engleski

Establishment of Cooperatives in the Republic of Croatia - pro et contra

The paper from a critical point of view contains an analysis of the establishment of cooperatives as legal entities in the Republic of Croatia. The distinction between the establishment and operation of a cooperative in relation to associations, crafts and companies is pointed out. A cooperative is a legal entity whose establishment is governed by the Law on Cooperatives. In order to establish a cooperative, a minimum of seven founders, natural or legal persons are required, who, by virtue of the founding act, enter the cooperative as a legal entity in the court register. Unlike an association that is not established for profit, in which the members have no obligation to enter their roles or are not responsible for the obligations of the association, the cooperative is the opposite. The cooperative is established for profit, the members of the cooperative are obliged to enter the membership deposit and are responsible for the obligations of the cooperative up to the amount of money they have invested in the cooperative. Distinction is also reflected in the obligation to keep books of business. The Association may keep the books of account on the basis of the decision of the legal representative of the Association on keeping simple bookkeeping, while under the Accounting Act, the cooperatives are obliged to keep double bookkeeping. Although cooperatives and associations are related terms, we can see that there is a huge distinction between these legal entities, which is reflected both in the process of their establishment and in the way they operate. Craftsmen are natural persons who keep simple bookkeeping, issue R-2 invoices and pay VAT on a paid account, while cooperatives, as companies, issue R-1 invoices and pay VAT on an invoice. Which form of registration you choose, for doing business as an individual (craft) or as a legal entity (association, cooperative, company) depends on the particular case as well as what you want to deal with and in what way. It should be emphasized that there is no best form of legal or natural person on which to conduct business, because it all depends on individual preferences and needs.

cooperatives, associations, crafts, companies, advantages, disadvantages, Croatia.

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