UGP Calls for Legal Changes in the Inspection System

The Association of Entrepreneurs’ Voice (UGP) on Wednesday called for legal changes that would treat unintentional administrative errors of entrepreneurs educationally, rather than solely repressively – with clear instructions, digital reminders, and a fair approach towards those who drive the economy.

The Association warns that many entrepreneurs face high monetary fines due to administrative and unintentional oversights – often without prior warning or an opportunity for correction. They cite one of the most obvious examples from an entrepreneur who established a company through the official state platform, only to later be fined 2,000 euros for not being aware of the additional obligation to register the actual owner – information that was not clearly presented to her through the system.

They emphasize that this case is not an exception, as during May, Fina issued as many as 1,130 misdemeanor orders to legal and responsible persons – many of them for similar oversights arising from insufficiently clear instructions from digital platforms. They also note that in developed countries, such as EU member states or the USA, such violations are first treated educationally – a warning is issued, along with an opportunity for correction. Only in the case of repetition or more serious violations of the law does a penalty follow. In contrast, in Croatia, the penalty is often the first and only option, and this practice particularly affects small entrepreneurs, who already bear the greatest burden of bureaucracy and tax pressure.

– In addition to introducing the principle of ‘first a warning, only if the violation is repeated – a penalty’, Croatia should ensure a clear, centralized list of all obligations that business owners and craftsmen must fulfill. If we truly want to implement digitalization in a way that facilitates business rather than complicates it further, then the state – which already possesses all relevant data about each entrepreneur – should use that information to create personalized reminders. These reminders could be sent via SMS or mobile applications, with clear notifications about upcoming obligations – what, when, and to whom needs to be paid or reported – emphasized Boris Podobnik, president of UGP.

The Association of Entrepreneurs’ Voice calls on the Government of the Republic of Croatia and the relevant ministries to legally introduce the principle: “first education and warning, then punishment”, except in cases of serious and intentional violations; to ensure publicly accessible and centralized lists of obligations by activities, written in understandable language, and to introduce automated and personalized digital reminders (e.g., via SMS or applications) for entrepreneurs’ obligations.