A foreign investor may establish or participate in establishing a company and may acquire rights and/or commitments as any domestic investor. However, foreign investors, headquartered or with residence in a non-WTO member country, need to meet the reciprocity condition. Similarly, foreign investors headquartered or with residence in a non-WTO member country need to meet the reciprocity condition in order to establish a branch in Croatia.
"PART FOUR FOREIGN TRADE COMPANIES AND FOREIGN INVESTMENTS
CHAPTER I - FOREIGN TRADE COMPANIES AND INDIVIDUAL TRADER
Section 1 - GENERAL PROVISIONS [...]
Article 611
(1) For the purposes of this Act, a foreign company is a company validly established under the law of the country in which it has its registered office outside the Republic of Croatia.
(2) For the purposes of this Act, a foreign foreign trader is a natural person to whom this status is recognized outside the Republic of Croatia in the country in which he has his registered office and where he runs a company operating in the Republic of Croatia.
Article 612
(1) Foreign companies and sole traders, under the conditions prescribed by law, are equal in business operations in the territory of the Republic of Croatia with domestic persons.
(2) Foreign companies and individual foreign traders may not perform activities in the territory of the Republic of Croatia until they establish a branch there.
Section 2 - BRANCHES
Article 613
(1) The regulations according to which branches are established by domestic companies shall apply to the establishment and registration of branches of persons referred to in Article 612 of this Act (founder) in the commercial register. [...]
(4) The registration court shall, except for the reasons for which it may refuse the entry of each branch in the commercial register, reject that entry if the founder does not prove: [...]
3. that persons from the Republic of Croatia in the country in which the founder has its registered office are enabled to establish branches under the conditions under which the founder is also enabled in the Republic of Croatia.
(5) The founder shall be deemed to have proved that there is reciprocity referred to in paragraph 4, item 3 of this Article if the court does not invite him to submit proof of the existence of reciprocity. In case of doubt, the existence of reciprocity shall be confirmed by the Ministry of Justice at the request of the registration court. If it cannot be proved that there is reciprocity, the branch may also be registered on the basis of an approval issued by the Ministry of Economy.[...]" (Companies Act (NN 111/1993; 29 November 1993), subsequently amended, Articles 611, 612 and 613 [google translation])
[...]
CHAPTER II - FOREIGN INVESTMENTS [...]
Article 619
(1) For the purposes of this Act, a foreign investor is any legal person whose registered office is outside the Republic of Croatia and any natural person who is a foreign citizen, refugee or stateless person, if he acquires a share or shares in the company or invests on a contractual basis.
(2) A foreign investor shall also be considered a citizen of the Republic of Croatia who has a permanent residence outside the Republic of Croatia.
[...]
Article 620
(1) A foreign investor, under the condition of presumed reciprocity, establishes or participates in the establishment of companies in the Republic of Croatia, acquires rights and assumes obligations in them under the same conditions and has the same position as a domestic person.
(2) A foreign capital company may be a member who is personally liable for the company's obligations in the company of persons with registered office in the Republic of Croatia only if it is accompanied by at least one other member of the domestic capital company or a domestic natural person personally liable for these obligations.[...]" (Companies Act (NN 111/1993; 29 November 1993), subsequently amended, Articles 611-613 and 619-620 [google translation])
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"Article 5
In Article 613, after paragraph 5, a new paragraph 6 is added, which reads:
"(6) The provisions of paragraph 4 (3) and paragraph 5 of this Article shall not apply to a founder established in a Member State of the World Trade Organization."
The current paragraph 6 becomes paragraph 7.
Article 6
In Article 620, after paragraph 1, a new paragraph 2 is added, which reads:
"(2) The condition of reciprocity referred to in paragraph 1 of this Article shall not apply to a foreign investor who has his registered office or permanent residence in a member country of the World Trade Organization, or is a citizen of it."
The current paragraph 2 becomes paragraph 3.[...]" (Law on Amendments to the Companies Act (NN 34/1999; 1 April 1999), Article 5 and 6 [google translation])
Companies Act (NN 111/1993; 29 November 1993), subsequently amended, Articles 619 and 620
Law on Amendments to the Companies Act (NN 34/1999; 1 April 1999), Article 6
[<a href="https://narodne-novine.nn.hr/clanci/sluzbeni/1993_12_111_2133.html">Act</a>],[<a href="https://narodne-novine.nn.hr/clanci/sluzbeni/1999_04_34_707.html">Act_amend</a>]