Despite having no employees working for them, some companies have millions of kunas in revenues.

At the end of last year, there was 114,483 business operating in Croatia, of which 34,508 companies, or 30.1 percent of them, did not have a single employee, according to the analysis conducted by the Financial Agency (FINA), reports Poslovni.hr on 31 August 2017.

Most of the registered businesses, 32,173, regularly operated, while 879 were in the process of being liquidated and 1,456 were in the bankruptcy proceedings.

According to the FINA’s analysis, it is evident that the share of such companies in the total number of businesses in Croatia is high, while in positive statistical indicators it is minimal.

In the total revenues of the Croatian economy, the companies without a single employee account for just 2.3 percent, in the profits before taxes 4.8 percent, in net profits 5.1 percent, in exports 1.5 percent, and in investments 3.8 percent.

On the other hand, their share in the losses before taxes is 32.8 percent, and in the net losses 32.9 percent, with the total net losses reaching as much as 2.8 billion kunas. In comparison, the largest total revenues (36.4 percent) and the highest net profits were realized by entrepreneurs with 250 and more employees, which account for 0.3 percent of the total number of businesses, and for 32.8 percent of the total number of employees.

According to the total revenues in 2016, the list of companies without a single employee is led by the Plomin Thermal Electric Power Plan. All the employees of the power plant are nominally registered as employees of the Croatian Electric Company (HEP). Plomin had the total revenues in an impressive amount of 638.4 million kunas.

With regards to the net profits criterion, the largest company without a single employee is the Cervisia Zagreb brewing company, which is owned by the Czech Staropramen brewery, whose profits reached 167.8 million kunas, with the total revenues of 168.2 million kunas.

Since it is possible to found companies without a single employee, such businesses allow people to have a side job and pay lower corporate taxes and the value-added tax than they would pay as natural persons who pay income taxes. Also, by having no employees, these businesses do not have to pay pension insurance and health insurance contributions.

Translated from Poslovni.hr.