Now is the right time to open a company

Judging by the incentives that new business owners are eligible for, this is the best time to open a company. This year is also important for all new business owners since they will be exempt from paying income taxes and contributions for themselves and for up to nine of their employees.

And that is not the only benefit…

Electronic registration of company

To start off with, company can now be registered online, without the need to submit any paperwork. Online registration entail filling out an electronic form that a new company owner signs with a so-called qualified electronic certificate. E-form is available at the official website of the Business Registers Agency. The payment of relevant fees can also be done electronically with debit or credit cards.

Exemption from paying taxes and contributions

The recently adopted amendments to the Law on Mandatory Social Insurance regulate incentives for first time business owners. According to the law, they will be example from paying mandatory social insurance and income tax in the first two years of business.

No company seal

Business owners will not have to use the old-fashioned company seal in dealing with banks, and they are also no longer obligated to issue invoices in paper. As of this year, electronic invoices will replace the paper ones.

Free access to data

Following the recent changes to the Law on State Administrative Fees, business owners now have a free access to databases of various state institutions so that they can check the data that relates specifically to them. Also, business owners no longer have to pay relevant fees upfront, by going to a post office or a bank, but rather they can pay these online, once a document that they have requested is issued.

Electronic filing of tax returns

 Another benefit for business owners is that they can file certain tax forms online now. To begin with, they can file papers relating to lump-sum tax and capital gains tax.

“IT companies will find it particularly useful that the government has launched an open data platform that will be ‘filled’ with data generated by various institutions – from those working in public safety, education and healthcare to environmental protection, energy and public administration ones”, says Ivan Radak from NALED.

Novelties for business owners in 2018:

 – Company seals no longer required in dealing with banks

– Electronic invoices

– Tax exemptions for new business owners

– Online registration of companies

– Electronic payments via the e-Uprava website

 – Launch of the open data platform

– Electronic filing of tax return for businesses paying lump-sum tax

– Free access to various databases

– Paying fees once documents are issued

– Untaxed segment of salary increased

(Blic, 11.01.2018)


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