Foreign company in Kosovo: branch or LLC?

Kosovo is open to foreign investment: foreign investors in principle have the same rights as locals, can own a company 100% and the currency is the euro. But a foreign company has to choose how it will be present. There are three main routes.

The ARBK data on Kerko contains about 1,134 branches of foreign companies and 18 representative offices, while many more foreign investors operate through local LLCs.

1. Branch of a foreign business (D.K.)#

A branch is part of the parent company, registered in Kosovo.

• It can trade: sell, sign contracts, employ people.
• It is not a separate legal person. The parent company is directly liable for the branch's obligations.
• Tax: the branch is taxed in Kosovo on the profit it makes here, as a permanent establishment of the foreign company.
• Registration requires the parent's documents (registration certificate, statute, decision to open the branch, appointment of a representative), usually translated and legalised/apostilled.

Suits: companies that want to work in Kosovo under the parent's name and reputation, e.g. for a specific project or contract.

2. Representative office (Z.P.K.)#

A representative office is the lightest presence.

• It cannot carry out full commercial activity. Its role is representation, promotion, market research and liaison with partners.
• It is not a separate legal person.
• It usually generates no revenue in Kosovo.

Suits: companies testing the market or wanting a point of contact before starting sales.

3. Subsidiary: a local LLC#

The foreign company (or individual investor) founds a Kosovo LLC (SH.P.K.) and owns it.

• A separate legal person: the parent's liability is limited to the capital invested.
• Taxed like any Kosovo company: corporate income tax (10%), VAT under the normal rules.
• Flexible: it can also have local partners, and can be sold or restructured.

Suits: most long-term investments, which is why it is also the most common route.

Comparison#

	Branch	Representative office	Subsidiary LLC
Commercial activity	Yes	No (representation only)	Yes
Separate legal person	No	No	Yes
Parent company's liability	Full	Full	Limited to capital
Can have local partners	No	No	Yes
How common	~1,100	~20	The most common route

What to prepare#

Whatever the form, foreign investors usually need:

• the parent company's registration documents (or a passport, for individual investors);
• certified translation into Albanian or Serbian and legalisation/apostille depending on the country of origin;
• a representative or authorised person in Kosovo;
• an address in Kosovo.

Check current requirements with ARBK and, for larger projects, with the Kosovo Investment and Enterprise Support Agency (KIESA).

How to check a foreign partner#

If you do business with a foreign branch or company in Kosovo, Kerko shows its status, address and authorised persons. Browse branches of foreign businesses or representative offices, and read How to check a business in Kosovo.