Encouraged by the accession of the Republic of Croatia to the European Union, the Croatian legislator decided to modernize company law so that Croatian entrepreneurs could operate more easily in the new, now unified European market. The result of modernization is introducing a simple company with limited liability into the Croatian legal system. It is not a new form of a company but a limited liability company with certain peculiarities, so accordingly, all the provisions that apply to LLC are valid unless the ZTD stipulates otherwise. The paper presents the reasons for its introduction and then gives an insight into this form of society in Germany and Great Britain. The special feature of this form of company is the prescribed low share capital to enable new entrepreneurs who do not have large capital to enter into entrepreneurship. To facilitate the establishment of a company, the Croatian legislator decided on the minute forms attached to the ZTD, which are drawn up by a notary public. Changes and amendments to the ZTD in 2019 introduced the possibility of terminating the company by abbreviated procedure without liquidation, which introduced positive changes in the form of reduced costs of closing the company.