Insights
Operating in Croatia Without a Company
Insights · By Chen ChunJie · Published 8 November 2026
Many foreign companies start in Croatia with no local entity. This guide explains what you can do without a Croatian company, when you need one and how to move from one stage to the next.
Last reviewed in November 2026 against the Labour Act, the 2026 minimum wage decree, the Contributions Act and Tax Administration guidance. Rates change, so we confirm them for each engagement.
What you can do without a Croatian company
| Activity | Company needed? |
|---|---|
| Employing staff | Yes, or an employer of record |
| Engaging independent professionals | No, if they are genuinely independent |
| Selling from abroad | Not for hiring, but check VAT and PE |
| Opening an office or trading locally | Yes, a d.o.o. or branch |
Why employing from abroad is hard
A Croatian employer registers staff with the pension and health funds, withholds contributions and tax and files a JOPPD with each payment. Without a local presence, these steps are difficult to manage.
No Croatian company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in Croatia.
When a d.o.o. makes sense
Once the team is large and long-term, a limited liability company (d.o.o.) or branch is usually the next step.
Permanent establishment risk
An employer of record does not by itself create a permanent establishment, but employees who habitually conclude contracts for you can. Review revenue-generating roles with your tax adviser.
Moving to your own company
When your company is registered, we agree a transfer date and the employee joins your company.
FAQ: operating without a company
Can a foreign company employ people in Croatia directly?
Not easily without a local presence. An employer of record handles it.
Can I hire contractors without a company?
Yes, for genuinely independent work. See On-Demand Talent in Croatia.
Does an EOR create a permanent establishment?
Not by itself.
Hiring your first employee in Croatia?
Our Local Team employs the person, runs payroll with contributions, income tax and JOPPD, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in Croatia.
Contracts, leave, termination and more.