Since the so-called ’10 kuna companies’ stimulant was introduced two years ago, which enabled citizens to open a limited liability company with just ’10 kuna’ capital (1.30 euro), instead of the previous 3,000 euros, 16,000 people have taken advantage of it. The majority of the ’10 kuna companies’ set up have been registered as ‘buying and trading goods’, ‘International company representatives’ and ‘hospitality’ companies. Although sold as ’10 kuna companies’, once all administration, accountant and set up fees are paid, the total set up cost grows to around 120 euros.
According to the Croatian Chamber of Commerce, just 10 companies who have opened under the new 10 kuna procedure have shut down. Although many new businesses have opened, there is a question mark over how much impact they are making on the local economy. Only 20 limited liability companies or those set up with the minimum required capital, had revenues in excess of 10,000 euros annually in the first year of the new act.