Establishing a Small Business in Croatia

You can establish a small business through the online service “e-Obrt” or START or by personally visiting the premises of the competent administrative body

Establishing a Small Business in Croatia is possible through several options. It is important to check the sectoral requirements, including minimum technical requirements.
 
Business establishment options
 
Crafts in Croatian can be registered through several options: 

1. START (one-stop shop)
  • For Croatian citizens 
  • Electronic establishment of LLC, simple LLC, and crafts (sole trader)
  • All registration steps are performed in one place
  • Without notarization 
2. START (physical - soon) 
  • For Croatian citizens 
  • All registration steps are done electronically by going to one of 20 locations
  • Without notarization 
3. e-Craft
  • For Croatian citizens
  • Electronic establishment of a Craft (sole trader) at e-Obrt
  • Croatian Pension Insurance Institute (HZMO) - within 24 hours of starting the business, data is automatically sent to the Croatian Health Insurance Fund (HZZO)
  • Tax Administration - within 8 days from starting the business.
4. Physically 
  • For Croatian, EU/EEA and foreign citizens
  • Separate physical steps for registering small business as a crafts
  • Registration at the competent administrative authority in a county or at the City of Zagreb
  • Croatian Pension Insurance Institute (HZMO) - within 24 hours of starting the business, data is automatically sent to the Croatian Health Insurance Fund (HZZO)
  • Tax Administration - within 8 days from starting the business.
Required documents
  • Proof of identity (copy of an ID or a passport)
  • Proof of meeting special health requirements (for certain craft businesses: catering, restaurants, fast food facilities, pastry shops, bakeries and other, i.e. for most that include handling of food)
  • Proof of the right to use premises (if a craft business requires a premise: retail, catering, tourism, different types of services such as hairdresser, cosmetician, pedicure and chemical cleaning services and so on)
  • For associated crafts: appropriate secondary school qualification, master craftsman’s certificate or vocational qualification (if applicants do not meet a special requirement of vocational training, appropriate secondary school or master craftsman’s certificate, they may run associated craft business if they hire a person meeting that requirement, on a full-time basis).
  • Work permit for third-countries nationals (only for third countries - outside EU/EEA).
  • Valid residence permit (only for third countries - outside EU/EEA).
Recognition of qualifications 

The following documents need to be sent to poduzetnistvoiobrt@mingo.hr:
  • Proof of foreign vocational qualifications
  • Proof of passed exams
  • List of criteria to take the exam
  • Official plan and programme from which a summary of the exam passed is visible
  • Proof of nationality of another EU/EEA state
  • CV in Croatian
  • Certificate of payment of the administrative fee (or certificate of exemption from paying the administrative fee).

Service provision options 

1. Freedom to provide services: No establishment requirement for the EU/EEA providing many services temporarily; only a declaration on the cross-border provision of services from the EU/EEA is required
 
2. Business establishment: Establishment required for providing services permanently, while optional for temporary cross-border providers registered in the EU/EEA; establishment required for all enterprises from Croatia and third countries

Fees

Fees are no longer required

Notes

The proprietor has to start performing the activity within one year from registration if a craft business is registered without indicating the beginning of the business activity. 

Forms of crafts
 
1. Free-form crafts: not requiring a vocational qualification certificate or master craftsman’s certificate
2. Associated crafts: requiring a vocational qualification certificate, an appropriate secondary school qualification, or a master craftsman’s certificate
3. Privileged crafts: can be performed only based on a license, i.e., a privilege certificate