DOING BUSINESS IN KOSOVO IN 2020
Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Kosovo. Our services include i) Kosovo company registration ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
Summary table of Kosovo company registration
|Summary||LLC||Free zone company||ICT Company||Foreign company||Foreign company|
|Also known as||Društva sa ograničenom odgovornošću||D.O.O||D.O.O||Strana kompanija||Strana kompanija|
|Best use of company?||All products and services||Import and export||ICT infrastructure||Specific projects||Marketing and research|
|How soon can you invoice Clients\sign sales contracts?||4 weeks||5 weeks||4 weeks||6 weeks||6 weeks|
|How soon can you hire staff?||4 weeks||5 weeks||4 weeks||6 weeks||6 weeks|
|How soon can you sign a lease agreement?||2 weeks||2 weeks||2 weeks||2 weeks||2 weeks|
|How long to supply corporate bank account numbers?||6 weeks||6 weeks||6 weeks||6 weeks||6 weeks|
|How long to supply company registration \ tax numbers?||4 weeks||5 weeks||4 weeks||6 weeks||6 weeks|
|Corporate tax rate on annual net profits?||10%||10%||10%||10%||0%|
|Limited liability entity?||Yes||Yes||Yes||No||Yes|
|Government grants available?||Yes||Yes||Yes||Yes||No|
|Government approval required for foreign owners?||No||No||No||No||No|
|Resident director/partner/manager/ legal representative required?||No||No||No||No||No|
|Minimum paid up share capital?||€1||€1||€1||€1||€1|
|Can bid for Government contracts?||Yes||Yes||Yes||Yes||Yes|
|Corporate bank account location?||Raiffeisen Bank||BPB||Banka Ekonomike||NLB Banka||Ziraat Bank|
|Can secure trade finance?||Yes||Yes||Yes||Yes||No|
|VAT payable on sales to local customers?||18%||0%||18%||18%||18%|
|Average total business set up engagement costs?||€10,850||Request a proposal||€10,850||€11,900||€11,900|
|Average total engagement period?||3 months||3 months||3 months||3 months||3 months|
Kosovo company registration summary
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Advantages of Kosovo company registration
- A Kosovo limited liability company can be registered with only 1 shareholder and 1 director, who can be of any nationality and need not be a resident of Kosovo. The minimum paid-up capital required is only €1 and our Clients do not need to travel to complete the engagement;
- Kosovo has the lowest tax regime compared to other countries in Europe and Central Asia. Companies in Kosovo are subject to a corporate income tax at a standard rate of only 10%;
- Kosovo’s economy is fast growing and robust, with a GDP of US$7.27 billion and a 3% annual growth rate;
- With a population of over 2 million inhabitants, Kosovo has the youngest population in Europe with 75% under 35 years of age;
- Kosovo offers investors good investment opportunities in lucrative sectors including i) energy ii) metal processing iii) ICT iv) construction;
- Kosovo has a free access to the European Union and the neighboring markets constituting of approximately 500 million consumers;
- The creation of the One Stop Shop for company registration, the Kosovo Business Registration Agency (KBRA), has eased the process and reduced the cost of doing business in Kosovo;
- The Republic of Kosovo has signed bilateral trade agreements with different countries in order to promote foreign investments and to protect investors. Some of the countries include the USA, Belgium, Turkey, Macedonia, and Qatar among others;
- Kosovo has an improved and developed Information, Communications and Technologies (ICT) sector which attracts a large amount of foreign investments in this area thereby enhancing the competitiveness of the economy. The country proves to be an ideal destination for ICT companies since it has i) one of the youngest populations in Europe with an average age of 26 years; ii) an increasingly developing infrastructure for mobile and internet facilities; and iii) a well-developed private sector.
Disadvantages of Kosovo company registration
- Registering a public limited company in Kosovo requires i) a minimum share capital of €25,000 and ii) at least 1 fiscal representative in Kosovo;
- In addition to corporate tax, a Kosovo LLC is subject to i) a 10% withholding tax on dividends, interests and royalties distributed abroad and ii) VAT of 16% on local sales in the country;
- The judicial system in Kosovo is porous to political interference. The system lacks resources and proper procedures to deal with complex cases. Enforcing a legal contract may take up to 66 weeks in the courts;
- The Kosovo commercial code requires all legal entities to appoint a statutory auditor if it meets two of the following conditions i) its total assets exceed €2 million ii) its annual turnover exceeds €4 million iii) it has more than 50 employees within that fiscal year;
- Kosovo has recently gained its independence from Serbia in 2008. Post-independence, the country had continuously remained in dispute with Serbia regarding the division of assets which further led to political unrest in Kosovo for a long period of time. Moreover, the country has still not been able to gain recognition from all 110 countries in the world. The economy is still dependent on remittances from Germany, Switzerland, and the Nordic countries.
- Time to incorporate: Four weeks
- Cost to set up: €10,850
- Minimum capital: €1
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 10%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: SH.P.K
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