A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs as well as aspirations through a jointly owned and democratically controlled enterprise. Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. The first cooperative in the Republic of Croatia was founded in 1864. in Korčula and this event marks the beginning of future cooperative development in Croatia. Cooperative Law (hrv. Zakon o zadrugama) includes all legal rules that shape a cooperative enterprise and regulate its operations. Furthermore, it states that a cooperative can be founded by a minimum of 7 legal capable natural or legal persons who have to sign the act of incorporation accepting the rules and regulations of cooperative enterprise. Although this act marks the foundation of a cooperative, it will get its full legal personality once it is registered in the commercial register at Commercial court. In this work, historical development of cooperatives is discussed together with principal cooperative values. Furthermore, cooperative rules and regulations from the law perspective are explained. At last, overview and comparison of cooperatives in various European union member states is shown.