Large Companies

Dioničko društvo (d.d.) – Joint Stock Company

A d.d. is a corporate entity in which one or more legal or natural persons invest in core shares, and can be owned by one or multiple persons. It can only be established by one person. The company itself is liable for the company’s obligations.

The minimum share capital in this type of company is 200.000,00 kn (HRK) and shares can be listed on the stock exchange and traded, sold or gifted. The minimum amount of share contribution is 10,00 kn (HRK).

Javno trgovačko društvo (j.t.d.) – Public Stock Company

A j.t.d. is also a corporate entity in which one or more legal or natural persons invest in core shares, and can be owned by one or multiple persons. It can only be established by two or more persons, and each member of the company is liable for the company’s obligations.

Komanditno društvo (k.d.) – Partnership Company

A k.d. is a limited partnership company where two or more persons perform activities together in a joint venture. At least one person is liable for the company’s obligations, the company is run and represented by general partners, and limited partner have the right to supervise the company’s operations. This type of company has no share options.

Medium Companies

Društvo s ograničenom odgovornošću (d.o.o.) – Limited Liability Company

A d.o.o. is a corporate entity in which one or more legal or natural persons invest in core shares. It’s the most common type of business in Croatia and can be owned by one or multiple persons. The minimum share capital for the establishment of this type of business is 20.000,00 kn (HRK), and the minimum amount of share contribution is 200,00 kn (HRK).

For a d.o.o., a licenced accountant is required, and you are obligated to employ at least one person (a director) who’s salary is full-time and at least minimum wage.

Jednostavno društvo s ograničenom odgovornošću (j.d.o.o.) – Simple Limited Liability Company

A j.d.o.o. is similar to a d.o.o. but is reserved for companies with a smaller amount of start-up capital and is good for business with low overhead. The minimum share capital for the establishment of this type of business is 10,00 kn (HRK), the minimum amount of share contribution is 1,00 kn (HRK), and the maximum amount of associated members are 5 founders and 1 board member.

For a j.d.o.o., a licenced accountant is required, and you are obligated to employ at least one person (a director) who’s salary is full-time and at least minimum wage.

Udruga – Non-Profit Organisation/Association

An udruga is a business operated by a group of natural or legal persons (usually volunteers) usually with the aim to protect common values, interests and goals such as:

• The protection of human rights and freedoms; and
• Environmental, humanitarian, cultural, national, social, educational, sports, beliefs etc.

This type of company is used for non-governmental organisations, charities and volunteering associations, and requires a minimum of 3 members/founders to establish.

Small Companies

Obrt – Craft

Obrt is the equivalent of a self-employed person or freelancer/tradesperson who is a skilled worker specialising in a particular trade (as known as a “Majstor/Majstorica”). This type of business is usually reserved for people like us (designers/marketers).

Certain types of obrts require qualifications/certifications, but others do not. They are categorised into the following formats depending on your industry:

• Slobodni obrt – Free craft: An obrt that only requires the general conditions for opening the trade (E.g. Designer, developer, consultant, cleaner)
• Vezani obrt – Bound craft: An obrt that also requires a professional qualification (appropriate secondary or Master’s education) to open the trade (E.g. Photographer, mechanic, electrician, carpenter, hairdresser)
• Povlašteni obrt – Privelaged craft: An obrt that requires special permission to open the trade (E.g. Fisherman, gunsmith, security)

Obrts can be categorised into 2 types based on their turnover:

• Paušalni obrt – Flat-rate trade craft: Not required to enter the PDV (VAT) system but income is limited to 300.000,00 kn per year. This type of obrt is usually reserved for single-employee businesses
• Obrt – Trade craft: Required to enter the PDV (VAT) system and income is able to exceed 300.000,00 kn per year. This type of obrt is usually reserved for multi-employee businesses.

There are two types of ownership for obrt:

• Obrt – Sole craft: One person is the owner of the company
• Zajednički obrt – Joint craft: More than one person is the owner of the company

There are two types of business activities for obrt:

• Trajni obrt – Permanent craft: Is active for a whole calendar year
• Sezonski obrt – Seasonal craft: Is active for a maximum of 9 months in a calendar year

Your tax obligation is a lot different than other types of businesses, where you can choose from the following 3 models and pay every quarter:

• Paušalno oporezivanje – Flat-rate tax: Your turnover determines the income bracket you are in and you pay a flat rate according to that bracket
• Porez na dohodak – Income tax: Your turnover determines the income bracket you are in and you pay a fixed percentage according to that bracket
• Porez na dobit – Profit tax: Your profit determines the income bracket you are in and you pay a fixed percentage according to that bracket

This type of company is linked to a specific person, which means that unlike companies like d.o.o. and j.d.o.o. which are their own entities, the owner themself is liable for the company’s obligations.

There is no start-up capital needed to establish an obrt and there are no hare options. For any kind of obrt, you don’t need a licenced accountant, and you are not obligated to employ anyone, but you are obliged to register with Hrvatska obrtnička komora (HOK) (Croatian Chamber of Trades and Crafts).

Obiteljsko poljoprivredno gospodarstvo (OPG) – Family Farm

An OPG is an agricultural business operated by a group of natural or legal persons who are members of a joint household who perform activities such as plant breeding, cattle breeding, growing of annual or perennial crops, breeding of livestock and poultry etc.

There is no start-up capital needed to establish an OPG and there are no share options. Members of an OPG can be permanently or occasionally employed. An OPG that sells its own original agricultural products is obliged to register in the Upisnik poljoprivrednika (Register of Farmers).