Registering an NGO in Kosovo: the steps

Not every organisation is set up to make a profit. Sports clubs, farmers' associations, environmental groups, cultural societies and charitable foundations in Kosovo are non-governmental organisations (NGOs). They have different rules from businesses and register in a different place.

NGO or business?#

	NGO	Business (IB, LLC)
Purpose	Members' or public interest	Profit for the owners
Registration	NGO department at the ministry	ARBK
Distributing profit	Prohibited	Allowed
Funding	Donations, grants, membership, economic activity	Sales, investment
Owners	No owners	Owners or partners

If the main aim is to earn from selling services, the right form is a business. See Legal forms of business. Kosovo also has the social enterprise form, which combines economic activity with a social purpose.

Association or foundation?#

• An association is a membership organisation, founded by at least three persons. Members decide in the assembly.
• A foundation is property dedicated to a purpose, founded by one or more persons. It has no members; a board governs it.

Most new NGOs are associations.

Registration documents#

1. The founding act, with the founders' names, purpose and seat.
2. The statute, setting out:
   • name and seat;
   • purposes and activities;
   • the bodies (assembly, board, executive director) and how they're chosen;
   • membership, for associations;
   • funding and use of assets;
   • what happens to the assets when the organisation is dissolved.
3. The registration application on the ministry's form.
4. ID documents of the founders and the authorised representative.

The procedure#

1. Hold the founding meeting and sign the founding act and statute.
2. Submit the application to the department responsible for NGO registration, at the ministry or online where available.
3. Once approved, receive the registration certificate and NGO number.
4. Register with ATK for a fiscal number, especially if you'll have employees or economic activity.
5. Open a bank account in the organisation's name. See The business bank account.

Public benefit status#

NGOs working in the general interest, such as education, health, culture, the environment, social assistance or human rights, can apply for public benefit status. It brings:

• tax relief for the organisation;
• tax deductions for donors, within legal limits (see Tax-deductible expenses);
• easier access to some public funds.

In return, the organisation files an annual report on its activities and finances.

Taxes and employees#

An NGO isn't automatically exempt from every tax:

• for employees, contracts, payroll tax and contributions apply as for any employer. See Payroll tax and pension contributions;
• economic activity may be taxed and, above the threshold, needs VAT registration;
• rent paid to an individual carries withholding tax. See Rental income tax.

Reporting and transparency#

Donors and grant-makers want transparency: financial reports, audits for large projects and accurate details of representatives. Keep the statute, board and representatives up to date in the register, just as businesses keep their ARBK details current.

On Kerko you can browse registered organisations and associations by municipality.