Doing Business in Kosovo - US Department of State

socially-owned enterprises (SOEs), conducted by the Privatization Agency of Kosovo (www.pakks.org).
Franchising Return to top
Kosovo’s business climate looks favorably on the franchising model. There are a handful of
successful Western franchises in Kosovo, and the market is open for additional opportunities,
especially in the hotel and accommodation industry. Current U.S. franchises and licensees
include: Coca-Cola, RC Cola (bottling license in Kosovo, distribution rights for Serbia, Macedonia,
Albania and Montenegro), Nike (distribution license for Kosovo) and Office One Superstore.
Re/Max has expressed a strong interest in the Kosovo market. Other international companies
present include Benetton (Italy), Terra Nova (Italy), Zara (Spain), Mango (Spain), Bitsiani
(Greece), SBC Computers (Serbia) and Maxi Mart (Serbia). Potential for franchises is strongest in
the restaurant, hotel, catering and apparel industries. Improvements in IPR legislation are
necessary, however, to protect the rights of the grantor. Local consumers seek high quality,
reliable products and services at reasonable prices. There is a sizable international community
resident in Kosovo, and large numbers of Kosovo citizens residing abroad come back to the
country several times a year, demanding higher quality goods and services and expanding the
potential franchise market.
Direct Marketing Return to top
Many foreign companies actively market their products and services in Kosovo. The Internet is
widely used, but more traditional means of advertising such as television and radio, and in local
newspapers, and by leaflets are considered generally more effective. Direct mailing is not a
viable option due to the unreliability of Kosovo’s postal system.
Joint Ventures/Licensing Return to top
According to the Foreign Investment Law (Kosovo Assembly Law 02/L-33 applicable together
with the UNMIK Regulation 2006/28), foreign investors may wholly own businesses in all sectors
of the economy, with the exception of the manufacture or distribution of military products,
where equity is limited to 49 percent. Foreign investors in all other areas are subject to the
same licensing requirements as local investors. Foreign investors may be required to file a
statement with local authorities identifying principal stakeholders and types of investment. No
other filing requirements in excess of those required for similar domestic businesses are
required for foreign investors.
Selling to the Government Return to top
The government consumes a wide range of products and services; its procurement process is
based on the tendering procedures outlined in the Public Procurement Law, which is applicable
to all procurement-related actions involving funds from the Kosovo Consolidated Budget. The
law provides guarantees for equal treatment and non-discrimination, transparency, fair
competition and accountability. Foreign companies are permitted to bid on an equal basis with
local firms. There are no local content requirements.
Distribution and Sales Channels Return to top