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Europe A-L

Starting a business in Croatia

Plan Basics

Overview

Purchasing Products
All Amway Business Owners, Member+s and Members purchase products directly from Amway.

Bonus Payments
The Amway Business Owner’s first earning will be the retail margine from the sales of products to end customers. This is the difference between the price Amway Business Owner pays to Amway and the suggested retail price that the customer pays to Amway Business Owner. Second, you can receive a Performance bonus from Amway d.o.o. based on a monthly accumulation of points. Croatia will have the same Performance Bonus Schedule as Slovenia.

PV/BV Transfers
PV/BV transfers are not available.

Consolidated Line of Sponsorship (CLOS)
From November 3, 2003 twelve Eastern European Amway markets, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Turkey and Ukraine, are combined into a Consolidated Line of Sponsorship (CLOS) Region. This will allow all current and new ABOs, AIEs and Members Plus to personally sponsor within and into each of these countries. Option of international sponsoring between the countries within CLOS Region is discontinued. (All businesses established before August 31, 2003 will continue to count according to international sponsoring rules.) International sponsoring from outside the CLOS Region continues to be available. If an ABO has no business in any of the countries that make up the CLOS Region, he will be allowed to establish one new business in the CLOS Region. An ABO, AIE or Member Plus who already has at least one business in the CLOS region will not be allowed to establish another one.

Performance Schedule

PV Performance Bonus
10000            21%
7000              18%
4000              15%
2400              12%
1200               9%
600                 6%
200                 3%

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The recommended average retail margin for this market is 30%.

how to start

Pre-Registration & Starter Kit

Opportunity and Start Kit
Sponsor purchases a Opportunity Kit for the prospect by internet (www.amway.hr), mail, fax, or email. An application and order form for the Start Kit are included in the Opportunity Kit. The new applicant then provides his completed application together with obligatory Start Kit order by mail, or brings it to the Amway office.

An “online sponsorship” is available on www.amway.hr. This function gives an opportunity for ABOs to offer their friends and acquaintances to become an ABO through online regime.

On line registration process can be initiated by Sponsor or by New Applicant.

On line registration by Sponsor
New applicants may register via internet using an email invitation sent by Amway Business Owners or Member Plus. Completed online form is sent to Amway Croatia. Amway Croatia sends back on his/her e-mail address via online Member Plus contract number and PIN. The new Member Plus is registered at that moment and they can buy products on-line. The Business Start Kit will be automatically included in the first order. The Registration Form must be printed and signed by the applicant and submitted to Amway Croatia within the first 30 days.

On line self registration
Potential New Applicant may start the process without ABO participation. He/she needs to know Sponsor’s ABO number and the Last name. Then he/she completes the online form. Completed online form is sent to Amway Croatia. Amway Croatia sends back on his/her e-mail address Member Plus contract number and PIN. The new Member Plus is registered at that moment and they can buy products on-line. The Business Start Kit will be automatically included in the first order. The Registration Form must be printed and signed by the applicant and submitted to Amway Croatia within the first 30 days.

Cost of Kits

Opportunity Kit
Amway Business Owner Cost (including VAT):
75,00 Croatian Kuna (HRK)

Start Kit
Amway Business Owner Cost (including VAT):
225,00 Croatian Kuna (HRK)

Sponsoring

Sponsor purchases a Opportunity Kit and the prospect signs the application and orders his Start Kit. The application is processed at Amway and the applicant receives an Identification Card within a month from the application entry date.

Opportunity Kit contains: Compliments Card, Your future, Your Amway, Your products, Your support, You turn, Fast Start Flyer, Your Start with Amway DVD, Combined application form set.

Start Kit contains: Opportunity Presenter, Start guide, Boost your business, Fast Start Now flyer, Opportunity flyer, Regular Order Form.
Business Type

Amway Business Owner (ABO)
This is the business builder, eligible to register other Amway Business Owners and Member +s, retail Amway products and keep the retail margin and take advantage of all the benefits of owing an Amway business.

Member Plus (M+ )
As a Member + , you can purchase products, for your own use only, at the same price as Amway Business Owners. You can also sponsor both Amway Business Owners and Member +s and participate in a Discount Program. Performance Bonuses will be escrowed until you convert to an Amway Business Owner status by providing your business registration (d.o.o. or Obrt). For additional details, please contact Amway Croatia.

Member (M)
This status is available only to existing Amway Business Owners and M+s at renewal or during the year but only at least 180 days after applying for Amway Business Owner or M+ status. You cannot apply for Member status if you are not an Amway Business Owner or Member +. Members purchase products for their own personal use at the same price as Amway Business Owners. They cannot sponsor or participate in the Discount Program.

Marketing Advisor
A status which allows European Amway Business Owners to sponsor and purchase products for personal consumption in other Marketing Advisor Markets (MAM) without maintaining a formal, legal presence there while maintaining the same benefits of the Sales and Marketing plan as a multiple business. It does not provide for combining volumes between markets for purposes of bonus calculations.

Eligibility:
Platinum Pin and above in any of the markets listed below. Diamond Pin in any existing Amway market that has multiple businesses in any of the markets participating in the program.

Participating Markets:
If you have a traditional Amway business and local address in one of the below countries (home market) you can have businesses in the remaining countries (marketing advisor countries) as a Marketing Advisor.

Austria, Hungary, Netherlands, Spain/Portugal,
Germany, Czech Republic, Poland, Switzerland,
France, Italy, Slovenia, Scandinavia, Croatia, Belgium, United Kingdom, Romania, and Slovakia.

Benefits:
– Receive individual MAM commission checks in your home country in home currency.
– Minimal business and tax registration and reporting requirements.
– Maintain and develop lines of sponsorship within each market.
– Renewing membership in the home country will automatically renew your Marketing Advisor Businesses, although an annual Amagram subscription fee will be charged for each market.
– Amagrams, LOS information, bonus statements will be mailed directly to your home market address.
– You will continue to be recognised in the Marketing Advisor Markets for your achievements.

Activities Allowed as a Marketing Advisor:
– Sponsoring & Demonstration of Sales and Marketing Plan
– Speaking Engagements
– Product purchase for personal use only (not allowed in Germany, Switzerland, Italy, France, Portugal and Spain)

Activities not permitted as a Marketing Advisor:
– Retailing product
– Travel to the market more than 8 out of 90 days

Establish a Second Business

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

Immigration Issues
Amway recommends Amway Business Owners consult the local Croatian embassy in their home country to determine the type of visa or permit required for travel.

Citizens of many Amway affiliate countries may not require short term visas (for stay less than three months). Generally foreign Amway Business Owners in Croatia on a short-term basis will be required to obtain a visa. Those staying longer than the short-term maximum will be required to obtain either a work or a business visa. Amway Business Owners doing business as individuals will need a work visa (permit), a retail or trade service registration, local address and local bank account. However it will be difficult for most foreign Amway Business Owners to qualify for a work visa (permit). A business visa can be obtained by Amway Business Owners doing business as a legal entity and who are listed in the court register. Amway Business Owners should consult legal experts in Croatia to obtain advice on appropriate immigration requirements. Consulting a legal or tax expert is also important if you do not intend to reside in Croatia.

How to register for conducting a business as an ABO in Croatia?

Supported forms for conducting a business as an Amway Business owner are:

Craft (Obrt)
To become a craftsman, the individual must register the craft in the relevant Municipal office. Typically the individual will need to register for retailing outside retail shops (Ostala trgovina na malo izvan prodavaonica, štandova i tržnica) reg. No. 47.99.

Legal entity
Limited liability company (d.o.o.)
Registered at the Commercial Court. A minimum share capital of 20.000HRK is required. To do Amway business such d.o.o. has to be registered for trade services according to general definition of the Trade law.

Amway Business Owners are not Amway employees. By registering as Amway Business Owners they receive the right to sell Amway products in their own name and for their own account to end customers.

Click the link below to display additional details on how to start a multiple business in this market.

Market Framework Requirements

how to order

Ordering

Products can be ordered only for home delivery.

Office Opening Hours:
Monday through Thursday
09:00 – 17:00
Friday
9:00 – 15:00

– Mail: Amway d.o.o.
Radnicka cesta 80
10000 Zagreb, Hrvatska
– Fax: +385 1 3031930
– e-mail: amway_croatia@amway.com
– Website:  www.amway.hr

Minimum order value for Individual orders is 400 Croatian Kuna.
Minimum order value for Combination orders is 1.150 Croatian Kuna.
If order value is less than minimum order value, a 10% handling fee is charged.

Orders received by 17:00 on the last working day will be processed for the current month. Mail/fax/e-mail orders are not processed on Saturdays, Sundays and Holidays.

Delivery: orders will be delivered by special delivery service within 2 – 8 days from order entry, except for delivery to the islands which can take a little longer.

Amway Business Owners, Member + and Members from Croatia can purchase products for personal use in all CLOS countries. For home delivery, Croatian Amway Business Owners, Member + and Members, who order products from CLOS countries, need delivery address in CLOS countries and vice versa.

Payment Methods

– With transfer slip in advance
– Cash on delivery
– Credit cards (Mastercard, Visa, Diners)

Returns/Refunds

Starter Kit returns will be accepted 180 days from date of application submission depending on contents of returned Kit.

Product may be returned under the Customer Satisfaction Guarantee policy. 100% Satisfaction Quarantee for non-durable products and 90 days Satisfaction Guarantee for durable products. Products need to be returned with original Invoice. The reason for the return must be stated. An Amway Business Owner can send the products by mail or returned to the Amway office.

how to manage

Access Information

Phone (for PV information, Amway and PIN number required):
+ 385 1 30 31 900

PIN number can be obtained from Amway on written request by Amway Business Owners and Member +s sending a 5 digit number in writing to Amway.

Office hours for Amway Business Owners, Member+s and Members are:
Monday through Thursday
9:00 to 17:00
Friday
9:00 to 15:00

Fax
+ 385 1 30 31 930
Platinum Amway Business Owners will automatically receive business information on the 20th day, last 5 working days and 1st working day of the month.

e-mail
amway_croatia@amway.com

Receive Bonus Payment
Bonuses will be paid into the Amway Business Owners bank account. An account can be opened only by those who have a residency in Croatia or have established a Limited Liability Company. Bonus payments will be paid on the 10th of the following month.

Renew
Please note: Renewal is only necessary in one market for CLOS (Croatia, Slovenia, Slovakia, Czech Republic, Turkey, Poland, Romania, Hungary, Ukraine, Lativa, Lithuania, and Estonia)

Cost/Timing:
Regular renewal. 200,00HRK (including VAT)
(September 1 – December 31)
Late renewal. 260,00HRK (including VAT)
(January 1 – August 31)

Renewal Methods:
– Together with product order or separately
– Mailing address:
Amway Croatia
Radnicka cesta 80
10000 Zagreb, Croatia
– Fax to office: +385 1 30 31 930
– Email: amway_croatia@amway.com

Payment Methods:
– Bank Transfer
– Credit cards – (Mastercard, Visa , Diners) – a complete credit card number, validity date, name and address of the owner are required

Copy of payment with clear indication of purpose and Amway number is required. The copy of payment should be faxed or mailed to Amway Croatia.

contact

Amway d.o.o.

Radnicka cesta 80
P.P. 16
Zagreb 10002
Croatia

Phone: 385-1-3031 900 – Distributor Relations
Fax: 385-1-3031 930 – Distributor Relations

www.amway.hr (Public & Distributor Website)
amway_croatia@amway.com (Email)

Opened June 2001