INVESTING IN CROATIA: INTRODUCTION

A company is a legal entity the founding and structure of which are established by the Croatian Company Law. The enrollment of the company in the court register is regulated by the Law on Court Register and the by Law on Methods of Enrollment in the Court Register. According to the law, in Croatia you can found either the corporate companies or partnerships.

There are two types of companies:

a) Corporate companies, which can be of two types:

. A Limited Liability Company

Limited Liability Company is the most common form companies take in Croatia. A limited liability company is defined as a type of company in which members invest only the ownership stake and thereby participate in the previously agreed share capital.

. Joint Stock Company

Joint Stock Company is a form of company in which members (shareholders) invest in the share capital that is divided in shares. A joint stock company can be founded by one person only. In other words, such a company can have only one principal shareholder.

b) Partnerships, which can be of three types:

. Unlimited partnership

Unlimited partnership is a company formed for the purpose of carrying out business on a permanent basis by the association of two or more persons, whereby each partner is, jointly and severally, personally liable to the partnership creditors with all his/her own personal assets.

. Limited partnership

A limited partnership is a company formed for the purpose of carrying out business on a permanent basis by the association of two or more persons, whereby at least one or more «general partners» shall be, jointly or severally, liable for the obligations of the company with his/her own assets, while «limited partners» incur no liability with respect to partnership obligations beyond their capital contributions.

. Economic interest grouping

Economic interest grouping is a legal entity founded by two or more physical or legal entities not formed to make profits to itself, but with the objective to easify and promote the carrying out of business activities that are object of their separate business activities.

A subsidiary - according to Croatian legislation, foreign companies or individual merchants can operate in Croatia thorough subsidiaries. The legislation regulating the founding of subsidiaries by domestic companies is also applied on foreign companies' subsidiaries founded and operating in Croatia.

This document originates from www.investments.hr website.


BROKER, real estate agency team.