Foreign investor, under the condition of reciprocity which is assumed, establishes or participates in the establishment of companies in the Republic of Croatia, acquires the rights in them and assumes the obligations under the same conditions and has the same position as a national of Croatia. The condition of reciprocity does not apply to foreign investor with a headquarters or a permanent residence in the member state of the World Trade Organization, or if he is its national. Foreign company, which has its headquarters in a country which is not a Member State of the European Union nor the Contracting Party to the Agreement on the European Economic Area, and which is personally liable for the company’s obligations, can be a member in the company with a registered headquarters in the Republic of Croatia only if there is at least one more member of the company beside it which has its registered headquarters in the Republic of Croatia, or a Member State of the European Union or a state that is a Contracting Party to the Agreement on the European Economic Area or if it is a natural person who is a citizen of the Republic of Croatia, or of the Member State of the European Union or of a State which is a Contracting Party to the Agreement on the European Economic Area and who is personally liable for those liabilities.
Foreign companies and sole traders, under the conditions prescribed by law, are considered to be domestic legal entities with all rights and obligations as applied to Croatian nationals. However, they cannot permanently perform activities on the Croatian territory until they have established a subsidiary in Croatia. The activities shall not be considered as permanent if they are occasional or one-time performance of the activity, or a particular work (in accordance with the concept of freedom to provide services in accordance with the EU’s acquis communaitaire).