The activity of dental medicine in the private sector of the Republic of Croatia can be performed through several legal forms of business entities – through a private or a group practice, a healthcare institution (polyclinic) or a company. The procedure of founding a dental medicine business entity in the private sector implies the obtaining of opinion and permission by the authorities competent for this activity, the Croatian Dental Chamber and the Ministry of Health, as well as the compliance with the prescribed conditions regarding the space, medical and technical equipment and personnel. Depending on the legal form, business entities in this activity can be subject to income tax or profit tax whereas only companies in the activity of dental medicine are subject to value added tax. Accounting documents and financial records kept by the entities in the activity of dental medicine in the private sector depend on the legal form in which they are founded and on the obligation to calculate and pay direct and indirect taxes. Healthcare institutions – polyclinics and companies in the activity of dental medicine in the private sector are obliged to comply with the provisions of the Accounting Act and with the Croatian Financial Reporting Standards since this is primarily the case of entrepreneurs classified as small entities. Business entities in this activity in the private sector are subject to fiscalization because they deal with cash in their line of work. Financial reporting of the business entities in the activity of dental medicine in the private sector which are subject to income tax is done via the annual income tax return submitted to the Tax Administration on the income tax return form (DOH form) with the necessary attachments, whereas the financial reporting of the entities subject to profit tax is done via the prescribed financial reports for small entities such as balance sheet, profit and loss account and notes accompanying financial reports.