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Guide to All Types of Businesses in Croatia
Croatian businesses in Zagreb
If you plan to start a business in Croatia, the first step is deciding which business to open. The type of company structure is critical to the success of your business and should match your business goals.
In this post, we will go over each type of business in Croatia and provide tips on each and guides explaining how to open them. Before you open a business, view this guide.
Jump to a type of business:
- d. (public limited company)
- o.o. (limited liability company)
- GIU (economic interest association)
- d.o.o. (simple limited liability company)
- t.d. (general partnership)
- d. (limited partnership)
- obrt (trade business)
- OPG (family farm)
- predstavništvo (branch office)
- udruga (non-profit organization)
The facts are these…
Types of Businesses in Croatia
#1 d.d. (public limited company)
Dioničko društvo (d.d.) is a public limited company where shareholders participate with contributions in the share capital divided into shares. This type of company can have only one shareholder. It is a legal entity and acquires registration in the court register. The company is responsible for its obligations with all its assets. Shareholders are not responsible for the company’s obligations.
Good for: It is a great way to establish protection from liabilities and debt
Bad for: As a shareholder, you only have complete control of the company if you are the sole shareholder
#2 d.o.o. (limited liability company)
A d.o.o. is the equivalent of a limited liability company and is the most common business in Croatia. A d.o.o. can be owned by one or multiple persons.
To set up the company, 2.500 euros in start-up capital is required. However, if you are a non-EU/EEA citizen planning to use the company as a basis for a residence permit, the start-up capital required can be as much as 26.544,56 euros or more. It can be opened in person or online.
[Read: How to get residency by opening a Croatian business]
Good for: All types of for-profit businesses
[Read: How to open and close a d.o.o. (LLC) in Croatia]
#3 GIU (economic interest association)
Gospodarsko interesno udruženje (GIU) is a legal entity founded by two or more individuals and companies to facilitate and promote the performance of economic activities that are the objects of their business, but in such a way that the legal entity does not acquire profit for itself.
Good for: It is a great way to promote your business and establish connections with other professionals
Bad for: You do not earn profit from GIU, although your own company may benefit from your networking
#4 j.d.o.o. (simple limited liability company)
A j.d.o.o. is similar to a d.o.o. but is typically used for companies with limited start-up capital. The required start-up capital for launching j.d.o.o. is only 1 euro. It can have up to 5 founders and be opened in person or online.
Good for: Businesses with low overhead and upfront start-up costs, such as online businesses
[Read: How to open and close a simple limited liability company (j.d.o.o.) in Croatia]