--- canonical: "https://euincnow.com/company-formation-croatia" dateModified: "2026-10-11" --- # Company Formation in Croatia: Types, Taxes and Costs Forming a company in Croatia takes roughly five days to four weeks, most often as a d.o.o. (limited liability company) needing EUR 2,500 of capital, or a simple j.d.o.o. needing just EUR 1. Croatian residents can incorporate fully online through the government START platform without a notary, while foreign founders usually register via a notarised power of attorney. Croatia, a eurozone member since 2023, charges 18% corporate tax (10% for revenue under EUR 1 million) and 25% VAT. ## Croatia at a glance - Croatia is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. ### Company types in Croatia - d.o.o. (limited liability company) The standard form (drustvo s ogranicenom odgovornoscu): a separate legal entity with limited liability, EUR 2,500 minimum capital, and 100% foreign ownership allowed. - j.d.o.o. (simple LLC) A low-cost simple limited company with EUR 1 minimum capital, up to five members. It sets aside a quarter of annual profit into reserves until capital reaches EUR 2,500, then converts to a regular d.o.o. * Company formation in Croatia: key facts (last reviewed July 2026) - Corporate tax Corporate income tax is 18% standard, with a reduced 10% rate for companies whose annual revenue is below EUR 1 million. There are no significant local income taxes. - VAT rate Standard VAT (PDV) is 25%, among the highest in the EU, with reduced rates of 13% and 5%. The domestic registration threshold rose to EUR 60,000 in 2025. - Dividends & payroll taxes Dividends are taxed at around 12% for individuals. Personal income tax runs 20% and 30% with municipal variation built into the rates, and employer health contributions add 16.5% on gross salaries. - Minimum share capital A standard d.o.o. requires EUR 2,500 of capital; the simple j.d.o.o. needs only EUR 1, paid in full. A d.d. (joint-stock company) requires roughly EUR 25,000. Capital is deposited into a temporary account before court registration. - Setup time Via the online START platform a d.o.o. or j.d.o.o. can be formed in a few business days (the court registers within about 5 working days). For foreign founders using a power of attorney, the full process typically takes 2 to 4 weeks. - Remote setup Partial. Croatian residents can incorporate fully online through the START platform with no notary. Foreign founders, especially non-EU nationals, generally cannot use START and instead incorporate remotely through a notarised power of attorney to a local lawyer. - Director / residency No residency or nationality requirement. A d.o.o. can be 100% foreign-owned with a non-resident director, who must be a natural person. Residence is not required to incorporate or serve as director. - Banking options Share capital is first deposited at a Croatian bank or FINA. Major banks include Zagrebacka banka (UniCredit), PBZ (Intesa), Erste, OTP and Raiffeisen. Wise and Revolut are used for daily operations, but a local IBAN is normally needed for the capital deposit. * Croatia adopted the euro and joined Schengen on 1 January 2023, removing currency risk for EU trade. The 10% reduced corporate rate for companies under EUR 1 million of revenue is among the more competitive small-company rates in the EU. ## How to register a company in Croatia - Step by step, this is how a Croatia formation actually runs: 1. **Pick d.o.o. or j.d.o.o..** The j.d.o.o. starts at EUR 1 with template articles and converts to a full d.o.o. as reserves build; the d.o.o. needs EUR 2,500. 2. **Use START or a notary.** Residents incorporate online via START without a notary; foreign founders usually sign a notarised, apostilled power of attorney for a local lawyer. 3. **Deposit the capital.** Capital goes to a temporary account at a Croatian bank or FINA before court registration. 4. **Court registration.** The commercial court registers within about five working days once the file is complete. 5. **Tax, pension and health registrations.** Register with the tax administration for CIT and VAT, and with the pension and health systems if employing. ## What company formation in Croatia costs - The START route keeps official costs low (tens of euros); the notarial route for foreign founders typically totals EUR 250 to 500 with translations. The j.d.o.o. carries token capital, the d.o.o. EUR 2,500. Accounting for a small d.o.o. usually costs EUR 100 to 200 a month. ## Who can form a company in Croatia - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Croatia. The director and residency information above identifies the main formation conditions to review. - Croatia fits founders operating on the Adriatic coast, tourism-adjacent businesses and EU founders who can use the fully online START route. Non-EU remote founders face the notary detour, so they should weigh Croatia against faster Balkan or Baltic options unless the local connection matters. ## After registration: what Croatia expects each year - Annual financial statements go to FINA by the end of April for statistical purposes and for publication. The corporate tax return is due by that same season, VAT returns are monthly or quarterly, and the 10% small-company CIT band applies below EUR 1 million of revenue. Audit thresholds spare small companies. ## Croatia and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Croatia is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. - No separate topic-level check date is recorded for this profile. Confirm the current requirements with the linked authority before proceeding. ### Reference links - [taxsummaries.pwc.com][1] - [gov.hr][2] ## Frequently asked questions ### Can a foreigner open a company in Croatia? - No residency or nationality requirement. A d.o.o. can be 100% foreign-owned with a non-resident director, who must be a natural person. Residence is not required to incorporate or serve as director. ### How long does company formation in Croatia take? - Via the online START platform a d.o.o. or j.d.o.o. can be formed in a few business days (the court registers within about 5 working days). For foreign founders using a power of attorney, the full process typically takes 2 to 4 weeks. ### What corporate tax does a company in Croatia pay? - The headline summary is 10% / 18%, with standard VAT of 25%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Croatia remotely? - Partial. Croatian residents can incorporate fully online through the START platform with no notary. Foreign founders, especially non-EU nationals, generally cannot use START and instead incorporate remotely through a notarised power of attorney to a local lawyer. ## Source URLs [1]: https://taxsummaries.pwc.com/croatia/corporate/taxes-on-corporate-income [2]: https://gov.hr/en/establishing-a-simple-limited-liability-company/2747