TRADE
1. Trade characteristics
Easy and affordable registration
You can also open a trade through the online service e-Obrt . To access the e-Obrt service, it is necessary to have one of the credentials included in the e-Citizens system: List of accepted credentials .
If you want to supplement or change certain data related to the trade (eg change of address, change of activity) - it is very simple and convenient. And you can do this through e-Trades.
If you subsequently want to supplement or change certain data related to the trade - it is very simple and convenient - the price of the change is HRK 60.00). It is necessary to enter the desired change via the same e-Trade link (change of address, change of activity (adding a new one or deleting an old one, etc.) For the same changes in some other forms of business you need a lot more time and money.Helping household members
Members of the family household can assist the tradesman in performing the trade, without the obligation to conclude an employment contract. A family household consists of spouses and equated with them by persons, children and other relatives living together, and earn, that is, earn and spend income together. In the case of a related trade, a member of the family household must meet and special conditions of the prescribed level of expertise, if the tradesman helps while the tradesman is not present in the workshop or shop.
Seasonal trades
Some activities can be done as a seasonal trade. What are the activities for which seasonal trades can be registered are prescribed Ordinance on activities that can be performed as seasonal trades.
According to the current Law on Trades, seasonal trades can be performed for a maximum of six months within one calendar year, where the tradesman determines the duration of the season, and can register the trade and so that will be multiple periods during the year, but for a maximum of six months in total. Outside the period entered in the Trade Register, the activity may not be performed. Persons who perform a trade during the seasonal performance of the trade establish the property insured.
Seasonal performance of trades is permanently entered in the Register of Trades, so the advantage of this method of performing trades is that by entering the period during the year in which it is performed seasonally, it is not necessary to re-apply every year and then deregister the performance of trade activities.
A tradesman may temporarily suspend the performance of a trade for a period of up to one year , which shall be reported in writing to the locally competent office. state administration in the county, ie the competent office of the City of Zagreb within 30 days from the day of suspension (eg due to a sudden longer trip or similar reason why you are not able to work for a while).
Joint trade
The Law on Trades envisages the possibility of partnership in performing trades and prescribes that two or more natural persons may perform trades together. Mutual relations of persons are regulated by a written obligatory legal contract on partnership. The joint venture operates under a joint venture. One person can be a partner, ie a partner in several joint trades, with different partners, for the purpose of performing economic activity. If a natural person enters a trade or withdraw from the joint trade, the performance of the trade may continue. When performing the activities of related trades, it is sufficient that one partner meets the prescribed requirements of expertise. The general conditions for performing a trade and the condition of special medical fitness, if prescribed for the activity, must to fulfill all partners. Partnership is regulated by the Law on Obligations. It is a community of persons and goods without legal personality. The partnership agreement obliges two or more persons to invest their work and / or property in order to achieve a common goal. The partnership contract is informal, because there is no pre-prescribed form for concluding a contract.
Trades as another activity
A person employed on the basis of an employment contract with another employer may open a trade and perform an activity, provided that he satisfies the appropriate qualification for the registered activity of the trade for which the condition is prescribed. certain levels of expertise, ie with the condition of employing a worker who has the appropriate education. By working in a trade, the rights related to employment are exercised, including the right to pension and health insurance. A tradesman who, in addition to employment, has an open trade is liable for pension and health contributions insurance and as a tradesman and as a worker. This means that he is obliged to pay contributions for compulsory insurance in trades as well, which include pension and health insurance, provided that contributions for trades are paid according to the earned income, ie according to annual income tax return. In cases of opening a trade in addition to employment, it is necessary to pay additional attention to the provisions of the Labor Law relating to the prohibition of competition of workers to the employer in performing the same kind of work, as well as the provisions of special regulations. which se for certain types of service, a ban on performing other activities is prescribed. Retirees can perform a trade, but in the case of simultaneous running a trade, the pension will be put on hold, ie the payment of their pension will be suspended. Exceptionally, the beneficiary of a disability pension due to professional incapacity for work work, the payment of that pension is not suspended.
Cost of production or sales
Whether you are engaged in production or wholesale, the purchase of your raw materials or goods for resale are the cost of doing business in the moment you pay for them, and not just the moment you sell them (which is the only correct way to calculate other forms of business registration). We believe that this is a great advantage also in the registration of trades and is extremely important for entrepreneurs who want to ensure better purchases purchase prices and other conditions.
Advance to supplier as cost
Among other advantages of the trade business, it should be pointed out the fact that if you pay an advance to your supplier as a trade, it will be paid to you. recorded as an expense (unless it is an advance for the acquisition of fixed assets), which is a great advantage in taxation over some other registration forms. This is certainly extremely important, especially for business at the end of the business year, when it is possible with advance payments achieve better market conditions.
2. Method of taxation
When choosing a trade as a form of business, you need to decide which method of taxation you want.
There are 3 ways to tax:
lump sum payment of income tax by income class
payment of income tax according to business books
pay income tax
The form of taxation is reported on the
Trades are the only organizational form of business in Croatia that can change its tax status. If you start with one way, and subsequently due to the development of your business situation, you notice that the other way would be more favorable for you, then at the beginning of the year you can very easily change the way you tax.
3. Opening steps
3.1. Procedure for registration of trades in the Trade Register
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. All the necessary forms for registration of trades are available in the branches of the Office of Economy and are free of charge.
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 tradesman resides, and this is most often the residential address. If the trade is performed in several workshops or business premises, the seat is in one of the places determined by the tradesman, 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 economy office.
The application for the issuance of a trade must be accompanied by:
completed form OR (Application for enrollment in
Trades 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
proof of payment of administrative fees.
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 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-Trades service for online trade registration.
In the application form, it is necessary to enter the activities that the trade will be engaged in. Codes are used for that, 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 link. If necessary, when registering, the activity of the prescribed code can be partially adjusted with an additional description.
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.
3.2. E-Trades
Registration of trades can also be done via the Internet, using the service e-Obrt , 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-Trades service uses a personal user box as well as other e-Citizens system services. Prerequisite for applying to e-Trades is the possession of one of accepted credentials. In order to prove the prescribed conditions, scanned appropriate documents are attached through the application, as well as a payment slip which is proof of payment of the prescribed administrative fee, in this case from the paid total HRK 250.00.
Through e-Trades, a new trade can be registered, namely a trade with a defined start date, a trade without a start of work and a seasonal trade, and changes in data during the business of the trade can be entered.
3.3. Stamp making
The stamp should contain the name of the trade and the address. To make a stamp, a copy of the Decision on registration of trades in the Trades Register is required. The cost of making a stamp is 150 - 200 kn.
3.4. Opening a bank account
When opening a bank account in the bank, 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 in relation to 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.
3.5. 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 tradesman, 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 Tax Administration website.
3.6. Pension and health insurance
Trades must be registered in the pension and health insurance system.
To apply for pension insurance, purchase the following forms in the Official Gazette:
Stationery M - 11P
Form M - 1P.
Fill in the basic data on the above forms and put the stamp and signature of the business owner. When submitting the above forms required is to attach the following documentation:
Copy of the decision on starting a business.
Flat-rate tradesmen working for another employer do not register with the pension and health insurance system.
4. Tradesman Accounting
Tradesmen can keep business books independently or with the help of others (bookkeeping services, other professionals, etc.) in electronic or "paper" form.
Business receipts and expenses incurred in connection with the performance of self-employment, natural persons are recorded in the Book of receipts and expenditures on a cash basis.
This means that receipts are recorded only after they have been collected, or expenditures after they have been paid.
Exceptions to the basic principle of treasury are expenses based on write-off (depreciation) of fixed assets.
Business books are kept separately for each calendar year (tax period). Each of the business books is kept on the prescribed forms:
4.1. Tradesmen's Business Books
Book of Receipts and Expenditures (KPI Form)
Inventory of fixed assets (Form DI)
Turnover Book (Form KP)
Records of Claims and Obligations (TO Form)
Records on procurement and consumption of raw materials (layout of records is not prescribed)
An invoice must be issued for each sale or service performed. The obligation to issue invoices is prescribed by the provisions of the General Tax Law, as well as special tax regulations. If the payment is made in cash, each account issuer is obliged to use a fiscal payment device in accordance with the Fiscalization Act. Invoices are issued in at least two copies, one is delivered to the buyer and the other serves the issuer as document for posting in business books.
The Accounting Law prescribes a period of at least 11 years for keeping the documents on the basis of which they were entered data in the business books, whereby the period for keeping the said accounting documents begins to run on the last day of the business year to which they refer the affairs of the book in which the documents are entered.
4.2. Flat rate accounting
Turnover Book
When the customer pays your bill, the amount received is entered in the Turnover Book. At the end of the year, the total annual amounts are copied from the Turnover Book to the PO-SD form which is the final financial report for lump sums.
Read more about this and other obligations of lump sum artisans in our guide which answers the following questions:
How contributions are paid
How to pay income tax and surtax
How to pay the Chamber of Trades
How to pay TZ
How to issue an invoice
How fiscalization is carried out
When I pay VAT
What if I get a job elsewhere
Tax Calendar