Setting Up a Subsidiary in Croatia

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Introduction

Are you thinking about expanding your business to Croatia? Setting up a subsidiary here can be a smart move. Croatia is in a good spot in Europe. It helps you reach many markets easily. This article explains how to open a subsidiary in Croatia. We talk about different kinds of companies you can start and why Croatia is a good place for your business.

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What is a subsidiary?

A subsidiary is a company that another company owns partly or fully. We call the owning company the parent company. If you start a subsidiary in Croatia, your business follows Croatian laws and remains part of your larger company. This setup helps your business operate smoothly in Croatia while staying connected to your main company.

Types of Subsidiaries in Croatia

In Croatia, you can choose from two main types of companies to start a subsidiary. Here's a simple explanation:

1. Društvo s ograničenom odgovornošću (d.o.o.):

• Meaning: This is a Limited Liability Company (LLC).
• Why Choose This?: It protects owners from being personally liable for business debts.
• Requirements:
  • Owners: One or more people can start this company.
  • Capital: You need at least HRK 20,000 (about EUR 2,600) to start.
  • Management: Owners manage the company or hire managers.

2. Dioničko društvo (d.d.):

• Meaning: This is a Joint Stock Company.
• Why Choose This?: It's good for larger businesses and can offer shares to the public.
• Requirements:
  • Owners: One or more people can start this company.
  • Capital: You need at least HRK 200,000 (about EUR 26,000) to start.
  • Management: It must have a management board and a supervisory board.

Each type of company has different rules for how much money you need and how many people it takes to start. Choose the type that fits your business needs the best.

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Why Open an Office in Croatia?

Opening an office in Croatia offers many benefits. Here are four good reasons to consider:

• Strategic Location:
  • Croatia sits at the crossroads of Central Europe, the Balkans, and the Mediterranean.
  • This makes it easier to do business with different European countries.

• EU Membership:
  • Croatia has been a part of the European Union since 2013.
  • Being in the EU means you can trade easily with other EU countries.
  • You can also apply for money from EU funds to help grow your business.

• Educated Workforce:
  • Croatia is home to many skilled professionals.
  • There are plenty of experts in technology, engineering, and other important fields.
  • This means you can find smart people to work for your company.

• Favorable Tax Conditions:
  • Croatia offers lower business taxes compared to many countries.
  • There are also special benefits for new investors.
  • These tax rules can help you save money and invest more in your business.

Starting your subsidiary in Croatia could be a smart move because of these reasons. It helps your business connect with major markets, access skilled workers, benefit from EU advantages, and enjoy financial incentives.

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Steps to Start a Subsidiary in Croatia

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Starting a subsidiary in Croatia involves several steps. Here is a simple guide to help you understand each step:

1. Choose the Company Type:
   • Decide if you want a Limited Liability Company (d.o.o.) or a Joint Stock Company (d.d.).
   • The choice depends on how big your business is and how you plan to expand.
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2. Name Your Company:
   • Pick a unique name that is not already in use.
   • Register this name with the Croatian Commercial Court.
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3. Write the Articles of Association:
   • These are important documents.
   • They describe your company’s structure, its business activities, and the rules it will follow.
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4. Deposit Initial Capital:
   • You need some money to start your company.
   • The amount depends on the type of company (d.o.o. needs at least HRK 20,000; d.d. needs at least HRK 200,000).
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5. Register with the Commercial Court:
   • Submit your company documents for approval.
   • The court checks and approves these documents.
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6. Get Necessary Licenses and Permits:
   • Find out what specific permits your business needs.
   • This depends on the type of business activities you will do.
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7. Register for Taxes and Social Security:
   • Sign up your company with the tax office and social security.
   • This is needed for your company to operate legally.
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8. Open a Corporate Bank Account:
   • You need a bank account in Croatia for your business.
   • This is where you will keep your business money.
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9. Set up Your Business Office:
   • Find a place to set up your office.
   • This can be a rented space or a building you buy.

How Teamcubate Can Help

Starting a subsidiary in a new country can be complex. Teamcubate can make it easier for you:

• Expert Guidance:
  • We understand the local laws and business environment.
  • We guide you through each step of setting up your subsidiary.

• Fast Matching:
  • We can quickly match you with local professionals who understand your needs.
  • These professionals can help with legal, financial, and operational tasks.

• Risk-Free Trials:
  • Test our services without risk.
  • This helps you feel confident about your decision.

• Ongoing Support:
  • Our team supports you even after your office is set up.
  • We help with HR, integration into the local market, and keeping your team happy.

Setting up a subsidiary in Croatia doesn't have to be difficult. With Teamcubate’s help, you can start your subsidiary smoothly and successfully. We handle the details, so you can focus on growing your business.

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Opening Your Office in Zagreb and Split with Teamcubate's Help

Zagreb and Split are two great cities in Croatia for setting up a new office. Each city offers unique advantages for your business. Zagreb, the capital, is the business hub of Croatia with many companies and industries. It has good connections to other European cities. Split, on the other hand, is known for its tourism and access to the Mediterranean markets. It also has a growing tech scene. Here is how Teamcubate can help you set up your office in these cities:

• Find the Right Location:
  • We help you choose the best place for your office in Zagreb or Split.
  • We consider things like cost, transport links, and local services.

• Handle Legal and Administrative Tasks:
  • We take care of all the paperwork needed to start your office.
  • This includes registration, taxes, and getting any necessary permits.

• Connect with Local Talent:
  • We find skilled workers for your team.
  • Zagreb and Split have many smart, educated people who can join your business.

• Support Your Team:
  • We help your employees feel at home in their new city.
  • Our support continues even after your office opens. We make sure your team works well together.

With Teamcubate, setting up your office in Zagreb or Split becomes easier. We guide you through every step and make sure you are ready to succeed in Croatia.

Benefits of Employing Developers in Zagreb

Zagreb is an excellent city for setting up an office, especially if you need to hire developers. Here’s why:

1. Rich Talent Pool:
   • Zagreb is home to several top universities and tech schools.
   • These schools produce skilled graduates ready to work in tech jobs.
2. Tech Community:
   • The city has a strong and active tech community.
   • There are many tech events and meetups where developers can learn and share ideas.
3. Cost-Effective:
   • Hiring developers in Zagreb is more affordable than in many Western European cities.
   • This can help you save money while getting high-quality work.
4. Good Quality of Life:
   • Zagreb offers a high quality of life with low living costs.
   • This makes it easier to attract and keep talented developers.

Setting up your office in Zagreb allows you to tap into a pool of talented developers. It also provides a cost-effective solution with a supportive community for tech professionals. This makes Zagreb a smart choice for companies looking to expand their tech teams.

Benefits of Employing Developers in Split

Split is becoming a popular choice for companies looking to hire developers. Here are some perks and how Split compares to Zagreb:

Perks of Hiring in Split:

1. Growing Tech Scene:
   • Split's tech community is expanding. More tech events and startups appear every year.
   • Developers are eager to join new projects and companies.
2. Quality of Life:
   • Split offers a beautiful seaside setting and relaxed lifestyle.
   • This can attract developers who value work-life balance.
3. Lower Living Costs:
   • Living costs in Split are generally lower than in Zagreb.
   • This can make it easier to manage business expenses.

Comparison to Zagreb:

• Smaller Pool of Talent:
  • Zagreb has more universities and a larger pool of tech talent.
  • Split is growing but doesn't have as many developers yet.
• Fewer Big City Benefits:
  • Zagreb is the capital and has more business services and opportunities.
  • Split is smaller and might offer fewer networking opportunities.

Setting up an office in Split allows you to tap into a unique and growing tech community. While it might not have as many developers as Zagreb, its attractive lifestyle and lower costs are big pluses. With Teamcubate's help, you can successfully build a motivated and effective team in Split.

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Subsidiary Laws for Banks and Insurance Companies in Croatia

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Croatia has specific laws for subsidiaries that operate as banks or insurance companies. These laws make sure that these businesses are safe and reliable. Here are some key points about these laws:

1. Licensing Requirements:
   • Banks:
     • Must get a license from the Croatian National Bank.
     • Need to show they have enough money to cover their operations.
   • Insurance Companies:
     • Must get a license from the Croatian Financial Services Supervisory Agency.
     • Need to prove they can pay claims and protect their customers.
2. Minimum Capital:
   • Banks:
     • Need to have a minimum capital of HRK 300 million (about EUR 40 million).
   • Insurance Companies:
     • The minimum capital depends on the type of insurance they offer.
     • For example, life insurance companies need HRK 3.7 million (about EUR 500,000).
3. Management Standards:
   • Both banks and insurance companies must have a management board and a supervisory board.
   • These boards must have members who are skilled and honest.
   • They must also follow strict rules to keep the company safe.
4. Reporting and Auditing:
   • Banks and Insurance Companies:
     • Must report their finances regularly to the authorities.
     • Need to get their accounts checked by an approved auditor every year.

These laws help make sure that banks and insurance companies in Croatia are strong and trustworthy. They protect the people who put their money or buy insurance from these companies. This makes Croatia a safe place to start and run a bank or insurance company subsidiary.

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FAQ

Here are some common questions and answers about starting a subsidiary in Croatia:

1. What is the time frame for setting up a subsidiary in Croatia?
   • It usually takes about 4 to 6 weeks to set up a subsidiary in Croatia. This time includes preparing documents, getting approvals, and registering the company.
2. Do I need a local director for my subsidiary in Croatia?
   • Yes, you need at least one director who is a resident of Croatia. This person will handle the daily operations and legal requirements in Croatia.
3. Can I own 100% of my subsidiary in Croatia?
   • Yes, foreign investors can own 100% of a subsidiary in Croatia. There are no restrictions on foreign ownership.
4. What are the tax rates for subsidiaries in Croatia?
   • The corporate tax rate in Croatia is 18%. For small businesses with earnings less than HRK 3 million (about EUR 400,000), the tax rate is reduced to 10%.
5. Is there any support from the Croatian government for foreign subsidiaries?
   • Yes, the Croatian government offers various incentives for foreign businesses. These include tax breaks, grants, and support in finding suitable locations for business.

These questions cover important points you need to know when considering a subsidiary in Croatia. This will help you prepare better for your business expansion.

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Conclusion

Starting a company in Croatia comes with a lot of benefits. We have talked about why cities like Zagreb and Split are good choices. These places have many skilled workers, especially in technology. They also support businesses well. Being part of the EU, having a good location, and low taxes also help. These things make Croatia a great choice for companies that want to grow.

When you start a company, you need to know local laws and handle many tasks. It might feel hard, but you don't have to manage it all by yourself. Teamcubate can support you through every part. We help you pick the right type of company, manage legal papers, and connect with local workers. Our team makes things easy for you. This means you can avoid big mistakes and keep focusing on growing your company.

Would you like to know more about how to grow your business in Croatia? You can talk to a Teamcubate business growth expert for free. Many people find these free meetings very useful. They learn a lot about the best ways to expand their business. Call us today, and let’s make growing your business easy and free from stress.