Starting a business in Kosovo from abroad

Every summer, thousands of Kosovars from the diaspora come home and many of them wonder: should I open a business here? Some do it as an investment, some for family, some to come back one day. It's possible even without being in Kosovo in person, but it takes a bit more planning.

Individual business or LLC?#

	Individual Business	LLC
Liability for debts	Personal, with all your assets	Limited to the capital
Running it from abroad	Harder, the owner is the business	A local director can be appointed
Partners	No	Yes, one or more
Selling the business later	Difficult	Shares are sold
Tax	Personal income tax	10% on profit

For most people in the diaspora, an LLC is the better option, especially when someone else runs the business. The full comparison is in Individual business or LLC?.

Registering from abroad#

By power of attorney#

If you can't go to ARBK yourself, you can authorise someone, such as a family member, accountant or lawyer, with a power of attorney:

• signed before a notary;
• if issued abroad, usually legalised or apostilled, depending on the country;
• translated into Albanian or Serbian by a licensed translator.

The power of attorney should state clearly what is allowed: founding the company, signing the founding act, opening a bank account.

The owner's documents#

• a Kosovo ID card or a passport;
• an address, in Kosovo or abroad;
• for an LLC, the founding act and statute (see The LLC statute).

The full registration steps are in How to open an LLC.

Director and authorised persons#

Who signs contracts, invoices and tax returns while you're abroad? Usually:

• a director who lives in Kosovo;
• or a person authorised in ARBK for specific actions.

Limit authorisations in the statute: up to what amount, for which actions and when your approval is needed. See Authorised persons of a business.

Bank account#

Kosovo banks usually require the owner or authorised person to be present to open an account, along with documents showing where the money comes from. For large transfers from abroad, prepare proof such as salary, a property sale or savings. See The business bank account.

Taxes and tax residency#

A business in Kosovo pays its taxes in Kosovo: 10% on profit for an LLC (see Corporate income tax) and VAT above €30,000 of turnover.

The hard question is you as a person:

• if you're tax resident in Germany, Switzerland or elsewhere, that country may require you to declare dividends or salary from Kosovo;
• Kosovo has double tax treaties with several countries that decide where what is taxed;
• in some countries, managing a company from there can make the company tax resident there too.

Ask a tax adviser in your country of residence before you start.

Common mistakes#

• A general power of attorney with no limits. One that allows everything is a risk, even with family.
• No monthly checks. Ask for monthly reports: sales, payments, ATK filings.
• A business with no accountant. ATK deadlines apply even when the owner is abroad. See When you need an accountant.
• Unchecked partners. Before investing with someone, check their businesses on Kerko.

Ideas for diaspora businesses#

Many successful diaspora businesses serve the diaspora itself: apartment management, car rental, tourism, construction. See Business ideas in Kosovo. If you're a foreign citizen without Kosovo documents, see also A foreign company in Kosovo.