MTR for craftsmen: key information

What are minimum technical requirements (MTR)? What do you have to do when starting a craft? We often receive questions about the legal regulations and conditions for opening a web shop, wholesale and retail sales over the Internet, i.e. remote sale. In this blog, we present an overview of verified information. You can find all details related to the minimum technical requirements, registration of activities, and all other requirements for craftsmen, i.e. all those who plan to open a business and engage in web sales.

How to open a craft business and what is the procedure?

When opening an online store, the most important thing is getting the minimum technical requirements (MTR) for crafts and registering activities 47.91 Retail trade via mail or Internet. The abbreviation MTR refers to the minimum technical requirements. In the blog Establishing a craft business in Croatia can be found details regarding the opening of the craft. After you have determined these steps and defined your business plan, the necessary step is the MTR. The minimum technical requirements will allow you to register retail trade activities via mail or the Internet. The form of a sales facility refers to remote sales – online sales (storage) in crafts (trades).

Minimum technical requirements for sales – what are the minimum requirements?

The minimum requirement for retail trade activities via mail or the Internet in the first step is the minimum 6 m² storage for retail sales. For wholesale, a minimum area is 25 m². Essentially, the MTR procedure is the same for wholesale and retail. The only thing that differs is the minimum area of the warehouse. It often happens that clients, without detailed analysis, decide to start a business. Usually, they already work in a company and see this as an additional source of income. Logically, they think that they will meet the requirements of only 6 m ². This is because Croatian law determines a storage size of only 6 m², and since the previously mentioned cost of “flat trade crafts” is not large. Unfortunately, that’s not possible. The warehouse, no matter how small, must meet certain conditions.

What requirements should be fulfilled by the warehouse in order to be able to launch a retail trade activity?

The storage area must be registered as a business space and possess a use permit. You can read everything legally necessary below. Note that storing goods at a home address or with acquaintances with garage space is often not possible.

Steps to get MTR for sale over the Internet

To obtain the MTR it is necessary to complete the application and enclose the required documentation:

• A copy of the decision on entry in the register of the authorized authority;
• A proof of the right to use the premises (certificate of ownership, leasing contract);
• A proof that the building can be used or issued a decision for the performance of the activity;
• A proof of fulfillment of the conditions of the office space under special regulations;

 

Additional documentation for MTR

136. a) use permit issued under Articles 136, 182, or 184 of the new Construction Act;
137. b) acts and documents by Article 175, paragraph 6 of the Construction Act (if the facility is located in historic cultural facilities, prior approval of the City Institute for the Protection of Monuments of Culture and Nature);
138. c) report on the correctness of electrical installations, report on leakage of gas installations and the correctness of gas consumption if the same is found in the office space, and report on hygienic safety of drinking water.

What is a copy of the decision on entry in the register of an authorized body?

If you start a request for MTR through a craft business, you will need a copy of the decision on establishing the company in the register in the trades registry. If your craft is not yet open, you can simultaneously open it and apply for MTU.

What is evidence of the right to use space?

Evidence of the right to use space includes a certificate of ownership that you can easily find through the online Land Registry Service. Not only that you will need an original that you can easily download through the e-Citizens system.

If you are not the owner of the space, along with the certificate of ownership from the land registry, you should also submit The lease of the office space/warehouse contract. The contract must specify the possibility of performing the desired activity within the business premises.

Proof of the validity of the building and the conditions of the office space

The procedure also implies proof of building usage. It means that it can receive a notice to perform its activities. The proof of fulfillment of conditions of business premises based on special regulations is also necessary.

All detailed information can be found on the legal information portal IUS-INFO. Pay attention to the fact that the desired area possesses a use permit. Very often the clients have an ideal storage space, but because of the lack of a use permit or purpose, they cannot use it. Therefore, it is not possible to apply for an MTR without a use permit. The purpose of the premises must be defined for business activities.

How long does the process of getting an MTR last?

After you have collected the above documentation and determined that the establishment has orderly papers, you can access the MTR application. The process of obtaining an MTR should take a maximum of 30 days. Of course, note that the procedure may take longer. You must also calculate the additional time needed to produce certificates/reports on the correctness of electrical installations. If gas installations are also located in the area, it is important to have reports on their permeability and the correctness of the gas consumption. Numerous authorized companies, which you can find easily, can compile these reports. We had a positive experience with the company Zaštita na radu. 

How to apply for MTR?

You can apply for the MTU online at the portal of the Ministry of Economy and Sustainable Development of the Republic of Croatia website or by physically going to the city office if you have already opened the craft and are only working on completing the activities. The administrative fee for issuing a decision on an MTR is HRK 50,00. If you open the craft with the issuance of the MTR, please enclose additional documentation with the request for opening the craft. After the submission of documentation in both cases, the last step is the Commission’s arrival in your office space.

The arrival of the Commission in your office space?

Within 30 days after you have applied, or if everything is fine with your documentation, you can expect the Commission to arrive. The Commission shall determine whether the establishment is correct for use and by the accompanying documentation. If you meet all parameters, which the Commission can confirm verbally at the place, you can expect a solution on the MTR within two weeks and start operating.

In which cases you don’t need the MTR?

If your business includes online sales (dropshipping) or usage of the services in one of the fulfillment centres in Croatia, you don’t need to own an MTR. This also applies in case you have a retail store and an MTR. Instead, you can use the existing one for web shop and remote sales purposes. It is important to emphasize that in drop shipping, the ordered goods must go directly from the supplier to the customer’s address. This is often not the case because most of our clients require further manipulation of goods (repacking). In this case, if you want to avoid the procedure around the MTR, you can use the service of fulfillment centres. Read more about fulfillment center operations in our blog.

I decided to participate in the services of the fulfillment centre, what is the procedure so that as a craftsman I could register an activity for online sales?

Very simple. You submit a statement that storage and logistics services will be performed by a company registered as a fulfillment center. By submitting the aforementioned statement and concluding a contract with the fulfillment centre, you avoid the entire procedure for obtaining an MTR. In case you need fulfillment storage, packaging, and sending services, contact us via the contact form or by e-mail info@warehouse.hr.