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Post by rijekafan on Feb 13, 2007 17:25:56 GMT 1
I am always amazed that I am not allowed to put money in my own company account without the permission of the Croatian National Bank (HNB). My accountant somehow deals with this insane regulation. Does any one know the justification for this insanity?
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Post by irac on Feb 13, 2007 17:32:18 GMT 1
Never heard of that problem before. What's the bank?
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Charles
Full Member
www.aplaceindalmatia.com
Posts: 75
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Post by Charles on Feb 13, 2007 17:53:27 GMT 1
It's to do with the loan capital (as opposed to the foundation capital) of the company. When you set up a company you have to tell the HNB how much capital you're going to put in. It is always best to overestimate by some margin as (I believe) you can't subsequently put in more than originally stated without a fair amount of bureaucratic hassle. You need 'permission' for the source of the capital ie a transfer from a reputable bank is OK but a suitcase over the counter with smudged notes might just raise an eyebrow or two.
They also registered payments so that they can keep track of capital flows etc.
It is very standard for companies in Croatia so your accountant should be able to give you a fuller explanation.
NB. No Croatian bank is allowed to accept payment without this 'permission'.
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Post by hansel on Feb 13, 2007 18:35:56 GMT 1
Done this a few times up to now (HNB stands for Hrvatska Narodna Banka, equivalent to Bank of England) and I believe that out loans form a part of the overall foreign deficit that Croatia has with other countries (although a very small part of it, at least mine). Correct me if I am wrong. In that sense the purpose of it is to gather statistics and figures in one place, also to prevent the money laundering.
The first time I did it was a nightmare, now just a routine procedure that should not take more than seven days from the time you send the forms to them.
Any Croatian company needs to do this when borrowing from abroad.
I agree you always put more than you think you might need.
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Post by irac on Feb 13, 2007 19:01:59 GMT 1
Okay, that makes more sense, I thought it was some new regulation tha hadn't hit the provinces about putting money int he account, whereas it's about starting capital. Does anyone put in more than an initial 20,000kns?
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Post by rijekafan on Feb 13, 2007 19:39:25 GMT 1
Thanks for the explanation. I still think it is totally stupid and a pain. Eg. I got my property tax bill from the MOF years after I bought my flat with a threat to prosecute me unless immediate payment was made. I could not pay the money without jiggery pokery with the HNB. By the way the rule applies to all amounts and all banks. My accountant cant explain the rule she just deals with it. BTW. I just got an advance from my credit provider but because it did not have bank in the title the HNB freaked out and my accountant had to do some silly stuff to mollify them
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Post by eucomis1 on Feb 15, 2007 19:52:28 GMT 1
Our accountant advised us that any cash brought in from abroad and put into our company must be notified to the national bank as a company loan as that will allow us to withdraw it later without having to pay tax. Having the numbers they issue will also allow us to move it abroad again (very important! don't want hassle when I want to move money out of the country)
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Post by mambo on Feb 16, 2007 4:49:56 GMT 1
You cannot bring cash from abroad into your company, it is simply not possible, I have tried it a few times, but banks will simply not put it on your account. It is either going to be turnover or a loan and if you are not registered in Croatia it is impossible to put it on your account. If you want foreign money in your company you either have to go through the national bank or otherwise find some Croatian who is willing to 'borrow your money' to yourself !
For the loan with the Croatian National bank you should simply apply for at least 20 to 25 times what you expect to put in. For the application it really does not matter how much you ask for. What will happen is that you will get a number and each time you want to borrow money (from yourself) you use this number and you can put the money immediately on your account, no need to wait 1 week or longer.
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