#9 Multilingualism may be mandatory
Owners of retail and tourism businesses (such as cafes, hotels, and restaurants) are required by law to be fluent in Croatian and English. To give the impression that you speak both languages, simply make sure you can communicate with inspectors and government officials during the startup process, and that you have Croatians on your staff who can assist with translation.
#10 Delays, delays, delays
The type of business you’re starting will determine how much you’ll interact with the government. Inevitably, the more you interact with the government, the greater the potential for significant delays in launching your business.
You may be ready, but the government doesn’t care about your timeline or opening dates. Be prepared to wait for inspectors, licenses, registration, and everything else the government deems necessary to operate your business legally.
With that in mind….
#11 These are the people you know
Croatian bureaucracy remains very manual and, for the most part, based on paper records, which leads to a great deal of inconsistency in information, processes, and deadlines. The government doesn’t feel any sense of urgency, and departments rarely communicate with one another. They have plenty of time, but they don’t know you.
The best way to navigate the bureaucracy is to find someone you can talk to in person. Bring them some rakia and candy. Tell them your story. Be polite. It’s amazing what you can achieve by building personal relationships.
How do you find someone to talk to? It’s not easy. Ask around to see if anyone knows someone who works in the city administration, starting with your accountant. Then keep asking until you reach the department you need.
If you’re planning to start a business in Croatia, the first step is to decide what type of company to establish. The type of corporate structure is crucial to the success of your business and should align with your business goals.
In this article, we’ll review every type of business in Croatia and provide advice on each one, as well as guides explaining how to set them up. Be sure to review this guide before starting a business.
Go to business type:
d.d. (public limited company)
TzOV (limited liability company)
GIU (limited liability company)
TzOV (limited liability company)
full partnership (limited partnership)
k.d. (limited partnership)
ТзОВ (commercial partnership)
OPG (family farm)
predstavništvo (branch)
udruga (nonprofit organization)
The facts are as follows…
Types of Businesses in Croatia
#1 d.d. (limited liability company)
Dioničko društvo (d.d.) is a limited liability joint-stock company in which shareholders participate through contributions to the authorized capital, divided into shares. This type of company may have only one shareholder. It is a legal entity and is registered in the court registry. The company is liable for its obligations with all of its assets. Shareholders are not liable for the company’s obligations.
Advantages: This is an excellent way to establish protection against liabilities and debts
Not suitable for: As a shareholder, you have full control over the company only if you are the sole shareholder
#2 TzOV (limited liability company)
A d.o.o. is the equivalent of a limited liability company and is the most common form of business in Croatia. A d.o.o. can be owned by one or more individuals.
To establish a company, you need a minimum of 2,500 euros in start-up capital. However, if you are not an EU/EEA citizen and plan to use the company as a basis for obtaining a residence permit, the required start-up capital may be 26,544.56 euros or more. You can open the company in person or online.
Suitable for all types of commercial businesses
#3 GIU (Economic Interest Grouping)
A Gospodarsko interesno udruženje (GIU) is a legal entity established by two or more individuals or legal entities to facilitate and promote the economic activities that constitute their business, but in such a way that the legal entity itself does not generate a profit.
Benefits: This is a great way to promote your business and build relationships with other professionals
Not good for: You do not make a profit from a GIU, although your company may benefit from your networking