FAQ for Sole traders

  • Can a decision regarding registration with the Slovenian Business Register be served in electronic form?

In the registration procedure prospective and/or existing sole traders can select the option to receive a decision regarding registration with the Slovenian Business Register in e-format via a secure mailbox.

Natural persons can open and use a secure mailbox free of charge. Detailed instructions about opening a secure mailbox for natural persons are available on this website.

  • Where can citizens or e-VEM clerks obtain information about the requirements for carrying out particular activities?

Information about the requirements for carrying out particular activities are published on the home page of the e-VEM portal under its Services section. The information is also obtained in Step 4 of the Registration of traders with the Slovenian Business Register by selected activity; clicking on the Craft or Requirement button opens the Help file indicating whether a selected activity is subject to a craft licence and/or any other requirements to be fulfilled by traders who wish to engage in this activity.

  • A trader wishes to submit all data (required for registration, tax, health insurance, etc). Must e-VEM clerks accept all data and enter them in the e-VEM system?

Yes, if so requested by future traders, e-VEM clerks must accept all the data and may not refer the persons concerned to another e-VEM point. If e-VEM clerks encounter a problem, they must consult assistance provided for particular areas.

Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES), registration procedure for sole traders (s.p.)

  • Can citizens register as sole traders (s.p.) if all requirements for carrying out the activity have not yet been fulfilled?

Sole traders can register a particular activity even if the requirements to carry it out are not fulfilled at the time of registration, but the e-VEM clerk must inform the sole trader that all requirements laid down by special regulations must be fulfilled and all required permits obtained in order to carry out the activity concerned.

  • Which documents are required for sole trader (s.p.) registration?

Any person wishing to register as s.p. through a VEM point must have a personal identification document and a tax number. Sole traders holding a qualified digital certificate can apply for registration through the VEM portal from home.

  • Where should I check whether a company with a name similar to an intended company name already exists?

Information can be obtained through the Kontrola fantazijskega imena (Fictitious Name Control) application in the electronic Slovenian Business Register on the AJPES web portal. The existence of the company name can be checked by entering the root of the searched word.

  • Which are the compulsory components of a sole trader name?

Article 72 of the Companies Act lays down that a sole trader name must contain his or her full name, the abbreviation s.p. denoting a sole trader, a designation of the activity and any additional elements. The Companies Act does not lay down the priority order of the aforementioned elements.

The sole trader name is also subject to Articles 12 to 23 of the Companies Act, which lay down that the company name must be in Slovenian and must be clearly distinguishable from all other company names. If the sole trader name to be registered by the s.p. is not appropriate, AJPES invites the person concerned to supplement the application and indicates the inappropriate elements of the sole trader name. If the applicant fails to supplement the application or does not wish to correct the sole trader name, AJPES rejects the registration with the Slovenian Business Register and issues a relevant decision.
The company name must also comply with the provisions of the Public Use of the Slovenian Language Act.

  • Can the address for delivery differ from the address of a sole trader or registered office?

The manner of serving of documents is laid down in the General Administrative Procedure Act. Documents and/or decisions are served on a company's registered office or permanent address of the sole trader, on an authorised representative (legal representative) or authorised receiver.

  • Can a sole trader resume registration at another VEM point if the procedure initiated at a certain VEM point was not completed because of incomplete data?

Yes, sole traders can contact any VEM point to submit supplemented data; e-VEM clerks will enter the application initiated through a tax number and resume the procedure.

  • Is a sole trader (s.p.) assigned a new tax number in the registration procedure?

No. The personal tax identification number of a sole trader is used in trading.

  • How can foreign nationals be registered as sole traders (s.p.) or representatives with the Slovenian Business Register?

For nationals other than Slovenian citizens, Article 21 of the Employment and Work of Aliens Act applies; it lays down that foreigners may register as sole traders provided they have a personal work permit valid for one year or three years, or free access to the labour market.

Aliens have free access to the labour market subject to the conditions listed in Article 9 of the aforementioned Act.
It is essential for foreigners who wish to register as sole traders to have a Slovenian tax and personal identification number (EMŠO), which are obtained through registration with the Tax Register and the Central Population Register respectively. Applications for registration with the Tax Register are submitted at a tax office. These applications must state that the tax number is needed for sole trader (s.p.) registration purposes, in which case the tax office will simultaneously arrange for registration with the Central Population Register for a personal identification number (EMŠO).

  • Is there an administrative fee charged for registration as a sole trader?

Pursuant to point 1a of Article 28 of the Administrative Fees Act, no administrative fee is charged for registration, change to data or registration of the closure of sole trader's activity in the Slovenia Business Register.

  • Can sole traders appoint several procurators (legal representatives)?

Pursuant to Article 33 of the Companies Act, sole traders may grant the power of procuration to one or more persons. They may also appoint a representative in the event of death. The authorisation of representative in the event of death becomes effective at the time of death; a sole trader's successor may revoke it at any time.

  • What education requirements apply for sole trader (s.p.) registration?

No specific educational requirements apply for registration of sole traders. However, sole traders must obtain the necessary licenses and meet certain criteria prior to beginning the business if such requirements exist for the activity concerned. Most often sole traders are required to obtain a craft license, which may be subject to additional educational requirements. Sole traders who fail to meet the educational level requirements can obtain a craft license by employing a person who meets the criteria for obtaining a craft license or holds such license.

  • Must sole traders append notarised signatures to a request for registration?

A notarised written authorisation (certified by a notary or at an administrative unit) must only be appended if another person is authorised to carry out the registration procedure.

  • How can extracts from the Slovenian Business Register be obtained?

Notices/certificates of entry in the Slovenian Business Register are issued free of charge. Electronic extracts from the Slovenian Business Register (i.e. electronically signed extracts in PDF format) can be printed directly from the AJPES web portal using the ePRS application, which also provides detailed instructions for obtaining e-extracts.

Sole traders can obtain a certificate of registration with the Slovenian Business Register by submitting the completed form Order for issuing certificate of registration or extract from the Slovenian Business Register. Forms can be sent to the local AJPES office by mail or fax or can be submitted in person.

  • When should I select the option 'Served by the authorised person at AJPES' in the procedure for registration in the Slovenian Business Register?

The General Administrative Procedure Act allows for a document (decision) to be served by an authorised person at AJPES, by mail or by electronic means.

Sole traders select the option 'Served by the authorised person at AJPES' when they explicitly want a decision to be served immediately. The sole trader collects the decision in person at one of the AJPES local offices.

  • Is it necessary to open a separate account for a sole trader's business transactions or can the sole trader's personal bank account be used?

Sole traders must open a separate transaction account (business account) for business purposes, which is to be used solely for carrying out business transactions.
Deletion, conversion, transfer of a sole trader (s.p.)

  • How can a sole trader be transformed into a company?

The transformation of the legal form of a sole trader is governed by the Companies Act (Articles 667 to 672, Chapter: Transformation of the legal form of a sole trader); the legal form can be changed by transferring the company to a new company limited by shares established for the transfer of the trader's business, or by transferring it to a transferee company limited by shares.

1.    Transfer of a company to a new company limited by shares'

Transfer of a company to a new company limited by shares' means that a new company limited by shares is established with a view to transferring the trader's business. In this case the transfer is carried out on the basis of a unilateral legal transaction or decision by a sole trader to convert. It should be noted that the company limited by shares must not exist prior to the transformation, i.e. the company must be established with the intention to transfer the sole trader's business to it. The transfer is carried out in several steps:

Step 1: Information and decision:
Sole traders must announce the intended conversion in an appropriate manner (by letters to creditors, through the media, at the business premises) at least three months in advance and must indicate that their business activity is to be pursued under a changed legal and organisational form, and must also indicate the date of the transformation from a sole trader (s.p.) into a private limited company (d.o.o.). Within this time limit, sole traders must adopt a decision to transfer, which must indicate the company name and registered office of the sole trader, a statement of transfer and the value of the sole trader.

Step 2: Transfer of activities and assets
Through the transfer the sole trader's company and all related rights and obligations are passed over to the private limited company (d.o.o.). The private limited company is the universal legal successor and enters into all legal relations involving the transferred sole trader.

Step 3. Registration in the Court Register
Sole traders must file a request for registration of company transfer with the Court Register. Requests for transfer registration must be accompanied by a decision to transfer the company and the documents required to register a new company in the register (the articles of association of a new company indicating that it has been established by a transfer of a sole trader's business, etc.). Sole traders file requests for transfer registration with a notary who also notarises all the required documents. The registration authority (court) then simultaneously registers the company transfer and establishment of a new company. AJPES deletes the sole trader from the Slovenian Business Register on the basis of a court decision to register the transfer of the company, which is sent by the court directly to AJPES. Therefore, in the case of transformation the sole trader must not file a request to be deleted from the Slovenian Business Register.

2. Transfer of a company to a transferee company limited by shares'

Transfer of a company to a transferee company limited by shares' means the transfer of a company to an existing company. The procedure for transferring the company to a new company applies by analogy to the transfer of a company to a transferee company, save that in place of the decision to transfer the company, the sole trader must conclude a company transfer agreement with the transferee company. The company transfer agreement must be concluded in the form of a notary deed.
When the transfer is registered in the Court Register, the sole trader ceases trading, the sole trader business is transferred to the new company and the sole trader becomes a shareholder of the company.
AJPES deletes the sole trader from the Slovenian Business Register on the basis of a court decision to register the transfer of the company, which is sent by the court directly to AJPES. Therefore, in the case of transformation the sole trader must not file a request for deletion of the sole trader (s.p.) from the Slovenian Business Register.

  • How should a sole trader (s.p.) be deleted from the Slovenian Business Register? Must sole traders appear at e-VEM point in person or can this be arranged by a written application?

Sole traders must announce the intended closing of their business in an appropriate manner (by letters to creditors, through the media, at the business premises) and in accordance with the applicable legislation at least three months in advance and must, at the same time, indicate the closure date. Requests for deletion must be submitted at least 15 days prior to the preferred date for deletion from the Slovenian Business Register.
Requests for deletion can be filed by sole traders or authorised representatives. If the request is filed by the authorised representative, a written authorisation by the sole trader is required. The signature of the authorising person (trader) must be certified by a notary or at an administrative unit.
The request for deletion can be filed at any e-VEM point.

Sole traders holding a qualified digital certificate can submit a request for deletion through the VEM portal from home.

  • When do I select the option 'Served by the authorised person at AJPES' in the procedure for registration with the Slovenian Business Register?

The General Administrative Procedure Act allows for a document (decision) to be served by an authorised person at AJPES, by mail or by electronic means.

Sole traders select the option 'Served by the authorised person at AJPES' when they expressly want a decision to be served immediately.
 Sole traders collect the decision in person at one of the AJPES local offices.

  • Which procedure should be followed in the event of the death of a sole trader?

The provisions of Article 72 of the Companies Act lay down that in the case of a sole trader's death, the successor who continues the testator's business may continue to use the deceased's full name in the company name (i.e. in the sole trader name). With the continuation of the testator's business, the sole trader's company and related rights and obligations are passed to the sole trader's heir. The sole trader's heir enters into all business relationships in connection with the transferred company as a universal legal successor and is registered as a sole trader in accordance with Article 74 of this Act.

If the heir wishes to continue the business, he or she must submit to AJPES a personal identification document, tax number and the final decree on distribution within three months of the date when it becomes final. AJPES enters the modified data relating to the sole trader name, sole trader and tax number of the sole trader (s.p.) in the Slovenian Business Register.

If the heir does not continue the business, he or she must submit to AJPES the final decree of distribution and a statement that he or she will not continue the business. AJPES then deletes the testator sole trader (s.p.) from the Slovenian Business Register. AJPES also strikes the testator sole trader from the Slovenian Business Register if the heir fails to inform AJPES within three months of the date the decree of distribution becomes final whether he or she will continue/discontinue the testator's business.

Financial Administration of the Republic of Slovenia (FURS), registration of tax data

  • When must sole traders (s.p.) declare tax data?

Sole traders must declare tax data no later than within 8 days of registration with the Slovenian Business Register.

  • What is the tax scale for 2013?

The net annual rates of personal income tax referred to in paragraph 1 of Article 122 of the Personal Income Tax Act (Official Gazette of the Republic of Slovenia, nos 13/11 – official consolidated text 7, 24/12, 30/12, 75/12 and 94/12) for 2013 are as follows:
If the net annual tax base in euros is            personal income tax amounts to euros

over        up to
        8,021.34                    16%
8,021.34    18,960.28                    1,283.41    +27% over 8,021.34
18,960.28    70,907.20                    4,236.92    + 41% over 18,960.28
70,907.20                            25,535.16    + 50% over 70,907.20

  • How does the e-VEM system automatically calculate income tax prepayment which then need not be calculated 'manually' from income and expenditure?

To automatically calculate income tax, please enter anticipated revenue, anticipated expenditure, business activity start date and then click the button Izračunaj (Calculate). Other fields are completed automatically.

  • Which tax procedures and documents are required when sole traders or companies are registered and start to operate?

The tax forms to be submitted by sole traders at VEM points and/or completed through the e-VEM system are: Form DR-03: Application for entry of individual's business activities in the tax register; Income tax prepayment return on income from business activities, Notice of the method of keeping books of account. In the e-VEM system the aforementioned three forms are combined into one form.

The procedure for submitting tax forms through VEM points is as follows:
Traders submitting their tax returns through VEM points must file an application for tax registration and submit data about the method of tax base assessment (i.e. on the basis of actual income and expenses or actual income and standardised expenditure); submission of the Notice on the method of keeping books of account is optional, given that regulations require this Notice to be submitted within 8 days of the commencement of the activity, which must be explicitly brought to traders' attention by e-VEM clerks.
When tax forms are filed through VEM points that are not part of the Tax Administration of Slovenia, traders must be informed before the commencement of the procedure by e-VEM clerks that tax secrecy requires clerks to be authorised by traders to process tax data.
When applications for tax registration are submitted, the identity of the person filing data for registration must be verified by e-VEM clerks. Pursuant to the Rules, traders must submit for inspection or append the following documents: identity card or passport or any other document verifying their identity, and documents in support of the other data entered in the tax register.

  • What are the time limits for payment of tax liabilities? Is it possible to amend prepayment during the year? Which data are sent by the Tax Administration of Slovenia to registered sole traders (s.p.)? Do sole traders receive approved prepayment returns and information about the current account to which payments must be transferred?

The time limits for payment of tax liabilities are laid down in the Tax Procedure Act (ZDavP-2, Official Gazette of the Republic of Slovenia, 13/11 – official consolidated text 4, 32/12 and 94/12). Pursuant to Article 301 of that Act, taxable persons must pay the difference between the income tax prepayment for income from business activity, as calculated in the tax return, and the preliminary income tax prepayment and tax deduction within 30 days of the date of submission of the tax returns.
Pursuant to Article 298(2) of this Act, taxable persons who take up an activity calculate themselves the preliminary income tax prepayment in the amount relative to the amount of the estimated tax base of the tax year for which the preliminary income tax prepayment is due. Together with the application for tax registration, taxable persons must submit a reasoned calculation of the estimated tax base, the amount of preliminary tax prepayment and tax prepayment instalments to the tax authority within eight days of primary registration or entry in the tax authority's official records. The calculation is submitted on the form Income tax prepayment return on income from business activities; only those fields needed to appropriately indicate the tax base amount, the preliminary income tax prepayment and tax prepayment instalments should be completed.
According to Article 298(3) of the ZDavP-2, the preliminary prepayment is made on a monthly or three-monthly basis. The preliminary prepayment is made in monthly instalments when the preliminary amount exceeds EUR 400 or in quarterly instalments when the preliminary prepayment does not exceed EUR 400. The preliminary prepayment instalments fall due on the last day of the period to which they refer and must be paid within ten days of falling due.
Pursuant to Article 299 of the ZDavP-2 the preliminary prepayment can be amended during the tax year by:

1.    Tax authority decision subject to a taxable person's request

According to Article 299(1) and (2) of the ZDavP-2, taxable persons whose tax base for the current tax year differs from that for the preceding tax year may request the tax authority to modify the amount of the preliminary prepayment. Taxable persons must file a request at least 30 days prior to the due date for the preliminary prepayment instalment and enclose the income tax prepayment return on income from business activities for the tax year preceding the filing of the request, the tax base assessment for the current year and information evidencing the tax base modification. The tax authority must decide on the request within 15 days of receipt of the request.
  

 2. Tax authority decision based on the control procedure


When, in the course of the control procedure under Article 299(3) of the ZDavP-2, the tax authority establishes that the amount of the preliminary prepayment does not correspond to the estimated tax base for the current tax year, the tax authority issues a decision determining a new amount of the preliminary prepayment.
Registered sole traders (s.p.) receive the income tax prepayment return on income from business activities approved by the Tax Administration of Slovenia. Taxable persons must make the preliminary prepayments to the relevant sub-account of the competent tax office and indicate the reference number. Taxable persons can obtain information about the respective sub-account and reference number at the competent tax office.

  • What must be arranged with the Tax Administration of Slovenia after a sole trader is deleted?

After being deleted from the Slovenian Business Register traders must submit the income tax prepayment return on income from business activities to the Tax Administration of Slovenia.

  • How do I proceed in the system of standardised expenditure? Is it possible to only enter income and expenditure in the case of self-assessment – and the rest is calculated automatically?

Pursuant to Article 305 of the ZDavP-2 taxable persons – who in accordance with the act governing income tax determine the tax base for income from business activities on the basis of standardised expenditure – calculate the income tax on income from business activities in the tax return by themselves. In cases where – as provided by the act governing personal income tax – taxable persons also pay a withholding tax on income from business activities, the payer of tax calculates the withholding tax in the withholding tax return.

A tax base assessment which considers standardised expenditure is suitable for taxable persons who incur expenses below standardised expenditure.

If the tax base is assessed by taking into account standardised expenditure and the tax data are submitted through the e-VEM portal, traders must enter the figures for anticipated income while the expenditure is calculated automatically.

  • Is it better –from a tax perspective – to register as a sole trader (s.p.) or as a private health care professional, private dentist, person engaged in supplementary activities in agriculture, etc.?

The legal form of activity (i.e. sole trader, private health care professional, private dentist) does not affect the imposition of business activities tax.

  • Is it possible to subsequently complete and/or supplement an already submitted form? Does it suffice to notify the local tax office of the modification and/or error in the form?

Modification and/or error on the forms can be notified through a VEM point.

  • Can traders establish a tax base of EUR 0 and EUR 0 of preliminary prepayment?

Pursuant to Article 298(2) of the ZDavP-2, taxable persons taking up their activities calculate themselves the preliminary income tax prepayment in an amount relative to the amount of the estimated tax base of the tax year for which the preliminary prepayment is due. Together with the application for tax registration, taxable persons must submit a reasoned calculation of the estimated tax base, the amount of preliminary tax prepayment and tax prepayment instalments to the tax authority within eight days of primary registration or entry in the tax authority's official records. The calculation is submitted on the form Income tax prepayment return on income from business activities; only those fields indicating the tax base amount, the preliminary prepayment and prepayment instalments should be completed.
It follows from the above that taxable persons may choose to set the tax base at EUR 0.

  • Are there any changes regarding the taxation of personal supplementary work in 2013?

Notifications of personal supplementary work must be submitted by individuals who personally carry out work referred to in Article 12(1) of the Prevention of Undeclared Work and Employment Act (Official Gazette of the Republic of Slovenia, no. 36/00) unless otherwise provided by special regulations. Different types of work concerned are listed in Point A of Annex 1, which is an integral part of the Rules on work deemed personal supplementary work and on the notification procedure thereof (Official Gazette of the Republic of Slovenia, no. 30/02).

Individuals who wish to carry out personal supplementary work must notify the administrative unit in the territory of their permanent or temporary residence of engagement in personal supplementary work prior to its commencement. Notifications of personal supplementary work are submitted on the form Notification of personal supplementary work.
Individuals must submit notifications of changes and notifications of termination of personal supplementary work within eight days of the changes occurring or the personal supplementary work being terminated.
Notifications of changes relating to personal supplementary work, including changed personal data, and notifications of termination of personal supplementary work must be submitted in the same way and on the same forms as notifications of personal supplementary work.

Taxable persons must submit data to the competent tax office; as a rule, this is the tax office of registration in the tax register.

Individuals who carry out personal supplementary work must submit data on income from personal supplementary work to the tax office every three months, no later than the 10th day of the month for the previous three months; the data must be submitted on the form Data on income from personal supplementary work. The data on generated income must specify the total generated income and individual amounts, reference numbers and dates of invoices issued for the performed personal supplementary work.

The form Notification of personal supplementary work and the form Data on income from personal supplementary work are available on the website of the

Tax Administration of Slovenia:
www.durs.gov.si/si/storitve/osebno_dopolnilno_delo/osebno_dopolnilno_delo_obrazci/priglasitev_opravljanja_osebnega_dopolnilnega_dela

The data on income from personal supplementary work are only used for monitoring compliance with the conditions for performing personal supplementary work and not for determining tax liabilities; therefore, individuals must submit data on income in accordance with the provisions of the Personal Income Tax Act (Official Gazette of the Republic of Slovenia, nos 13/2011 – official consolidated text 7, 24/2012, 30/2012, 40/2012-ZUJF, 75/2012, 94/2012 – hereinafter: ZDoh-2) and the Tax Procedure Ac (Official Gazette of the Republic of Slovenia, nos 13/2011 – official consolidated text 4, 32/2012, 94/2012 – hereinafter: ZDavP-2).

Income from personal supplementary work is treated as income from another contractual relationship under Article 38 of the ZDoh-2.
In accordance with Article 38(1) of the ZDoh-2, income from another contractual relationship includes every item of income for the work or service performed.
Pursuant to Article 41(4) of the ZDoh-2 the tax base on income referred to in Article 38(1) and (2) of this Act includes every individual income item, less the standardised expenditure amounting to 10% of the income. In accordance with Article 127(9) of the ZDoh-2, prepayment of personal income tax on income from another contractual relationship is calculated and paid on the tax base at a rate of 25%. Income tax prepayment is calculated and paid by the payer of tax (income payer) as withholding tax in the withholding tax return. The payer of the tax must calculate and deduct the withholding tax at the time of calculating income from employment as provided by Article 283(1) of the ZDavP-2. In accordance with Article 58 of the ZDavP-2 the payer of tax is a legal person or an association of persons, including a civil law company subject to foreign law which does not have legal personality, a sole trader or a self-employed individual that pays income which is subject to calculation, deduction and payment of withholding tax in accordance with the ZDavP-2 or taxation legislation.

Health insurance and pension and disability insurance

  • Who is responsible for a trader obtaining compulsory pension and disability insurance when this obligation arises, and who must pay attention as to when this obligation arises?

Pursuant to the applicable legislation, traders are obliged to submit an insurance registration application when they start to pursue the activity as their sole or main occupation; they are themselves responsible for establishing when this legal obligation arises. There is no legal basis binding any authority to provide information about this. When the Pension and Disability Insurance Institute of the Republic of Slovenia or the Health Insurance Institute of Slovenia establishes in subsequent verification procedures or in any other way that a trader should have been insured, the Institute may issue a decision laying down insurance obligation (insured person status) for the entire period in which this obligation existed, except for the period of insurance on another basis.

  • Which information about pension and disability insurance can be provided to traders by clerks at e-VEM points?

Clerks can provide information about: cases where insurance is mandatory (pension and other social insurance); activities that cannot be pursued without relevant insurance, unless – in view of the circumstances – a trader has pre-emptive insurance on the basis of an employment relationship; cases where the full insurance period is mandatory and cases where part-time insurance can be obtained; and when to take out insurance against particular contingencies (disability resulting from injury at work or occupational disease). Traders must also be advised of the obligation to regularly pay social security contributions and of the consequences of failing to comply with this obligation.

  • A retired person wishes to be registered as a sole trader (s.p.) but does not want to forfeit the right to a pension because the profit will not be large. He will probably only work two to four hours per week. Is this possible? Are registration with compulsory insurance and completion of Form M-1 required?

The basic rule is:

When a pension recipient (old-age, widow's or survivor's pension) registers as a sole trader, full-time insurance must be concluded; the payment of the pension is suspended.

The only exemption:

Traders may submit a statement that they will be engaged in the registered independent activity for less than the full-time insurance period but not for less than half of the full insurance time. In this case a part of the pension proportionate to the insurance time is paid but may not exceed half the pension.

A special warning to disability pension beneficiaries: when a disability pension beneficiary is registered as a sole trader, he or she will permanently lose the right to disability pension and will not be able to regain it on the basis of disability even in the case of deletion from the register.

  • An unemployed person wishes to engage as a sole trader (s.p.) and obtain compulsory insurance for 4 hours per day, while he would pay the contributions for the remaining 4 hours as an unemployed person. Is this possible?

Such a combination is not allowed! Persons registered as sole traders (s.p.) who are not covered by compulsory insurance on the basis of full-time employment or part-time employment of no less than half of the full working time must have compulsory full-time insurance coverage as sole traders (s.p.) under Article 15 of the ZPIZ-2. This obligation is deemed to exist from registration with the Slovenian Business Register and regardless of the number of daily or weekly hours worked by the trader and the income generated.

Insurance on the basis of engagement in an activity of less than full-time (for example for 4 hours) is only possible if the trader is formally employed for the remaining working time or is a partial old-age pension beneficiary or is entitled to partial compensation for lost income or to payment of contributions on the basis of regulations governing parental protection.

Voluntary pension and disability insurance (pursuant to Article 34 of the ZPIZ-1) can only be concluded for less than full working time if the person concerned is employed for less than full working time and takes voluntary insurance up to the full working time. A combination of voluntary insurance and other legal relations (types of insurance) is not allowed.

  • Can sole traders arrange for their registration with the Health Insurance Institute of Slovenia at VEM points after their business registration? Must the insurance registration be arranged at the VEM point where the request for registration with the Slovenian Business Register and Tax Administration of Slovenia was submitted?

Sole traders can arrange for registration for compulsory social insurance at any VEM point, from home through the e-VEM portal or directly at any regional unit of the Health Insurance Institute; sole traders are not required to do so through the VEM point together with the s.p. registration or at that particular VEM point.

  • Must a student who is registered as a sole trader (s.p.) pay pension insurance contributions and is the relevant period counted as years of pensionable service?

Students registered as s.p. are subject to the insurance obligation under Article 15 of the ZPIZ-2.

  • Which part of the registration form refers to the Pension and Disability Insurance Institute of the Republic of Slovenia?

The content of Form M-1 for registration of sole traders is identical to that of the registration under health insurance regulations: the insurance start date, basis code (005), and all other data are identical. It is important to establish whether the insurance obligation exists and submit the application if insurance coverage is mandatory.

  • What must be arranged with the Pension and Disability Insurance Institute after a sole trader is deleted from the register?

The Form M-2 for insurance de-registration must be submitted within 8 days of the effective deletion date.

  • When should formal employment be terminated prior to sole trader (s.p.) registration?

Employment contracts are concluded independently of the registration of activity. It depends on the conclusion/termination of the employment contract whether the sole trader's compulsory insurance is to be based on the pursuit of the activity. A person can be registered as a sole trader (s.p.) while in employment and the registration does not affect the employment in terms of existence or termination. The employment termination date is established in accordance with employment regulations if a person decides to terminate the employment before or after registration with the Slovenian Business Register; the periods of notice are prescribed or agreed in the employment contract and may be shortened in agreement with the employer.
The level of education must be indicated when registering for disability, pension and health insurance. Must traders report a change in the level of education?
Traders must report all changes.

  • Which circumstances allow for work in shifts at sole traders'?

Codes 1 to 5 cover shift work (work in one, two, three or more shifts and/or work in turns). Relevant explanations are given in code descriptions under Heading 27 of the instructions for completing Form M-1 in Annex 1 to the Rules on the forms for notifying data on pension and disability insurance, health insurance, parental protection insurance, insurance against unemployment and on conclusion of formal employment.
In most cases sole traders mark code 1 (person works in one shift) or 2 (person works in two shifts).

  • What must be arranged with the Health Insurance Institute of Slovenia after a sole trader is deleted from the register?

Sole traders covered by compulsory social insurance schemes based on sole trader registration must file for de-registration after coming off the register; any workers must also be de-registered.

  • A retired person wishes to be registered as a sole trader (s.p.) but does not want to forfeit pensioner status rights as the profit will not be large (only two to four hours of work per week). How should Form M-1 be completed? Is it even necessary to register for compulsory insurance?

Insurance registration through the e-VEM system is only possible for sole traders insured for full-insurance time. In all other cases registration must be directly arranged at the Health Insurance Institute of Slovenia; this also applies to the person in question, who must be included in the insurance system.

  • What is the current and future situation regarding retired persons already registered as sole traders?

Their situation is regulated by Article 406(4) and (5) of the ZPIZ-2.

Pension recipients who, upon the entry into force of the ZPIZ-2, performed work or pursued an activity based on which they may re-acquire the status of an insured person referred to in Articles 14, 15 and 16 of the ZPIZ-2, were obliged to align their status with the provisions of Article 116 of the ZPIZ-2 no later than by 31 December 2013. The status of an insured person was re-acquired on the day of lodging the application for admission to the insurance scheme. Pension recipients who failed to align their status by 31 December 2013, had their pension payments stopped from the first day of the month following the expiry of the period; the Institute must determine ex officio the status of an insured person for the period from 1 January 2014 onwards.

This means that pension recipients who have retired but remained registered with the business register must re-register for insurance purposes, or else they will be deleted from the relevant register.

These persons resume the status of an insured person and their pension payments are suspended during the period concerned. The pension payments are stopped on the day insured person status is resumed. Pension recipients may re-start work or pursue an activity in the extent corresponding to the proportionate part of the full working or insurance time (not less than 4 hours per day or 20 hours per week). In this case a proportionate part of the pension is paid.

Chamber of Craft and Small Business of Slovenia, craft licence

  • Who must obtain a craft licence?

Every business entity with a registered craft activity actually engaged in this activity.

  • What regulations govern the acquisition of a craft licence?

The area of craft licences and craft activities is governed by the Small Business Act and the Decree determining craft activities. The relevant procedures are specified in the Rules on the procedure for issuing a craft licence and on the craft register.

  • Who is a craft licence title holder?

A craft licence is issued to a business entity; it must indicate the activity operator.

  • What conditions must be complied with to obtain a craft licence?

 The minimum vocational qualification required is laid down in the Decree determining craft activities. Operators must have appropriate qualifications and must be employed with a business entity; the operator can also be a sole trader, a member of a private limited company (d.o.o.) or unlimited company (d.n.o.), a general partner in limited partnership, a management member in limited partnership or an employee with a craft cooperative.

  • Does a business entity become a member of the Chamber by obtaining a craft licence?

No, business entities do not become Chamber of Craft and Small Business of Slovenia members or members of any of its Regional Chambers by registration in the Craft Register (craft licence).

  • Is a membership fee imposed after a craft licence is obtained?

No, a craft licence means that a business entity is registered in the Craft Register. Chamber membership is voluntary.

  • Is the master craftsman exam a prerequisite for obtaining a craft licence?

No, the master craftsman exam is no longer an exclusive precondition for obtaining a craft licence. Relevant education level requirements and/or appropriate vocational qualifications are set out in Article 3 of the Decree determining craft activities.

  • Where can I find out whether my activity is a craft activity and requires a craft licence?

Activities deemed craft activities and requiring vocational qualifications are laid down in the Decree determining craft activities.

  • Who can tell me whether my education is appropriate for carrying out a craft activity?

The authorised persons at the regional chambers of craft and small business and at the Chamber of Craft and Small Business of Slovenia are competent to assess the appropriateness of education level and/or vocational qualifications.

  • Where do I get information about the regional chamber of craft and small business that I belong to?

The regional chamber of craft and small business is determined according to the place of establishment. There are 62 regional chambers of craft and small business in the Republic of Slovenia; their list is accessible on the website of the Chamber of Craft and Small Business of Slovenia.

  • What are the costs of the procedure? Where do I get a money order form?

A charge for issuing a decision granting a craft licence and a representative craft licence amounts to EUR 111 under the applicable tariff. A money order form will be sent to you by the authorised person conducting the relevant procedure.

  • What is the craft licence validity period?

A craft licence is valid until any modification of the data contained therein needs to be made. These data are: name, registration number, tax identification number, activities and the data about the operator. A business entity holding a craft licence must report any relevant change and/or submit an application for its modification.

  • What do I do if the registered office or name is changed?

If the data that appear on your craft licence are modified, you must submit an application to modify it with the competent authority that issued your craft licence.

  • Do I have to hand back my craft licence if I close the business?

When the business is closed, a request for de-registration must be submitted to the authority that issued the craft licence. After the procedure is completed, the craft licence is returned if expressly requested.

  • What do I do if the activity operator leaves the company?

The activity operator who left the business entity must be replaced within six months; in the meantime, the activity must not be carried out. This means that an application for registration of change supplemented by all data about a new activity operator must be submitted by the business entity to the authority that issued the craft licence.