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Law Starting 20 April Allows Simpler, Less Expensive New Company Registrations

Saturday JUTARNJI LIST online edition: https://bit.ly/2XA9S5E
Saturday NOVI LIST online edition: https://bit.ly/2VoKfHS

Amendments to the Law on Companies and the Law on the Commercial Court Registry that have taken effect on Saturday 20 April now make it easier to establish and register the two most common types of companies in Croatia - the limited liability company (d.o.o.) and the simple limited liability company (j.d.o.o.) - and those amendments also introduce provisions of EU regulations regarding capital markets and long-term share ownership.

The registration of d.o.o. and j.d.o.o. companies in Croatia will now be possible entirely online, without the involvement of lawyers or public notaries, writes JUTARNJI LIST. The necessary capital for registration of a d.o.o. company form has been reduced from HRK 20,000 to HRK 5,000.

     It will also be easier to add business activities to the company registration, with communication towards relevant institutions (the Court Registry, public notaries, etc.) possible electronically, writes NOVI LIST. Companies will be wiped more easily from the Court Registry without the process of liquidation, making it easier to close a company – a company without debts gives a written statement, the management issues a decision for the deletion from the registry, but the management board is liable for a period of up to two years for any debts that emerge subsequently.

     The goal of the amendments is to make it easier to establish a company in Croatia, without the need to use the services of a public notary and to make the process less expensive. This is also intended to help with the first step towards entrepreneurship, considering modern trends and communication methods, explains the Ministry of Justice in a press release. The online registration application should be operational by 1 September 2019, and from 1 December 2019 it will be possible to extract an electronic form of a company registration from the Court Registry web site.

     The alignment with EU directives refers to rights of company shareholders, with the aim of encouraging long term ownership of shares and increased transparency, writes NOVI LIST.