Croatia is known as a country with a stable and appreciated economy, an excellent workforce, and a multitude of business possibilities in areas like tourism, manufacture, arts, and many more. Regardless of your business ideas, you can easily establish a sole proprietorship in Croatia and enjoy the appreciated business climate of this country. Once your business develops, you can consider changing the business structure in a simple and fast manner.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Obrt is a term used for a sole proprietorship in Croatia which can be established under the rules of the Crafts Act. This is the simplest form of business a foreigner can set up in Croatia, respecting the conditions and the registration steps with the Croatian Trade Register.
A sole proprietorship can be registered fast and simple, bearing in mind a few formalities. Being self-employed is often the decision of small entrepreneurs from abroad looking to start operations in Croatia. Here are the most important requirements for establishing a sole trader in Croatia:
• Single entrepreneurs can only develop activities as sole traders, whether local or from abroad.
• The Crafts Act mentions the type of activities that can be established in Croatia.
• The personal information of the owners (name, nationality, residency) needs to be provided to the Croatian Craft Register.
• A proper business plan comprising details and costs of materials, equipment, and consumables needs to be drafted.
• The business startup costs include specific registration fees and rental office costs if it is the case.
Here are the documents you will need:
- The valid ID or the valid passport of the owner, in copies.
- The vocational qualifications are required for associated crafts businesses.
- The registration forms provided by the local business registration office in Croatia.
- The proof showing you can use the premises if required for the activities you intend to develop.
- The Decision on Entry in the Register of Craft Business in Croatia.
- Proof that all the fees for registering the sole trader have been paid.
The next thing to do is to apply and obtain the official stamp of the firm with the State Administration Office in Croatia and then open a commercial bank account.