Monday, 03 August 2020

Open a company for 10 Kuna and then spend 35,000 to close it

By  Jan 21, 2019

Opening a company in Croatia has not only become relatively straightforward in recent years but also surprisingly cheap. With an initial investment of just 10 Kuna you can open a limited company but if you plan on closing that company it will hit you in the pocket considerably harder. From the beginning of this year a new law has come into force which means that closing a limited company will cost you at least 35,000 Kuna!

Since the beginning of 2019 the liquidation of a company in Croatia is considerably more expensive and the reason is the amendments to the Pension Insurance Act. This new law stipulates that liquidators of companies - which are, as a rule, the owners or directors - have to pay contributions.

Even if we do not take into account the usual costs of closing down a company, which are not small, experts' calculations show that these new costs from the Pension Insurance Act mean an extra 30,000 Kuna. One of the reasons for this extra cost if that actually closing a company in Croatia can take a long time, and for all that time the owner will be liable to pay contributions.

The normal costs of closing down a limited company range from 1,500 Kuna to 3,500 Kuna, depending on the size of the company. This would cover the cost of notaries, court fees for opening the liquidation process and the process of entering the court registry. But with this added new cost the whole process could cost in excess of 35,000 Kuna. Of course the longer the process of closing lasts the more it would cost.

The Voice of Dubrovnik


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