Starting a Business in Kosovo: Why It Matters to Do It Right
Kosovo offers one of the most business-friendly environments in the region — with a 10% corporate tax, 0% dividend tax, and a straightforward company formation process.
Whether you are a local entrepreneur, a foreign investor, or part of the Kosovo-Albanian diaspora, this guide explains how to register an LLC (sh.p.k.) in Kosovo, the most common business structure.
Hiring a business lawyer in Kosovo — whether in Prizren, Pristina, or from abroad — ensures you avoid costly mistakes in contracts, taxes, shareholder agreements, and compliance.
✅ How to Register an LLC (sh.p.k.) in Kosovo – Step-by-Step
Step 1: Choose a Company Name
- Must be unique and not similar to existing businesses registered with Kosovo Business Registration Agency (KBRA).
- Names are checked and reserved during the application process.
Step 2: Prepare Required Documents
✔️ Founding Act (Decision or Agreement)
✔️ Company Charter (Statute)
✔️ Identification documents of shareholders and administrators (Passport or Kosovo ID)
✔️ Address confirmation for the registered office in Kosovo
✔️ Power of Attorney (if using legal representatives, e.g., lawyers)
Step 3: File the Application to KBRA
- The application includes forms provided by KBRA plus the prepared documents.
- You don’t need to worry about the filing process — our law firm can handle it fully on your behalf.
Step 4: Obtain the Business Certificate
- Once registered, KBRA issues the Business Registration Certificate along with the Fiscal Number (Tax ID).
- Registration is typically processed within 3–5 business days.
Step 5: Register for VAT (If Applicable)
- VAT registration is mandatory if annual turnover exceeds 30,000 EUR.
- Some businesses may choose voluntary VAT registration even below this threshold.
📑 Legal Reference:
- Company formation is governed by Law No. 06/L-016 on Business Organizations.
- LLCs (sh.p.k.) are the most common form, offering limited liability and flexible management.
💼 Kosovo Corporate Tax Overview
- Corporate Income Tax: 10%
- Dividend Tax: 0% (No tax on dividends distributed to shareholders)
- Value Added Tax (VAT): 18% standard, 8% reduced (for certain goods/services)
❓ Frequently Asked Questions
🔹 How long does it take to register a company in Kosovo?
→ Registration typically takes 3–5 business days after submitting the complete documents.
🔹 What are the tax rates for companies in Kosovo?
→ 10% corporate tax, 0% dividend tax, and 18% VAT (standard).
🔹 What documents are required to register a company?
→ Founding act, statute, IDs of shareholders, proof of address, and Power of Attorney if using legal representation.
🔹 How do I register an LLC (sh.p.k.) vs. a JSC (sh.a.)?
→ This guide focuses on LLC (sh.p.k.), the simplest and most flexible. JSC (sh.a.) is used for larger, shareholder-based companies requiring a minimum capital of 10,000 EUR. For LLC, there is no minimum capital required by law.
🔹 Why hire a business lawyer in Prizren or Pristina?
→ A lawyer ensures:
- Your shareholder agreement protects your rights
- Contracts are drafted correctly
- Tax and compliance obligations are met
- Mistakes that could lead to penalties or disputes are avoided
🚀 Why Work with Hoxha & Associates?
✔️ We handle the entire process for you, whether you are based in Kosovo or abroad.
✔️ We ensure all documents comply with Kosovo’s laws.
✔️ We help you draft shareholder agreements, employment contracts, and comply with tax laws from day one.
👉 Ready to Start Your Business in Kosovo?
Partner with Hoxha & Associates for a smooth, compliant, and fast company registration — plus ongoing legal support to protect your business.
