Croatia is a promising destination for entrepreneurs looking to expand into new markets. It offers not only a strategic location and access to the EU single market, but also a variety of business structures that can be tailored to individual needs. If you are considering entering the Croatian market, you have several options available.

Option 1: Citizens of EU/EEA member states may establish a company in Croatia. A business can be structured as a craft trade (obrt), a branch office, or a commercial company.

Option 2: If you are already operating a business in another EU country, you are free to provide occasional and temporary services in another EU member state. In such cases, you do not need to register a company in Croatia, but you must submit a declaration of cross-border service provision to the relevant authority by email. It is worth checking whether there are sector-specific requirements for carrying out professional or commercial activities in Croatia.

Business in Croatia – Craft Trade (Obrt) or Commercial Company?

Obrt – Craft Trade

An obrt requires a residence permit and a work permit in Croatia. There is also a flat-rate obrt option, which is particularly popular among newly established businesses — growth in this form has been largely driven by one-off grants for starting a business. It is also worth noting that certain professions have sector-specific requirements, such as a commercial licence, a qualifying examination, or proof of secondary school completion before trading can begin.

Commercial Company

A commercial company in Croatia can take several forms, all of which closely resemble their equivalents in other EU countries:

• Capital-based companies: limited liability company (d.o.o.), simple private limited company (j.d.o.o.), joint-stock company (d.d.)
• Partnership-based companies: general partnership (j.t.d.), limited partnership (k.d.)

There is no option to operate as an unregistered sole trader in Croatia.

How Can You Register?

Registration can be completed in person, electronically with some steps still required in person (via the e-Osnivanje system), or with the support of the CroBiz team.

Step-by-Step Registration (Using j.d.o.o. as an Example)

1. Choosing a company name — The first step is selecting an appropriate name. The Croatian Commercial Court (Trgovački Sud) provides guidance on acceptable names.
2. Visiting a notary — Documents required for company registration must be certified by a public notary. All founders and any other individuals whose signatures are to be certified must be present. Documents prepared at this stage include the founding protocol and a declaration confirming no outstanding debts. The company is also submitted for registration in the commercial register at this stage.
3. Paying the registration fee — Submit your application to the commercial register with all notarised documents and pay the required fees. Documents required include: the application for founding entry, the founding protocol, the list of company members, the declaration of no outstanding debts, and proof of payments.
4. The court issues a decision opening the company and assigns it a business activity classification code.
5. Following registration, you will also need to: create a company stamp (pečat), open a bank account, and register with the social security, health insurance, and tax authorities.

Setting up a company in Croatia and launching operations in this market does not have to be a complicated process. Whether you are an individual planning to relocate to Croatia and start a business there, or you represent an existing company, it is well worth drawing on the support of the CroBiz team. We can help you choose the right company structure, guide you through the registration process, outline the ongoing costs of running a business, and help you win your first clients. Get in touch to find out more.