Croatia has a new information system for start-ups

The economy ministry and the financial agency FINA launched the information system START, which is designed to help launch a company or a small business on-line and without an authorized agent, within a few days and with only one electronic procedure. The purpose of START is to integrate all business registers and procedures facilitating entry into the world of enterprise and reduce the administrative burden on businesses by more than 30%. Economy minister Darko Horvat highlighted that there will be no longer any direct contacts with clerks and officials, everything will be automated and digitized, which was the government contribution towards simplifying the process and reducing possible initial corruption activities when a business is being started.

The START system has a single communication and data exchange point, where data are collected only once and are automatically exchanged between institutions and banks. The project was implemented by FINA and its services are available through the e-citizens system. For the time being, available services include the electronic establishment of a limited liability company, the establishment of a simple limited liability company or a small business, the opening of a transaction account in a commercial bank, the registration of a company or a small business in the VAT register and/or the allocation of a VAT identification number, registration with the Croatian Pension Insurance Institute, and the electronic payment of the stock capital and court and administrative fees. For now, the service of establishing a company or a small business is available to domestic clients, while online launching of a company or a small business by foreign clients will be made available in the next stage of the project.

Note that in the 2020’s Doing Business report by the World Bank Croatia ranked 114th among 190 countries, improving from the 2019’s rank as the authorities abolished the requirements to reserve the company name and obtain director signatures for company registration, and reduced the paid-in minimum capital requirement to HRK5,000 from the previous HRK10,000. Given the launch of the START system, we may expect further improvement in this indicator in the 2021’s report.

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