Business Permits & Incorporation for Foreigners in Zagreb

When DOO Makes Sense

Once annual revenue moves well past the €60,000 obrt flat-rate ceiling, when there are significant deductible business costs, when you want to reinvest profit rather than draw it all out, or when limited liability and a more 'corporate' appearance matter for clients or hiring.

When Obrt Makes Sense

Solo, low-to-moderate income service work (consulting, IT, design) where simplicity and low fixed cost matter more than expense deductions — especially the flat-rate paušalni obrt, which has no bookkeeping burden and low fixed monthly contributions.

Closing A Company Caveat

Liquidating a d.o.o. is comparatively slow and can be costly — the director is generally required to keep drawing a salary through the wind-down process — whereas pausing or closing an obrt is much faster and cheaper.

VAT On Foreign Invoicing

For EU B2B clients with a valid VAT number, Croatian freelancers and companies invoice at 0% VAT under the reverse-charge mechanism (Article 44 of the EU VAT Directive); for EU B2C (private individual) clients, Croatian VAT of 25% applies up to €10,000 (~$11,400) per year in such sales, after which OSS registration is generally required.

Note On Personal Tax Residency

This entry covers only the business/corporate-level tax and structural mechanics. Personal income-tax residency rules (e.g. the 183-day test, or the digital nomad permit's separate tax treatment of foreign-sourced personal income) are covered under this city's Visa & Legal category, not here.

Steps

• Choose a legal structure (most foreign founders use d.o.o.) and reserve/check a company name via the Court Registry / with help from a HITRO.HR office.
• Every founder, director, and the company itself must obtain a Croatian OIB (personal identification tax number) from the Tax Administration; for individuals this is generally issued within one to three working days on presentation of a valid passport and purpose documentation.
• Have the founding documents (Articles of Association / incorporation minutes for a j.d.o.o.) drafted and verified by a Croatian public notary (javni bilježnik); all founders must be present, and foreign citizens must present their passports. If the founder does not speak Croatian, a certified court interpreter must attend the notary appointment.
• Foreign-issued supporting documents (e.g. corporate extracts for a foreign parent company) must be apostilled and officially translated into Croatian by a court-certified translator.
• Deposit the required share capital into a temporary/provisional bank account (or via FINA) and obtain proof of payment.
• Submit the notarized application, proof of capital payment, and supporting documents to the competent Commercial Court (Trgovački sud) for entry into the Court Register (Sudski registar) — typically filed through a notary or a HITRO.HR office. Croatian citizens can use the fully electronic START system, and EU/EEA citizens can use e-Osnivanje, but third-country (non-EU) nationals must register a company in person, with a notary.
• Within about 15 days of the court's registration decision, the company must be classified by activity (NKD code) with the Croatian Bureau of Statistics (DZS); when filed on paper, the court's decision is generally issued within about 5 working days of a complete submission.
• Register the company with the Tax Administration (Porezna uprava) for corporate tax and, if applicable, VAT (PDV).
• Register the company, its owner, and any employees with the pension insurance system (HZMO) and health insurance system (HZZO).
• Open a permanent corporate bank account in the company's name; funds held in the temporary capital account are then transferred into this operating account. Non-resident founders should expect enhanced KYC/AML checks and, for some banks, a requirement that a director appear in person.

Court Business Register Lookup

https://org-id.guide/list/HR-MBS

Invest Croatia Founding A Company

https://investcroatia.gov.hr/en/founding-a-company/

EU E Justice Croatia Business Register

https://e-justice.europa.eu/topics/registers-business-insolvency-land/business-registers-eu-countries/hr_en

Non EU Specific Notes

• Third-country nationals cannot use the electronic START or e-Osnivanje self-service systems reserved for Croatian and EU/EEA citizens respectively — they must complete notarization and registration in person.
• Company formation alone does not grant a right to live/work in Croatia; non-EU founders who want to actively manage the company on-site typically need to separately apply for a temporary residence permit tied to business ownership, which involves its own criteria around real economic activity, employment, and minimum salary.
• Banks generally apply stricter compliance checks to non-EU-founder-owned companies (source of funds, business plan, ties to Croatia), which can meaningfully lengthen the bank-account step even after court registration is complete.