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Post by brianmcc on Dec 7, 2015 16:35:10 GMT 1
Hi All, Can anyone advise on the rough cost and length of time it takes to set-up a Croatian Company. The company will have no assets and will be used for property rentals and maintenance. Many thanks, brianmcc
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Post by crojoe on Dec 7, 2015 18:06:49 GMT 1
Hi All, Can anyone advise on the rough cost and length of time it takes to set-up a Croatian Company. The company will have no assets and will be used for property rentals and maintenance. Many thanks, brianmcc All depending on where you are based in the world? Might just be easier to setup a branch office and get payments made abroad into another EU country. All you then might have to deal with is the daily tourist tax (which can or will be payable online soon) and paying the home owners rental price. I mean, do you own the properties for rent or sub-letting from others like an agent? If your going to be renting too foreigners then I would not bother with a Croatian registered company. You just keep your commission then pay the rental fee to your home owners (via bank transfer). Keep it simple. As soon as you open a company here is will be a nightmare to upkeep all year long... paying an accountant, transfers of VAT and so forth each time you receive money etc. Now if your going to be opening an office and employing staff in Croatia then that is a whole other thing... in which case good luck and be ready to pay through the nose for all kinds of taxes, health care costs, salaries and so forth! You will need a super good accountant to make any money! Sorry to be so blunt, but I have a business here, been here for years and its still a mine field. Sadly I have seen many friends and business investors come and go to greener pastures (once the rose tinted glasses came off). Just stick to taking a commission and let the home owners deal with paying their own income taxes! Now that Croatia is part of the EU, doing cross border business (like internet sales/business) is a bit easier (but as soon as you start depositing income into your Croatian company account.. the $h1T hits the fan). "Maintenance" sounds like you want to hire Croatian people (a lovely wonderful notion and I wish I could hire loads of them... intelligent and hard working outside of coffee breaks and beer/wine testing), but the costs are high for each one (each working person in Croatia is like supporting 2 other persons... pensioners, kids and unemployed persons... which means you the company owners must pay).
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Post by Ribaric on Dec 8, 2015 8:25:41 GMT 1
Joe has it about right. I have d.o.o. here but only for holding property purposes. Our main business is property maintenance but we do everything through our UK company and sub-contract to local suppliers here. So much less hassle and FINA have no interest in us, a boon worth having. Once opened, closing a d.o.o. is currently a bureaucratic nightmare. HR has yet to understand the need to support start-ups and local entrepreneurs. Employing staff costs a fortune despite their in-hand pay ending up being abysmal.
If you go ahead, opening a d.o.o. costs about €100 and is easy. The simplest way is to get your lawyer to do it for you but, be careful how you word your articles and you may have to show qualifications in any activity you wish to undertake.
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Post by kesterj on Dec 8, 2015 13:10:03 GMT 1
... HR has yet to understand the need to support start-ups and local entrepreneurs. Employing staff costs a fortune despite their in-hand pay ending up being abysmal. Oh, Ribs, you are so downbeat. It just so happens that this very morning someone told me about Croatia's best kept secret. This incredible institution, the Bank for Reconstruction and Development, is there to help small business and entrepreneurs - see www.hbor.hr/new-micro-loans-with-eu-supportWhat's more, they are successful - see www.hbor.hr/hbor-operated-successfully-in-the-first-six-monthsSeems like you just send a couple of emails, fill in a couple of forms, and hey - you gotta thriving business. What could possibly go wrong?
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Post by Carol on Dec 8, 2015 14:26:31 GMT 1
I haven't read the thread, but can I suggest that you buy a company that has debts instead? When I say buy, I mean takeover for 1 kuna plus the cost of the notary fees and the due diligence?
The due diligence should be minimal if the only thing the company did was to passively own a property which it then sold for a loss. Call or email a few accountants and estate agents and you'll soon find people who own companies like this that they'd love to just hand over to someone else, rather than face the expense and trouble of closing down.
You could then set the company's accrued losses against your profits, and therefore reduce your tax bill.
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Post by crojoe on Dec 8, 2015 21:57:51 GMT 1
... HR has yet to understand the need to support start-ups and local entrepreneurs. Employing staff costs a fortune despite their in-hand pay ending up being abysmal. Oh, Ribs, you are so downbeat. It just so happens that this very morning someone told me about Croatia's best kept secret. This incredible institution, the Bank for Reconstruction and Development, is there to help small business and entrepreneurs - see www.hbor.hr/new-micro-loans-with-eu-supportWhat's more, they are successful - see www.hbor.hr/hbor-operated-successfully-in-the-first-six-monthsSeems like you just send a couple of emails, fill in a couple of forms, and hey - you gotta thriving business. What could possibly go wrong? Just a few lines in on the web site and I read this: Not eligible for financing are: casinos, banking services, insurance or financial intermediation, trading in "real estate" and production of arms. So maybe renting property doesn't come under "trading in real estate"?
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Post by crojoe on Dec 8, 2015 22:12:22 GMT 1
... HR has yet to understand the need to support start-ups and local entrepreneurs. Employing staff costs a fortune despite their in-hand pay ending up being abysmal. Oh, Ribs, you are so downbeat. It just so happens that this very morning someone told me about Croatia's best kept secret. This incredible institution, the Bank for Reconstruction and Development, is there to help small business and entrepreneurs - see www.hbor.hr/new-micro-loans-with-eu-supportWhat's more, they are successful - see www.hbor.hr/hbor-operated-successfully-in-the-first-six-monthsSeems like you just send a couple of emails, fill in a couple of forms, and hey - you gotta thriving business. What could possibly go wrong? What is successful is the loan process... loans up 57% in first 6 months of the year, but it don't say if repayments are successful or how successful those businesses are doing. If history is anything to go by, many of those loans won't get repaid. Loop-holes will be found & monies will be siphoned off. Only time will tell if this scheme will really work here given past examples of "free money hand-outs" or low interest loans and currency buy-ins.
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Post by brianmcc on Dec 12, 2015 15:10:16 GMT 1
If I set up a company in Ireland it would be be much less painful route to take. Does anybody know how easy or hard it will be to get the site Utility bills(water/electricity) put into the new company's name if the new company is registered outside Croatia? The complex Utility bills are currently in the name of the existing maintenance company, Where can I check or get information if the utilities can be placed in the name of a company registered outside Croatia? Many Thanks, BMc
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