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Company Liquidation in Croatia - We Provide Legal Advice

Company Liquidation in Croatia

Updated on Tuesday 02nd April 2024

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company liquidation in croatia
 
For varied reasons, mostly for financial matters, companies can be closed, remaining without any activities on the market for a limited period or for good. This is the case of a company liquidation, a procedure made in respect to the applicable legislation in Croatia, whether the company was created with foreign capital or not. For knowing better how company liquidation procedure is made in Croatia, we invite you to talk to one of our lawyers in Croatia who is at your disposal with in-depth information and complete assistance.
 

How can a company be liquidated in Croatia?

 
There are two ways of liquidating a company, through a non-judicial procedure or by bankruptcy procedure with the approval of the Bankruptcy tribunal. The Bankruptcy Law, Obligatory Relations Law, and the Company Law govern the process of liquidation in Croatia.
                                

What are the steps for company liquidation in Croatia?

 
A company may be liquidated through non-judicial procedure only if there are no claims raised by creditors or no unpaid debts to the providers. This procedure is taken by dividing all the company's assets among the members. The company is then erased from the Commercial Register. A bankruptcy procedure may be initiated with the help of the Bankruptcy tribunal and is started mostly by the creditors that haven’t received a positive answer to the request of covering the claims. The following steps are also part of the company liquidation in Croatia:

 

  • the parts involved in the process of bankruptcy are the creditors’ committee, the trustee in insolvency, the bankruptcy judge, and tribunal;
  • the balance sheet with all the companies’ assets must be submitted to the authorities;
  • a public auction for the assets will then be organized;
  • the contracts will be settled on behalf of the debtor, and then periodically reports regarding the status of the liquidation process will be elaborated;
  • all the claims will be verified by the creditors, in order to find ways to cover it; 
  • new contracts may be signed only if they are in the liquidation’s interest;
  • at the end of the process, the trustee will elaborate a final balance sheet.

 

Liquidation of an LLC in Croatia

 
The above-mentioned steps of the business liquidation are also applicable to limited liability companies in CroatiaThe liquidation of a limited liability company in Croatia respects the Companies Act. In this sense, creditors of a company like this will receive only an announcement comprising the reasons for the liquidation and the starting date of the procedure. The company liquidation starts with the Commercial Register and the verification of the balance sheet, the assets of the firm and the capital contribution of each member. 
 

Who supervises the trustee in bankruptcy?

 
The trustee in bankruptcy is supervised by the creditors' committee, a body appointed by the bankruptcy tribunal. Some of its responsibilities are supervising the liquidation course and checking the company’s books and records. Also, the balance sheet must be checked by this authority. The bankruptcy tribunal is composed of three judges, one of them being president. The tribunal has the power to appoint the trustee and the creditors’ committee and check the availability of the liquidation decision. The activity of the committee of creditors is also verified by the judges of the tribunal.
 

Closing an LLC in Croatia

 
Trgovački is the name of the official document by which the activities of a limited liability company can be closed in Croatia. This document reaches the commercial court and is actually a decision report stating that the company started the closing procedure. During this time, the name of the company also changes, adding the word likvidaciji at the end. Here are other aspects about company liquidation in Croatia:
 
  • A meeting is scheduled between shareholders and liquidators, alongside company management.
  • At the meeting, all documents should be presented, including financial and accounting ones.
  • It is established how to collect remaining assets and how to charge the receivables of the company,
  • If there are still debts, these must be paid until the final company liquidation decision is signed in Croatia.
  • Company liquidation in Croatia can cost around EUR 332 and can take about a year.
 
We advise you to contact our Croatian lawyers and find out more about how to liquidate a company in Croatia, considering all the legal steps.
 

Compulsory declarations for closing a company in Croatia

 
When it is decided to liquidate a company in Croatia, certain documents must be prepared. A statement is one of such document that must include the following:
 
  • Information showing there are no financial obligations to the company's workers and that all salaries, bonuses, etc. are paid on time before the start of the liquidation process.
  • Information about the conclusion of disputes, if there were such situations.
  • Concrete statements that if there are obligations of any kind in the company, they will be resolved before the start of the company liquidation process in Croatia.
  • It is important to specify in this case that the decision of termination of the firm must be made public with the help of the relevant authorities. This termination decision is also accompanied by a declaration that there are no debts in the company, before the liquidation.
 

How to register a closed company in Croatia

 
The Registry Court is one of the authorities where you can declare the liquidation of a company in Croatia, with the documents mentioned above in this article. This Registry Court issues an official document announcing the closure of the respective company, following which it will reach the Croatian Trade Register for registration. If the decision to terminate the company is not contested, the company is deleted from the local and national registers. This information will also be made public. We remind you that you can opt for the legal services offered by our firm to ensure a fair and fast company liquidation process.
 

Facts about companies in Croatia

 
At the end of 2023, there were more than 340,000 companies registered in Croatia. Here is other interesting information:
 
  • In Croatia, there were over 163,000 registered corporations in 2023.
  • The data for 2023 also emphasized the fact that in Croatia there were registered over 114,000 sole proprietorships.
 
In addition to support for company liquidation in Croatia, our specialists can offer you other services. For example, you can trust our immigration lawyers in Croatia if you want to relocate to this country. The process of immigration to Croatia can be supervised by our lawyers who can explain to you what documents are necessary to be able to receive residency. For more information about liquidating a company, you may contact our law firm in Croatia.