Foreigners can establish and own 100% of a Croatian company without a Croatian partner. However, incorporating a company and obtaining the right to live and work in Croatia are separate legal processes
Starting a business in Croatia involves selecting a company structure, registering with the authorities, and completing several administrative steps. The most common options are a limited liability company (d.o.o.) and a simple limited liability company (j.d.o.o.), both of which can be fully owned by foreign nationals.
As a business lawyer in Croatia and founder of Mandracchio Capital, I have advised foreign entrepreneurs and investors on company formation in Croatia for more than a decade. In practice, while the process is relatively structured, the key challenges usually arise from documentation, banking setup, and aligning the company structure with residency and tax planning.
My name is Šime Jozipović, founder and CEO of Mandracchio Capital. I’m a Croatian lawyer based in Split, with a Master of Laws (LL.M.) from Harvard Law School and a doctorate in international tax planning.
In this guide, I help you understand how to start a company in Croatia step by step, including company types, costs, legal requirements, tax considerations, and what foreign entrepreneurs should know before incorporating.
Key Facts: Starting a Business in Croatia
| Requirement | Key Information |
|---|---|
| Tax ID (OIB) | Every founder and director must obtain a Croatian Personal Identification Number (OIB). |
| Company Types | Most foreign entrepreneurs choose a d.o.o. (limited liability company). A j.d.o.o. is available for startups with lower initial capital. |
| Minimum Capital | d.o.o.: €2,500 |
| Registered Address | Every company must have a registered business address in Croatia. |
| Company Registration | Registration can be completed remotely for many cases, while some applicants may need a Croatian legal representative or notary. |
| Business Bank Account | Required to deposit share capital and manage company finances after incorporation. |
| Registration Timeline | Most companies are incorporated within 2-4 weeks, depending on documentation and authority processing times. |
| Corporate Income Tax | 10% for annual revenue up to €1 million; 18% above that threshold. |
| Standard VAT Rate | 25% (registration depends on turnover and business activities). |
After the documents are notarised, the company is registered with the Commercial Court Register. Croatia’s official commercial court register is the Sudski registar (Court Register), maintained by the Ministry of Justice, Public Administration and Digital Transformation and nine regional commercial courts.
Once registration is approved, the company completes tax registration with the Tax Administration and social security registration with HZMO and HZZO. In most cases, the full incorporation process takes approximately 2–4 weeks.
If you’re still evaluating whether Croatia fits your commercial objectives, read our comprehensive guide to Doing Business in Croatia, where we cover the economy, taxation, investment climate, labour market, and business environment in greater detail.
Starting a Business as an EU Citizen vs a Non-EU Founder
| Requirement | EU Citizens | Non-EU Founders |
|---|---|---|
| Company ownership | ✅ | ✅ |
| 100% foreign ownership | ✅ | ✅ |
| Work permit | Not required | Usually required if living and working in Croatia |
| Residence registration | Simpler | Additional immigration process |
| Banking | Usually more straightforward | Enhanced AML reviews may apply |
| Documentation | Standard | May require apostilles and certified translation |
For EU citizens, starting a business in Croatia is generally more straightforward due to the EU’s freedom of establishment. In most cases, EU nationals can establish and manage Croatian companies without obtaining a separate work permit, making incorporation and ongoing administration significantly simpler than for third-country nationals.
Residency Through Business in Croatia
Before you start a business in Croatia, work out which of two routes you are on, because capital, timeline and cost differ widely. Route A gives you a Croatian company that you run from wherever you live. Route B uses the company as your basis for living and working in Croatia. Route B matters only for non-EU founders, since EU, EEA and Swiss citizens can live and work here without a permit.
| Criteria | Route A: company only | Route B: company + residence permit |
|---|---|---|
| Who it suits | Founders who keep living abroad and want an EU company | Non-EU founders who want to move to Croatia and work in their own company |
| Legal basis | Companies Act | Companies Act plus Aliens Act (self-employment permit) |
| Money in the company | €2,500 share capital for a d.o.o. (€1 for a j.d.o.o.) | At least €26,544.56 invested in setting up the company |
| Croatian employees | None required | At least 3 Croatian citizens, full time, on open-ended contracts, paid at least the average gross salary |
| Your salary | None if you are a shareholder only | At least 1.5 × the average gross salary, about €3,000 a month |
| Director, if you are non-EU | A Croatian or EU citizen, or someone with the right to work in Croatia | You, with your permit application filed within 30 days of court registration |
| Where you live | Anywhere | In Croatia; long absences can cost you the permit |
| Timeline | 2–4 weeks to incorporate | 2–4 weeks to incorporate, plus time to hire three employees and for the police to decide on the permit |
| Money needed in year one | €2,800–€3,100 to set up (capital plus €300–€600 in fees), then accounting from €150–€300 a month | The €26,544.56 investment, about €125,000 a year in salaries and employer health contributions, and about €115 in permit fees |
Route B salary figures use 2025 averages. The share capital and the investment stay in the company for business use.
Required documents to Start a company in Croatia
A crucial first phase of how to start a company in Croatia is preparing your compliance and identity files in advance. Below is the list of documents required, how they differ for EU and non-EU founders, and how to prepare them properly so you don’t lose time, money, or business momentum. For further info, please move to list of documents required to start a company in Croatia
Company Formation Process in Croatia
Once you’ve decided on the appropriate business structure, understanding how to start a company in Croatia comes down to executing a specific sequence of administrative and legal steps. While the overall process is relatively straightforward, each stage must be completed in the correct order to avoid delays with the Commercial Court, banks, or tax authorities.
For a detailed timeline, required documents, government authorities involved, and how we support clients at every stage, read our Croatia Company Registration Process guide.
If you cannot travel to Croatia, arrange a power of attorney first
You can complete all five steps without coming to Croatia. You sign a power of attorney at home, and a Croatian lawyer carries out the steps for you at the notary, the court and the Tax Administration. The document must reach Croatia as a paper original, so arrange it before Step 1 and allow time for the apostille and courier.
- Our lawyers draft the power of attorney. At Mandracchio Capital, we prepare it in English and Croatian side by side. It lists every act your lawyer may perform: applying for your OIB, signing the founding document before a Croatian notary, appointing the director, and filing with the court and the Tax Administration. The notary accepts only the acts the document spells out, so the list needs to be complete.
- Sign it before a notary in your country. In the US, any notary public can witness your signature. In the UK, use a notary or a solicitor. Croatian embassies certify signatures only for holders of a Croatian passport or ID card.
- Get the apostille. In the US, the Secretary of State of the state where your notary is commissioned issues it. Some states require an extra certification first. In New York, the county clerk certifies the notary’s signature, and the Department of State then issues the apostille for $10 per document. In the UK, the Foreign, Commonwealth & Development Office Legalisation Office issues it. Choose the paper apostille, which Croatian authorities ask for; it costs £45 plus postage and is processed within 15 working days. If your country has not joined the 1961 Hague Apostille Convention, the document needs full legalisation instead.
- Ship the original by express courier. Send the apostilled original, never a scan, with a tracked service such as DHL Express Worldwide. Allow up to five business days for it to reach our office in Split.
You can settle your company name and activity codes while the document is in transit. Once it arrives, a certified court interpreter translates the parts still in English, and your lawyer carries out Steps 2 to 5. Most of our international clients complete 90–100% of the process remotely this way.
Step 1. Choose Your Company Name & Business Activities
Select a unique company name that complies with Croatian naming rules and choose the appropriate NKD business activity codes before incorporation.
Refer to our guide on How to choose correct company business activity code
Step 2. Obtain an OIB (Tax Identification Number)
Every founder and director must obtain a Croatian Personal Identification Number (OIB), which is required for company registration, banking, and tax purposes.
Step 3. Prepare & Notarize the Incorporation Documents
Draft the Articles of Association (or Declaration of Incorporation), appoint the director, and have all required documents notarized. Foreign documents may require an apostille and certified Croatian translation. If you work remotely, your lawyer signs before the notary on your behalf
Step 4. Pay in the share capital and register the company
Open a Croatian business bank account, deposit the required share capital, then submit the incorporation documents to the Commercial Court to officially establish the company.
Step 5. Complete Post-Registration Requirements
After approval, register for taxes and VAT (if applicable), obtain the NKD classification notice, arrange accounting, and complete any required pension, health insurance, or licensing registrations before starting operations.
Choosing the Right Business Structure in Croatia
Choosing the right business structure in Croatia depends on your scale, budget, residency status, and whether you want personal liability protection
Choosing the right legal structure is one of the most important decisions when starting a business in Croatia. It affects taxation, liability, banking, regulatory compliance, and your ability to grow or expand within the European Union.
For most foreign founders, there are two practical options:
- Establish a Croatian limited liability company (d.o.o.) as a new legal entity.
- Open a Croatian branch office of an existing foreign company.
The right choice depends on whether you are launching a new business or expanding an established one.
| Structure | Best For | Separate Legal Entity | Minimum Capital |
|---|---|---|---|
| d.o.o. (Limited Liability Company) | New businesses, SMEs, foreign investors | ✅ Yes | €2,500 |
| Branch Office | Existing foreign companies expanding into Croatia | ❌ No | None |
| j.d.o.o. | Small startups | ✅ Yes | €1 |
| Obrt | Self-employed individuals | ❌ No | None |
d.o.o. (Limited Liability Company)
A d.o.o. is the preferred structure for most international founders establishing a new business in Croatia. It offers limited liability, allows 100% foreign ownership, and provides a separate legal entity that can enter contracts, employ staff, and operate throughout the European Union.
To understand this structure more deeply, visit our article on d.o.o. limited liability company formation in Croatia and see what the process involves.
Branch Office
A branch office allows an existing foreign company to establish a presence in Croatia without creating a separate Croatian legal entity.
Unlike a d.o.o., the branch remains legally part of the parent company, meaning the parent business retains responsibility for the branch’s obligations and liabilities.
Considering an Existing Company Instead?
Registering a new company is the most common approach for foreign founders entering Croatia. However, if you need an existing legal entity, operational history, or a faster route to market, purchasing an established Croatian company may be a suitable alternative.
Before proceeding, compare the advantages and disadvantages of both options in our guide to Starting a Business vs Buying an Existing Company in Croatia.
Costs of Opening a Company in Croatia
Total costs vary depending on structure, director role, and whether the company will support tax residency. Read the detail break down: Cost of Opening a Company in Croatia
Opening a standard Limited Liability Company (d.o.o.) in Croatia costs at least €2,500 in share capital plus roughly €300 to €600 in administrative and notary fees if done independently.
Do Foreign Founders Need to Be Directors?
| Role | Operational Rights | Salary Required | Tax Exposure |
|---|---|---|---|
| Owner only | No | No | Dividends only |
| Director | Yes | Yes | Income + contributions |
In Croatia, owning a company is not the same as running it.
Only the Director can legally operate and represent the company including signing contracts, invoicing clients, and fulfilling compliance obligations.
For 2026, the mandatory minimum monthly contribution base for directors/management board members is €1,295.45 gross (calculated using a coefficient of 0.65 times the average gross salary in legal entities).
If you are an EU citizen, you generally have the right to live and work in Croatia without holding a separate residence permit. If you already contribute to social security in another EU country, presenting an A1 certificate may allow you to serve as Director while avoiding double contributions in Croatia.
Ongoing Compliance & Tax Obligations
Registering your company is only the first step. Once incorporated, Croatian businesses must comply with ongoing accounting, tax, payroll, and corporate reporting requirements to remain in good standing and avoid penalties.
Key post-incorporation obligations typically include:
- Maintaining accounting records in accordance with Croatian accounting regulations and, where applicable, IFRS standards.
- Filing annual corporate income tax returns and financial statements.
- Registering for and submitting VAT (PDV) returns, where applicable.
- Managing payroll, pension (HZMO), and health insurance (HZZO) contributions if the company has a working director or employees.
- Keeping corporate records and meeting statutory reporting requirements.
For a detailed explanation of corporate tax, VAT, payroll obligations, and reporting requirements, see our Croatia Tax System Guide. If you’re looking for bookkeeping, payroll, and ongoing compliance support, read our Accounting & Compliance in Croatia guide.
Explore Business Opportunities in Croatia
Different business activities require different legal, tax, and operational considerations. If you already know the type of business you plan to establish, our dedicated guides explain the key considerations for setting up the appropriate Croatian company or business structure for your activity.
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Starting a Yacht Charter Business in Croatia
Understand the company structure, tax considerations, maritime regulations, registration requirements, and operational matters involved in establishing and operating a yacht charter business in Croatia.
Launching a Digital App Business in Croatia
Find out how to structure and establish a Croatian company for a mobile or web application, SaaS product, or other digital business, including key considerations around taxation, intellectual property, VAT, and regulatory compliance.
Starting a Software Business in Croatia
Understand the considerations for establishing a Croatian company for software development or software products, including businesses developing trading software, technology platforms, and other software solutions.
Benefits and downsides of opening a company in Croatia
Starting a business in Croatia offers opportunities but also practical challenges. Foreign founders should understand local tax, invoicing, banking and reporting requirements before setting up.
For a balanced overview, read Benefits and downsides of Doing Business in Croatia.
Key points to note:
- Standard receipts are not deductible; R1 invoices may be required.
- Payments must comply with applicable fiscalization rules (Croatian Tax Administration).
- Incomplete compliance documents can delay bank onboarding.
- Financial statements are public business records.
Avoid common pitfalls with our guide to Common Mistakes Foreigners Make When Starting a Company in Croatia.
Mandracchio Capital – Your Legal Partner for Doing Business in Croatia
Mandracchio Capital, founded by Prof. Dr. Šime Jozipović, supports international investors, founders, and companies entering the Croatian and broader European Union market. With 500+ projects supervised and over €500 million in company value established, the firm helps foreign businesses start and operate in Croatia with regulatory clarity and confidence.
Our advisory work focuses on company formation, tax and VAT compliance, cross-border structuring, and EU market entry strategies, coordinating experienced Croatian lawyers and tax consultants to ensure every stage of your business setup is legally sound.
For founders looking for a structured, fully compliant company setup process, explore our Croatia company formation service, where we coordinate documentation, incorporation filings, bank onboarding, and tax registration so your business enters Croatia correctly from day one.
Based in Split, Croatia, Mandracchio Capital works with clients from the United States, United Kingdom, Canada, Australia, and across the EU, helping them build compliant and scalable operations within the Croatian and European legal framework.
FAQ
Can foreigners start a business in Croatia?
Yes. Foreigners, including both EU and non-EU nationals, can legally establish a business in Croatia. In most cases, foreign founders may own 100% of a Croatian company, provided all registration, tax, and compliance requirements are met.
What is the best business structure for foreign entrepreneurs in Croatia?
For most international founders, a d.o.o. (društvo s ograničenom odgovornošću) is the preferred legal structure. It offers limited liability, operational flexibility, and is the most common choice for foreign entrepreneurs establishing a business in Croatia.
How can non-EU citizens start a business in Croatia?
Non-EU citizens can establish a Croatian company under the same company law as EU nationals. However, if they also wish to obtain temporary residence based on business ownership, additional immigration requirements generally apply. These typically include investing at least €25,000 in the business, employing at least three Croatian citizens on a full-time basis, and meeting other conditions under Croatian immigration law. Company ownership does not automatically give a non-EU founder residence rights. The requirements for residence based on business activity depend on the applicable Croatian immigration rules and the founder’s specific circumstances.
Can I open a company in Croatia to obtain residency?
Not automatically. Registering a company alone does not grant residence rights. Residence applications based on business ownership are assessed separately, and Croatian authorities generally expect genuine commercial activity rather than a company created solely for immigration purposes.
Do I need a Croatian partner or local director?
No. Foreign founders can generally own and manage a Croatian company without appointing a Croatian shareholder or local director. However, directors remain responsible for complying with Croatian corporate, tax, and employment regulations.
Can I register a company remotely?
Yes. With Mandracchio Capital, you can establish a Croatian company either in person or remotely. We manage the incorporation process from document preparation and company registration to tax registration and coordination with local professionals. Most international clients complete 90–100% of the process remotely using a notarised and apostilled Power of Attorney, depending on their circumstances and the bank’s account-opening requirements.
How long does it take to start a business in Croatia?
Most company formations are completed within 2–4 weeks once all required documents have been prepared. The overall timeline depends on document legalisation, Commercial Court processing, tax registration, and corporate bank account opening.
How much does it cost to start a business in Croatia?
Costs depend on the company structure and the level of professional assistance required. A standard d.o.o. requires €2,500 in share capital, while additional expenses may include government registration fees, legal services, accounting, translations, and ongoing compliance.
Can I open a branch office instead of incorporating a Croatian company?
Yes. A foreign company may establish a branch office in Croatia without creating a separate legal entity. The branch operates under the legal responsibility of its parent company but must still obtain an OIB, register for tax where applicable, and maintain local accounting records.
Do I need to live in Croatia to own a Croatian company?
No. You can own a Croatian company without living in Croatia. However, if you intend to relocate or actively manage the business from Croatia, separate immigration, tax residency, and employment rules may apply.
Does Croatia offer a five-year income tax exemption for new residents?
No. Croatia does not provide a general five-year income tax exemption for new residents or foreign business owners. Tax obligations depend on your tax residency status, the source of your income, and applicable Croatian tax legislation.
