A foreign investor, subject to the principle of reciprocity, shall incorporate or participate in incorporation of companies within the Republic of Croatia and shall receive and assume the rights and obligations under the same conditions as Croatian economic operators. The condition of reciprocity does not apply to foreign investors with a seat or permanent residence in a World Trade Organisation member state or if citizen thereof. Foreign corporations which have seat in a state, which is neither an European Union Member State nor a contracting party to the European Economic Area Agreement may be members responsible for the corporation liabilities to private companies registered in the Republic of Croatia only if accompanied by at least one member of the corporation registered in the Republic of Croatia, EU Member State or a contracting party to the European Economic Area Agreement or a personally liable natural person who is the citizen of the Republic of Croatia, an EU Member State or the state which is a contracting party to the European Economic Area Agreement.
Foreign investment companies and sole traders, under the conditions prescribed by law, shall in their operation in the Croatian territory be equal to Croatian economic operators. However, foreign companies and sole traders cannot operate within the Republic of Croatia on a permanent basis until they establish a subsidiary. The concept of business operation does not apply to one-time or occasional activities or completion of one task (the concept of freedom of service provision in accordance with the acquis communitaire).
Company Forms within the Republic of Croatia:
Dioničko društvo – d.d. (a public limited company – plc)
The minimum stock equity required to form a public limited company is HRK 200,000.00 (EUR 26.578,00) and each stock cannot have a nominal value less than HRK 10.00 (EUR 1,33).
Društvo s ograničenom odgovornošću – d.o.o. (a private company limited by shares – Ltd.)
The minimum share capital required to form a private company limited by shares is HRK 20,000.00 (EUR 2.657,80) and each share cannot have a nominal value less than HRK 200.00 (EUR 26,58).
Jednostavno društvo s ograničenom odgovornošću – j.d.o.o. (a simple private company limited by shares)
In such instances three company members and one member of a management board may be established as a simple private company limited by shares. The minimum share capital of such a company is HRK 10.00 (EUR 1,33) and the minimum nominal value of each business share cannot be lower than HRK 1.00 (EUR 0,13). To incorporate such a simple private company limited by shares forms drawn by the notary public must be used, included as annexes to the Croatian Companies Act.