LLC share capital in Kosovo: how much?

One of the first questions when opening an LLC is: how much money do I need to put in? The short answer is that the law sets no minimum. The longer answer is that capital affects how ownership is split, how much banks trust you and what happens when the company runs into trouble.

What share capital is#

Share capital is the amount the partners put into the company when they found it. It's written in the founding act and in ARBK, and it sets each partner's share of the company.

Example: two partners found an LLC with €10,000 of capital. One puts in €6,000, the other €4,000. Their shares are 60% and 40%, and profits and votes in the partners' meeting are split accordingly, unless the statute says otherwise.

Is there a minimum?#

The current Law on Business Organizations sets no minimum capital for an LLC. That makes opening a company cheap and quick. Many LLCs register with symbolic capital such as €1, €100 or €1,000.

It's different for a joint stock company (JSC), where the law requires a much higher minimum. Some licensed activities, such as banking, insurance or microfinance, also have specific capital requirements set by the regulator.

Symbolic or real capital?#

Symbolic capital has advantages: you don't tie up money and the company opens straight away. But it has limits:

• Banks and suppliers see capital as a sign of seriousness. A company with €1 of capital is unlikely to get a loan or payment terms without a personal guarantee.
• Public tenders often require turnover or financial capacity. Capital doesn't replace that, but it helps.
• Start-up funding then comes as loans from the partners, which must be documented with a contract.

Real capital that covers the first costs (equipment, deposit, stock) makes the balance sheet healthier and makes it easier for partners to trust you.

Cash and in-kind contributions#

Capital can be contributed:

• in cash, usually by depositing it into the company's bank account;
• in kind, such as equipment, a vehicle, software, property or rights.

An in-kind contribution must have a real value. If a partner inflates the value of their own equipment to get a bigger share, the other partners lose out and ATK may challenge the value. For large amounts, an independent valuation is a good idea.

Capital versus partner loans#

Many partners fund the company with loans instead of capital. The difference:

	Capital	Partner loan
Affects ownership	Yes, sets the shares	No
Repayment	Only through a capital reduction or liquidation	Under the loan contract
In bankruptcy	Repaid last	A creditor like any other
Paperwork	Founding act, ARBK	Loan contract

A loan makes sense when the money will be paid back. But without a written contract, ATK may treat it as income or as a dividend.

Changing the capital#

Capital can be increased (partners put in more or a new partner joins) or reduced. Both need a decision of the partners' meeting, an amendment to the statute or founding act and registration with ARBK. Reductions also have rules to protect creditors. The steps are in Changing business details in ARBK and, for selling shares, Selling shares in an LLC.

Where to see a company's owners#

An LLC's owners and authorised persons are public. You can check them on Kerko by searching the company's name or NUI, while the registered capital appears on the ARBK extract. For step-by-step setup, see How to open an LLC and The LLC statute.