The law provides for incentives to the manufacturing industry, development projects, business support activities, high added value services, and tourism.

Micro-businesses with investment projects exceeding 50,000 euros will be entitled to a 50% reduction of profit tax over the next five years provided they open at least three new jobs.

For investment projects ranging from one million to three million euros a 75% cut in profit tax is envisaged over a period of 10 years provided that at least 10 people are hired, while companies investing more than 3 million euros will be fully exempt from profit tax if they open at least 15 new jobs. Incentives for job creation in technological and innovative infrastructure will be increased from 25% to 100%.

Investors will be offered grants to cover the costs of opening new jobs, namely up to 3,000 euros per job in counties where the unemployment rate is below 10%, up to 6,000 euros in counties where the unemployment rate ranges between 10% and 20%, and 9,000 euros in counties with unemployment between 20% and 30%.

Parliament amended the Companies Act to bring it into accord with EU directives, introducing a new form of limited liability company - a simple company, which can be started with an initial capital of as little as 10 kuna. Such companies may have no more than three partners and only one board member.

Also amended was the Excises Act, which will take effect on July 1, 2013, while the Residence Bill was sent into second reading.