How to open a company in Croatia in 2026: d.o.o. vs branch, costs and timeline

Croatia is an EU and eurozone member with a 10% corporate tax rate for smaller companies, a skilled workforce and a fast court register. Opening a company here is straightforward if you know the order of the steps. This guide covers the three structures foreign companies use, what each step involves, and the obligations that start on day one.

1. Choose the structure

Limited liability company (d.o.o.). The most common choice. A separate Croatian legal entity owned by your parent company or by individuals. Minimum share capital is EUR 2,500, of which at least a quarter must be paid in before registration. Liability is limited to the company's assets.

Simple limited liability company (j.d.o.o.). Minimum capital EUR 1, but limited to five founders and exactly one director, and it must set aside a quarter of profit until capital reaches EUR 2,500. Rarely the right choice for a foreign group.

Branch (podružnica). Not a separate legal entity: the foreign parent is fully liable. It is entered in the Croatian court register, can trade in Croatia, and pays Croatian corporate tax on the profit attributable to it. Good when you want the Croatian operation to stay part of the parent's books.

Representative office (predstavništvo). For market research and promotion only. It cannot sell or invoice, so it is usually a first step before a d.o.o. or a branch.

For most foreign companies that will hire staff and invoice Croatian customers, a d.o.o. is the cleanest option: liability stays in Croatia, local banks and customers are used to it, and group reporting is simple.

2. The steps, in order

1. Tax ID (OIB) for every founder and director. Foreign individuals and companies need a Croatian OIB before anything else. It is issued by the Tax Administration, usually within days.
2. Name check. Confirm the company name is available in the court register.
3. Founding documents at a notary. Articles of association, director appointment and statements. Non-EU founders use the notary route; documents from abroad need an apostille and a sworn translation, and a court interpreter is present if a founder doesn't speak Croatian. EU/EEA founders with a qualified electronic signature can use online incorporation.
4. Share capital. Paid into a temporary account before registration.
5. Court registration. The commercial court registers the company, typically within a few working days of a complete application. You receive the registration decision and the company's OIB.
6. Business bank account. Often the slowest step for foreign-owned companies, because of know-your-customer checks on the owners. Prepare the group structure chart and ownership documents in advance.
7. Beneficial owner register. Must be completed within 30 days of formation. Fines for missing it are significant.

Realistic timeline: two to four weeks from signed documents to a company that can invoice, with the bank account usually deciding the pace.

3. What it costs

Court fees are low, and notary fees follow an official tariff, typically a few hundred euros. Add sworn translations, apostilles and the time of whoever coordinates the process. Formation packages for foreign clients on the market start at around EUR 1,700. The share capital itself is not a cost: it stays in the company and can be used for business expenses.

4. Obligations from day one

• Corporate tax: 10% if annual revenue is below EUR 1 million, 18% above that.
• VAT: registration becomes mandatory once supplies exceed EUR 60,000 a year; many foreign-owned companies register voluntarily from the start, especially for EU trade. Since 2026, VAT returns and payment are due by the last day of the month after the period.
• E-invoicing: since 2026 every business must be able to receive e-invoices, and VAT payers must issue them to other businesses. A PDF sent by email is not an e-invoice.
• Payroll: salaries are paid by the 15th of the following month, with a JOPPD report filed on the payment date. A director without other insurance in Croatia may owe monthly contributions even before the company earns anything. Non-EU staff need residence and work permits.
• Annual accounts: financial statements and the corporate tax return are due by 30 April for a calendar-year company.

5. The first 90 days that make the difference

Most problems we see come from finance being set up after the first invoices, not before. Agree on the chart of accounts mapped to your group, the monthly closing date, who approves payments, and the format of the reporting pack for headquarters. Do it in month one, and the Croatian entity runs like the rest of the group from month three.

We coordinate the whole process with lawyers and notaries, run the local finance function and report to headquarters in English. See how we work with foreign companies.

This guide is general information, not legal or tax advice. Rules and fees change; check the details for your case with us or your lawyer.