Doing Business in Kosovo - US Department of State

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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
Many local importers are also wholesalers, distributors and retailers. Until 2001, retail goods were sold almost exclusively through small family-owned businesses. More recently, locally owned supermarket chain “ELKOS” has opened mega stores in several key cities and foreign companies have partnered with local businesses to open supermarkets, including Interex. Kosovo is landlocked and all goods arrive by road, limited rail from Macedonia, and air transport. The closest seaports are Durres, Albania and Thessaloniki, Greece (about 130 miles and 170 miles from Pristina, respectively). A pair of newly built highways constructed by Bechtel-Enka connects Kosovo to Durres, which can be reached in less than 4 hours by vehicle. Selling Factors/Techniques Return to top American goods and services enjoy an excellent reputation in Kosovo. If an American representative is unable to be in Kosovo full-time, a local agent or distributor is recommended. While the capacity of newly established local marketing firms is improving, local companies distributing U.S. goods usually seek marketing assistance from the producer or will let the foreign company market the product directly. Domestic and regional business fairs are useful for identifying and establishing contacts with local distributors. Although English is widely spoken in Kosovo, it is advisable that sales materials be printed in both Albanian and Serbian, if possible. Electronic Commerce Return to top E-Commerce in Kosovo is in an emergent phase, with seven commercial banks (ProCredit, Raiffeisen, NLB and TEB, BKT, BPB, and Banka Ekonomike) recently introducing Internet banking. Currently only two publicly-owned utilities, Post and Telecommunications of Kosovo (PTK) and the Kosovo Electric Corporation (KEK), offer customers options to pay bills on-line. Trade Promotion and Advertising Return to top Local advertising and marketing firms provide services primarily to domestic companies, but also to a handful of established international firms operating in Kosovo. Several companies offer strictly promotional services, while others, such as Zero Pozitive and international PR firm Ogilvy, offer fully integrated marketing and advertising packages. Pricing Return to top Local consumers are price conscious and actively seek out sales and discounts. Local businesses frequently offer promotions and sales events in order to attract customers and gain market share. U.S. firms should study the market carefully to ensure that their goods and services are competitively priced. Sales Service/Customer Support Return to top After-sales service and customer support are considered to be the responsibility of the local agent or distributor. Protecting Intellectual Property Return to top
Page 1 and 2: Doing Business in Kosovo: 2012 Coun
Page 3 and 4: Kosovo Judicial Council in 2010 ado
Page 5 and 6: Infrastructure Development: Kosovo
Page 7: Chapter 3: Selling U.S. Products an
Page 11 and 12: imports of IP-infringing products)
Page 13 and 14: FedEx Eqrem Cabej St. 147, 10000 Pr
Page 15 and 16: esponsibility of the individual who
Page 17 and 18: Chapter 4: Leading Sectors for U.S.
Page 19 and 20: Network management Telecommunicatio
Page 21 and 22: capacity, starting with an initial
Page 23 and 24: Many of the existing mines have bee
Page 25 and 26: Provision of medical equipment and
Page 27 and 28: Agricultural Sectors Return to top
Page 29 and 30: Chapter 5: Trade Regulations, Custo
Page 31 and 32: Labeling and Marking Requirements R
Page 33 and 34: Accreditation Return to top The Acc
Page 35 and 36: Chapter 6: Investment Climate Openn
Page 37 and 38: is mainly aimed at raising local re
Page 39 and 40: Kosovo's commercial court has juris
Page 41 and 42: transactions, regardless of form, i
Page 43 and 44: Political Violence Return to top In
Page 45 and 46: international cooperation, and asse
Page 47 and 48: Department of Commerce Office of th
Page 49 and 50: Web Resources Return to top U.S. De
Page 51 and 52: U.S. Banks and Local Correspondent
Page 53 and 54: Qyteza Pejton, 10000 Pristina Telep
Page 55 and 56: Persons who wish to prolong their s
Page 57 and 58: Chapter 9: Contacts, Market Researc
Page 59:
Chapter 10: Guide to Our Services T
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Doing Business in Kosovo - US Department of State

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