Business entities in Kosovo in 2023

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Since 2003, Healy Consultants has been guiding our Clients implement the optimum corporate structures for their Firms during their Kosovo business setup. There are several ways of doing business in Kosovo, most common being the setup of a Kosovo limited liability company (SH.P.K.). Entrepreneurs can alternatively setup a public limited (SH.A.). Foreign companies may also set up Branch Offices or Representative Offices in Kosovo.

The Kosovo limited liability company (SH.P.K.)

Setup an LLC in Kosovo

  • The Kosovo SH.P.K. requires at least 1 shareholder and 1 director. A SH.P.K must also appoint at least 1 tax representative in accordance with the Kosovo tax legislation. This entity requires a minimum paid up capital of €1 when being incorporated. Most of our Clients choose an LLC for Kosovo company setup;
  • Generally this entity does not require an auditor unless it fulfills two of the following 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.

The Kosovo public limited company (SH.A.)

  • The Kosovo SH.A. requires at least 1 shareholder who can either be an individual or a corporation. A SH.A. must also appoint at least 1 agent to act as the fiscal representative of the entity in Kosovo. The minimum capital required is €25,000.The auditing criteria for a public limited company is the same as for an LLC.

The Kosovo branch (Dega ne kosove)

Foreign companies looking to do business in Kosovo are allowed to open branch offices in Kosovo and conduct business like any other legal entities. However the scope of operations for a branch office is entirely defined by the parent company. The branch must appoint at least 1 fiscal representative as required by the Kosovo tax legislation. We recommend our Clients pursuing Kosovo company setup to choose an LLC rather than a branch office because an LLC enjoys limited liability whereas the parent company would be fully liable for the branch office.

The Kosovo representative office

The Kosovo commercial law allows foreign entities to open representative offices. This entity is not considered a legal entity and is not allowed to conduct any commercial activities in Kosovo. A representative office is only permitted to conduct market research and to promote products and services of the parent company within Kosovo.

Comparison table between Kosovo business entities

LLCJSCBranch officeRep office
Also known asSH.P.K.SH.A.Dega ne kosove
How long to set the company up?4 weeks5 weeks5 weeks4 weeks
How long to open company bank account?4 weeks5 weeks5 weeks5 weeks
Legal liability?LimitedLimitedUnlimitedUnlimited
Wholly foreign owned?YesYesYesYes
Minimum share capital?€1€25,000NANA
File annual tax return?YesYesYesNo
Tax registration certificate required?YesYesYesNo
Recommended corporate bank account?Raiffeisen BankProCredit BankBank of BusinessTEB Bank
Does our Client need to travel?NoNoNoNo
Resident director required?NoNoNoNo
Resident shareholder required?NoNoNoNo
Minimum directors allowed?11NANA
Minimum shareholders?11NANA
Tax identification code (TIN) needed?YesYesYesNo
Kosovo resident company secretary required?NoNoNoNo
Kosovo resident fiscal representative required?YesYesYesNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?YesYesYesYes
Kosovo corporate tax rate?10%10%10%0%
Annual financial statements required?YesYesYesNo
Statutory audit required?NoNoNoNo
Regulated by?Ministry of FinanceMinistry of FinanceMinistry of FinanceMinistry of Finance
Allowed to issue sales invoices?YesYesYesNo
Allowed to sign contracts?YesYesYesNo
Allowed to import and export goods?YesYesYesNo
Can rent an office space in Kosovo?YesYesYesYes
Can buy Kosovo property?YesYesYesNo
Can own equity in other Kosovo companies?YesYesYesNo
Total Kosovo business setup costs in Yr. 1€10,850€10,850€11,900€11,900
Subsequent annual costs (incl. accounting and tax fee)€3,600€3,600€3,600€3,600
Sample engagement invoiceView invoice PDFView invoice PDFView invoice PDFView invoice PDF

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Contact us

For additional information on our business setup services in Kosovo, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!
kosovo investment and enterprise support agency (KIESA) State Portal of the Republic of Kosovo central bank of Kosovo Economic initiative for Kosovo kosovo business registration agency