A company is a legal entity that independently performs activities on the market for the purpose of achieving profit. We divide companies into incorporated partnerships and capital companies. Company law is a branch of law that governs companies. Companies are private associations of persons created by legal business in order to achieve a certain goal, and according to the Croatian legal system, they would include 12 private law associations. These are partnerships, cooperatives, cooperative unions, associations, secret societies, public companies, limited partnerships, economic interest groupings, joint stock companies, limited liability companies, credit unions and mutual insurance companies. In addition to companies operating within our country, there are also foreign companies. A foreign company is the one that is validly established under the rights of the country in which it has its registered office outside the borders of Croatia. Freedom of establishment includes the right to take up and pursue independent activities and to set up and manage companies, in particular companies in the EU. The status of a foreign company is judged by the law of the country to which the company belongs, if that right is not in conflict with the public policy of the Republic of Croatia.