Starting a Business in Croatia

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Why Start A Business In Croatia?

Croatia is fast becoming one of Europe's worst kept secrets. People flock there to experience the 5000 kilometres of coastline, its cliffs, canyons and culture. It basks in one the sunniest coasts in Europe. Offshore, Croatia consists of over one thousand islands which all vary in size. Yes, one thousand, the largest being Cres and Krk, which are located in the Adriatic Sea. Europe's second longest river, the Danube, runs through the city of Vukovar. Consequently, a fair amount of investment is required in hotel infrastructure if Croatia is to attain its full tourist potential.

Croatia is a member of United Nations, the Organisation for Security and Co-operation in Europe and the Council of Europe. It is also currently going through the steps to become a member of the European Union, and also received a NATO membership invitation on 3 April 2008. The currency has remained stable, and industrial production is steadily picking up. Following economic setbacks during the 1990s, Croatia is now a promising and fast developing market. The government is avidly encouraging foreign investment to strengthen trade and commercial relations between UK and Croatia. This can only spell good prospects for you and your company.

Altogether, Croatia remains an exciting prospect.

Economic Overview

The Croatian economy is a stable functioning market economy which is one of the most advanced of south-east Europe. Tourism is a significant source of income for the country during its summer months with an average of 10 million tourists.

Croatia's main exports are textiles products, foodstuffs, ship building, mineral fluids, lubricants, footwear, electrical machines and equipment, wood and timber products, and plastic. The main export partners are: Italy (23.1%), Bosnia and Herzegovina (12.7%), Germany (10.4%), Slovenia (8.3%) and Austria (6.1%). The country's main imports are boilers and machine parts, iron and steel, paper, plastic, cotton, chemicals and fuels. The main import partners are: Italy (16.7%), Germany (14.5%), Russia (9.7%), Slovenia (6.8%), Austria (5.4%) and China (5.3%).

The main economic output was accounted for by agriculture (7.2%), industry (32.8%) and the service sector (60.7%). The industrial sector is comprised of ship building, food processing and the chemical industry.

What are the essentials to know?

Business Laws

Business Hours - Business hours are usually 8.30-4.30 from Monday to Friday.

Minimum Wage - There is no statutory minimum wage but there is a lowest wage for full-time work.

Financial Assistance

Currently, there are no official funds or incentives available to foreign investors.

Contacts for setting up

The following contacts will provide you with very helpful information about setting up a business in Croatia:

Offices in UK:

Overseas Offices:

Etiquette

• The handshake is the usual form of greeting at business meetings
• Business in Croatia is usually formal and initially reserved
• Do not use first names without being invited to do so
• Business cards are normally exchanged at business meetings and it is polite to have them translated
• Direct and straightforward talk is appreciated
• Meetings are usually lengthy

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