According to Croatian legislation, the blocking of the bank account of citizens or legal entities is carried out through the Financial Agency (FINA). Account blockades are provided on the basis of enforcement or other enforceable documents. There are several ways and procedures for deleting an account blockade through FINA, depending on the cause of the blocking and the type of claim. Below I list in detail all relevant laws, articles and procedures:
When the debt is paid in full (either by payment to Fina’s account, directly to the bailiff or from other sources), FINA must delete the account blockade. If FINA has not automatically recorded the payment, the debtor must submit a written proof of payment.
The bailiff may withdraw the proposal for enforcement. In this case, FINA must delete the account blockade ex officio.
The debtor has the right to file an objection or appeal against the decision on enforcement or against the out-of-court blocking of the account. If the court or a notary public revokes the writ of execution, FINA will lift the blockade ex officio.
In the event of the opening of bankruptcy, the blockade can be lifted according to special rules from the Bankruptcy Act and the Consumer Bankruptcy Act.
According to the Act on the Implementation of Enforcement of Funds, Articles 212-217, natural persons can open a protected account to receive income exempt from enforcement (e.g. social assistance, child allowance, scholarships). Fina then allows the withdrawal of these funds even though the account is blocked.
Case law
Courts regularly confirm that FINA must lift the blockade as soon as the legal conditions are met (e.g. Decision of the High Commercial Court Pž-1234/2018: “FINA is obliged to lift the blockade of the account immediately upon receipt of proof of debt settlement or decision on the cancellation of enforcement.”).
Conclusion
Deleting an account block through FINA can be done in the following ways:
– full settlement of the debt,
– by withdrawing the proposal for enforcement by the bailiff,
– a successful objection or appeal to enforcement,
– by opening bankruptcy,
– using a protected account for exempt income.
In case you need to delete an account blockade, please contact us at:
Closing a company in Croatia can be done at the lowest cost a shortened procedure without liquidation. Such an amendment to the Companies Act was adopted because liquidation procedures are extremely lengthy, complicated and expensive. However, even closing a company under this shortened procedure requires an understanding of a number of steps and details. In this article, we provide an overview of the essential steps to closing a company.
The director of the company should exist until the dissolution of the company itself. This may give rise to contribution obligations. Namely, if you are a director in your company, but you are not employed or you are employed and registered on a lower basis than the one for board members/directors, the Tax Administration will determine the difference in payment by a decision. Therefore, in that case, they would be obliged to pay contributions on the determined difference between the bases. The solution to this potential problem is the appointment of a director who is registered on a higher basis than the minimum, in which case there are no obligations to the state.
In the event that such a payment gap is established, that cost will be yours as a natural person and not your company’s cost, as the company will have already been deleted.
When closing a company, the taxpayer is obliged to do so to the Tax Administration. The announcement must be made no later than 30 days before the start of formal actions towards the competent authorities.
Formal actions would be considered to be signing the documentation at a notary public and sending the application to the court register. You can do this yourself or through a law firm with a power of attorney.
In order to close the company, it is necessary to obtain a certificate from the Tax Administration that the company does not have an outstanding overdue debt.
It would be ideal if the certificate was dated the day before or on the same day of signing the documentation at the notary. The court certainly checks the status of any tax debt with the competent authorities. When the date of signing the documentation is defined, we suggest that the accounting department takes over the new certificate on that day or the day before.
In the case of dissolution of the company under a summary procedure without liquidation the tax period is a period that continues to the last business year until the end of business in accordance with special regulations.
Pursuant to Art. 35 of the Corporate Income Tax Act, the corporate income tax return in the event of dissolution of the company under a summary procedure without liquidation shall be submitted within 8 days of the expiry of the tax period.
The expiry of the tax period, in the case of dissolution of a company under a summary procedure, can be considered the day when the commercial court determined the dissolution of the company under a summary procedure without liquidation.
We suggest that you inform your accounting department about this so that they can file a tax return after the company is dissolved.
A company that has been dissolved under a summary procedure must submit to the FINA Financial Agency:
Also, we suggest that you inform your accounting department about this so that they can perform these actions after the company is dissolved.
As for the company’s books and documentation, for which the retention period has not expired, after the dissolution of the company, you as the owner of the company can keep it or entrust the documentation to the Croatian Chamber of Commerce for safekeeping.
The retention periods are prescribed by Art. 10 of the Accounting Act and they are 11 years for documents on the basis of which data were entered into the journal, general ledger and auxiliary books (business books) and 6 years for payrolls. The period of retention of the aforementioned accounting documents begins on the last day of the business year to which the business books in which the documents were entered refer. Business books and documentation can also be stored in electronic form.
In conclusion, we suggest that the entire process be coordinated with your accounting. If you need professional help with the closure of the company, contact us at:
Forming a company in Croatia can be done through several legal forms. The most common forms include crafts, limited liability companies (d.o.o.), joint stock companies (d.d.) and simple companies (j.d.o.o.). Each of these forms has its own specifics, advantages and disadvantages that are important to understand when choosing the most suitable structure for a particular business venture.
A craft is an independent and permanent performance of permitted economic activities by a natural person with the aim of generating income or profit. The Crafts Act regulates this type of business in detail. One of the key characteristics of the craft is its simple and quick establishment, which does not require significant initial capital. Also, bookkeeping and administration is relatively simple. Crafts are often an ideal choice for freelancers and smaller business ventures that do not plan to expand significantly. The advantages of trades include fast registration, lower operating costs, and simpler procedures. Craftsmen have the option of withdrawing cash from a giro account, and family members can help them in their work without employment. Also, there is a possibility of temporary suspension of work for up to one year. On the other hand, a significant disadvantage of crafts is the unlimited personal responsibility of the owner for all obligations arising from the business.
A limited liability company (d.o.o.) is a capital company in which one or more legal or natural persons invest basic stakes. Unlike crafts, a limited liability company is liable for its obligations with all its assets. LLC is the most common form of company in Croatia. The advantages of this form include limited liability of the founder, easy transfer of ownership, easier access to sources of financing, and the possibility for the company to have multiple directors. However, the establishment of a limited liability company usually entails higher initial costs and requires a minimum share capital, which is currently EUR 2,500.00. The liquidation procedure of a limited liability company can be complex and expensive, but there is also a a cheaper short termination procedure.
A simple limited liability company (j.d.o.o.) is designed to make it easier to start a limited liability company with lower initial costs. The minimum share capital for a j.d.o.o. is only 1.00 euros. The advantages of this form include significantly lower incorporation costs and a minimum share capital. However, there are also some limitations. J.d.o.o. has the obligation to allocate 25% of the realized profit to legal reserves. Also, a j.d.o.o. can have only one director, and in the case of transformation into a d.o.o., additional audit costs are possible.
A joint stock company (d.d.) is a company with capital whose share capital is divided into shares. Members of the company are shareholders who participate in the share capital with their contributions. Stocks are securities that give owners voting rights and dividends. The advantage of d.d. is the possibility of raising significant capital by issuing shares. However, d.d. has a complex management structure that includes the General Assembly, the Supervisory Board and the Management Board.
The first step in the process of establishing a d.o.o. is to choose the name (company) under which the company will operate. The company must be written in Latin, Croatian or in the official language of one of the European Union member states, with the possibility of using Arabic numerals. It is recommended to check the availability of the desired name beforehand.
After choosing a name, it is necessary to determine the official address of the company’s headquarters. The registered office determines the jurisdiction of the commercial court where the company will be registered. In addition to the registered office, it is also necessary to define the business address. Tax Administration may subsequently request a lease agreement. A business can theoretically register at any existing address.
The third important element is to define the subject of the company’s business, i.e. the activity that the company will be engaged in. Activities are classified according to the National Classification of Activities. When registering, it is necessary to select one main activity and, if necessary, several secondary activities. The NKD code consists of the designation of the section, group and class of a particular activity.
If the company is founded by only one person, the Declaration of Incorporation is adopted. This document contains all the essential information about the founder and the future company. If the company is founded by more than one person, the Memorandum of Association is drawn up and adopted. The memorandum of association defines in detail the mutual relations of the founders. A notary public will confirm the identity of the founders and certify their signatures.
After the articles of incorporation have been certified by a notary, it is necessary to pay the share capital of the company to a temporary account opened in a commercial bank. The minimum amount of share capital for a limited liability company in Croatia is currently EUR 2,500.00. Upon payment, the bank will issue a certificate of payment of the share capital. This certificate is a key document that is attached when submitting the documentation for the registration of the company with the Commercial Court.
The Commercial Court issues a Decision on the registration of a company. With this decision, d.o.o. officially acquires legal personality. Along with the Decision on Registration, the Commercial Court ex officio assigns an OIB (personal identification number) to the company. OIB is a unique identification number in the Republic of Croatia.
Once the company has been registered and assigned an OIB, there are a few more administrative steps that need to be taken. One of them is the application to the Croatian Bureau of Statistics (CBS). This is for the purpose of classification according to the National Classification of Activities (NKD). On the basis of the submitted application, the CBS will issue a Notice on the classification according to the NKD. This document contains the code and name of the company’s main activity. Also, it is necessary to make an entry in the Register of Beneficial Owners.
After the registration of the company, it is necessary to open a regular business bank account. To open a business account, it is necessary to contact the selected commercial bank. Banks will require submission of all the above stated documents.
After opening a business bank account, it is necessary to register with the Tax Administration. The application must be submitted within eight days from the date of commencement of the activity, and the RPO form is used. The form can be submitted in person at the competent branch office of the Tax Administration or electronically via the e-Porezna system. When applying, it is necessary to choose whether the company wants to operate in the Value Added Tax (VAT) system or outside it. The threshold for mandatory entry into the VAT system from 1 January 2025 is EUR 60,000.00 of annual turnover.
In order to communicate electronically with courts and other state bodies, it is necessary to log in to the e-Communication system. Access to the system is provided through the https://e-komunikacija.pravosudje.hr/ website or through the e-Citizens portal. Login is done through the National Identification and Authentication System (NIAS) using the appropriate credentials. For legal entities, registration is done by entering the e-mail address of the authorized person into the e-Authorization system.
In the case of the establishment of a limited liability company with foreign capital, i.e. if the founders are foreign legal entities or natural persons, there is an obligation to report it to the Croatian National Bank (CNB). This report is required to monitor the balance of payments of the Republic of Croatia and the international investment balance. Persons obliged to submit reports to the INOK-DEP are obliged to submit the report to the CNB exclusively electronically, using the application available on the CNB’s website (https://www.hnb.hr/hnbapp/).
Forming a company in Croatia in Croatia includes a detailed series of steps. For the successful completion of the entire process, it is crucial to be thoroughly informed about all legal regulations and procedures. Given the complexity of forming a company in Croatia, it is advisable to seek advice from legal and accounting professionals. This detailed guide provides a comprehensive overview of the necessary steps to establish a company in Croatia, with an emphasis on opening a company Croatia in the form of a d.o.o. Croatia, as the most common form for doing business in Croatia.
If you want to establish a company in Croatia, please contact us at:
Termination of an employment contract for a business-related reason is regulated by the provisions of the Labour Act. The Croatian Labor Act regulates in detail the conditions, procedure and rights of workers in such situations. Below I provide a comprehensive overview of legal requirements, procedures and rights of workers, including deadlines for the protection of rights.
The employer may regularly terminate the employment contract when the need to perform the position ceases for a justified reason. A valid reason exists for economic, technological or organizational reasons.
This means that this type of dismissal must be caused by objective reasons related to the employer’s business, and not by the behavior or abilities of the worker.
If the employer has a works council, the employer is obliged:
– at least eight days before the decision on dismissal is made, consult with the works council,
– submit a written explanation of the reason for the dismissal and information about the employee to whom the dismissal is being made.
If the employer does not conduct counseling, the dismissal is illegal.
In certain situations, consultation is carried out through the trade union commissioner in the function of the works council.
The dismissal must be:
– in written form,
– it must contain an explanation of the reason for the dismissal,
– it would be good if it contained an instruction on workers’ rights (deadlines for the protection of rights).
Workers’ rights in the event of business-related dismissal
Depending on the length of service with the employer:
– up to 1 year: 2 weeks
– 1 to 2 years: 1 month
– 2 to 5 years: 1 month and 2 weeks
– 5 to 10 years: 2 months
– 10 to 20 years: 2 months and 2 weeks
– more than 20 years: 3 months
The notice period may be extended by a collective agreement, an employment ordinance or an employment contract.
An employee is entitled to severance pay if he or she has worked for the employer for at least 2 years, at least 1/3 of the average monthly salary for each completed year of work for that employer.
After the termination of employment, the worker can apply to the Croatian Employment Service and exercise the right to financial compensation, if he meets the conditions of the Labor Market Act.
An employee has the right to file a written request for the protection of rights against the dismissal decision. This request must be submitted to the employer within 15 days from the date of delivery of the dismissal decision.
If the employer does not comply with the request, the employee may file a lawsuit with the competent court. The lawsuit must be filed within 15 days from the date of expiry of the deadline for the employer’s response or from the day on which the employer rejected the request.
The employer must:
Have real and objective business reasons for dismissal (e.g. drop in revenue, technological changes, reorganization),
Document the reasons (e.g. financial statements, management decisions),
Check if there is another job that the worker could perform,
Offer retraining if possible.
Consult with the works council,
Comply with notice deadlines and pay severance pay,
Submit a written notice of termination with an explanation and a letter of rights.
Failure to comply with any of these obligations may lead to the illegality of the dismissal and the obligation to reinstate the worker with the payment of damages.
Case law for dismissal of an employment contract
Courts in the Republic of Croatia have on several occasions taken the position that:
– business-related dismissal must be a consequence of real and objective reasons, and not a disguised way to resolve an “undesirable” employee (e.g. Zagreb County Court, Gž R-1234/2018).
– the employer must prove that he has offered another job position if it existed (Supreme Court of the Republic of Croatia, Revr-123/2017).
Conclusion
Business-related dismissal is legal only if all formal and material conditions prescribed by the Labor Act are met. The employer must act conscientiously and respect the rights of workers, including consultation with the works council, the offer of another job, notice periods and severance pay. An employee has the right to have his rights protected by requesting the employer and filing a lawsuit within the prescribed time limits.
For more information or legal advice on termination of employment, please contact us at:
The Civil Obligations Act (ZOO) is the basic legal act that regulates contractual and non-contractual legal obligations in the Republic of Croatia. The current law was passed in 2005 and came into force on January 1, 2006. The predecessor of this law dates back to 1978. Its purpose is to ensure legal certainty and predictability in business and private law relationships. It defines the rights and obligations of the contracting parties and the rules of liability for damages. The Civil Obligations Act applies to a wide range of legal relationships. It includes contracts for sale, lease, loan, insurance, as well as liability for damage and unjust acquisition. Its provisions ensure a balance between the interests of creditors and debtors and contribute to the stability of the legal system.
The general provisions of the Civil Obligations Act define the basic principles of the law of obligations. According to these provisions, obligations are based on the principles of conscientiousness and fairness, equality of participants and prohibition of abuse of rights. The law prescribes the rules on the establishment, content and termination of obligatory relationships. It also regulates the issues of fulfillment of obligations, liability for non-fulfillment and the consequences of delay in performance. The creditor has the right to demand the fulfilment of the obligation, and the debtor is obliged to fulfil it conscientiously and in accordance with the contract. If the debtor fails to comply with the obligation, the creditor may claim damages. In addition, the general provisions also regulate the statute of limitations for claims, which occurs after a certain period of time, thus ensuring legal certainty and stability of obligations.
Special provisions of the Civil Obligations Act regulate in detail certain types of contracts and obligations. These provisions include sales contracts, gifts, leases, loans, insurance, brokerage, and many others. For example, a sales contract is regulated in such a way that the seller must deliver the goods in good condition, while the buyer must pay the agreed price. The lease agreement sets out the rights and obligations of the landlord and the tenant, including the duration of the lease, the maintenance of the property and the possibility of terminating the contract. In addition to contractual relationships, special provisions also regulate liability for damages. According to the Civil Obligations Act, a person who causes damage to another person is obliged to compensate for it, unless he proves that he is not responsible. This policy applies to a variety of situations, including road accidents, medical errors, and damage caused by dangerous items.
The Civil Obligations Act is crucial for legal certainty and predictability in business and private relationships. Its provisions provide clearly defined rules that help resolve disputes and protect the rights of all parties to the obligations. The application of this law is especially important in commercial law, where it regulates contractual relations between entrepreneurs, but also in everyday situations, such as concluding a purchase contract or renting an apartment. This law is often applied in the alternative, and is very important for various interpretations of complex property relations.
Conclusion
The Civil Obligations Act is the basic regulation governing contractual and non-contractual relations in Croatia. Its general provisions define the basic principles of the law of obligations, while special provisions regulate in detail certain types of contracts and liability for damages. Understanding this law is crucial for everyone involved in legal relationships, whether as an entrepreneur, consumer or citizen. If you have questions about the application of the Civil Obligations Act in certain situations, it is always advisable to consult a legal professional. You can contact us at:
Inclusive allowance represents a significant form of financial support to persons with disabilities in the Republic of Croatia. The Inclusive Allowance Act (the “Inclusive Allowance Act”) entered into force on 1 January 2024. This law was passed with the key goal of consolidating the various existing rights for people with disabilities. Prior to this law, there were separate rights such as personal disability allowance, assistance and care allowance, increased allowance for children with disabilities and financial assistance for unemployed persons with disabilities. The Croatian Parliament adopted this law on December 15, 2023. The main purpose of the inclusive allowance is to help persons with disabilities overcome various obstacles that may hinder their full and effective participation in society on an equal basis with others.
An inclusive allowance is defined as a cash allowance intended for people with disabilities. Its purpose is to ease the day-to-day costs associated with the special needs of these people. According to the Inclusive Allowance Act, the goal of this allowance is to compensate for the increased cost of living faced by people with disabilities, allowing them to be more equally included in all aspects of life. It is important to emphasize that this supplement is exempt from enforcement, which provides users with additional financial security. The right to an inclusive allowance is recognized as a percentage of the base, which is currently 120 euros. The decision on the amount of the base was made by the Government of the Republic of Croatia on January 11, 2024.
Persons with disabilities with varying degrees of impairment and severity of disability are entitled to an inclusive allowance. In particular, this right is exercised by:
The level of support required is classified into five levels, depending on the severity of impairment of functional abilities and the Barthel index, which assesses a person’s ability to independently perform basic life activities.
However, there are also certain categories of people who are not entitled to an inclusive allowance. These are the following persons:
In addition, for the fourth and fifth levels of support, the right to the inclusive allowance is not granted to persons who own another apartment or house (other than the one they use for housing) that they can alienate or rent in order to provide funds for full participation in society. Also, this applies to those who own business premises that they do not use for performing registered activities, and those who are provided with accommodation in a social welfare, health or other institution, i.e. organized housing.
The right to the inclusive allowance is suspended for beneficiaries who are serving a prison sentence, in a health institution or who have been staying abroad continuously for more than six months.
In order to be eligible for an inclusive allowance, certain prerequisites must be met. The basic assumption is the existence of a certain degree of disability that is defined by the law and regulations on expertise. Also, there must be no impediment to the exercise of rights, such as the use of accommodation services or the receipt of other similar benefits (except for the exceptions mentioned above). The level of support, and thus the amount of the inclusive allowance, depends on the estimated degree of impairment of functional abilities.
The procedure for obtaining an inclusive allowance begins with the submission of an application to the competent regional office of the Croatian Social Welfare Institute (HZSR). Upon receipt of the application, the HZSR conducts the procedure of recognition of rights. As part of this procedure, the level of support is determined based on the findings and opinions of the Institute for Expertise, Vocational Rehabilitation and Employment of Persons with Disabilities. The Institute for Expertise conducts the assessment of functional abilities in accordance with the applicable regulations. Upon completion of the assessment, the HZSR issues a decision on the right to an inclusive allowance.
It is important to note that beneficiaries who received certain benefits on 31 December 2023 (child allowance for a child with a disability, financial assistance for unemployed persons with disabilities, assistance and care allowance and personal disability allowance) did not need to submit a new application. In these cases, the HZSR has ex officio initiated the procedure to determine whether they meet the conditions for the inclusive allowance.
The amount of the inclusive allowance depends on the level of support that has been determined for the beneficiary. The basis for calculation is 120 euros. The amounts by support levels are as follows:
| Level of support | Percentage of the base | Amount in Euros |
| First | 600% | 720 |
| Other | 400% | 480 |
| Third | 360% | 432 |
| Fourth | 135% | 162 |
| Heel | 115% | 138 |
The Croatian Social Welfare Institute (HZSR) is responsible for deciding on the right to an inclusive allowance. The HZSR issues a decision recognizing or rejecting the right to this allowance. Although the research materials do not explicitly state who makes the payment of the inclusive allowance, it is logical to assume that the payment is made through the state treasury or another authorized agency after the HZSR makes a positive decision.
Unfortunately, many people in Croatia are still waiting for a decision on their right to an inclusive allowance, leading to significant delays. Despite the legal deadline of one year (until the end of December 2024) to resolve rights acquired on the basis of disability by 2023, many beneficiaries complain about the slowness of the procedure. The Ombudswoman for Persons with Disabilities has also received numerous complaints from dissatisfied citizens who have been waiting for months for a decision to be made. In January 2025, about 110,000 citizens were still waiting for a solution, and in October, about 48,000 old users were left without a solution.
In such cases, when the state authorities do not act within the legal deadlines, persons who are entitled to the inclusive allowance have the option of filing a lawsuit for protection from the silence of the administration. This legal option allows individuals to request judicial intervention in order to force the competent authority (HZSR) to make a decision on their claim within a reasonable time. Although there is a right to sue for the silence of the administration, it is important to be informed about the specific procedures and deadlines prescribed by Croatian administrative law, and in such situations it is recommended to consult a legal expert.
The inclusive allowance represents an important step towards ensuring greater inclusion and equality of persons with disabilities in Croatian society. This blog has provided an overview of the key aspects of the Inclusive Allowance Act, including the definition, who is entitled to it, the prerequisites and procedure for exercising the right, the amount of the allowance and the competent authorities. Despite the implementation challenges and delays in payments faced by many beneficiaries, it is important for persons with disabilities to be aware of their rights and redress options. If you believe that you are eligible for an inclusive allowance, we encourage you to submit an application to the Croatian Social Welfare Institute. In the event of a long wait for a solution, do not ignore the possibility of a legal remedy through a lawsuit for protection from the silence of the administration.
For any additional questions, you can contact us at:
According to the General Administrative Procedure Act, the silence of the administration occurs when an authorized public body fails to make a decision on an administrative matter within the legally prescribed deadline. Unfortunately, in Croatia, public law bodies are often late in making their decisions. This blog will explain who the public law bodies are and what your legal options are if you face the silence of the administration.
According to Article 3. Public law bodies are state administration bodies, other state bodies, bodies of local and regional self-government units, and legal persons with public authority. This definition encompasses a wide range of institutions with which citizens and legal entities come into contact when exercising their rights and obligations.
Concrete examples of public bodies and institutions include government bodies such as ministries (e.g. the Ministry of the Interior, the Ministry of Environmental and Nature Protection) and government offices. Other state bodies also fall into this category, such as the National Protection and Rescue Directorate and courts, especially in the context of administrative disputes. Bodies of local and regional self-government units, such as city offices (for example, the City Office for Physical Planning in Zagreb), municipal and city councils and county assemblies, also play an important role. For example, the City of Zagreb has a detailed list of public bodies that are responsible for issuing various conditions and certificates.
Furthermore, legal persons vested with public authority are also considered bodies governed by public law. This includes companies and other organizations entrusted by law or regulation with the performance of certain public functions. Examples of such bodies are Hrvatska elektroprivreda (HEP), Hrvatska voda, Zagrebački holding and the Croatian Pension Insurance Institute (HZMO). It is interesting that a legal entity whose activity of general interest constitutes only a small part of its total activity can also be considered a public law body.
According to the General Administrative Procedure Act (ZUP), if the first-instance public law body does not issue a decision on your request within the prescribed time limit, you have the right to file an appeal due to the silence of the administration. This institute of administrative silence is designed to protect the parties from the inaction of public law bodies and to ensure that their rights and obligations are decided within a reasonable time.
The General Administrative Procedure Act prescribes the deadlines for issuing a first-instance decision. The official is obliged to issue and deliver the decision to you without delay, and no later than 30 days from the date of submission of a proper request in cases where it is a direct solution. If an investigation is required in the procedure, this period is extended to 60 days from the date of submission of a valid application.
If the first-instance body fails to issue a decision within the specified time limits, you have the right to lodge an appeal with the second-instance body. The appeal is submitted to the public body that should have issued the first-instance decision, or that failed to do so. The deadline for filing an appeal is 15 days from the expiry of the deadline prescribed for the adoption of a decision.
After the appeal has been filed, the second-instance body is obliged to issue and deliver to you the decision on the appeal no later than 60 days from the date of submission of the regular appeal, unless a shorter deadline is prescribed by a special law. This time limit ensures that your remedy is also decided within a reasonable timeframe.
If the second-instance body does not make a decision on your appeal within 60 days, the Administrative Disputes Act provides you with further legal protection. In such a situation, you have the right to file a lawsuit with the Administrative Court of the Republic of Croatia for the silence of the administration.
However, it is important to pay attention to the so-called 8-day dilation period. This means that you cannot file a lawsuit before the expiry of the eight-day period from the date on which the second-instance authority was obliged to issue a decision. If you file a claim before the expiry of this time limit, the court will dismiss it as premature.
The lawsuit shall be filed with the Administrative Court with jurisdiction over the seat of the defendant public law body. It is important that your lawsuit contains all the elements prescribed by the Administrative Disputes Act. This includes your personal and defendant details, a description of the administrative act against which the action is being filed (in this case, failure to take a decision), the factual and legal reasons for which you are filing the action, and your specific request to the court (to order the defendant to make a decision).
The lawsuit must be accompanied by the original or a copy of the administrative act you are contesting (if any), as well as proof that you have filed a request and an appeal (if you have filed one) and proof that the decision has not been made within the prescribed time limit. The court will then conduct the proceedings and, if it finds that your action is well founded, will issue a judgment ordering the defendant public body to adopt an administrative act within a certain time limit.
If you hire a lawyer, the public body may be ordered to pay the high costs of the proceedings.
It should be emphasized that a lawsuit for the silence of the administration can be filed regardless of how the administrative procedure was originally initiated. Your right to legal protection due to the silence of the administration lasts until a decision on your application is taken by a public body.
The silence of the administration is a serious problem that can significantly affect the exercise of the rights of citizens and legal entities. Croatian legislation, through the General Administrative Procedure Act and the Administrative Disputes Act, offers protection mechanisms. It is therefore essential that you are persistent, well informed about your rights and deadlines, and that you take all available legal steps to ensure that the public administration takes a decision in your case.
If you would like to file a lawsuit to protect yourself from the silence of the administration, please contact us at:
Bankruptcy is a special non-contentious court proceeding that is conducted for the purpose of collective settlement of creditors of the bankruptcy debtor. Creditors are persons who have a claim against the bankruptcy debtor, and can be natural persons, legal persons, public law bodies, etc. Its main function is to monetize the debtor’s assets and distribute the collected funds to creditors. The procedure serves as a mechanism to solve the financial problems of a debtor who is unable to meet his obligations.
There are two basic types :
In this text, we will only deal with the bankruptcy of a legal entity (company).
Bankruptcy proceedings may be opened if the court finds that there is a valid reason. The main reasons for initiating the proceedings against a legal entity are:
Bankruptcy proceedings may be initiated by:
A financial agency is obliged to file a proposal for the opening of proceedings if a legal entity has unexecuted payment bases recorded in the Register of the Order of Payment Bases for an uninterrupted period of 120 days, within eight days of the expiry of that period.
A proposal for the opening of the proceedings must be submitted without delay, and no later than 21 days from the date of occurrence of the legal reason, by persons authorized to represent the debtor, or by a member of the supervisory board if there are no persons authorized to represent the debtor by law, or by a member of a limited liability company if the debtor does not have a supervisory board.
The procedure is initiated by submitting a proposal to the competent commercial court. The court then examines the existence of grounds for opening the process.
The applicant is obliged to pay an advance payment of EUR 660.00 for the costs of the pre-bankruptcy procedure. In the event that more than one proposal is submitted, each applicant must make an advance payment of the same amount.
If the advance payment is not paid, the court will reject the proposal to open pre-bankruptcy proceedings as inadmissible.
Creditors report their claims to the trustee within the prescribed time limit. They participate in the proceedings through the creditors’ meeting and the creditors’ committee (if established). Creditors have the right to information and can influence decisions in the proceedings.
The trustee is a key person in the implementation of the proceedings. He or she is appointed by the court by random selection from a list of insolvency administrators. Its main tasks are:
The work of thetrustee is supervised by the court, the creditors’ meeting and the creditors’ committee.
The main objective of the proceedings is the collective and equal settlement of the creditors of the debtor. This is done by cashing in the debtor’s assets and distributing the funds raised.
Bankruptcy proceedings shall end:
After the end of the procedure, the legal entity ceases to exist.
Conclusion
Bankruptcy is an important legal institute for settling the financial obligations of the bankruptcy debtor before its cessation of existence. It allows creditors to be satisfied and can give debtors a fresh start by concluding a bankruptcy plan. An effective insolvency procedure is essential for the healthy functioning of a market economy.
If you need legal assistance or a lawyer to initiate bankruptcy proceedings, file a creditor’s claim or represent your interests in bankruptcy proceedings, please contact us at:
Court register is a public book kept by the commercial court, and contains data and documents on the subjects of registration for which entry in the register is prescribed by law. It consists of a general ledger and a collection of documents. The general ledger is the part of the register in which the data on the subjects of registration prescribed by law are entered, and the collection of documents is the part of the register in which the documents submitted for the entry of data on the subjects of registration in the general ledger are stored.
According to the law, the following types of subjects of registration are registered in the Register:
Branches of the subject of registration are registered in the register when prescribed by a special law.
Data on crafts are entered in the trade register, and data on the association in the register of associations, and are not recorded in the court register.
Companies and institutions are registered in the register. Entries include basic information such as the entity’s registration number, company name, registered office, OIB, activities, legal form, persons authorized to represent and information about the founders/members of the company. Entries can be founder, change, or deletion.
The establishment of a company begins with the drafting of the memorandum of association. It can be a memorandum of association, a memorandum of association, or a statement of incorporation. It is necessary to specify the name, registered office, activity and pay the share capital. This is followed by registration in the register, which gives the company legal personality.
Changes in the company’s data, such as a change of registered office or activity, must be entered in the register. These changes require the submission of appropriate documentation and court approval.
The procedure for entry in the register is initiated by an application containing a request for entry of data, which is submitted to the court of registration in the form of a publicly certified document or an electronic application. The application is a strictly formal document so that it is completed by a notary public or a lawyer.
For a limited liability company, the application is submitted by all members of the management board, and if it has a supervisory board, also by the chairman of the supervisory board.
Deletion from the court register is carried out after the dissolution of the legal entity. This may be due to liquidation, bankruptcy, merger with another company or merger with another company. With the deletion, the legal entity no longer exists in legal transactions.
According to the Court Register Act, an entry in the register may have a constitutive or declaratory effect. For example, a decision whose entry in the court register has a declaratory effect is a change of a member of the management board (director) of the company, and such a decision enters into force on the day of its adoption. On the other hand, an amendment to the memorandum of association or recapitalization enters into force only upon entry in the court register, so such registration has a constitutive effect.
In any case, the entry in the court register from the date of publication of the entry also produces legal effects vis-à-vis third parties. Once something has been entered in the court register, no one can claim that they did not know about it. It’s the same with the land registry for real estate. After the registration decision becomes final, the data are published on the website of the Ministry of Justice, where they are considered officially published on the expiry of the date of publication.
Any person may refer to the situation entered in the court register with regard to the data and facts entered in the register in accordance with the regulations, except for the person who is proven to have been aware that the actual situation regarding such data differs from the state of the entry in the register.
Conclusion
The court register is crucial for legal certainty, publicity of registration and transparency of business. It provides insight into the basic data of legal entities and their changes. Proper keeping and updating of data in the court register ensures legal certainty and trust in business relationships.
If you need legal assistance or a lawyer for registration in the court register or representation in registration proceedings, please contact us at:
A purchase contract is a bilateral legal transaction. Under it
the seller undertakes to transfer the ownership of a certain thing or right to the buyer, and the buyer undertakes to pay the price. The essential elements of the purchase contract are the subject and the price. For the purchase and sale of real estate, the law prescribes the obligation of a written form.
The subject of the purchase contract may be movable or immovable property. Also, rights can be subject of agreement. Real estate is land and everything that is permanently connected to the land (buildings). The purchase and sale of real estate is regulated by the Ownership and Other Property Rights Act and the Land Registry Act. Movable things are things that can be moved from place to place without damaging their essence.
The acquisition of ownership of real estate on the basis of a purchase or gift contract requires registration in the land register. After concluding the contract, it is necessary to submit an application for registration of ownership rights. This is submited to the competent land registry department of the municipal court. Registration is an entry by which book rights to real estate are acquired, transferred, limited or terminated. Ownership is acquired only by registration, and not by concluding the contract itself.
Before concluding a purchase contract, it is extremely important to inspect the land registry. The land register folio consists of an inventory sheet (A), a title deed (B) and a bill of lading (C). Sheet A contains a description of the property. Sheet B contains information about ownership, and sheet C contains information about encumbrances on the property. This inspection makes it possible to determine the beneficial owner and possible encumbrances on the property.
In the sale of movable property, contracts are in most cases concluded in oral form. The conclusion of the contract occurs at the time of agreement on the essential elements of the contract, the subject matter and the price. In the case of motor vehicles, the contract is usually concluded in writing. It is important to accurately describe the subject of sale, including the make, model, year of manufacture, chassis number and other relevant information. After concluding the contract, it is necessary to transfer ownership in the records of motor vehicles kept by technical inspection stations.
A down payment is a sum of money that the buyer gives to the seller as a sign that the contract has been concluded. In the event that the party who gave the down payment withdraws from the contract, he loses the down payment. If the party who received the down payment withdraws from the contract, he must return double the amount of the down payment. The down payment can also be arranged as a withdrawal fee, which gives the right to withdraw from the contract with the loss of the down payment. If the contract is performed, the down payment can be included in the fulfillment of the obligation, if it is expressly agreed.
Conclusion
Concluding a purchase contract, especially for real estate, is a complex legal transaction that requires careful consideration of all aspects. Hiring a lawyer when buying real estate provides professional assistance in reviewing land registers, drafting contracts and implementing registration, which significantly reduces the risk of possible legal problems in the future. Professional legal assistance is essential for the safe and legal purchase and sale of real estate.
If you need legal assistance or a lawyer for the purchase of real estate or representation of your interests in the sale of real estate, please contact us at: