Doing Business with Croatia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Croatia.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Croatia Ministry of Economy and Sustainable Development

Tel: +385 01 6106 111
Email: info@mingo.hr
Web: www.mingo.gov.hr

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Croatia Ministry of Finance, Customs Administration

Tel: +385 01 6211 300
Email: javnost@carina.hr
Web: www.carina.gov.hr

National Chamber of Commerce

HGK - Hrvatska Gospodarska Komora

Tel: +385 1 460 6708
Email: hgk@hgk.hr
Web: www.hgk.hr

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Croatia Ministry of Economy and Sustainable Development

Tel: +385 01 6106 111
Email: info@mingo.hr
Web: www.mingo.gov.hr

  • Type of Government: Parliamentary republic
  • Population: Approximately 3.9 million
  • GDP: Around $69 billion USD
  • Corporate Tax Rate: 10% – 18%
  • Personal Income Tax Rate: Progressive, up to 30%
  • Major Exports: Machinery, transport equipment, chemicals, foodstuffs
  • Major Imports: Machinery, transport equipment, chemicals, fuels

 

Exporting to Croatia involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze demand for your product in Croatia.
    • Understand the competitive landscape and regulatory requirements.
  2. Verify Product Compliance

    • Ensure your product meets Croatian and EU standards and regulations.
    • Check if specific certifications or permits are required.
  3. Check Tariffs and Duties

    • Review applicable import duties and taxes for your goods.
    • Utilize any trade agreements that may apply.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with EU imports.
    • Ensure all shipping documents, such as bills of lading, are completed accurately.
  5. Prepare Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with Croatian customs requirements.
  6. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any duties and taxes required for import.
  7. Distribution and Sales

    • Establish distribution channels within Croatia.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Croatia involves several important steps. Here’s a detailed guide:

  1. Register Your Business

    • Ensure your business is registered within the EU or Croatia.
    • Obtain a VAT number if applicable.
  2. Classify Your Goods

    • Use the Harmonized System (HS) codes to classify your goods accurately.
  3. Verify Import Regulations

    • Check if your goods require special permits or certifications.
    • Contact relevant authorities for specific product requirements.
  4. Check Tariffs and Taxes

    • Identify applicable import duties and VAT for your goods.
    • Review any trade agreements that may reduce tariffs.
  5. Arrange Logistics and Shipping

    • Select a reputable shipping company.
    • Ensure all shipping documents, such as bills of lading and invoices, are completed accurately.
  6. Prepare Import Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with Croatian customs requirements.
  7. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any duties and taxes required for import.
  8. Receive and Distribute Goods

    • Arrange for the delivery and distribution of goods upon clearance.
    • Set up local partnerships if needed.

Key Contacts

Incorporating a company in Croatia involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the type of company: Limited Liability Company (d.o.o.), Joint Stock Company (d.d.), etc.
  2. Select a Business Name

    • Ensure your company name is unique by checking the Court Register.
  3. Prepare Articles of Association

    • Draft the Articles of Association and have them notarized.
  4. Deposit Initial Capital

    • Open a temporary bank account and deposit the minimum share capital (e.g., 20,000 HRK for a d.o.o.).
  5. Register with the Commercial Court

    • Submit incorporation documents to the Commercial Court.
    • Obtain a company registration number.
  6. Register for Taxation

    • Register your company with the Tax Administration for a VAT number.
  7. Register with the Croatian Bureau of Statistics

    • Obtain a company identification number.
  8. Social Security Registration

    • Register your company with the Croatian Health Insurance Fund (HZZO) and the Croatian Pension Insurance Fund (HZMO).
  9. Obtain Necessary Licenses and Permits

    • Depending on your industry, apply for specific permits from local municipalities.

Costs

  • Notary Fees: Vary depending on the complexity of the documentation.
  • Registration Fees: Typically around 400 HRK for a d.o.o.
  • Additional Fees: May include legal and administrative costs.

Key Contacts

Setting up a manufacturing plant in Croatia involves several important steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate potential competitors and supply chain logistics.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local government or industrial parks for available sites and potential incentives.
  3. Register Your Business

    • Incorporate your company through the Commercial Court.
    • Obtain a company registration number.
  4. Obtain Necessary Permits

    • Apply for construction, environmental, and zoning permits.
    • Contact local municipalities for specific requirements.
  5. Secure Financing

    • Explore funding options through banks or investment agencies.
    • Consider government incentives for manufacturing.
  6. Design and Construct the Facility

    • Hire architects and contractors familiar with local regulations.
    • Ensure compliance with building codes and safety standards.
  7. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with customs for smooth importation.
  8. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Contact local employment services for assistance.
  9. Register for Taxation and Social Security

    • Ensure your business is registered with the Tax Administration and Croatian social security agencies.
  10. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

Registering a trademark in Croatia involves several steps to ensure legal protection. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Check the availability of your trademark through the State Intellectual Property Office.
  2. Prepare Your Application

    • Gather necessary information: trademark design, goods/services classification, and applicant details.
  3. Submit Your Application

    • File the application with the State Intellectual Property Office (SIPO).
  4. Pay the Application Fee

    • The fee varies based on the type and number of classes. Contact SIPO for specific costs.
  5. Examination Process

    • The office reviews the application for compliance and any conflicts.
    • Respond to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition.
    • There is a period for third parties to oppose the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered.
    • Receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed indefinitely.
    • Submit renewal applications before expiry to maintain protection.

Costs

  • Application Fee: Varies; contact SIPO for current rates.
  • Renewal Fee: Varies; contact SIPO for specific costs.

Key Contacts

  • State Intellectual Property Office (SIPO)
  • Croatian Chamber of Economy

Resolving commercial disputes in Croatia involves several steps and options. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to find an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions.
    • Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration through the Permanent Arbitration Court at the Croatian Chamber of Economy.
    • Arbitration can be faster and confidential.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the Commercial Court.
    • Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case.
    • Follow the legal procedures as guided by your attorney.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Croatia, it’s important to understand various factors that can influence operations. Here’s an overview:

Social and Cultural Factors

  • Language and Communication
    • The official language is Croatian. English is widely spoken in business settings.
    • Building relationships and trust is important in business interactions.
  • Business Etiquette
    • Punctuality is valued, and formal greetings are common.
    • Networking and personal relationships play a key role.

Political Environment

  • Government Structure
    • Croatia is a stable parliamentary republic.
    • Known for its political stability and EU membership.
  • Regulatory Environment
    • The regulatory framework is aligned with EU standards.
    • Foreign investment is encouraged, with transparent processes.

Economic and Foreign Exchange Factors

  • Currency
    • The currency is the Euro (EUR).
    • Understanding currency risks is important due to market fluctuations.
  • Investment Climate
    • Key sectors include tourism, agriculture, and manufacturing.
    • The country provides opportunities for eco-friendly and tech businesses.

Rule of Law

  • Legal System
    • Based on civil law influenced by Austrian and German legal traditions.
    • Strong protection of property rights and contract enforcement.
  • Intellectual Property
    • IP laws are well-developed; protection is consistent with EU standards.

Infrastructure

  • Transportation and Logistics
    • Well-developed infrastructure, with improvements in roads, ports, and railways.
    • Strategic location for access to European markets.

Relevant URLs

Our Members Include Leading Organizations in Croatia

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