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.
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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