Zagreb is the capital city of Croatia, which is located on the Balkan Peninsula in Europe. Croatia is surrounded by Slovenia, Hungary, Serbia, Montenegro, Bosnia, and Herzegovina.
Drustvo’s Organicenom Odgovornoscu (abbreviated as DOO) is the most common kind of organizational structure for commercial enterprises in Croatia. This abbreviation stands for limited liability company.
Limited Liability Company (DOO)
To establish a DOO, the founder is required to obtain the minimum share capital, which is a minimum of 2,500 Euros or the equivalent in Croatian Kuna. It is a requirement for new businesses to submit their funds to a local bank in the form of Croatia’s national currency. This contribution can be made in the form of commercial rights, as well as monetary and material products.
Registration requirements
The following are the acceptable requirements for completing the registration:
- One or two shareholders (corporations, individuals, foreign, local, or both in resident and nationality)
- A single director (foreign or local person both in resident and nationality)
- Minimum capital of HRK 20,000 (£2,500)
Others
Other requirements include:
- Have a balance sheet and annual financial statement by an expert and certified accountant
- File a report to the Croatian business registers every quarter of the year
Management
For a business to maintain its reputation for honesty in its dealings, it is essential to have trustworthy management.
In Croatia, the following individuals make up the management of a limited liability company:
Director
The shareholders have the power to nominate the director or president of the company, who is then given the right to oversee and regulate the activities of the company, as well as sign any legal agreements. Additionally, the director or president is responsible for recording all transactions in the company’s ledger and acting as the company’s representative in dealings with third parties. It is up to the shareholders to decide whether they want a Croatian or a non-Croatian to fill the positions of director or president.
Verification
The management of the company must be reliable, the authorities of Croatia measure the management of a company through periodic exams, and the Croatian laws verify the management using an annual business plan through the company’s account. The companies are also required to submit their annual financial statement on their financial activities and all other transactions, which are audited and checked by an authorized public accountant in the country.
LLC formation
The formation can be completed by following these easy steps:
Name availability
Check to see if the name you want to use for your company is available in the database of the Croatian registration of companies, and if it is, go ahead and put a hold on it.
Business structure
You will need to choose how you will operate the business, either as a sole proprietor or in a partnership.
Documents
It is necessary to put in place all the relevant paperwork that is outlined by the Croatian business registration. These documents should have the following characteristics:
- the founders/directors or president designed by the owners
- the description of each member’s role
- the company’s address
- the company’s activities, right, and responsibilities
License and permit
Apply to obtain the necessary licenses and permits. This is dependent on the kind of business being run. A nonresident tax identification number, an employee register to deduct taxes from employee wages, and many other regulations are also necessary.
Seal
There are a variety of seals available; therefore, you should pick the one that is most appropriate for the kind of business you run. After that, you will have to submit an application for a registration certificate and issue a license for the seal. After this step, the registration process for your limited liability company is finished.
