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The State of Business Market In Croatia At The Moment
by Zachary Helm Wed, 07/06/2016 - 08:44
Croatia has always been considered a country with good geostrategic position. This is because it has a marine border with Italy and it also borders countries such as Bosnia and Slovenia. In the last few years, there has been a rapid growth in the state of the business market in Croatia.
This is seen in the aspect of modern machinery and industrial equipment imports. For those looking for self-employment, the government introduced the One Stop Shop project with the aim of centralizing and simplifying the procedures that are necessary to establish new business entities in Croatia. This afforded many aspiring entrepreneurs the opportunity to establish businesses. Instead of spending years in building a single company, the process has been shortened to a period of 29 days. Businesses are certainly easier to establish in the current business market.
The Role of Foreign Investors
The Croatian government has also been a forerunner in strengthening entrepreneurship bonds, stimulating exports, increasing employment and competitiveness and, cutting down on hefty costs that many businesses often experience. Foreign investments have changed the perception of entrepreneurship in Croatia, as it is acceptable for foreigners to invest in a company that are started as sole traders and may want to expand eventually because it provides an all-around opportunity for the traders and the country alike. Attracting foreign investment has also brought tax returns that have been beneficial to Croatia. The best example of that is the Croatia real estate market that has been improved due to the rule of foreign investors.
Setting Up a Business in Croatia
The procedures that are involved in setting up a company have been simplified in order to enable entrepreneurs to own either liability companies, joint stock companies or form unlimited partnerships.
The tax system has also been based on the principles of equality and justice, therefore, businessmen are favored under the general tax law. Thus, they will not have to incur heavy tax duties when importing or exporting goods and services.
Due to the lifting of the Croatia’s EU Accession rule on July 1st, 2013, the need for product double testing and clearances between EU Countries and Croatia has been eliminated. In other words these EU Countries, most especially the United States companies have additional market opportunity as far as importing into the country is concerned. Croatia may have a small and complex market but it plays an important role in the economic and stability of South East Europe.
Although the income for most Croatians comes from the government budget, many individuals are becoming entrepreneurs. They lead small and medium-sized, internationally-competitive companies across many sectors in the country. The most lucrative markets are those that deal in beverage, fragrances, and oral care. Croatia has been known to join forces in trading with France, Germany, Netherlands, Austria and Hungry. Due to foreign trading, the business market has picked up again.
There are many government reforms ahead that will better the life of an entrepreneur. Those who want to take advantage of the Croatian business market should keep up with the country’s progression over the next few years. There will be more business opportunities especially due to the peak foreign interest in Croatian business.