostilles and official translations.
Step 5: Open a Temporary Bank Account & Deposit Share Capital
Minimum capital:
- €2,500-€2,700 for a standard d.o.o.
- Higher share capital is often requested in practice when non-EU founders apply for residence through their company. Requirements vary by police administration.
Banks may request additional compliance documents if you are a non-resident. This is normal.
Once capital is deposited, the bank issues a confirmation required for court registration.
Step 6: Register the Company with the Commercial Court
Your notary or lawyer submits the documents, and the Court formally creates your company.
Processing times:
- 3-10 business days (standard)
- 24 hours through e-Company (usually accessible only with Croatian digital ID)
After approval, you receive:
- The Court Decision
- The company OIB
At this point, your d.o.o. officially exists.
Step 7: Register with the Tax Authority
Your new business must be registered with Porezna uprava for:
- Corporate income tax
- VAT (if applicable)
- Ongoing reporting obligations
Corporate income tax is:
- 10% for turnover under €1M
- 18% above €1M
VAT (PDV) is 25%.
Step 8: Register with the Croatian Bureau of Statistics & Obtain Seal
Within 15 days, the company must receive its NKD activity code from the Statistics Bureau.
Most companies also obtain a company seal (pečat) – while not always required, many banks and institutions still expect it.
Step 9: Arrange Accounting and Social Insurance Registrations
Accounting is mandatory in Croatia, and companies typically engage a licensed external accountant to handle:
- VAT filings
- Payroll (if applicable)
- Annual reports
- Corporate income tax submissions
The company also registers with:
- HZMO (pension)
- HZZO (health insurance)
If you’re a non-EU founder applying for residence, insurance enrollment is part of the process.
Step 10: Launch Operations & Apply for Residence (If Needed)
Your d.o.o. can now issue invoices, hire staff, sign contracts, and operate normally.
Foreign nationals-especially non-EU founders-may apply for temporary residence using the company as the legal basis. Additional capital requirements or staffing rules may apply depending on your specific permit pathway.
How to Open a d.o.o. Online in Croatia
Croatia’s START and e-Company platforms allow online formation, but with important limitations:
- They require a Croatian e-ID/digital certificate
- Most foreigners cannot open a d.o.o. online unless they already hold residency
However, your Croatian lawyer may be able to use the system on your behalf.
Online formation works best for:
- EU citizens
- Foreigners already holding Croatian residence permits
- Simple company setups
If you’re abroad, offline formation through a notary is usually faster and more reliable.
How to Close a d.o.o. in Croatia
Closing a Croatian company depends on whether debts or liabilities exist.
Option A: Simple Closure (No Liquidation)
Used when:
- The company has no debts
- All shareholders agree
The notary files the closure decision, the Court publishes a notice, and after 30 days with no creditor claims, the company is dissolved.
Timeline: ~30 days
Cost: ~€199
Option B: Full Liquidation (With Liquidator)
Required when the company has:
- Debt
- Assets
- Outstanding obligations
The Court appoints a liquidator, the company name changes to “u likvidaciji”, and all assets and liabilities must be settled before final dissolution.
Timeline: Several months to one year
Cost: ~€332 + accounting/legal fees
d.o.o. vs j.d.o.o.: Which Structure Should Foreign Nationals Choose?
| Feature | d.o.o. (Limited Liability Company) | j.d.o.o. (Simple Limited Liability Company) |
|---|---|---|
| Purpose | Suitable for small and medium-sized businesses; widely used by foreign investors. | Designed for start-ups and very small businesses seeking a low-cost entry. |
| Minimum Share Capital | €2,500–€2,700 (HRK 20,000) | €1 (HRK 1) |
| Credibility | High – preferred by banks and business partners. | Moderate – often seen as a temporary or entry-level structure. |
| Residency Eligibility | Strong – commonly used by non-EU founders; higher practical capital may be required. | Weak – rarely used for residence applications. |
| Special Capital Requirements (Non-EU/EEA Citizens) | Non-EU founders may need €27,000+ in practice when using a d.o.o. as the basis for residence. | Low-cost entry option but generally unsuitable for residence pathways. |
| Liability | Limited liability – personal assets protected up to invested capital. | Limited liability. |
| Shareholder Limits | No restrictions. | Maximum of 5 shareholders. |
| Reinvestment Obligation | No reinvestment requirement. | Part of profits must be reinvested until statutory reserves allow conversion into a d.o.o. |
| Formation | Notary procedures + full legal steps required. | Simplified formation process with reduced capital. |
| Accounting | Accounting services are required. | Accounting services are required. |
| Best For | Foreign investors, relocations, and long-term business operations. | Small experimental projects, micro-ventures, or test-phase activities. |
Foreign nationals we worked with almost always choose a d.o.o., especially if:
- You want to apply for Croatian residency
- You need credibility with banks or partners
- You plan to hire staff or handle investments
- You want a long-term EU structure
A j.d.o.o. is better suited for Croatian locals testing a business idea, not for non-residents building serious operations.
Making the Right Decision as a Foreign Entrepreneur
If your goal is long-term business success, relocation, EU credibility, or structured investment, the d.o.o. is the right choice. It’s stable, respected, and aligned with the needs of international founders.
A j.d.o.o. may look attractive because of the low capital requirement, but for foreign nationals it usually creates more limitations than advantages.
When done correctly, opening a d.o.o. is straightforward, documents, court filings, tax setup, and banking all follow predictable steps. The challenge comes from small mistakes: untranslated documents, non-standard bank requirements, residency by investment misunderstandings, or incorrect business activities. That’s exactly why having the right legal guidance is essential.
Start Your Croatian Company With Clarity and Confidence
At Mandracchio Capital, our legal experts help founders connect with the right Croatian lawyers and advisors, professionals who understand cross-border business, foreign ownership issues, and multi-step cases. We guide you through company formation in Croatia so you can start confidently and avoid the common mistakes newcomers make.
Picture yourself operating a fully compliant Croatian d.o.o., bank account open, tax number active, contracts signed without the stress or setbacks that slow most foreign founders down.
You don’t need to figure this out alone. Book a Free 20-Minute Strategy Call today
