Establishing an Individual Business in Kosovo
An Individual Business in Kosovo is a business entity owned by a single individual with unlimited liability. This type of business does not have a separate legal personality, and its establishment is regulated by the Law on Business Organizations (Law No. 06/L-016). Below are the conditions, processes, and legal requirements:
1. Conditions for Establishing an Individual Business
Owner
The Individual Business is owned and managed by a single individual.
The owner bears full and unlimited liability for the debts and obligations of the business​.
Purpose
The business must operate for commercial or economic purposes​.
Name Registration
A name must be chosen for the business that complies with the naming rules outlined in the relevant laws.
The business name must be registered with the Kosovo Business Registration Agency (ARBK)​​.
Business Address
A valid and accessible business address must be provided at the time of registration.
Any changes to the address must be reported to ARBK​.
2. Registration Process
Application
Required Documents:
Valid identification of the owner.
Proof of business address (e.g., rental agreement or ownership document).
Completed application form (available at ARBK).
Submission Location:
Applications must be submitted to the Kosovo Business Registration Agency (ARBK) in person or via electronic means.
Registration Fees
A service fee applies for registering the business. Fees are set according to the administrative regulations​​.
Unique Identification Number
Once registered, the Individual Business is assigned a Business Identification Number (BIN), which is used for all official and tax-related purposes​​.
3. Features of an Individual Business
Unlimited Liability: The owner is personally liable for all debts and obligations incurred by the business​.
No Separate Legal Personality: The business is not considered a separate legal entity​.
Simplified Management: The owner has complete control over decision-making and management of the business​.
4. Legal Basis
The establishment and operation of an Individual Business are governed by the Law on Business Organizations, particularly:
Article 30: Initial Registration for Sole Proprietorships.
Article 48: Unlimited Liability Nature of Sole Proprietorships​.
5. Post-Registration Obligations
Tax Registration: The business must register with the Kosovo Tax Administration and comply with all tax obligations.
Trade Name Usage: The registered business name must be used in all commercial activities.
Updates to Business Information: Any changes in ownership, address, or operations must be reported to ARBK promptly​.