Data collection begins now and runs until December, with ownership information to be made public in the country's UBO Register.
Requirements imposed by the European Union's 5th Anti-Money Laundering (AML) Directive are being reflected in Croatian law. An Ultimate Beneficial Owner (UBO) Register will be established in the country, and it's mandatory for legal entities incorporated in Croatia to provide information – right to the top of their ownership structure.
Data collection begins now (June 2019) and will be accepted until December, with UBO information publicly available from January 2020. Entities can choose to submit their UBO forms as hard copies (delivered directly to the Financial Agency) or electronically.
To speed up the process, entities can grant Power of Attorney to a proxy holder and allow them to submit the UBO forms.
Need a hand?
TMF Croatia can help local entities with UBO identification, document preparation and (local language) submission. If you need clarification on your ownership structure, and assistance in determining what 'natural persons' should be considered ultimate beneficial owners, we can help with that too. Make an enquiry with our team in Zagreb.
Two other recent developments in Croatia should ease the burden on businesses, saving them time and money.
1. LLC dissolution without the liquidation procedure
Following changes to the Croatian Companies Act, dissolution of a Limited Liability Company (LLC) is now permitted without the usual, complex and expensive, liquidation procedure.
LLCs can be terminated based on the decision of the shareholder, prepared in the form of a Notarial Deed. If a company's creditors raise no objections, the whole process should take approximately two months.
The shareholders are jointly and severally liable for any potential claims against the company for two years after the dissolution process has ended.
Our local team can assist by preparing all the required documents and coordinating with the relevant authorities on the LLC's behalf.
2. Online incorporation of an LLC
From 1 September 2019 it will be possible to incorporate a Croatian LLC online. The change means businesses may not need to use the typically expensive services of lawyers or notary publics when establishing a legal entity and executing transactions.
Online application forms are expected to be available in the local language, so entities can appoint a local proxy holder (such as ourselves) to make their submission with all the necessary information. This should accelerate the entire business establishment process.
Need more information or have questions about what you've read here? Contact us today.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.