Croatia

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Free trade zones can be established to develop the economy of the country in all sectors except retail trade. They are created on a concession basis provided by the government of the Republic of Croatia. The Ministry of Economy provides furter informations on investment opportunities and assistance.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private Limited company No minimum.
Maximum 50 partners
Minimum HRK 20,000, totally released Liability is limited to the amount contributed Minimum HRK 20,000 No
Public limited Company No minimum Minimum HRK 120,000 Liability is limited to the amount contributed Minimum HRK 20,000 Yes
General partnership No minimum No minimum capital Liability is limited to the amount contributed Lower expenses as compared to a private limited company or public limited company No
Partnership limited by shares Two types of partners: active partners and sleeping partners No minimum capital Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed, when they do not take part in the company management Lower expenses as compared to a private limited company or public limited company No

Registration and licensing procedures
It is possible to make the entire registration and licensing procedure for a public limited company on the HITRO website. Consult the web page http://www.hitro.hr/eng/establishing-company/kako_e.htm for more information concerning the registration procedure. Consult the web page http://www.fina.hr/default.asp?ru=440&sid=&akcija=&jezik=2 for information concerning the Croatian Financial Agency who has developed this on-line service.

Foreign exchange control

Regulations concerning equity investment
A foreign investor can hold 100% interest in the shares of a Croatian company, except in some cases specified by the government.  


Foreign Direct Investment inflows in Croatia

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 2 133 1 262 1 695 38/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in March 2007
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