Any foreign company with a head office and registered business operations outside of Croatia may establish a Croatian branch office. A branch office is a suitable business form for a foreign company wanting to establish a presence in Croatia for the purpose of initiating business and maintaining contacts with business partners.
In general, branch office has no independent or separate legal personality distinct from the head office itself. In legal and organizational terms, it is part of the head office business and is therefore subject to the law governing the head office. In this context, the foreign head office company is fully liable to the extent of its own assets for any claims creditors might assert against the branch office. Any obligations or debts incurred by the branch office are also legal responsibility of the foreign company.