Setting up a Branch Office
Foreign companies may under the Croatian law, engage in economic activities through the establishment of a branch office. The branch office is set up by a special decision brought by the sole trader or a relevant body of the company in accordance with the statement about the establishment of the company which must be notarized. The branch office executes its activity under the company name of the founder. A branch office is not a legal entity, but accepts while executing its activities the rights and obligations for its foreign founder. All rights and liabilities of branch offices are taken by the founder. In case of disputes with a third party, the party is not a subsidiary but the company to which it belongs.