How to open an LLC in Kosovo, step by step

The Limited Liability Company (SH.P.K.) is the form most growth-minded businesses choose, with nearly 60,000 entities in the ARBK data on Kerko. Here is what you need to decide and prepare.

Decisions before registering#

Who are the owners?#

An LLC can have one or more owners. Owners can be individuals or legal persons (other companies), domestic or foreign. Foreign investors in principle have the same rights as locals and can own the company 100%.

With more than one owner, agree up front on the ownership percentages and how decisions are made.

How much capital?#

The current business organisations law does not require high minimum capital for an LLC, and many companies are founded with symbolic capital. Still, capital should be realistic for the activity: banks, suppliers and partners read it as a sign of seriousness. Check current requirements with ARBK, especially for licensed activities, which may have specific requirements.

Who manages it?#

An LLC is represented by one or more authorised persons (usually the director/manager). This can be the owner or someone else. Authorised persons appear in the public registry and on the company's Kerko profile.

Name and activities#

The name must be distinguishable from existing companies and carry the legal-form designation ("SH.P.K."). Search Kerko to see whether something similar exists. Choose the main and secondary activities using NACE codes.

Documents#

Registering an LLC usually requires:

• the registration application (ARBK form);
• a founding act (one owner) or founding agreement (several owners);
• the company statute, the internal rules: how decisions are made, how shares are transferred, who represents the company;
• identity documents of owners and authorised persons;
• if an owner is a company, that company's registration documents; for foreign companies, usually translated and legalised/apostilled;
• the company's address.

ARBK provides standard templates for the founding act and statute, which are enough for many small companies. With several owners it is worth also having a shareholders' agreement drafted by a lawyer, covering what happens if someone wants out, how profits are split, how disputes are resolved.

The exact document list can change; check ARBK's current guidance (arbk.rks-gov.net).

Registration#

1. Submit the documents to ARBK (at registration offices across municipalities, or online where available).
2. ARBK checks the documents and the name.
3. You receive the registration certificate and the NUI, which for new companies also serves as the fiscal number.

Registration usually completes within a few working days when the documents are in order.

After registration#

• Open a bank account in the company's name and, if you declared capital, deposit it.
• Accounting: an LLC keeps full accounts and prepares annual financial statements. Engage an accountant from day one.
• Taxes: the company pays corporate income tax (10%) and, above €30,000 annual turnover, registers for VAT. See NUI, fiscal number and VAT.
• Employees: declaring employees, wage tax and pension contributions (5% + 5%).
• Changes: any change of owners, authorised persons, address or activity must be registered with ARBK.

Common mistakes#

• Mixing money: using the company account for personal expenses weakens limited-liability protection and causes tax problems.
• No shareholders' agreement: most disputes between partners happen because nobody wrote down what happens when someone leaves.
• Not registering changes: the public registry must reflect reality; otherwise problems arise with banks and partners.

Once your company exists#

Your company will appear in the public data and on Kerko. Verify your profile to add contacts, website and a description, and stand out with the verified-business badge.