Diplomatic protection is relatively new institute of international law nevertheless in few decades of its existence we can find high amount of judicial decisions and various legislation throughout many states and international organizations. Essential objective of the paper is to present genuine link principle as a condition of diplomatic protection granting process. In applying this principle, the state citizenship is an essential requirement, in terms of criteria, which excludes unauthorized persons from the benefit of diplomatic protection. Of course, this principle does not apply to physical and legal persons in the same way. According to legal persons it is impossible to recognize their nationality, citizenship or will to participate in the cultural traditions etc.
Basic question is: „What can we consider as a genuine link?“ Strict definition of the criteria would be extreme. In practice, mostly long and possibly uninterrupted residency in the country is considered as such a bond. Equally important may be in a particular case work, business or commercial activities and fulfillment of tax obligations.
The current development is influenced by globalization in all regions of the world. Although globalization is not spreading at the same rate everywhere but can not be ignored. This is reflected especially in the political, military, economic and financial fields, and elimination barriers of foreign trade. This brings huge amount of international trade claims and disputes. Legal person can be granted a diplomatic protection by the state by which law the legal person was incorporated or in which the legal person has its seat.