Once you have decided to start a new business to do international trade transactions you must decide on the form of the new business. The business form or structure is important for tax purposes and also for determining your liability in the event of a law suit or other claim. After deciding on the business form, you must then register your new business. This Part presents business forms and the steps necessary to start a new business, including registration.
Below is a brief explanation of the various types of businesses in Kosovo. You may wish to consult with your legal advisors and accountants when choosing a business form for your international trade activities:
With individual businesses, the owner has unlimited liability for all debts of the organization. The organization has an official name, or it includes the lawful surname of the owner, and it includes the acronym “I.B.”
With general partnership all partners are jointly and individually responsible for all debts and other obligations of the organization. The collective organization (partnership) has one name which may include the name of one of the partners, by putting before or immediately after it the acronym “G.P.”
In partnerships, in addition to “unlimited” partners (partners who are responsible without limitations jointly and individually for debts of the company) there may also be “limited” partners or those partners who are responsible for the obligations of the company to the limit of the value of their contributions in the charter capital. Such a partnership has a name which can include the name of one or more partners, by putting before or immediately after it the acronym “L.P.”
Limited Liability Companies (L.L.C)
Limited Liability Companies are those organizations established by one or more founders, who are responsible only to the level of their contribution and all assets. The Limited Liability Company has one name in which can be included the name of one or more partners, by putting before or immediately after it the acronym “L.L.C”.
KBRA may register a limited liability company without the need to provide evidence for payment of the capital.
Joint Stock Companies (J.S.C.)
Joint Stock Companies are those organizations whose capital is divided in shares and the shareholders are responsible only to the level of the value of their contribution. The organization can be established and have one or more shareholders. It has one name before or behind which should include the acronym “J.S.C.”. The amount of the founding capital for these organizations is at least 10.000 Euro.
Can be registered as:
- Branch of a Foreign Trade Company – means a registered entity in Kosovo for the exercise of legitimate economic activity by a Foreign Trading Company established under a law of a jurisdiction outside Kosovo. After registration, it has all the rights and obligations created under applicable law. The name should be written “BRANCH IN KOSOVO” or the abbreviation “B. K.”.
- The foreign company may also be registered as a Foreign Trade Representation Office in Kosovo. The official name should include the full name of the Foreign Trade Company with the suffix “Office of Representation in Kosovo” or the abbreviation “O.R. K”.
An Agricultural Cooperative is a business organization created by natural or legal persons all of whom should be farmers who contribute with their own private property in the shared capital. An Agricultural Cooperative is established by at least five (5) farmers that are signatories of obligations. The cooperative shall not be established without capital and it shall not exist without capital. The capital is divided into shares of equal value with a minimal value of 10 EUR. The director may not be a member of the cooperative, which is in accordance with the Law No 2003/9 on Agricultural Cooperatives and Law No.03/L-004 on Amending and Supplementing Law on Agricultural Cooperatives Nr-2003/9.
New businesses in Kosovo must be registered with the Kosovo Business Registration Agency (KBRA). Business Organizations can be established and registered in Kosovo for any lawful purpose and may perform any lawful activity specified in the nomenclature of activity codes.
Codes are numbers that match the activity of business you chose to open. Forms that need to be filled out to open a business contain a section where you are required to write the code (on the left side) and the written description (on the right side) of the business. The list of Codes can be found at the website of the Kosovo Business Registration Agency at https://arbkonline.rks-gov.net/ . The codes are comprised of four digits.
The Kosovo Business Registration Agency (KBRA) registers all new businesses, performs modifications of business data and business closures, issues registration certificates with a fiscal number, certificates of value added tax, import-export certificate, and provides information and free forms.
The following types of businesses can be registered at KBRA: Individual businesses, general partnerships, partnerships, limited liability companies, joint stock companies, foreign companies and agricultural cooperatives.
Since these types differ from each other in legal liabilities, documents required for their initial registration are also different. You should fill out the corresponding form based on the type of business you wish to establish. New business can be registered also online at https://arbkonline.rks-gov.net/
2.OBTAINING CERTIFICATES AND OTHER LICENCES
Under applicable law, any economic entity that plans to import or export must be registered for VAT. Application for obtaining a VAT Certificate can be done at the offices of the Kosovo Tax Administration in Pristina (see address below).
If the economic entity has registered its activity in other parts of Kosovo, then it may apply to other regional TAK centers, which operate in:
For more information visit: www.atk-ks.org
No licence applicable on those products
After submitting a certificate of business and VAT, an economic entity should request from Kosovo customs to activate their data in the electronic system of the Kosovo Customs – ASYCUDA Vorld