The Directive 2006/123/EG of 12 December 2006 on Services in the Internal Market is a very ambitious and demanding project aimed at fostering trans-border services between the Member States and modernising administrative structures and procedures of the EU Member States. The article gives a summary of the problems arising from the Directive that concern public administration, focussing on the general administrative procedure law. Simplification of the procedures, the points of single contact, procedures by electronic means, and fictitious authorisation are analysed in the light of preparation of the Draft General Administrative Procedure Law of the Republic of Croatia.