Why opening a business can help
If you open a business in Croatia, the permission process will be streamlined.
FAQ: What types of businesses are there in Croatia?
Paušal / temporary (also known as free artist / Slobodan umjetnik) – meaning, I work when I work. Taxes are paid when money is made, on a seasonal basis. This is an ideal arrangement for someone who rents out their apartment for summer tourism, for example.
Trade business or OBRT (good for merchants, tradesmen, and other hands-on types of professions). There are pros and cons to every type of business structure. This type has lessened in popularity in recent years. You must pay a salary and governmental contributions every month, year-round, whereas a corporation does not require that you have any employees at all. Yes, someone must run it, but they do not have to be employed by the firm. There are two basic types of corporations in Croatia:
JDOO (Limited, simplified)
Opening a simplified corporation (j.d.o.o., which means simplified limited corporation), is one way to go. This opportunity was provided to encourage free enterprise.
DOO (Limited liability)
A classic corporation, or d.o.o. (limited liability) requires 20,000 kn (approximately 3000 euros) in capital, requiring a one-time deposit that must be verified at its formation. After processing, these funds will be returned to your company bank account and can be used for purchases, equipment or any other types of materials, as needed. The entire process usually takes about one month.
FAQ: How much does it cost to open a business?
It is not costly nor time consuming to open a jdoo. You will need to first choose a name that is acceptable (HINA will make sure it’s available; just like a website address, there can be no duplicates) and so you register a name and visit the Notary (JB) to prepare a formal proposal for your business. The JB must also be paid. Minimum capital of only 10 kunas (1.5 euros) is required, plus fees which are 100-150€. After review and approval by the commercial court where you are based, (there are commercial courts in all major city hubs), you can begin doing business.