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Business travel during corona measures

Measures introduced as a result of the coronavirus epidemic (COVID-19) make it very difficult for people to move across borders, however the Croatian government has introduced some milder measures for people traveling for business reasons. Accordingly, from 28 February 2021, people traveling from countries / regions of the European Union / European Economic Area, although coming from countries that do not belong to the green list of the European Center for Disease Control and Prevention, do not have to have a PCR test nor is a measure of self-isolation imposed on them if they travel for necessary family or business reasons.

One of the possible reasons for going on a business travel is if a person has established a company in the Republic of Croatia. For this reason, we briefly present the way of establishing the most common company – a limited liability company and its version with a smaller capital – a simple limited liability company.

Establishment of a “classic” LLC

The minimum capital of this type of company is HRK 20,000.00. To establish a company with one founder, it is necessary to draw up a statement on the establishment of the LLC at a notary public, and the first step is to choose a company name, meaning that a person chooses the name under which the company will operate and participate in legal transactions. After that, the registered office of the company and the subject of business, that is the list of activities are being determined.

Once all the necessary documents are prepared, the entire establishment process can be done within 2-3 hours. Passengers in transit do not have to present a PCR test, nor will they have to self-isolate, provided that they leave the Republic of Croatia within 12 hours of the entry, which is more than enough time to establish a LLC.

First of all, the founding acts are being signed, and then it is necessary to pay the capital of the company and the costs of the court that for LLC amount to approximately HRK 400.00 (HRK 60.00 for a simple LLC) as well as to make a company seal (usually three pieces).

After the company is established (approximately 2-3 days), you can open a business account in any bank and after the completion of all the above mentioned, you can start a business.

Simple limited liability company

A simple limited liability company is called so because the lowest amount of capital of this kind of company is HRK 10.00.

The company has a maximum of five members and one member of the board of directors, and for such establishment, forms drawn up by a notary public must be used. The completed form is valid as a list of members of the company, a list of prople authorized to manage the company’s affairs and contains a statement by which a member of the board of directors accepts the appointment. The company must have legal reserves in which it must enter a quarter of the amount of the company’s profit stated in the annual financial statements less the amount of loss from the previous year.

When a company (LLC or simple LLC) is established, it can start operating, and as a result, the possibility of a business trip to the Republic of Croatia opens up.

As can be seen from all the above, the founder is required to file applications in several different places, so it is necessary to have a good knowledge of legislation and it is advisable to seek professional assistance of a lawyer in order to establish a company in accordance with applicable regulations and as soon as possible.

Due to the corona (COVID-19) epidemic, the Government of the Republic of Croatia, in agreement with the Institute of Public Health, issues numerous instructions on how to deal with people crossing borders. Countries within the European Union / European Economic Area are divided into lists, so a person can come to the Republic of Croatia from the country listed in the green list of the European Center for Disease Control and Prevention without having to present a PCR test and to self-isolate. Regarding the return to the home country, we note that it is necessary to get acquainted with its regulations and to be familiar with the situation and possible changes that a person may encounter upon return.

However, as the development of the corona virus epidemic has so far proved unpredictable, no one can say with certainty when some of the countries currently on the green list will be moved to the red list and vice versa. For this reason, it is advisable to be aware of the exceptions that release a person from the obligation to present a PCR test and to self-isolate, and one of them is the business travel to the Republic of Croatia.