OPENING A TRADE

There are four ways to apply for a new business:

arrival at the competent administrative body of the county or the City of Zagreb,

via the Internet, using the service e-Obrt within the e-Citizens system

via START - Electronic business start-up or

via the service of the Government of the Republic of Croatia FAST. HR

1. Registration with the competent administrative body

The procedure of opening a trade is initiated by a written request branch office of the County Office of Economy, that is, the branches of the Office for the Economy of the City of Zagreb , in whose territory the seat of the trade will be located. All the necessary forms for registration of trades are available in the offices of the Office of Economy and are free.

The seat of the trade is the place (address) where the workshop or business premises are located. If space is not required to perform the trade because the activity is performed in the field (eg in construction or transport) activities), then is the seat of the trade address where the craftsman resides, and this is usually the address of residence. If the craft is performed in several workshops or business premises, the seat is in one of the places determined by the craftsman, and the others are register as separate drives. In case of relocation, the seat of the trade can be changed by reporting a change in the branch office of the Office of Economy.

The application for the issuance of a craft must be accompanied by:

completed form OR (Application for enrollment in Crafts register)

health certificate proving special medical fitness, if prescribed for the activity to be registered

proof of eligibility

proof of the right to use the space - see more details at: CONDITIONS FOR OPENING AND PERFORMING CRAFTS

for related trades: proof of education, passed master's exam or professional qualification exam (if the applicant requirements does not meet the special condition of professional qualification, appropriate secondary vocational education passed the master's exam, may perform related trade if it employs a full-time person who meets this condition)

for privileged trades: privilege, ie permit issued by the competent ministry, ie other body whose competence is prescribed by a special regulation depending on the activity

250.00 fee is no longer paid (abolished on 01.09.2021).

When opening a trade, the form "Application for entry in the Trade Register" is used. The same form is used to report a change in trade data if such a change occurs (eg a change in the seat of the trade). Special forms are provided for the registration of a separate plant and for the access of partners to the existing trade. Forms can be requested at the Office of the Economy and are free of charge or can be printed from the Internet Portal of the Trade Register of the Republic of Croatia. Completed forms can be submitted to the Office of the Economy in person or by mail, and can be filled in using the e-Crafts service for online craft registration.

In the application form it is necessary to enter the activities that the trade will be engaged in. For that, codes are used, ie. numerical codes prescribed by the Decision on the National Classification of Activities 2007 - NKD 2007. In order to better define the activity, it is recommended to use the NKD 2007. document with explanations, which is available at the "Ahref="https://e-obrt.portor.hr/dokumenti/nkd2007_s_objasnjenjima.pdf"> link. If necessary, the activity of the prescribed code can be partially adjusted by additional description when registering.

Fulfillment of the conditions of the prescribed level of expertise is proven by attaching the appropriate certificate of the final exam, master's degrees, certificates of professional competence or statements on the employment of a professional manager.

In order to prove the conditions of non-existence of a ban on performing activities, it is not necessary to obtain documents separately and in person with documents because it is examined ex officio by the competent authorities.

2. Registration via the E-Obrt system

Registration of trades can also be done via the Internet, using the service e-Crafts , which is an integral part of the e-Citizens system and enables faster and simpler procedures, without the need to go in person to the state administration office, ie the offices of the City of Zagreb.

The e-Crafts service uses a personal user box as well as other e-Citizens system services. Prerequisite for applying to e-Crafts is the possession of one of accepted credentials. In order to prove the prescribed conditions, scanned relevant documents are attached through the application.

Through e-Crafts, new trades can be registered, namely trades with a defined date of commencement of activities, trades without commencement of work and seasonal trades, and changes in data during the business of the trade can be entered.

For questions of a legal nature, please contact the competent administrative body that maintains the Trade Register (jurisdiction according to the address of the seat of your trade) - names, addresses and contacts of all competent administrative bodies are available on the Trade Register Portal ( portor.gov.hr) .

Instructions for online initiation of the procedure for establishing a new trade

3. Making a stamp

The stamp should contain the name of the trade and the address.

A copy of the Decision on entry of trades in the Trades Register is required for the production of the seal. The cost of making the seal is 150 - 200 kn.

4. Pension and health insurance

Crafts need to be registered in the pension and health insurance system.

To apply for pension insurance, buy the following forms in the Official Gazette:

Tiskanica M - 11P

Tiskanica M - 1P.

These documents should be taken to the pension insurance company's counter. When submitting the above forms required is attached:

Copy of the decision on starting a business.

By applying for pension insurance, you will automatically be registered for health insurance.

If you started a business while working for another employer, you are not applying to the pension and health insurance system, because you are already registered through your employer.

5. Opening a bank giro account

When opening a bank giro account, you need to bring your ID card, decision, trade certificate and stamp.

Which package to choose? mBanking or netBanking?

The mBanking package includes payment of orders via mobile phone, while with netBanking you do the same via your computer. netBanking is more expensive because it provides more features from mBanking. The biggest advantage of netBanking over mBanking is that through netBanking you can buy and sell foreign currency yourself, while with mBanking you do not have that option. You may need to buy or sell foreign currency if you receive payments from abroad or make payments abroad.

6. Report to the tax administration

Within 8 days from the moment of starting the activity, it is necessary to register the trade with the Tax Administration competent according to the residence of the craftsman, for the purpose of entry in the register of taxpayers. To register in the register of taxpayers it is necessary to fill in the RPO Form, which can be purchased in the Official Gazette or downloaded from the website of the Tax Administration.

The amount of planned annual receipts is reported in the RPO form, among other things. The table below lists the 5 classes you can take belong. For example, if the annual receipts are less than HRK 85,000.00, then you will be classified in the first grade and you will pay accordingly HRK 1,275.00 income tax per year. Surtax should be added to this amount, e.g. for Zagreb for which a surtax tax rate of 18% is valid to pay you will 1,504.5 kn per year.

When filling out the RPO form, when reporting the amount of planned income, you must take into account that the Tax Administration will determine which tax you also belong to the class depending on the> month in which you opened the trade . For example, if you open a business in April and you have registered 70,000.00 in the RPO form, the Tax Administration will not put you in the first but in the second tax class.

How do they calculate this?

The annual income reported in the RPO form (eg HRK 70,000.00) is divided by 8 (number of months of work if you opened in April) to obtain the average amount of income per month of work. Thereafter, the average amount is multiplied by 12 to obtain the amount of average annual receipts. This way you will get the amount of HRK 105,000.00, which puts you in the second class and pays the annual income tax in the amount of HRK 1,725.00.

Below you can enter> the amount of planned receipts that you intend to put in the RPO form (planned receipts from the moment of opening the business until the end of the year) and month of trade opening.

Pressing "Calculate" will give you an amount that represents the average annual income based on which you will be classified in a particular class.