Differences between obrt, d.o.o. and j.d.o.o. companies

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We have already covered how to open and close an obrt, how to open and close a j.d.o.o. or d.o.o. company as well as the different types of obrt trade businesses.

With this post, we will dig deeper into the main differences between obrt and društvo s ograničenom odgovornošću (e.g. d.o.o. or j.d.o.o.).

In this post we cover:

Conditions and establishing costs


Obrt is the simplest and cheapest type of company to launch and operate.

You can register obrt here:

Obrt can be categorized in 2 groups:

  • Paušalni obrt (Flat-rate trade business) – It is an ideal obrt type for beginners with small incomes. It is excluded from taxation, since incomes can’t exceed 300.000 kuna.
  • Obrt (Trade business) – It is ideal for businesses whose incomes exceed 300.000 kuna. It is included in the taxation system.

Initial start-up capital isn’t required.

Here are all the costs:

  • Costs of establishing obrt – ~ 500 kuna
  • License (obrtnica) – 200 kuna
  • Registration process
    • ~ 270 kuna in Zagreb
    • 250 kuna everywhere else

For more detailed information on what an obrt trade business is and its options, view this post.

For details on how to open and close an obrt, view this post.


To establish a j.d.o.o. (Jednostavno društvo s ograničenom odgovornošću ) you need only 10 kuna for the initial start-up capital investment. If you’re planning to enter the service industry where there is no investment in equipment, you should open a j.d.o.o.

Registration can be done by the public notary (javni bilježnik) and establishment costs are around 800 kuna. If you are not fluent in Croatian, an official translator is usually required at the notary for which there is an additional cost.

A j.d.o.o. can have only one director and a maximum of three owners.

For detailed information on how to open and close a j.d.o.o., view this post.


D.o.o. (Jednostavno društvo s ograničenom odgovornošću) is the most common type of company for small entrepreneurs. The cost of establishment is approximately 5.000 kuna. The initial start-up capital is 20.000 kuna, which can be used by the owners immediately.

D.o.o. can have an unlimited number of directors and owners.

For more information on how to open and close a d.o.o., view this post.

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Responsibilities and duties

The obrt’s owner is responsible for obrt’s duties, liabilities and associated personal property while owners of j.d.o.o. and d.o.o. have a limited responsibility and liability as it relates to the company’s property only.

Book management and accounting

J.d.o.o. and d.o.o. are required to manage all the business books according to the dual accountancy principle. Book entries are done when the bill is released and PDV has to be paid even if an invoice isn’t charged on time. A licensed accountant is required, either on staff or a third party.

Obrt can manage its business books according to the simple accountancy principle, which is simpler and cheaper. Owners can manage their books independently, on their own. Book entries are done when the bill is charged, which means that their receivables are only charged invoices.

Employment and salary

If you’re the obrt’s owner, you’ll have to pay for all the taxes (pension, health insurance, employment, safety at work) totaling approximately 1.800 kuna per month. That means that taxes have to be paid even if you don’t achieve any profit in a given month.

The j.d.o.o. and d.o.o. are obligated to employ at least one employee (a director) whose minimal bruto salary must be 5.491,20 kuna for full-time working hours. Taxes are around 1.160 kuna per month. An employee also has an option to work part-time, but a director must be full time.

Taxation of earnings

An obrt’s owners usually have the possibility to choose between 3 different types of taxes. They usually pay an income tax, but it is possible to choose another taxation type if it’s more suitable for obrt’s management.

Obrt’s owners can choose between these 3 tax schemes:

  • Porez na dohodak (an income tax) – Owner pays a progressive tax rate of on income (dohodak)
  • Porez na dobit (a profit tax) – Owner pays taxes for the gained profit according to the 20% rate
  • Paušalno oporezivanje – The flat rate is calculated according to the obrt’s profit and the income is completely excluded from the taxation

J.d.o.o. and d.o.o. do not have the option to choose how they are taxed.

A short list of advantages and disadvantages



  • Paušalni obrt can be quickly launched
  • Low opening costs
  • Self-management of books
  • No initial capital is needed
  • Easy to open and close
  • Not required to have an employee
  • Ability to pause the obrt, during which taxes are not due. Most commonly used for tourism businesses that pause during winter.


  • Owner is personally liable for the business
  • An income tax payment is higher than a profit tax payment
  • A master exam or a professional qualification is usually required for obrt’s opening
  • You may not take in more than 300.000 kuna of revenue annually

D.o.o. and J.d.o.o.


  • A profit tax payment is lower than an income tax payment
  • Owner isn’t personally responsible for the business
  • invoices are paid
  • Dual book management enables quality reporting
  • No limit on revenue
  • J.d.o.o. can be opened with only 10 kuna start-up capital


  • Higher business costs
  • A minimal initial capital of 20.000 kuna is mandatory for d.o.o.
  • The liquidation and closing process is time-consuming and expensive, during which the director must continue to be paid full salary
  • An accountant is required
  • Must hire at least one employee, usually the director whom must have a full time salary
  • Not allowed to pause the business

Are there any advantages or disadvantages that we missed? Let us know in the comments.

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8 thoughts on “Differences between obrt, d.o.o. and j.d.o.o. companies

  1. Tori
    November 5, 2019 @ 8:01 am

    Thank you for sharing the information. I’m just interested in what difficulties can arise when doing business in Croatia. You have reflected important points, thanks for the list of advantages and disadvantages, very useful!


    • Expat in Croatia
      November 5, 2019 @ 10:37 am

      You’re welcome Tori!


  2. Q Dobeyn
    February 17, 2020 @ 7:51 am

    Hello there

    My daughter has owned ( is the shareholder & director of a doo) for the past 14 years.
    It owns a property in old Trogir. She carries a UK passport. Croatian accountant runs the books , although the doo does not trade. The property is a three storied house.

    If she sells the doo to another person are they able to apply for Citizenship of Croatia?

    The possible purchaser carries a South African passport but is an entrepreneur / qualified chemist with successful manufacturing and exporting companies operating in South Africa at the moment, but with the ability to take that trade and processes to Croatia.

    Regards , Quentin



    • Expat in Croatia
      February 17, 2020 @ 1:12 pm

      Hi Quentin,

      Thanks for the question!

      No, the purchaser cannot apply for citizenship just because they bought a business. They would first need to get temporary residency and have that for 5 continuous years. Then they can apply for permanent residency. After 8 years of continuous residency and approval of permanent residency, can this person apply for citizenship.




  3. Mary Harrison
    May 22, 2020 @ 10:19 pm

    HI, I am the director of a d.o.o
    This company was started so we could purchase a property.
    We have never used this company. No business, no sales, no profits! It is purely for the purpose of buying the house with some land.
    I read from your article that there is a quick way of closing a d.o.o
    From my understanding the agricultural land would need to be separated from the house, then sold. Then I would need to buy the house from the company! Plus pay tax! Then the company can be closed, have I got this right?
    Many thanks for any help you can give.


    • Expat in Croatia
      May 24, 2020 @ 8:53 am

      Hi Mary,

      Thanks for the question!

      You are correct. You would need to sell the property to yourself to get it out of the business, then you can close the company using the quick method. Keep in mind, you could sell the property to yourself for 50 kuna if you want. I would speak to your accountant about that.




  4. Jose
    February 22, 2021 @ 7:55 pm

    I am understanding the difference between doo and jdoo but I am having problems finding the pros and cons between samostalna djelatnost, jdoo and ugovor o djelu. Could you help with that?

    Kind regards


    • Expat in Croatia
      February 24, 2021 @ 4:13 pm

      Hi Jose,

      A j.d.o.o. is a company. The other two are not. Ugovor o djelu is a service contract, so you are paid by project essentially. This is only an option if you already have the right to work.




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