Business entities in Kosovo in 2024

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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

LLC JSC Branch office Rep office
Also known as SH.P.K. SH.A. Dega ne kosove
How long to set the company up? 4 weeks 5 weeks 5 weeks 4 weeks
How long to open company bank account? 4 weeks 5 weeks 5 weeks 5 weeks
Legal liability? Limited Limited Unlimited Unlimited
Wholly foreign owned? Yes Yes Yes Yes
Minimum share capital? €1 €25,000 NA NA
File annual tax return? Yes Yes Yes No
Tax registration certificate required? Yes Yes Yes No
Recommended corporate bank account? Raiffeisen Bank ProCredit Bank Bank of Business TEB Bank
Does our Client need to travel? No No No No
Resident director required? No No No No
Resident shareholder required? No No No No
Minimum directors allowed? 1 1 NA NA
Minimum shareholders? 1 1 NA NA
Tax identification code (TIN) needed? Yes Yes Yes No
Kosovo resident company secretary required? No No No No
Kosovo resident fiscal representative required? Yes Yes Yes No
Corporate shareholders allowed? Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes Yes Yes
Kosovo corporate tax rate? 10% 10% 10% 0%
Annual financial statements required? Yes Yes Yes No
Statutory audit required? No No No No
Regulated by? Ministry of Finance Ministry of Finance Ministry of Finance Ministry of Finance
Allowed to issue sales invoices? Yes Yes Yes No
Allowed to sign contracts? Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes No
Can rent an office space in Kosovo? Yes Yes Yes Yes
Can buy Kosovo property? Yes Yes Yes No
Can own equity in other Kosovo companies? Yes Yes Yes No
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 invoice View invoice PDF View invoice PDF View invoice PDF View 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
  • Senior Manager, Sales and Business Development
  • Get in touch
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