A limited liability company (known as a d.o.o.) is a company founded by one or more persons that want to do business under a common name.
How to Open a D.O.O. in Croatia
The start up capital required to open the business is a minimum of 20.000 kn, but could be as high as 100.000 kn for non-EU nationals.
- Court fee for registration (400 kn)
- Registration of the company in the Official Gazette (900 kn)
- Central Bureau of Statistics fee (55 kn).
- Notarial services (varies, ~2.000 kn)
The first step is to choose a name for your company. It is good to come up with several variations of the name, in case your first choice is not available. For example, you may not have a similar name to an existing company. You may browse existing companies on the Ministry of Justice website. The name of your company must be in Croatian language (unless using your last name) and Latin script.
According to the Companies Act, when registering a company, you must report the business address.
An application for entry into the court register is verified by a notary public, called a “javni bilježnik” in Croatian. Certified enrollment and paid taxes are brought to Fina, the tax agency. There you can find an RPS form that serves as a record for the Central Bureau of Statistics and allows the allocation of the company’s ID number and the main activity code.
When all the paperwork is finished, you need to create a company stamp (depending on size and shape, roughly 100 kn), open a company bank account and deposit 20,000 kn of starting capital. Keep the receipt from your deposit of the start up capital. Frankly, it is best to keep all of your paperwork in a safe, organized place, no matter how insignificant it may seem.
How to Close a D.O.O. in Croatia
So, you’ve decided to close your business in Croatia.
First, you’ll need to report the decision to close the company to the commercial court, which then decides on the opening of the liquidation process of the company in the court register.
Next, the company must enter a supplement to its name: “in liquidation” (e.g. instead of the “name of the company D.O.O.” – the “name of the company D.O.O. in liquidation”). Liquidation is carried out by the management members of the company called “liquidators” that are appointed by a decision made at the shareholders’ meeting or by an appropriate provision of the social contract.
The Company is obliged to enclose the accounting and financial documentation and to complete all current affairs in the company, to charge the company’s receivables, to collect the remaining assets and to settle the creditors before starting the closing process. The closing itself will cost you 2.500kn.