Procedure of company establishment
The procedure of establishment of the limited liability company (d.o.o.) includes 4 key steps:
1) Check of the company name; 2) Documentation necessary to found a company verified by the public notary; 3) Documentation delivery and payment of the foundation deposit and taxes;
4) Taking over of the documentation (Certification of entry into Court register and National Classification of Economic Activites Act), opening a bank account and company stamp making.
Basic Company Capital
The basic company capital necessary to found a company is defined contractually, if there are two or more founders, or by a statement of establishment, if the company is established just by one person. It is entered as a company fundation deposit. The minimum basic company capital, regulated by the Company Law, amounts 20.000,00 kuna for limited liability companies, and 200.000,00 kuna of establishment of joint-stock companies.
Which is the Procedure of Employee's registration?
Necessary documentation by the employee's registration:
working contract (temporary or long-term), workbook, identity card, working permission for foreigners (if the employee is a foreign citizen), registration at Croatian Institute of Pension Insurance, registration at Croatian Institute of Health Insurance, tax card, copy of bank current account.
What is a Tax card?
The tax card (form PK) is a document that shows the taxpayer's data. It represents the base for recognition personal deductions for employees and other persons who receive salaries or other incomes from dependent activities. It represents the base for calculation of income tax from dependent activities. The tax card is issued by the Tax Administration Office, according to the place of residence or usual employee stay.
Income tax from independent activities of Non-Resident Persons
Non-resident persons are obliged to pay the tax on the total income from dependent activities, independent activities, asset income, asset rights, capital income, income from insurance and other types of incomes, that are realized within Croatia (principle of domestic income), and deducted for the personal deduction for non-residents.
Agreements on avoidance of double taxation or intergovernmental agreements between Croatia and the certain state are taken into consideration by the calculation of taxable incomes.
Real estate tax
The real estate tax is to be paid by buying and selling, changing, inheritance, donation, real estate including and excluding, real estate acquisition in the process of liquidation, bankruptcy or based on a decision of a court or other authorities, as well as by all other ways of real estate acqusition from other persons. The tax rate amounts 5%.
Preconditions and necessary documentation for Craft registration
In order to run a craft the craftman must own the trade licence, issued by the Office of Economy, that is in charge of the Craft Register (free and qualified crafts), or by the responsible Ministery (priviliged crafts).
Necessary documentation: request for entry into the Craft register, registration forms (RL 1 – craft data, data about dislocated units, RL 3 – data about the craft activities), copy of the certificate of citizenship, medical certification about working capabilities, school certificate about the high school degree, i.e. qualifications, verification of usage permit of the business premises, certification of the social centre for work, cerfitication of working permit (for foreign citizens), payment confirmation of the requested taxes and certification of entry into Craft Register.
Extraordinary Tax on salary, pension and other income
Starting from 1st of August, 2009 until 31st of December 2010 an extraordinary tax is to be calculated to all paid net earnings, pensions, other incomes and dividends as well as bonuses.
This tax is calculated as follows: < 3.000,00 kuna – non taxable; from 3.000,00 to 6.000,00 kuna – tax rate of 2%; > 6.000,00 kuna – tax rate of 4%.
Process of Company Liquidation
The company stops to be a legal entity once it has been deleted in the Court Register.
The process of liquidation includes the completation of the current company business activities, collection of receivables, convertion of company asset into money and payments to creditors. During the process of liquidation all the accounting transactions are o be registered as well as reports are to be prepared, as the company still remains taxpayer. The company liquidation is to be entered to the Trade Court, adding to the company name the title „in liquidation“.
Supervisory Books
The obbligation to conduct the supervisory books about all concluded international business activity is regulated by the Foreign Business Law.
This obbligation refers to: a) legal person with the head office registered in Croatia; b) branches of foreign companies and individual traders; c) individual traders, craftsmen and other natural persons (residents) who are running a business activity.
