Opening a Limited Liability Company (d.o.o.) in Croatia
Establishing a limited liability company (d.o.o.) is one of the most popular business forms in Croatia, designed for individuals who want to operate with personal asset protection. If you are considering starting your own d.o.o., this guide outlines the steps to take, the costs, required documentation, and tips for quickly launching your business.
What Is a Limited Liability Company (d.o.o.)?
A limited liability company (d.o.o.) is a legal entity that allows its owners to protect their personal assets. Unlike a sole proprietorship, where the founder is personally liable with all their assets, a d.o.o. enables owners to operate with limited liability, meaning the risk is confined to the amount of capital invested in the company.
Why Choose a Limited Liability Company (d.o.o.)?
Opening a limited liability company (d.o.o.) offers several advantages:
- Limited liability – founders are liable only up to the amount of capital they have invested;
- Easier transfer of ownership – shares in a d.o.o. can be sold or transferred;
- Professional image – a d.o.o. often creates greater trust with business partners.
Steps to Opening a Limited Liability Company (d.o.o.)
In short, establishing a d.o.o. requires share capital, a founding act, notarization, and registration in the Court Register. The cost of starting a d.o.o. ranges between €3,000 and €4,000, including share capital, court fees, and other expenses. The average registration time is 7 to 15 days. Below is a detailed guide to setting up a d.o.o. in Croatia.
Prepare the Initial Capital
The minimum share capital required to start a d.o.o. in Croatia is €2,500. You can deposit this capital in a bank, which will issue a confirmation of payment – an important document needed for the registration process.
Draft the Founding Act
The founding act (for multiple founders) or the declaration of establishment (if you are the sole founder) are the basic documents required for registration. These documents include:
- Information about the founders;
- The company name and registered office;
- Description of the company’s activities;
- Amount of share capital.
To prepare the founding act or declaration of establishment, consult a notary, who will notarize the document and ensure its legal validity.
Check the Company Name
The name of your d.o.o. must be unique and cannot resemble the names of existing companies. You can verify its availability through the Court Register or the Court Register website.
Register with the Court Register
After preparing all documents, the next step is to submit an application for registration in the Court Register. This step includes:
- Submission of the founding act or declaration of establishment;
- Confirmation of share capital payment;
- Proof of the company’s registered office address.
When submitting the registration application, a court fee must be paid, which varies depending on the complexity of the process but generally ranges between €300 and €400.
Open a Business Bank Account
Once your d.o.o. is registered, you need to open a business bank account in the company’s name. All capital contributions should be deposited into this account, and it will be used for all business transactions.
Register with the Tax Administration
After successfully registering with the Court Register and opening a bank account, you must register your company with the competent Tax Administration. This registration includes corporate income tax and, if applicable, VAT, depending on your planned business activities.
How Much Does It Cost to Open a Limited Liability Company (d.o.o.)?
The costs of establishing a limited liability company (d.o.o.) depend on several factors:
- Share capital: minimum €2,500;
- Notary fees: notarization of the founding act ranges from €50 to €100;
- Court fees: approximately €300 to €400;
- Additional costs: expenses for opening a business bank account and issuing a company stamp (if required).
How Long Does the Process of Opening a Limited Liability Company (d.o.o.) Take?
The process of opening a d.o.o. in Croatia takes between 7 and 15 days, depending on the processing speed at the Court Register and the Tax Administration. Digitalization of the process allows for faster registration, but timing also depends on the availability of documents and the notary’s schedule.
Simple Steps to Opening a Limited Liability Company (d.o.o.)
Opening a limited liability company (d.o.o.) in Croatia may seem like a complex process, but by following these steps, it can be simpler than it appears. The advantages of a d.o.o., such as limited liability and a professional image, make it an ideal choice for entrepreneurs who want to protect personal assets and build a credible business reputation. Properly prepared share capital, timely documentation, and adherence to legal procedures ensure a fast and successful business launch. For additional information or assistance with starting your company, our advisors are here to help.
