Business Structures in Croatia: The Straight-Talk Guide for Foreigners and Locals

TL;DR: In Croatia, the go-to structure for most businesses is the d.o.o. (limited liability company) with €2,500 capital, while the j.d.o.o. is a €1 “starter” version that locks profits into reserves. Obrt (sole trader) is fast and light but exposes you personally. Bigger plays use a d.d. (joint-stock). Partnerships exist but mean personal liability. Foreign firms can expand via a branch (can trade) or representative office (can’t trade, and EU/EEA companies can’t use them). Corporate tax is 10% under €1M turnover, 18% above.
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Thinking Croatia for your base? Good call. Here’s a clean, practical map of the legal structures you can use — what they cost, how liability works, who they fit, and the trade-offs that matter when you’re actually running a business here.

In Croatia, foreign founders are treated like locals for company formation. The big must-have is a Croatian personal ID number (OIB). Directors don’t need to be Croatian residents, but they do need an OIB. Tax Administration – OIB info

At a glance (quick picks)

  • Fast, limited liability, mainstream: d.o.o. (limited liability company) — min. capital €2,500 (Commercial Companies Act).

  • Ultra-low capital starter: j.d.o.o. (simple LLC) — capital from €1; must park 25% of profit into legal reserves until you reach €2,500.

  • Sole trader / freelancer lane: obrt (craft/sole trade), including paušalni obrt (flat-rate tax) for small revenue. Ministry of Economy – Craft Register.

  • Big-league equity/IPO track: d.d. (joint-stock company) — min. capital €25,000.

  • Classic partnerships: j.t.d. (general partnership) & k.d. (limited partnership).

  • Expanding a foreign business: Podružnica (branch) vs. predstavništvo (representative office). Branch can trade; rep office can’t. Croatian Chamber of Economy – Investment Guide.

    • Key tax note (corporates)

    Croatia’s corporate income tax is 10% if annual revenue ≤ €1,000,000, and 18% above that. Withholding on dividends is 10%. Tax Administration – Corporate Tax.

    d.o.o. — društvo s ograničenom odgovornošću (Limited Liability Company)

    Best for: Most SMEs, consultants with teams, product companies, agencies.

    • Capital & shares: Minimum €2,500 capital; nominal value per share at least €10.

    • Liability: Limited to company assets.

    • Governance: At least one director; no residency requirement, but an OIB is needed.

    • Formation: Can be set up online through START e-Companyor via a notary.

    Pros: Credibility, limited liability, straightforward banking and hiring.
    Watch-outs: Capital deposit; a bit more admin than an obrt.

    j.d.o.o. — jednostavno društvo s ograničenom odgovornošću (Simple LLC)

    Best for: Very lean starts when capital is tight.

    • Capital & reserves: Capital from €1; must allocate 25% of annual profit into reserves until capital reaches €2,500.

    • Formation: Same process as d.o.o., available on START.

    Pros: Minimal starting capital.
    Watch-outs: Profit-locking into reserves slows distributions.

    obrt — craft / sole trader (including paušalni obrt)

    Best for: Solo professionals, trades, early freelancers testing the market.

    • What it is: A natural person carrying out a permitted activity.

    • Flat-rate option: Paušalni obrt pays simplified income tax by tiers based on receipts.

    • Where to register: Through the Craft Registeror fully online via START.

    Pros: Light admin, fast start.
    Watch-outs: Personal liability; income taxed personally.

    d.d. — dioničko društvo (Joint-Stock Company)

    Best for: Larger ventures, fundraising via shares, regulated industries.

    Partnerships — j.t.d. & k.d.

  • j.t.d. (general partnership): Partners are jointly and severally liable with all assets.

  • k.d. (limited partnership): At least one general partner (unlimited liability) and one limited partner (liable up to contribution).

    • Branch vs. Representative Office

  • Branch (podružnica): An extension of the parent company — can trade, contracts are binding on the parent.

  • Representative office (predstavništvo): Cannot trade; limited to marketing, research, promotion. EU/EEA companies cannot open rep offices in Croatia. Croatian Chamber of Economy

    • Practicalities you’ll hit on day one
    FAQ
    Frequently asked questions
    We have put together some commonly asked questions.
    Can foreigners be directors or shareholders?
    Yes. There are no residency or nationality restrictions. The only requirement is obtaining a Croatian personal identification number (OIB) from the Tax Administration.
    How fast can I open a company online?
    If all documents and capital are ready, registration via the START platformor e-Sudski registartypically takes a few business days.
    Do I have to pay the full €2,500 for a d.o.o. upfront?
    No. At least 25% of cash contributions must be deposited before registration, with a minimum of €625 in cash. The remainder can be paid in later, as outlined in the Companies Act.
    What taxes apply to companies in Croatia?
    Corporate tax is 10% for annual revenue up to €1,000,000 and 18% above that. Dividends are subject to a 10% withholding tax (Tax Administration – Corporate Tax).
    What’s the difference between a branch and a representative office?
    A branch (podružnica) can trade and bind the parent company in contracts, while a representative office (predstavništvo) is limited to promotion and research. EU/EEA companies are not allowed to open representative offices in Croatia, only branches (Croatian Chamber of Economy).
    Is a j.d.o.o. viewed differently than a full d.o.o.?

    Both are valid companies, but a j.d.o.o. must allocate 25% of annual profits into reserves until capital reaches €2,500. Some banks and partners see it as “entry-level,” while a standard d.o.o. signals more stability (START e-Company).
    How we help (Relocation Croatia)

    Strategy call → OIBs → formation → banking → compliance. You handle your business; we handle the legal scaffolding.