Doing Business Report

Croatian summary 2010 data can be found here.

The challenges of launching a business shows the number of steps entrepreneurs can expect to go through to launch are 7, the time it takes on average is 22 days, and the cost of it is 8.4% of gross national income (GNI) per capita (being US$13,5k).

Croatia Doing Business 2010 report can be downloaded here.

Assono is a proud World Bank Group Doing Business local partner.

Crisis Times

Industrial production in Croatia recorded the annual decrease of 9.6% in September 2009, where in September 2008 the annual growth of industrial production of 3.6% was recorded. The trend-index of the total industrial production was 0.4% lower in September compared to August 2009. In the ?rst nine months of 2009 industrial production decreased by 9.7% at annual level, while in the third quarter of 2009 the annual decrease of industrial production amounted to 9.0%.

Public debt of the country increased by €83 million in August 2009 in comparison to July 2009. The share of public debt in GDP stood at the level of 33% in August 2009. The foreign component of public debt increased by EUR 35 million due to an increase of the foreign debt of Central Government in comparison to July 2009. The domestic component of the total public debt recorded an increase compared to the previous month’s stock in the amount of EUR 55 million as a result of an increase of the Central Government domestic debt and an increase of budget-eternal domestic debt users.

Data is published in the Croatian Ministry of Finance September 2009 Statistical Review

See all Monthly Statistical Reviews

VAT in Croatia

The standard Croatian VAT rate increased to 23% in the summer of 2009. This rate applies to most products and services.
10% rate applies to tourism, newspapers etc, 0% rate applies to bread and books, while banks, savings and loans and insurance companies are VAT exempt.

Croatian Companies House (Companies Registry)

Croatian Companies Registry can be freely accessed on-line at http://sudreg.pravosudje.hr

There you can verify registered corporate information for all Croatian private companies, registered traders, institutions and foreign companies Croatian branch offices.

Since it is Croatian-only, we provide the simple
Instructions: type the company name in the second form (you can use % as a wild-card character) and press the first button ("Trazi"). On the search page click the registration number and type the verification code to access entire registry file on a company, enabling you to see management, founding capital, registered address etc.

For assistance in setting up your company in Croatia, please contact us.

Visa and Working Permits Regime

Most foreigners do not need a visa for entering/transiting the Republic of Croatia and for residing up to 90 days. Croatian visa requirements for different countries' nationals can be found here.

Foreigners who personally wish to perform business in Croatia must either obtain a working permit or a business permit. Number of working permits is restricted in number and in special categories of workers, and business permits are issued to a foreigner running it's own businesses. A foreigner must not commence business before the business permit has been issued in a process that takes usually up to three months. Such person must also be eligible for the temporary residence permit. Temporary residence is approved to persons who provide certificate on heir health insurance, good character, means of support and shelter.

Assono provides local professionals to manage your Croatian company under your instruction, therefore no working, business or stay permits are required to run your business. Company set up can be instructed remotely, and there is no need for an investor to enter or stay in Croatia. Please contact us.

Transfer Tax in Croatia

Transfer of land, used cars, other motor vehicles, boats and planes is subject to an irrecoverable transfer tax at the rate of 5%.

Ways to Do Business

Foreign companies and individuals are free to incorporate create new local private companies and/or acquire existing ones.

Limited liability companies are generally free to operate in all business areas, according to their freely selected and registered business activities. However, some activities require pre-, some post-registration license to operate (e.g. legal advisory limited liability company requires a pre-registration license, and energy-related activities require post-registration license to engage in business). The investment origin (foreign) does not affect the activities registration and freedom in Croatia.

Foreign investors can operate in Croatia via their rep or branch office (the difference is that a representational office can only perform market research activities) or through their subsidiaries, separate private companies. Each presence for must supply local address for registration purposes, Assono can lease a local Croatian address for registration purposes.

Most common company form used by investors is the limited liability company. Read about it in another blog entry.