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d.o.o., j.d.o.o. or obrt: choosing the right legal form

Setup costs, liability, tax burden and bookkeeping duties compared across the three most common Croatian legal forms.

Ivana Marić30 June 2026 5 min read

The legal form drives your taxes, your liability and how much admin you carry. There is no universally best option – only the one that fits your business model.

Obrt (sole trader)

Easiest to start, but you are liable with all your personal assets. Lump-sum taxation is available up to the statutory revenue threshold.

j.d.o.o.

Share capital of €1 (with a mandatory legal reserve). Limited liability, but double-entry bookkeeping and annual financial statements are required.

d.o.o.

The standard for serious growth, share capital of €2,500. Limited liability, corporate income tax and easier access to financing and public tenders.

Quick comparison

  • Least admin: obrt
  • Personal asset protection: j.d.o.o. and d.o.o.
  • Best impression with larger clients and banks: d.o.o.

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