Entrepreneurs seeking to expand their business in the region should consider Kosovo’s growing influence in the economic landscape. This article serves as a starting point by providing insights into Kosovo’s legal framework, economic opportunities, and sectoral potential. By conducting thorough research and adopting a strategic approach, entrepreneurs can take advantage of Kosovo’s favorable business climate to achieve success. Kosovo remains committed to supporting businesses and fostering an environment that encourages growth and innovation.
Benefits of doing business in Kosovo
- Kosovo has a simple tax system. Furthermore, in comparison to other countries, its taxes are very low. In Kosovo, corporate tax is 10% and VAT is 18%.
- The euro is the local currency in Kosovo, despite the fact that the country is not a member of the Eurozone.
- It is simple to travel to neighbouring countries. Montenegro, Albania, Macedonia, and Serbia are never far away.
- The success of business investment programs in Kosovo heavily relies on institutional support, which is provided by various non-governmental and private organizations.
- The young workforce in Kosovo is mostly multilingual (they frequently speak English and German). Half of Kosovo’s population is under 30 years old.
- Registering a business in Kosovo is an efficient and straightforward process that follows a standardized approach for both local and foreign companies.
Kosovo’s legal framework aligns with modern standards and EU principles.
Types of Business Companies in Kosovo
- Individual business – the organization must have an official name that includes the lawful surname of the owner and the acronym “B.I.” since the owner has unlimited responsibility.
- Partnership – Partnerships have both “unlimited” and “limited” partners, who are responsible for the company’s debts and their contributions in the charter capital, respectively. Names can include partners’ names and “SH.K.M.” for identification.
- Limited Partnership – General partners share unlimited liability for the organization’s debts under a single name, including one partner’s name and the acronym “O.P.”
- Limited liability companies – An LLC limits founders’ liability to their contributions and assets and is identified by a name followed by “SH.P.K.” KBRA doesn’t require proof of capital payment to register an LLC.
- Joint-stock companies – JSCs have share-based capital and limit shareholder liability to their contributions. The organization is identified by a name followed by “SH.A.” The minimum charter capital is €10,000.
- Foreign Commercial Company – A foreign company registered as a branch in Kosovo doesn’t have legal personhood but enjoys all rights and obligations. The name of the branch is followed by ” Branch in Kosovo ” or the acronym (“D.K”).
- Social enterprises – A socially owned enterprise is a legal entity with mostly socially owned assets and capital.
- Public enterprises – Public enterprises are established by the state for general interest activities and organized as Joint Stock Companies.
- Agricultural cooperatives – Agricultural co-ops are formed by farmers who contribute private property to the shared capital. They are established with at least five signatories and require even-value shares with a minimum of €10.
Business Registration in Kosovo
There are several steps involved in the registration process if you intend to establish a company in Kosovo. Selecting the appropriate company type, naming your business, preparing the necessary documentation, and registering with the Kosovo Business Registration Agency and the Tax Administration of Kosovo are all part of the process. This process may appear daunting, but with the right guidance and support, it can be completed quickly and easily.
The first step is to complete an application form that is specific to the type of business you intend to establish. The application form can be found on the Kosovo Business Registration Agency (KBRA) website or at any KBRA center.
Following the completion of the application form, the next crucial step is to submit the form alongside the necessary documents. It is imperative to note that the specific documents required may be subject to variation depending on the nature of the business being registered. Therefore, it is highly recommended to thoroughly review the specified criteria and strictly adhere to the set deadline.
If you’re considering setting up a company in Kosovo or require assistance with various business domains, our firm provides the professional guidance and comprehensive support you need. Contact us now to schedule an introductory meeting, and take the first step toward achieving your business objectives.
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