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.

Quick Facts
Reasons to liquidate a company in Croatia	– registering losses in the firm, – changing business direction, – reconsidering financial matters, etc.
Types of company liquidation	– non-judicial procedure, – bankruptcy method
Legislation	Companies Act in Croatia
Company’s status during dissolution	Active until all debts are paid to creditors
Non-judicial procedure	Can be done outside the court of law. Debts must be paid, and the company’s assets distributed to shareholders.
Bankruptcy procedure	When the company cannot meet its financial obligations, it can be declared bankrupt. The judicial procedure for liquidation takes place.
Competent authority in charge	The commercial court keeping the court register (in bankruptcy, the commercial court as bankruptcy court)
Appointing a liquidator (YES/NO)	YES
Responsibilities of a liquidator	– analyzing the balance sheet and company credits, – selling the assets, settling debts, etc.
Paying the company’s debts	During the liquidation procedure (or the bankruptcy procedure, if the company is insolvent)
Asset distribution after liquidation	After all company debts are paid
Cost of our package	From EUR 3,000
Company de-registration	After the dissolution process is concluded
Time frame to liquidate a company in Croatia	Usually more than a year for a regular liquidation (assets may be distributed only after one year from the call to creditors); faster for deletion without liquidation (art. 472.a Companies Act)
Deletion from the Commercial Register in Croatia (YES/NO)	YES
Choosing our experts for winding up a company in Croatia	We assist in all legal aspects linked to the liquidation process of a company in Croatia.

How can you help with the liquidation of a company in Croatia?

Our main services related to winding up a company in Croatia are:

legal analysis of the proper dissolution process;
liquidation documentation preparation;
appointment and registration of liquidators;
contact with the proper court and authority;
review of creditors and liabilities;
coordination with the accountant and tax adviser;
finalization of corporate documentation;
registration of dissolution of the company.

How can a company be liquidated in Croatia?

There are two ways of closing a Croatian 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 winding up a company in Croatia?

The following steps are 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 them;
new contracts may be signed only if they are in the liquidator’s interest;
at the end of the process, the trustee will elaborate a final balance sheet.

We invite you to explore the following infographic with information on this subject:

What are the documents that are required to be submitted in case of closing a company in Croatia?

The documents required in such a case may include:

resolution on the termination of business and its dissolution by the shareholders;
appointing the liquidator;
application for the registration of liquidation;
documents related to the business and accountancy;
financial reports;
information about liabilities;
documents required by the competent registry court.

What is the cost of your package?

Our company liquidation package starts from EUR 3,000. The amount is exclusive of VAT and official fees; notarial costs and certified translations are charged separately at actual cost.

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.

How closing a company in Croatia works?

Here are the most important 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.

What compulsory declarations for closing a company in Croatia should contain?

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 the closing of a 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 the company is deleted from the court register.

What are the differences between liquidation and bankruptcy in Croatia?

The key difference is the capability of the firm to fulfill its liabilities:

Liquidation – applied when the company has enough assets to pay off its liabilities;
Bankruptcy – employed when the company is unable to fulfill its liabilities;
Procedure shortened without liquidation – in case all members agree.

In addition to support for company liquidation in Croatia, our specialists can also offer you other services. For more information about liquidating a company, you may contact our law firm in Croatia.