KOSOVO

kosovafair.com
  • No tags were found...

The Legal Guide to Kosovo - ECIKS

REPUBLIC OF KOSOVOMinistry of Trade and IndustryTHE LEGAL GUIDE TOKOSOVO2 nd Edition


TOP 10 reasonsIN KOSOVOYoungestpopulation inEuropeHigh availabilityof skilled and costeffective laborEURO asthe officialcurrencyFree access tomarkets of EU, USand CEFTALow taxesStabilizingpoliticalenvironmentEUcompatiblelegislationStrategic locationand developinginfrastructureSoundbankingsystemGreat investmentopportunities2


THE LEGAL GUIDE TOKOSOVOCorporate-, Tax-, and Employment Lawand other RegulationsOctober 20103


Legal Notice and InformationStatus of information: October 2010. Changes reserved.Publisher:Economic Initiative for Kosova - ECIKSon behalf of: Investment Promotion Agency of Kosovo - IPAKThis brochure was published within a project financed by:Austrian Development CooperationContacts:Ministry of Trade and IndustryMuharrem Fejza Street n.n.Lagja e spitalit10000 Prishtinë, KosovoTel: +381 (0) 38 512 164Fax: +381 (0) 38 512 798Web: www.mti-ks.orgInvestment PromotionAgency of KosovoMuharrem Fejza Street n.n.Lagja e spitalit10000 Prishtinë, KosovoTel: +381 (0) 38 200 36 527+381 (0) 38 200 36 542Fax: +381 (0) 38 212 807Email: info@invest-ks.orgWeb: www.invest-ks.orgInvestment PromotionAgency of KosovoOffice in Vienna Implemented byEconomic Initiative for Kosova (ECIKS)Nussdorfer Strasse 20/23A - 1090 Vienna, AUSTRIATel: +43 (0) 1 890 50 26Fax: +43 (0) 1 890 50 26 26Email: info@ipak-vienna.orginfo@eciks.orgWeb: www.ipak-vienna.orgwww.eciks.orgConception and editing:WOLF THEISS Rechtsanwälte GmbHSchubertring 6, 1010 ViennaTel: +43 (1) 515 10Fax: +43 (1) 515 10-25Contact: Christian MikoschE-mail: christian.mikosch@wolftheiss.comGw Legal LLC13 Gazmend ZajmiPristina, KosovoTel: +44 (771) 722 05 03Contact: Gail WarranderE-mail: gail@gwlegalonline.comDisclaimerThis brochure was correct at the time it went to press, i.e. October 2010; however, legislative changes and changes ininterpretation by the authorities and courts can occur frequently in Kosovo. This brochure contains information that issummarized and, in part, simplified. It does not substitute for specific legal and tax advice. Despite attempting to exercisecare in compiling this brochure, the authors can not warrant the accuracy, completeness, or up-to-date character of itscontents. Any liability on the part of Wolf Theiss, Gail Warrander/GW Legal LLC, ECIKS and IPAK is therefore excluded.4


Table of contents6 1. General Overview 10 2. Corporate Law 16 3. Increase in Borrowing, Capital & Bonds 16 4. Foreign Investors 18 5. Tax Law24 6. Labour Law 24 7. Public Procurement Laws26 8. Intellectual Property Protection30 9. Environmental Laws10. Arbitration11. Foreign Investors12. Foreign Investors13. Privatisation32 14. Entry and Exit from Kosovo15. Registration of Vehicles, Insurance, Import of Personal Effects16. Important Legislation34 17. Important Links and Addresses36 18. About Investment Promotion Agency in Kosovo and its office in Vienna5


61 GeneralOverview


The Republic of Kosovo was declaredindependent on 17 February, 2008. InApril 2008 the Assembly of the Republicof Kosovo adopted the new constitutionwhich has entered into force on 15 June2008.Kosovo’s constitution is based on the ComprehensiveProposal for a Status Settlementfor Kosovo, submitted by United NationsSpecial Envoy for the resolution of Kosovo‘sstatus (the „Ahtisaari Plan“), which providesfor supervised independence, overseen bytwo international institutions, namely EuropeanUnion Rule of Law Mission in Kosovo(EULEX) and the International CivilianOffice (ICO). The Ahtisaari Plan provides anumber of overriding protections for Kosovo‘sminorities and authorizes EULEX toassist Kosovo authorities in the rule of lawarea, with a particular focus on police, judiciaryand customs. In this respect, EULEXretains limited executive powers, in particularto investigate, prosecute and adjudicate seriousand sensitive crimes in cooperation withthe Kosovo justice institutions. ICO, on theother hand, is responsible for supervising theimplementation of the Ahtisaari Plan.1.1 History of the LegalSystemUnder the 1974 constitution of the SocialistFederal Republic of Yugoslavia (SFRY),Kosovo was an “autonomous province” withinthe SFRY and, as such, enjoyed substantialsovereign rights.As an autonomous province in the SFRY, Kosovohad a parliament, government, judiciary,constitutional court and a national bank. InMarch 1989, following the rise to power ofSlobodan Milosevic, Kosovo’s autonomy wasunlawfully abolished and Serbia assumed fullcontrol over the province. Shortly thereafter,the newly installed regime dismissed all KosovoAlbanians from their public positions,including the judiciary. Following the disintegrationof SFRY, the aforementioned constitutionalchanges were sanctioned into law bythe 1992 constitution of the Federal Republicof Yugoslavia, which was constituted of onlySerbia and Montenegro. While some of dismissedKosovo Albanian judges and prosecutorsmoved to the private practice, the lawlessnessand widespread corruption that ensuedthe installation of the Milosevic regime inthe province rendered their roles as attorneysobsolete. Consequently, most of them wereforced out of the legal profession completely.Following the end of the war in June 1999 theprovince was placed under an internationalprotectorate, pursuant to United Nations SecurityCouncil Resolution 1244, and was administeredby United Nations Mission in Kosovo(UNMIK), while NATO based KosovoForce (KFOR) provided for overall security.In accordance with UNSC Resolution 1244,UNMIK assumed full competencies in thelegislative, executive and judicial branches ofgovernment that were exercised by the SpecialRepresentative of the Secretary General(SRSG). In order to fill the legislative gapcreated during the decade of Milosevic‘s rule,UNMIK enacted laws in the form of executivedecrees, commonly referred to as “UNMIKRegulations”. UNMIK regulations were intendedto complement, and govern the precedenceof, different legal instruments enactedin the past. Indeed, while the bulk of Kosovolegislation remained relevant, a number oflaws enacted during Milosevic‘s rule, whichintroduced discriminatory provisions againstthe Kosovo Albanian community, were repealed.Consequently, UNMIK authorizedthe application of the provincial law as it wasin effect as of 22 March 1989 (before the abolishmentof Kosovo‘s autonomy) except in caseswhere these legal instruments were enactedprior to 22 March 1999 and were discriminatory.During its mandate, UNMIK progressivelydeveloped a comprehensive modernlegal framework, which culminated with theenactment of the Constitutional Frameworkof Kosovo, on the basis of which, the people ofKosovo were able to democratically elect theirrepresentatives in the local and central level.In 2000, UNMIK established an emergencyjustice system exclusively composed of localjudges and prosecutors, who were subsequentlyjoined by a limited number of internationaljudges and prosecutors, who were responsiblefor serious and sensitive crimes. While, in theexecutive and legislative branches of government,UNMIK gradually transferred its competenciesto Kosovo authorities, UNMIKretained executive control over the judiciaryuntil Kosovo‘s independence.Although following the entry into effect ofKosovo constitution in 2008, UNMIK’s rolebecame largely redundant; UNMIK is stillpresent in Kosovo and continues to facilitateKosovo‘s relations with countries that havenot formally recognized its independence ingeneral and Serbia in specific.7


1With the exception of, interalia, traffic accidents withdeath casualties that are publishablewith up to eight yearsof imprisonment.1.2 Applicable LawThe applicable law in Kosovo stems fromdifferent sources with the following order ofprecedence:• Laws passed by the Kosovo Assemblyafter the constitution came into force inJune 2008, provided they are consistentwith the constitution and the „AhtisaariPlan“• UNMIK Regulations (with supportingAssembly laws) passed between June1999 and June 2008• Laws dated prior to 22 March 1989• Laws dated between 22 March 1989 and10 June 1999 which are not discriminatory.1.3 The Court SystemKosovo’s regular court system is currentlycomposed of 25 municipal courts, five districtcourts, one commercial court, the constitutionalcourt and the Supreme Court (the latterthree being in Prishtina). The minor offencescourt system, which adjudicates overadministrative offences as well as public orderand traffic violations, includes 25 municipalcourts for minor offences and the high courtfor minor offences.„Parallel courts“, run by Kosovo Serbs andsupported/financed by Belgrade, operatewithout Kosovo government authorization ina number of Serbian enclaves throughout Kosovo.Moreover, Serbia has retained the continuityof the public administration, healthcareand justice institutions from the Milosevic regimeby simply transferring the seats of theseinstitutions from Kosovo to different towns insouth-eastern Serbia after the end of the war.However, decisions by these parallel courtshave no legal effect in Kosovo and have beenrecognized neither by UNMIK nor by the authoritiesof newly independent Kosovo.The municipal courts operate as courts of firstinstance for criminal offences punishable withsentences of up to five years imprisonment 1and as courts of first instance for civil inheritancematters, labour relations and other civilmatters.The district courts hear appeals on decisionsby the municipal courts. They also serve ascourts of first instance for criminal offencespunishable by an imprisonment term of morethan five years, major property disputes andfamily law matters.The commercial district court has Kosovowidefirst instance jurisdiction over disputesbetween 2 incorporated entities, disputespertaining to insolvency proceedings andcertain commercial criminal offences. It alsohears cases referred by the Special Chamberof the Supreme Court.The Supreme Court of Kosovo serves as athird instance appellate court in a limitednumber of criminal cases, hears direct appealson cases originating in the district courts administrativeappeals and other matters as providedby law.Finally, the Constitutional Court has the finalauthority for the interpretation of theConstitution and the compliance of laws andgovernment actions with the Constitution.During the transitional period, the ConstitutionalCourt will be composed of six (6)national judges and three (3) internationaljudges appointed by the International CivilianRepresentative, upon consultation withthe President of the European Court of HumanRights.A new law providing for the reorganisationand simplification of territorial and subjectmatterjurisdiction of the court system is inthe process of being promulgated. Furthermore,in the beginning of 2009, an IndependentJudicial and Prosecutorial Commission(IJPC), consisting of five international membersfrom United States and Europe, was establishedto conduct a one-time comprehensivereview of the suitability of all individualswho seek appointment as a judge or prosecutorin Kosovo. The vetting process, conductedby IJPC, requires full financial disclosure andbackground checks for all judicial and prosecutorialcandidates as well as a high degree ofprofessional competence in addition to professionaland personal integrity. The process,which is funded by the Government of theUnited States and the European Union, willbe conducted in three phases and is expectedto be concluded by the end of 2011.According to Kosovo law, arbitration is a recognizedinstrument for the resolution of localand international disputes between physicalpersons and legal entities. Under the Regulationon Foreign Investments, companiesunder international ownership can always8


choose arbitration. UNCITRAL and ICCarbitration are the two recognized systems,although neither one maintains a permanentchamber in Kosovo.A local arbitration court is being set up andpanel members have been appointed. This willoperate through the American Chamber ofCommerce and Kosovo Chamber of Commerce.1.4 The Concept of SocialOwnershipBefore 1989 almost all economic activitieswere operated through Socially Owned Enterprises(SOEs).The concept of social ownership is a longstandinglegal concept of the SFRY. It stemsfrom the communist doctrine of commonownership in the means of production (i.e.everything is owned by the workers, whocontribute to the betterment of society). TheSOEs reflected this concept. Enterprises existedthat were entirely socially owned. Theseenterprises were managed by a works council.Combinations of socially and privatelyowned enterprises were introduced by laterlaws. These laws provided for the possibilityof acquiring private ownership in previouslyentirely socially owned enterprises (e.g.through the transfer of shares to employees).The concept of private ownership rights inenterprises was continuously refined, and resultedin socially owned enterprises issuingshares to employees and private entities. Inmost cases, this resulted in mixed enterprisesthat were partially socially and partially privatelyowned. However, the legal system priorto 1989 did not provide for rules on the saleof socially owned property, the liquidation ofenterprises in social ownership or the privatizationof such entities. Only after 1989 wasthe sale of socially owned property or entireenterprises in social ownership provided for inthe SFRY legislation. All of these laws havenow been replaced and are relevant only for abetter understanding of the history of SOEs.Central POEs and the ones that are owned bymunicipalities, i.e. Local POEs. Local POEsare mostly local water and waste companies,local transport or heating companies.As of today the following Central POEs existin Kosovo:• Kosovo Energy Corporation JSC (KEK)• Transmission System and Market OperatorJSC (KOSTT)• Post and Telecommunications of KosovoJSC (PTK)• Kosovo Railways, JSC• Kosovo Landfill Management CompanyJSC• HPE Iber Lepenc, JSC• Radio Television of Kosovo (RTK)• Pristina International Airport JSC (hasbeen given by way of concession to theLimak-Airport de Lyon consortium in2010)A legal framework for the ownership of POEs,respectively their corporate governance is laiddown by the Law on Publicly Owned Enterprises,law no 03/L-087 (POE Law). Underthis law, POEs have to be organized as jointstock companies. This has occurred with allmajor PoEs.1.5 Publicly OwnedEnterprisesA publicly owned enterprise (PoE) was(pre March 1989) defined as a subcategory ofSoEs, performing infrastructure operations inthe public interest. Today, in Kosovo there arebasically two different types of POEs, the onesthat are owned by the Republic of Kosovo, i.e.9


102 CorporateLaw


Corporate law in Kosovo is laiddown in the Law on Business Organizations,law no. 02/L-123 promulgatedand entered into force on 27 May2008. It supersedes UNMIK Regulation no.2001/6 and UNMIK Administrative Direction2002/22.The Law on Business Organizations specifiesthe types of business organization throughwhich business activity may be conducted inKosovo, establishes the applicable registrationrequirements for each type of businessorganization, lists the legal provisions applicableto each type of business organizationwith respect to its legal capacity and structureas well as its rights and obligations, and therights and obligations of its owners, managers,directors, legal representatives and thirdparties. It also establishes the legal provisionsthat promote and facilitate the orderly and efficientcreation, operation and dissolution ofsuch business organizations.Similar to common practices in EU countries,only certain types of business can be registeredin Kosovo. According to the Law onBusiness Organisation these types are:(i)individual person enterprise (i.e. individualentrepreneur or sole trader),(ii) general partnership,(iii) limited liability company,(iv) limited partnership; and(v) joint stock company.It is also possible to register as a branch of aforeign company.2.1 Establishment ofCompanies2.1.1 Individual BusinessEnterprises andGeneral PartnershipsA personal business enterprise is establishedby the operation of a business by a soleproprietor who is a natural person engaged incommerce. No further acts of establishmentare necessary. This is the most common businessform in Kosovo and more than 95% ofbusinesses are registered in this form. Theowner has unlimited liability, meaning his individualassets can be pursued in the event ofdefault.law. In the latter case, a general partnership isassumed to exist, if two or more persons and/or organizations cooperate in the conduct ofbusiness activity. A written partnership agreementis not a precondition to establish a generalpartnership, thus it is sufficient, if suchcooperation is based on an oral agreement.The general partners are jointly and severallyliable for all debts and obligations incurred bythe general partnership.2.1.2 Limited PartnershipA limited partnership consists of at leastone general partner and at least one limitedpartner. It is incorporated by registration ofthe limited partnership memorandum – whichis the founding and constitutional documentof a limited partnership. The Business Registryissues a certificate of registration, whichserves as public conclusive evidence that thelimited partnership was properly incorporated.In case of a lack of such a memorandum,a limited partnership has not been incorporated,and all persons who have paid-in theircontributions become partners of a generalpartnership (and are thus fully and personallyliable). Each limited partner must have paidinhis contribution by the time the limitedpartnership memorandum is registered.The general partner of a limited partnership isjointly and severally liable for the debts of thepartnership without limitation, whereas thelimited partner is jointly and severally liableonly with his contribution to the limited partnership.Natural persons as well as legal personscan be partners in a limited partnership.A limited partner cannot represent the partnership.The limited partnership memorandumand the limited partnership agreementas well as the business signs, letterhead andother means that expose the limited partnership’sname to third parties must include thename of at least one general partner and thewords “a limited partnership”.Every limited partnership has a limited partnershipagreement containing provisions governingthe management, the operation of thebusiness, as well as provisions specifying thecontributions to the partnership capital ofeach partner.A general partnership comes into existenceeither through registration or by operation of11


2.1.3 CorporationsA corporation may either be a Joint StockCompany, JSC, (articles 126 et seq.) or a LimitedLiability Company, LLC (articles 78 etseq.). The corporation has to indicate its legalform in its name.A corporation is created only upon the registrationof its charter, which is the foundingand constitutional document of a limited liabilitycompany and a joint stock company.The charter must contain i.a.:• the name of the corporation;• the address in Kosovo at which thecorporation will have its principal placeof business; the address of its registeredoffice and the name of the corporation’sregistered agent at that address (theregistered agent must be a person with aKosovo ID who is present in Kosovo formost of the year);• the business purpose of the company,which may be described as “any lawfulbusiness purpose”; but the BusinessRegistry requires you to also use a list ofactivities which must be identical to thelist of codes and business descriptions inthe Excel spreadsheet list on the Registryweb site;• the charter capital (which must be at leastEUR 1,000 for an LLC / EUR 25,000for a JSC);• the denomination of the share capital, i.e.nominal value and number of shares;• the names and addresses and IDs orpassport numbers of the founders;• the names and addresses of the ownersand their respective ownership interest(only for the LLC); and• the directors’ names and addresses oftheir residence in or outside Kosovo.Furthermore, there must be a company agreementi.e. articles of association (LLC) or bylaws( JSC), containing provisions governingthe management and operations of the company.The charter capital can be paid up in cash orin kind. In the case of joint stock companiesthere are stricter rules regarding the valuationsof in-kind contributions (article 149).In addition to registering with the BusinessRegistry, it is necessary to complete a registrationform, produce photocopies of foreignpassports of the directors and shareholdersand Kosovo residence IDs for any Kosovarcitizens.Where a subsidiary or a branch of a foreigncompany is being founded by a foreign entity,a notarized copy and certified translation ofthe foreign shareholder’s business registryextract or equivalent and of the decision tofound the company must be submitted. It ispossible to use a lawyer’s or an accountant’soffice or similar as the registered office eitheron a permanent tor temporary basis.2.1.4 Duration and costs ofthe foundationIn accordance with the Law on BusinessOrganizations the Minister of Trade and Industrywill publish a schedule of fees regardingthe registration of companies and otherservices provided by the Registry. Currentprovisions regarding fees of the foundationare provided in Administrative Direction no.2008/15 of 18 September 2008 by the Ministryof Trade and Industry.In practice, however, the Business Registryhas (already prior to the adoption of this direction)applied a simple fee structure of EUR23 for filing any document related to a limitedliability company, joint stock company, limitedpartnership or foreign company and EUR5 for any document related to a personal businessenterprise, limited partnership or generalpartnership. The fee must be paid into thecentral business registry account at the bankand evidence of payment must be submittedwith the filing.If a document delivered to the registrar forfiling meets all requirements of the Law onBusiness Organizations, the registrar shouldregister this within ten calendar days of receipt.In the case of shortcomings in the filing,the registrar should return the filing to theapplicant within ten calendar days of receipt,together with a brief written explanation ofthe reasons for refusal. In practice, written explanationsare not usually given but are givenorally when the person registering visits theBusiness Registry.2.1.5. The Business RegistryThe Business Registry is a central registerthat maintains the records of all registeredcompanies and trade names. Each registeredcompany can be found online by entering the12


company name or business ID on www.arbk.org/arbk. Application forms also are availableon that site, although note that many of themare now out of date and not accepted by theregistry.The Business Registry is responsible for:• the registration of new companies;• the registration of termination, voluntarydissolution and merger of companies;• the registration and reservation of tradenames; the registration of foreign businessorganizations;• handling new pledge registrations;• the receipt of the annual report of everyregistered business organization; and• the receipt of annual financial statementsand business reports of LLCs and JSCs.2.1.6 Foreign BusinessOrganizationA foreign business organization is any organizationthat has been established underthe law of a jurisdiction outside of Kosovoand engages in any kind of business activity inKosovo. Such a foreign business organizationmay engage in business activity in Kosovo tothe same extent as a Kosovo business organization.Prior to that, it has to register with theBusiness Registry and has to submit a “foreignbusiness organization memorandum” meetingthe information requirements according tothe Law on Business Organizations.A foreign business organization has to complywith such regulations, prior to engaging inbusiness in Kosovo. A notarized copy of thecertificate (translated into English, Albanianor Serbian if not in any of those languages)must be presented along with the same dataas mentioned above (2.1.3).2.1.7 Local Registration ofeach premisesUnder the Local Government FinanceAct 2008, each municipality can also requirea business that has any premises (whether nornot its headquarters) in its municipality toregister such premises as a further “businessregistration”. A copy of the Central Registrationcertificate and Business Informationsheet must be provided. The fee for such municipalityregistration is based on the activitytypes of the business (as registered or asshould be registered). Each municipality setsits own fees per activity type. The businessregistration fee ranges from EUR 100 (whichis the fee for example for a market stall inPristina) to EUR 1000 for a bank branch orEUR 20,000 or more in some municipalitiesfor airlines or mining companies.2.2 Main Focus:CorporationsAccording to the Law on Business Organizationsa corporation is a business organizationwhose capital is divided into a specifiednumber of shares ( JSC) or ownership interests(LLC). A corporation is a legal entity thatis legally separate and distinct from its owners.Its shareholders may be legal or naturalpersons.A corporation is liable for its obligationswith all of its assets. The founders are jointly(and regarding the LLC severally) liable forthe corporation’s obligations if they have notpaid-in their contributions to the chartercapital as well as for founders´ action beforeregistration.Minimum chartercapitalNumber ofshareholdersTransfer of shares2.2.1 Management of aCorporationJSCs have to allocate management functionsamong the shareholders’ meeting, theboard of directors, and the officers of thecompany.LLCs are managed by the owners´ (shareholders)meeting and one or more managingdirector, who has the authority to representthe company in the conduct of its normal andcustomary business activities.2.2.2 Shareholders’LiabilitiesLimited LiabilityCompanyShareholders’ primary liability is to paytheir contributions. Partial payments are allowed.Thus, within the first 30 days followingits initial registration a JSC may issue allor any parts of its shares of stock in returnJoint Stock CompanyEUR 1,000 2 EUR 25,000Unlimited, coownershippossibleCompany agreementmay imposerestrictions: otherwiseno pre-emption rightsexist by defaultUnlimitedBy public offering(after charter capitalhas been fully paid)or free transfer, i.e., nopre-emption rights butthey can be put in ashareholder agreement2According to section 3 ofthe Administrative Direction2001/24 amendingAdministrative Direction1999/2 and implementingUNMIK Regulation no.1999/4 on the currency permittedto be used in Kosovo,any reference to an amountpayable in DM shall bereplaced by the equivalentamount in Euros at theconversion rate of 1 EUR =1.95583 DM.13


for partial payment. Altogether no less than25% of the par value of the shares must bepaid. The unpaid balance must be paid by adate that is no more than two years from thedate of the initial registration. A penalty fornon-payment is provided by article 151 of theLaw on Business Organizations (forfeiture ofshares, court complaint).Article 151 provides that the shareholderswho did not pay in their entire contributionsto the charter capital are liable to the companyfor their unpaid balance. Moreover, no publicoffering may be made until the charter capitalhas been fully paid (article 153). Therefore,the full payment of the initial charter capitalis important in connection with the shareholders’protection and the issuance of shares.The share capital of the LLC must be paidinto the company within 14 days after registration.Before that, the company may notengage in business in Kosovo. However, anyperson taking action on behalf of the company,before the share capital has been paid, isjointly and severally personally liable.2.2.3 Board of DirectorsThe board of directors manages the businessof the company ( JSC) and therefore hasthe exclusive authority and competence to:• approve overall business strategy plans;• hire and discharge officers;• purchase – under certain circumstances –own shares of the corporation on behalfof the corporation;• convene and administer the shareholdermeeting;• determine the officers’ compensation;• determine the disposition of the corporation’sreserves;• ensure the observance of applicable lawand accounting standards by the corporation;and• issue shares and bonds within the limitsstated in the company’s charter.In general, the directors can not assume obligationson behalf of the corporation vis-àvisthird persons individually. However, thecorporation may furnish individual directorswith the authorization to conclude certainagreements.As part of the business registration an “Information”sheet is produced, which usually showsthe authorization of each director. This is reviewedby companies and authorities in Kosovoto see if someone has the power to sign.The number of members of a JSC’s boardof directors depends on the number of totalshareholders:• one or more members for a companywith less than ten shareholders,• at least three members for a companywith ten or more shareholders and• at least seven members for a companywith more than 500 shareholders.2.2.4 Directors’ LiabilityNo director should be held liable for anyaction under the Law on Business Organizationsif he can prove, that he reasonably believesthat he acted with proper authority andin the company’s best interests and that he hasacted in good faith and with due and diligentcare and attention to his responsibilities (subjectto the conflict of interest rule below).The director is obliged by law to declare anyconflict of interest and not to vote in relationto such matter.Compared to other continental Europeanconcepts of director liability, the Kosovostandards for directors’ liability under this socalled“business judgment rule” are somewhatmore lenient. The standard is a subjective one(good faith of the director) and not the usualstandard of an objective one (comparison witha prudent director). However, there are provisionsin the Criminal Code, which make adirector liable for other offences such as enteringinto an unfavourable contract.2.2.5 OfficersOfficers of a JSC are appointed by theboard of directors and have the powers andauthorities assigned to them by the by-laws.Each corporation must have a secretary whois responsible for the preparation and administrationof shareholder meetings and boardmeetings.Officers are liable in the same way that directorsare.2.2.6 Transfer of sharesin a Limited LiabilityCompanyIt is possible to transfer shares (“ownershipinterests”) in a Kosovo limited liability companyfreely in whole or in part, provided thecompany agreement does not provide oth-14


erwise and subject to pre-emption rights forother shareholders (unless excluded).If shares in a limited liability company aretransferred, the registered charter of the companymust be amended accordingly and thechanges must be notified to the Business Registry.In practice, this has often caused considerableconfusion, since the requirements of theBusiness Registry were often perceived as arbitrary.In the following we have summarisedthe procedure provided by law and last appliedin practice in Pristina:• Adoption of a resolution of the ownersauthorizing an amendment to the registeredcharter;• Such resolution authorizing the amendmentshall instruct an “authorized person”(note: every document to be submittedfor registration shall be signed by suchperson, which is either an officer of thecompany or an officer of the board ofdirectors or a founder of the company ifthe document is submitted in connectionwith the initial registration of the company)to sign and submit a notice to theBusiness Registry, containing:• the name and registration number of thelimited liability company;• the text of each amendment adopted;• the date of each adoption of each amendmentby the owners;• a statement that the amendment wasduly approved by the owners in a mannerthat is consistent with the present law,the charter an the by-laws;• a statement that the person signing andsubmitting such notice is an “authorizedperson” and that such person has beenduly authorised to sign and submit thenotice• a copy of the respective resolution(s);• the text of the concerned document(here: the registered charter) as amended(the law states that such document doesnot need to be signed by the owners ofthe limited liability company)In practice, the application should also contain:• an original or certified copy of the sharepurchase agreement regarding the transferof the ownership interest• a confirmation that the respective purchaseprice has been duly transferred andreceived• copies of the passports of the signingindividuals• the completed form no. “A 8” (see:website of the Business Registry underhttp://www.arbk.org/arbk/)• a “proof of payment” regarding the registrationfeesIn case the parties applying for a registrationare not individuals, it might also be advisableto provide for official excerpts regarding theselegal entities.Once all the documents are submitted to theBusiness Registry (it is not possible to electronicallysubmit documents) a respectivepayment form is issued. Such payment formprovides for the transfer of registration feesto an “authorized bank” and must (after thetransfer of fees is confirmed on such form) beimmediately submitted to the Business Registry.2.3 Share certificates andshare registersShares do not need to have certificates.There must however be a share register keptat the company’s registered office.2.4 Annual generalmeetings and reportsAnnual general meetings of JSCs must beheld within 60 days after the board receivesthe company’s audited financial statements,but not later than 90 days after the end ofthe company’s financial year. Every registeredbusiness organization must submit an annualreport to the Business Registry between January1 and April 30 of each year together witha copy of the accounts.2.5 Transformation of entitytypesThe current business law does not providefor a transformation from one entity type toanother.In practice, the registry does permit this. Inorder to conduct a transformation, a certificatemust be produced by the tax authorityshowing all taxes have been paid. There is noneed to notify creditors of such transformation.15


3Increase in Borrowing,Capital & Bonds4 ForeignInvestors16


Provisions regarding increases inthe charter capital of a corporationare provided by the Law on BusinessOrganizations. The shareholders’ meeting canincrease the charter capital by either increasingthe par value of shares or by issuing additionalshares. More detailed information onthe increase of charter capital can be foundin the Law on Business Organization (LLCarticle 79, JSC article 154 et seq).3.1 Bankruptcy ProvisionsLaw no. 2003/4 of the Assembly of Kosovoon the liquidation and reorganization of legalpersons in bankruptcy, promulgated by UN-MIK Regulation no. 2003/7, provides that acreditor can submit an insolvency petition toa court if (a) the debtor has failed to pay adebt that is at least 60 days overdue; or (b)the total amount of the overdue debt exceedsEUR 5,000. A debtor can initiate insolvencyproceedings under the same conditions. Thereare also advertisement requirements. Secondarylegislation exists setting out the rules forboth liquidation and reorganisation and therequirements of the liquidator, administratorand creditor committees.Public and social enterprises are not subject tothis Law but to a separate insolvency regulation2005/48.According to UNMIK Regulationno 2006/28 on Foreign Investment,foreign investors are granted thesame treatment as resident investors and donot require an further licence or approval.Therefore, foreign investors may establishsubsidiaries, branches, and representative officesto the same extent as domestic businessorganizations and foreign investors must notbe taxed less favourably than domestic businessorganizations, etc.In addition foreign investors may:• open bank accounts in the currenciesthat are legally permitted (Bank accountsin any foreign currency also may beopened);• transfer into and out of Kosovo profitsafter the payment of taxes;• use their investments and any incomelawfully received for any lawful purpose;and• retain the profits of their investment, andconvert such into another currency in anydomestic or foreign market.Detailed provisions concerning the protectionof foreign investors against unjustified expropriationwere also incorporated in this law.Furthermore, the Ministry of Trade and Industryof Kosovo has established the InvestmentPromotion Agency of Kosovo (IPAK),which is intended to provide a one-stop shopservice to both local and foreign investorsseeking investment opportunities in Kosovo.17


5 TaxLawThe Kosovo tax system is a young system.The first state duties were introducedin 1999 by the implementationof a customs regulation. Since 2000, furthertaxes have been implemented continuously,e.g. municipal taxes. However, until now therehas been no integrated fiscal code governingall tax aspects, but rather several regulationsissued to cover the main taxes applicable inKosovo. Recently the government of Kosovohas approved a package of tax cuts which arevalid starting from 1 January 2009. Corporateincome tax was reduced to a flat-rate of 10%,VAT was increased to 16%.The regulations aim to strengthen the developmentof the economy and be generally consistentwith European standards.The most important taxes are:• corporate income tax,• personal income tax;• value added tax;• rent withholding tax;• custom duties;• excise tax;• municipal tax (immovable property taxand business licence fee); and• quarrying and mining tax.5.1 Fiscal NumberAll business organizations registered inKosovo must apply for, and receive, a fiscalnumber from Tax Administration of Kosovo-TAK before beginning any economic activity.Applications for the fiscal number must bemade to the applicable TAK regional officewithin 15 days after company registration.TAK may make an official visit to the businesslocation prior to issuing of a fiscal number.The visit must take place within 5 businessdays after receiving the application. TAKmust make a decision on whether to issue anumber, or not, within 10 days after receivingthe application.5.2 Corporate Income TaxOn 29 December 2009 the Kosovo Assemblyadopted the Law on Corporate IncomeTax (Law No. 03/L-162), which entered intoforce on 1 January, 2010. In the following it isreferred to this law.18


The following are subject to corporate incometax:• corporations or other business organizationsthat have the status of a legal personunder applicable law in Kosovo;• companies operating with public or sociallyowned assets;• organizations registered with UNMIK asnon-governmental organizations; and• permanent establishments in Kosovo ofnon-residents . Such permanent establishmentsinclude but are not limited to:plants, branch offices, representation offices,factories and construction sites. (Seesection 5.10 below.)The corporate income tax rate is as of 1 January2009 10 % of the profits (for further rules,see section 5.2.3). Certain revenues like somerevenues of non-governmental organizationswhere those organisations have the publicbenefit status certificate are exempted fromcorporate income tax.5.2.1 Deductible ItemsExpenses are considered deductible ifthey are incurred during the tax period whollyand exclusively in connection with conductingthe business activity.In particular, representation costs (advertisements,marketing) are partially deductible, upto 2% of the annual turnover, as are donationsmade for humanitarian, health, educational,religious, scientific, cultural, environmentaland sports purposes, up to 5% of the taxableincome before taxes.There is a cap on expenses that can be claimedfor the maintenance of vehicles. The tax authorityalso will not allow as an expense aninvoice from a company that is not registeredin Kosovo when it should be. The tax authorityalso does not easily recognize the validityof inter-company agreements, e.g. for servicesprovided by the parent company or headquarters.Expenses that are not deductible include, forexample, costs associated with the acquisitionof real estate, the acquisition of goods that canbe amortized, contributions to reserve funds/provisions, fines and the value added tax forwhich the taxpayer claims a deduction ofinput tax. Further, expenses which are €500or more are only deductible if paid by banktransfer and all expenses need the businessregistration number, fiscal number and fullname of the supplier and business registrationnumber, fiscal number and full name ofthe purchaser on the coupon or invoice. A listof all expenses over €500 with details of supplierand the nature of the expense must besubmitted by 31 March each year to the taxauthority.5.2.2 Losses CarriedForwardLosses may be carried forward and may besettled against future profits for seven consecutivefiscal years unless the owner changesby more than 50% in which case the loss is“terminated”. First, losses have to be settledagainst profits of the same category of income(horizontal loss adjustment). Currentlythere are no grouping provisions in Kosovothat would enable losses in one company tobe offset against the taxable profit in anothercompany in the same group.5.2.3 Corporate Assessmentsand PaymentsThe fiscal year corresponds to the calendaryear.Taxpayers are required to make quarterly advancepayments for the immediately precedingquarter to any authorized bank. These advancepayments have to be made on or before15 April, 15 July, 15 October and 15 Januaryof each year.Enterprises with an annual turnover of lessthan EUR 50,000 can be taxed either on anactual profit basis (i.e. after deducting expensesas above) or a presumptive tax basis (basedon turnover).The turnover basis applies if the taxpayer doesnot opt for taxation on the actual profit basisand its turnover is less than EUR 50,000.These enterprises pay three percent (3%) ofeach quarter‘s gross income, if the income isgenerated from trade, transport, agriculturaland similar commercial activities and fivepercent (5%) of each quarter’s gross income,if the income is generated from services, professional,vocational, entertainment and similaractivities. In any case the enterprises mustpay no less than thirty seven euros and fiftycents (€37.50) per quarter. The turnover basisoption is not available to branches of foreigncompanies.19


However, such enterprises can also opt to betaxed on the basis of 10% of actual taxable incomeby submitting a form. They must thenproduce related financial statements.The payments of enterprises that opt for the“real” and not presumptive tax basis are as follows:• ¼ of the estimated corporate incometax liability for the year, less any amountalready withheld in relation to a residentor non-resident person with respect tointerest, dividends and rent; or• ¼ of the 110% assessed tax liability ofthe previous tax period reduced by anyamount already withheld in relation to aresident or non-resident person or withrespect to rent.Additionally, such tax payers are obligated tosubmit an annual tax declaration to the taxadministration on or before the 1 April of theyear subsequent to the tax period and to paythe taxes that have not been paid up to suchdate. Together with the tax declaration, thesetaxpayers are also required to submit financialstatements.Together with the submission of the final taxdeclaration, a confirmation of the already paidtaxes should be submitted. The taxpayer is entitledto receive a refund for any surplus.5.2.4 Taxation of PermanentEstablishmentsA permanent establishment is consideredto be any workplace through which a nonresidentperson carries on a business in Kosovo.This place can be a plant, a branch office,a representative office, a factory, a shop, etc.In practice, such non-resident person is subjectto corporate income tax for the profitsmade in Kosovo.Non-resident persons with a permanent establishmentin Kosovo can obtain an officialdocument from the Kosovo tax administration,certifying the amount of taxes they havepaid, so that this can be used to obtain a creditif permitted by the foreign tax authority.The test for corporate income taxation in Kosovois far-reaching and the tax authority underLaw 162-3 taxes companies who acquireincome as a result even of a short consultancyvisit to Kosovo, even when they have no permanentoffice or staff in Kosovo if their com-pany bills work for more than 90 cumulativestaff days spent in Kosovo or are present formore than 185 days. After such a period tax isdue retrospectively.VAT is also chargeable by entities doing businessin Kosovo irrespective of the period ofresidence and even for services. Kosovo hasenacted the “place of suppy rules” from the 6 thDirective.There is a 5% withholding tax on paymentsfor services to any entity, which is not registeredin Kosovo but should be.5.2.5 Withholding TaxLaw 162-3 on Corporate Income Tax alsoprovides for regulations of the withholdingtax. This Law provides that each taxpayer whopays interest or royalties to a resident or anon-resident person is liable for withholding10% tax at the time of payment.The income generated by a non-resident personor entity from entertainers in Kosovois subject to a withholding tax, if the nonresidentperson or entity has no permanentestablishment in Kosovo and the gross compensationreceived is more than five thousand(5,000) € in any tax period. The withholdingtax applied is five percent (5%) of the grosscompensation.There is also a withholding tax on rent.Whenever a legal person, e.g. a limited liabilitycompany, pays rent, 9% of the gross rentmust be withheld.Any person on whose behalf tax is withheldcan request receipt of a certificate from thetaxpayer concerning the withholding of theabove tax. This certificate has to be issued by1 March of the subsequent year. Please notethat such certificate is not issued by the Kosovotax administration, but rather by thepayer itself in the form established by the taxadministration.5.2.6 Avoidance of DoubleTaxationThe Law on Corporate Income Tax providesthat any applicable bilateral agreementon the avoidance of double taxation supersedesdomestic legal provisions.• Kosovo authorities do not recognise thetax treaties signed by the former Federal20


Republic of Yugoslavia. There is one doubletaxation treaty that has been signedwith Albania. The Free Trade Agreementswith Bosnia and Macedonia alsorequire entry into double taxation treatiesbut none exist.• The absence of double taxation treaties inparticular causes problems in cash-flowand bureaucracy, and is most acute forex-pat workers whose time is dividedbetween Kosovo and other countries.5.3 Personal Income TaxThe Law on Income Tax 3-115 of December2008 regulates the personal income taxregime. As this was the case in introducingthe corporate income tax, this regulation aimsto introduce one single tax for all sources ofincome derived by individuals.5.3.1 Taxable PersonsTaxable persons are resident and nonresidentnatural persons who receive incomein Kosovo. A resident is defined as a naturalperson who has his principal residence in Kosovo.A natural person is also deemed residentif physically staying in Kosovo at least 183days in one fiscal year.Therefore, the following individuals are subjectto Kosovo’s personal income tax:• residents on taxable income derived fromKosovo source income and foreign sourceincome; and• non-residents on taxable income derivedfrom Kosovo source income.5.3.2 Taxable IncomeThe taxable income for a tax period is calculatedusing the difference between gross incomeand any allowed deductions.Gross income consists of income from: a)wages, b) business activities, c) rent, d) use ofintangible property, e) interest, f ) dividends,g) capital gains (note: the relevant regulationsin article 14 of this statute shall become inforce on 1 January 2010), h) lottery or othergame of chance prizes, i) pensions and h) anyother income that increases the taxpayer’s networth.5.3.3 Tax RatesThe personal income tax rate system is aprogressive tax system with a 10% maximumtax rate. Taxes must be withheld by employerson a monthly basis at set amounts.Income taxes are zero for the first EUR 80per month, 4% for the next EUR 170, 8% forthe next EUR 200. For earnings above thisper month, they are 10%. In other words, forearnings above EUR 450 per month the taxAnnual taxable income Tax rate, as of 1 January 2009Up to EUR 960 0%EUR 961 up to EUR 3,000EUR 3,001 up to EUR 5,400More than EUR 5,400is EUR 273.6 plus 10% on the amount aboveEUR 450.Nearly all benefits are taxable except for themandatory payments to the State pensionscheme and up to EUR 50 per month in benefitsin kind such as provision of a canteenlunch at work or a mobile phone.5.3.4 Taxation of ForeignersThe only concession for the taxation of foreignersis that foreigners do not need to paypersonal income tax on the accommodationsprovided for them or on school fees. However,the employer must withhold 9% of therent owed to the landlord of the employee’sapartment. Expatriate personnel usually areemployed under a Kosovo labour contract andconsequently, liability for taxes is incurred asof the first day of work. The employer mustwithhold income tax on pay for ex-pats justas such employer must do for locals. The onlydifference is that there is no obligation tomake the pension contributions for ex-pats.5.4 Value Added TaxThe VAT regime in Kosovo follows the mainprinciples of the EU 6 th Directive with somesubtle differences such as requirements topay VAT on goods at the border. Thus, it is atax that is added to the sale of all goods andservices. Kosovo enacted the rules on reversecharge VAT from 1 August 2010.5.4.1 Basic VAT Rules4% of the amount exceeding EUR960EUR 81.60 + 8% of the amountexceeding EUR 3,000EUR 273.60 + 10% of the amountexceeding EUR 5,40021


VAT is chargeable on taxable values of importsand domestic supplies of goods and services.Generally, the VAT rate is 16%. Yet, theexport of goods is zero-rated, meaning that0% VAT is charged for the export of goods.The law also defines what is considered a supplyof goods versus a supply of services. Thetaxable value of a taxable supply in Kosovo isthe total consideration payable for that supply.For imports, the taxable value is the customsvalue plus customs duties, excise taxes, transportcosts and other charges levied in customs.No VAT has to be paid i.a. for:• exports of goods (0%);• imports, and supplies of the goods listedin the Annex of the law (0%);• import of a traveller’s personal effects orof tourist duty free goods (not taxable);In addition, the Regulation on VAT providesfor certain rebates or exemptions, for examplefor some donor funded projects. Supplies offinancial services are also VAT exempted.5.4.2 “Persons” obligated toregisterIndividuals, as well as legal, public and privatepersons, are all obliged to register withthe tax authorities if they perform the followingactivities:• import and export of goods or services; or• supply of goods or services (which areneither imports nor exports) with a turnoverexceeding EUR 50,000 per calendaryear or whereby the turnover is likely toexceed EUR 50,000 over 12 months; registrationmust in any event occur within15 business/calendar days of exceedingthe turnover.5.4.3 Deduction of input taxOnly registered suppliers are entitled todeduct input taxes on supplies on which VATis imposed. A deduction of input taxes onlymay be applied to items used for supplies thatare subject to VAT.A deduction of input tax requires that thesuppliers be in possession of authentic customsdocuments for imports or exports or, inthe case of other supplies, in possession of anauthentic invoice issued by the taxable personor in possession of proof that the debt hasbeen paid.The following supplies do not qualify for a deductionof input tax:• fuel purchases;• travel, representation, lodging, meal andentertainment expenses; and• 50% of the expenses related to cars.• for major capital goods and machinery,there is a 6-month deferral period if thetaxpayer (the enterprise) is a newly establishedbusiness for the payable VAT5.4.4 VAT ComplianceVAT compliance provides for the monthlysubmission of VAT returns to the competenttax authority and monthly payment of VATdue by the 20 th of the month following thereporting month. The submission has to becompleted by the 20 th of the month subsequentto the reporting month, at the latest.Late filings or the payment of taxes is subjectto penalties and interest.The deduction of input tax is calculated basedon the information recorded in the sales andpurchases books. VAT records have to be keptfor 5 years.5.4.5 Reverse VAT chargeThe Minister of Economy and Finance hasissued a sub-legal act to provide that he personliable for payment of VAT should be thetaxable person to whom supplies are made,where the service is in effect “imported” e.g.supply of legal or IT services to a bank in Kosovo.5.5 Social Security andHealth InsuranceChargesCurrently, Kosovo has established onlyone mandatory social charge in the form ofpension contributions, which are administeredand managed by the Kosovo PensionSavings Trust (Trusti). The pension law 2008provides that both employees and employersshould contribute to the individual savingspension system. This is a defined contributionscheme, with an account held for each individualwho has invested therein. Each individualreceives an annual account statement.Foreigners are not obligated to make suchpension contribution.22


Employees have to contribute 5% of theirmonthly wages to their pensions, which ismatched by another 5% contribution contributedby their employer.In practice, employers withhold and pay forboth elements.Only 5% is deductible by the employer as acorporate tax expense, unless the employerwithholds income taxes on the contributionas well.There are currently two licensed supplementarypension schemes.Similarly, income taxes must be withheld onany payment to a health insurance scheme,as it is treated as a taxable benefit. Insuranceschemes for accidents or death on the job arenot treated as taxable benefits.5.6 Salary Taxes andPension ChargeComplianceEmployers are obligated to withhold anemployee’s pension contributions and personalincome taxes, and to pay such contributionsand taxes by the 15th of the month followingthe reporting month.At the same time, employers are obligated tosubmit a monthly payroll record, a wage taxwithholding and remittance statement, anda statement of pension contributions andremittance form. A monthly pension reportform must also be submitted.The current customs tariff is based on the harmonizedsystem of the World Customs Organisation.5.8 Excise DutiesThe Law on Excise Taxes, amended in 2008and 2009, provides a list of goods subject toexcise tax. The goods subject to excise taxesinclude: coffee, wine, cigarettes, and othertobacco products, oils, fruit juice and otherdrink concentrates, cars and other motor-operatedvehicles. Fixed amounts are providedfor certain goods.5.9 Real Estate TaxThe municipal property tax is regulatedby UNMIK Regulation no. 2003/29, atlast amended by UNMIK Regulation no.2006/59. In general, the person liable for payingthis tax is the real estate owner. The rate isset on an annual basis between 0.05 % and 1% of the market value of the real estate. Thereare different rates for residential and commercialproperty. The annual tax has to be paid intwo equal portions no later than on 30 Juneand 31 December of the tax period.The municipalities in each jurisdiction mustassess the real estate and update the marketvalue of each real estate parcel every three tofive years. Furthermore, the municipality hasthe authority to collect the tax for the realestate (Law no. 03/L-049 on Local GovernmentFinance).Foreign individuals are not obligated to contributeto the local pension system, but maychoose to do so.5.7 Customs Duties andCustoms CodeCustoms are regulated by the Customs andExcise Code (no 03/L 109) and the AdministrativeInstruction of the Minister of Economyand Finance implementing this Code.The regulation on customs provides for a customsrate of 10 % for all goods imported intoKosovo. The goods listed in the annex of thisregulation are excluded from this rate.23


67LabourLawPublicProcurementLawsEmployment relationships are governedby UNMIK Regulation no.2001/27 on Essential Labour Lawin Kosovo concerning employment contractsand collective agreements, as well as by thepredecessor 1989 Kosovo Labour Law. Theregulation also provides for the protection ofemployees’ rights against anti-union discriminationand gender discrimination. Additionally,the regulation provides for annual leaves,minimum wage, overtime pay, maternity leaveand sick leave. At the time this brochure wentto print a new Labour Law was discussed inthe Parliament of Republic of Kosovo.6.1 Protection againstDiscriminationLabour law protects employees againstdiscriminatory treatment because of race,colour of skin, sex, religion, age, family status,political opinion, national origin, sexual orientation,language or union membership.6.2 Labour UnionsEmployees have the right to organize labourunions. Until 1989, labour unions hadgreat influence on corporate management.During the war and afterwards, the influenceof worker organizations started to weaken andmany of them are no longer active. Therefore,many collective agreements that were the basisfor most employment contracts no longerapply.6.3 Labour ContractsLabour law establishes certain mandatorystandards to be provided for in labour contractsby giving flexibility to their contents, aslong as it does not conflict with applicable law.The law permits defined term employmentcontracts for a maximum of 10 years as wellas indefinite employment contracts. Contractsmust be in the mother tongue of the employeeand must be in writing.Labour law mainly contains provisions regardingthe termination of employment contracts.Please note that economic, technological,or structural changes to the enterprise arealso reasons that justify a termination by anemployer.When a minimum of 20 employees are dischargedwithin a 6-month period, it is considereda large-scale layoff, to which certain protectiveprovisions apply. These are essentially:• 1 month prior notification of the plansto decrease the number of personnel andnotification of the measures to be takento alleviate the consequences of suchdismissals;• measures to be taken to limit the numberof dismissals;• severance payments to be paid accordingto the duration of the employment relationship(between one and seven monthlysalaries).24


6.4 Working HoursThe Kosovo labor Law no. 03/l-212 containsdetailed provisions regarding workinghours, such as that working hours ought notto exceed 40 hours per week and a workingday ought not to exceed 12 hours. Overtimemay not exceed 20 hours per week or 40 hoursper month. The regulation provides that overtimehas to be paid at a rate of 20% to 50%per hour or if the employee agrees be compensatedwith corresponding time off.6.5 Paid LeaveThe law provides for the following paidleaves:• The annual leave of 4 weeks.• Official holidays: If an employee workson such day, the hours are considered asovertime (50% supplemented).There are also various entitlements like:• 5 days for wedding.• 5 days for family funerals.• 1 day for blood donations.Maternity leaves entitle female employees to6 months of paid maternity leave at 70% oftheir salary paid by employer and a further 3months at 50% paid by the government and 3months unpaid. The is a right to parental leaveof 2 weeks before the child is 3. There is alsorights to part-time working.6.6 Unpaid LeaveThis type of leave is subject to an agreementbetween the employee and employer.6.7 Sick LeaveAn employee is entitled to 20 working dayspaid sick leave.6.8 Working ConditionsWorking conditions are subject to supervisionby the labor inspectorate. Fines for violatinglabor regulations vary from EUR 5,000to EUR 10,000 (Law on Labour Inspectorateno 2002/9, amended by Law no 2008 03/l-017).6.9 Work permitsEmployees of foreign investors are subjectto the same laws (applicable in Kosovo) towhich employees of Kosovar enterprises aresubject. Foreign investors are entitled to employstaff of any nationality. However, the Lawon foreigners requires work permits to be obtainedfor any foreigners working in Kosovo.The documents required for obtaining suchpermits are numerous including evidence ofyour residence in Kosovo from your local residentsassociation and your landlord, evidenceyour landlord has paid his property taxes, aresidence permit (which includes evidence ofsufficient funds in Kosovo for your plannedperiod of residence), police checks from thehome country and from Kosovo, evidence ofyours and all your business tax compliancein Kosovo, evidence of health insurance andsome cases health checks. The rules set outminimum employment ratios of foreigners toKosovars. It takes between 2 and 6 months toobtain this work permit.7. Public ProcurementLawsPublic procurement in Kosovo is subject tothe Law on Public Procurement in Kosovo(law no. 2003/17, promulgated by UNMIKRegulation no. 2004/3 and amended by UN-MIK Regulation no 2007/20) and the Law onthe Procedure for Awarding Concessions (lawno. 02/L-44 promulgated by UNMIK Regulationno. 2006/27).The law on public procurement governs theprocurement of public construction, deliveryand service contracts and, under the amendment,will also cover service concessions.Concessions law governs infrastructure concessionagreements. Besides rules concerningthe award procedure and the mandatorycontent of offers, public procurement law alsocontains legal protection rules. There is a veryshort period during which complaints may besubmitted. The concession law was set up particularlywith regard to the implementation ofinfrastructure projects and therefore containsspecial rules for issuing construction concessionsin this context. The concession lawprovides for a subsidiary application of thepublic procurement law, provided such publicprocurement law contains nothing contrary tothe concession law.In practice, as no detailed concessions ruleshave been drafted, the public procurementtender templates and rules are followed forconcessions.25


268 IntellectualProperty Protection


Acomprehensive legal frameworkon intellectual property protectionwas established in Kosovo, includingthe protection of the following intellectualproperty rights:• patents,• trademarks,• industrial design and• copyright and related rights.Furthermore, new legislation on product piracyentered into force in Kosovo in 2008.8.1 Patents, Trademarksand Industrial Design8.1.1 RegistrationProceduresProtection of patents, trademarks andindustrial design in Kosovo can be obtainedby registration in the respective property rightregister conducted by the newly establishedIndustrial Property Office 3 of Kosovo.The Industrial Property Office was establishedin Pristina in November 2007. The registrationprocedure before the Industrial PropertyOffice is governed by three AdministrativeInstructions (AI) corresponding to the respectiveintellectual property rights (patent,trademark or industrial design) 4 .The English version of the application formfor the registration of a patent, a trademarkor an industrial design is attached to the respectiveInstruction. The application must befiled with the Office in the official language ofKosovo (Serbian or Albanian).Applicants without residence in the territoryof Kosovo shall appoint a so-called authorizedrepresentative to be responsible for theprocedures before the Industrial Property Office(AI No. 2007/11 5 ). Such authorized representativesare registered in the RepresentativesRegistrar headed by the Office 6 .Official fees in all procedures regarding registrationand maintenance of patent rights,trademarks and industrial design and the procedureof payment are regulated by the AdministrativeInstruction No. 2007/19 7 .8.1.2 Patent ProtectionPatent rights are governed by the PatentLaw No. 2004/49 promulgated by the UN-MIK Regulation No. 2004/56. In Kosovo, aninvention shall be protected by a patent if it isnew, involves an inventive step and is industriallyapplicable. The terms “novelty”, “inventivestep” and “industrial applicability” are definedby the Patent Law.In accordance with internationally recognisedstandards in this field, a patent constitutes aproperty right. The patent owner is entitledfor a limited period of time to exploit theprotected invention and to exclude othersfrom producing, using or selling the inventionwithout permission.On the other hand, any person (natural orlegal) may file a motion with the IndustrialProperty Office of Kosovo to declare a patentnull and void for reasons stipulated by thePatent Law (e.g. the invention was not newor did not include an inventive step as of thepriority date). The Office finally issues the decisionon the declaration of nullity of a patent(entirely of partially) or on the refusal of themotion.The right to exploit the protected inventionmay be assigned by a license contract. A patentmay be transferred completely or partially.The patent right is granted for a period of 20years after the filing date of the patent application,provided that annual maintenancefees are paid duly for the third and each subsequentyear.8.1.3 Trademark ProtectionThe independence of Kosovo declared bythe Kosovo government had significant impactson the system of trademark protection.Former trademark rights granted as nationalSerbian trademarks or international trademarksof the WIPO 8 (with the Republic ofSerbia as the required designation) ceasedto be valid in Kosovo. Since the deadline forrevalidation of these former rights expired inNovember 2008, trademark protection shallbe obtained only in form of new national Kosovotrademarks registered by the IndustrialProperty Office 9 of Kosovo.National Kosovo trademark law meets theEuropean Union requirements 10 and inter-3Industrial Property Officeas a part of the Ministry ofTrade and Industry, http://www.mti-ks.org/index.php?cid=2,381.4AI No. 2007/10 on theProcedure of Registrationof Patents, AI No. 2007/13on Trademark RegistrationProcedures and AI No.2007/12 on the IndustrialDesign Registration Procedures.5Administrative InstructionNo. 2007/11 on Representationof Rights in the Sphereof Industrial Property.6The AI 2007/11 stipulatesrequirements for registrationas an authorized representativeof Kosovo, suchas certain professional qualificationsor an exam beforethe panel of the IndustrialProperty Office.7Administrative InstructionNo. 2007/19 on AdministrativeTaxation of IndustrialProperty Objects.8World Intellectual PropertyOrganisation (WIPO),www.wipo.int.9Industrial Property Officeas a part of the Ministry ofTrade and Industry, http://www.mti-ks.org/index.php?cid=2,381.10First Directive 89/104/EEC of the Council, of 21December 1988, to Approximatethe Laws of theMember States Relating toTrademarks (OJ EC No L40 of 11.2.1989, p. 1).27


11Promulgated by the UN-MIK Regulation 2006/17.nationally recognised best standards andpractices in this field. The Law No. 02/L-54on Trademarks was adopted by the KosovoAssembly and promulgated by the UNMIKresolution No. 2006/38.Any signs, particularly words, designs, letters,numerals, audio marks and three-dimensionalconfigurations capable of distinguishinggoods of one undertaking from those of anotherundertaking shall be protected as trademarksin Kosovo.The proprietor of a registered trademarkowns exclusive rights to use the trademark inrelation to goods or services covered by theregistration. On the other hand, a registeredtrademark can be revoked if it has not beenused by the proprietor in Kosovo within fiveyears from the date of registration and there isno proper justification for non-use.A trademark is registered for a period of tenyears. The registration may be renewed forfurther ten-year periods by payment of a renewalfee.8.1.4 Industrial DesignProtectionIn compliance with the European Unionstandards, the Law on Industrial Design (LawNo. 02/L-45 11 ) establishes the conditions forthe protection of the design of a product inform of an industrial design. The design canbe protected by an industrial design in Kosovoif it is an innovation with a specific character.The terms “design innovation” and “specificcharacter” are exactly defined by the Law onIndustrial Design with respect to the availabilityto the public and consumers’ impression.The owner of an industrial design right isgranted the exclusive right for exploitationof the registered design and the right to barother persons from using the same designwithout permission.Industrial design may be licensed entirely orpartly or transferred onto other persons. Thelicense can be granted for the whole or for apart of the territory of Kosovo.The protection of the industrial design lastsfive years and can be extended for further fiveyearperiods up to a maximum of 25 years bypayment of extension fees.8.1.5 Rights EnforcementOwners of patents, trademarks and industrialdesigns protected in Kosovo are entitledto a civil action before the competent courtagainst any person who infringes their propertyrights.The substantive laws on patents, trademarksand industrial designs create the legal basisfor the respective intellectual property rightenforcement by defining the infringementsof the rights, as for example selling productsmanufactured according to a patent invention,using a sign that is identical or deceptivelysimilar to the registered trademark or imitatingthe protected design of a product withoutconsent of the respective owner.If the right holder deems his right was infringedor there is a risk of infringement ofhis right, he may request ordering provisionalmeasures before the final decision of the courtcomes into effect. If appropriate, in particularwhere any delay is likely to cause irreparableharm to the right holder, the court may orderinterim injunctions, such as the order to ceaseand desist from acts infringing the intellectualproperty right or to seizure products resultingfrom such infringements.The interim measures are explicitly stated inthe Patent Law and the Law on IndustrialDesign. According to the Law on Trademarks,any judicial remedy that is available toproprietors of other types of property rightsshall also be available to proprietors of a registeredtrademark.8.2 CopyrightAuthors (natural persons) of works in theliterary, scientific and artistic field enjoy protectionwith respect to their works and theiruse according to the Law No. 2004/45 onCopyright and Related Rights promulgatedby the UNMIK Resolution No. 46/2006(“Copyright Law”).In particular, spoken and written works, musicaland theatrical works, film and photographicworks, works of architecture or computerprogrammes are considered as copyrightworks.28


8.2.1 Granting of CopyrightProtectionIn compliance with internationally recognisedstandards, a created work is consideredprotected by copyright as soon as it exists.No prior administrative formalities arerequested for granting copyright protection.8.2.2 Rights of Authorsand Related Rights toCopyrightA copyright consists of• non-assignable exclusive moral (personal)rights, especially the right of first disclosureand the right of recognition ofauthorship,• exclusive economic rights, especially theright of use of the work and connectedrental,• other rights of the author, as for examplethe right of exhibition of the work.The Copyright Law also comprises specialprovisions on copyright contract law withspecial copyright contracts, such as a publishingor performance contract.In general, the copyright shall be valid for thelife of the author and for 70 years beyond his/her death. Only economic rights and otherrights of the author and the execution ofmoral rights which last beyond the death ofthe author are subject to succession.The Copyright Law of Kosovo also regulatesthe so-called “related rights to copyright” witha specific (mostly shorter) duration whichhave rapidly developed over the last decades(such as rights of performing artists, producersof sound recordings, film producers,broadcasters or publishers etc).8.2.3 Protection ofForeignersAccording to Copyright Law, foreignersenjoy the same protection as domestic persons;this protection is based on• international agreements,• factual reciprocity,• certain criteria stipulated by the CopyrightLaw, such as domicile in Kosovo,first publication of the work in Kosovo orwork performance in Kosovo.With respect to moral rights, foreign authorsand performers finally enjoy protection underCopyright Law in any case.8.2.4 Rights EnforcementIn case of infringement of their rightsgranted by the Copyright Law, right holdersmay demand judicial protection in Kosovo byraising a claim corresponding to the kind ofinfringement as stipulated by the CopyrightLaw.The Copyright Law provides comprehensiveclaims on rights protection, including thestatement of the infringement of rights, recoveryof material and non-material damagesand the publication of the judgement in publicmedia at the infringer’s expense.8.3 Product PiracyUNMIK Regulation No. 2008/22 on ImplementingCustoms Measures RegardingGoods Infringing Intellectual PropertyRights establishes customs procedures to enableUNMIK Customs Services to take actionagainst goods infringing intellectual propertyrights, such as counterfeit goods bearing aregistered trademark without authorizationof the trademark holder, pirated goods andgoods infringing certain intellectual propertyrights (patents, geographical designation, etc).Intellectual property rights protected underthis Regulation include rights registered inany country (not only in Kosovo); only theinfringement is to be defined by legislationapplicable in Kosovo.Actions by the Customs Service of Kosovomay be initiated either by the rights holder orby a Customs Officer who suspects intellectualproperty right infringements as a result ofthe importation or transit of goods and notifiesthe person considered to be the holder ofthe rights.The Regulation stipulates comprehensiveenforcement measures to protect intellectualproperty rights, such as suspension of thegoods, detention and seizure as well as financialsanctions.29


9...13EnvironmentalLawsPrivatisationOn 19 March 2009, the new Laws onEnvironmental Protection and onEnvironmental Impact Assessmentcame into force. An environmental impact assessmentis required inter alia for projects inthe following sectors: industry, mining, energy,traffic, tourism, agriculture, forestry, and watermanagement. Projects that are subject to anEnvironmental Impact Assessment cannotcommence without an Environmental Permitfrom the Ministry of Environment andSpatial Planning. For other projects, whichmay cause damage to the environment but forwhich an Environmental Impact Assessmentis not required, a municipality environmentallicense needs to be obtained.Further there is a Law on Air Protection no.2004/30, promulgated by UNMIK Regulationno. 2004/48, a waste law (law no. 027/L-30, promulgated by UNMIK Regulation no.2006/31) and a Water Law (UNMIK Regulationno. 2004/41).At the moment, environmental law providesthat a purchaser of social property does nothave successor liability for cleaning up suchproperty.The Ministry of the Environment and SpatialPlanning and local municipalities (who eachhave inspectorates) are responsible for executingand specifying the general conditions setout in the above laws. There is a considerableamount of secondary legislation critical tointerpreting the laws, which has not yet beendrafted or is in process of being drafted. Inaddition, there are some pending laws, includingone law on environmental permits.10. ArbitrationArbitral awards made by an arbitral tribunalinside and outside of Kosovo are recognizedand declared enforceable by the Kosovancourts under the Law on Arbitration(law no. 02/L-75, promulgated by UNMIKRegulation no. 2008/30). This law establishesa set of rules that apply to arbitration agreements,arbitration proceedings, jurisdictionof arbitral tribunals and the recognition andenforcement of arbitral awards. Arbitration isalso expressly recognized under the Law onForeign Investment (see section 4).Kosovo courts enforce arbitral awards madeoutside of Kosovo if they are recognized andpublished as enforced. Therefore a request for30


ecognition and enforcement has to be submittedto the Commercial Court.11. Foreign InvestorsKosovo has a Law on Mining, which regulatesthe issuance of mining licenses (explorationand exploitation), and a Law on Energy,which together with the Law on Electricityregulates energy licenses. Foreigners can applyfor licenses but must have a certain personresident status in Kosovo during the licenseperiod.12. Foreign InvestorsThe UNMIK Regulation on Banking andInsurance permits foreign banks and insurersto open either a subsidiary or a branch officeupon satisfying certain non-discriminatoryconditions of the Central Bank of Kosovo(CBK). The CBK has the authority to licenseand or register non-bank micro finance institutions.Before engaging business, a microfinance institution has to register with CBKand if the business of collecting deposits, exceedsEUR 125,000 the registered micro financeinstitution needs a valid licence issuedby CBK.13. PrivatisationA very important aspect of the Kosovoeconomy is the privatization of sociallyownedand publicly owned enterprises (SOEsand POEs).13.1 Privatisation of SOEsThe newly established Kosovo PrivatizationAgency, “PAK” (Law No. 03/L-067),took over the agenda of its predecessor, theKosovo Trust Agency. It is responsible for theadministration, privatization and liquidationof SOEs. In the past, around 300 new companieswere created from privatised SOEs,bringing revenues of around EUR 380 millionand there are still up to 200 SOEs leftto be privatized by the Kosovo PrivatizationAgency.SOEs are privatised through spin-offs andvoluntary liquidation. The ‘Spin-Off ’ is atwo-step procedure whereby the assets of theSOEs are transferred to a joint stock company,which initially will be 100% owned by theSOE. The PAK is then able to sell shares toprivate investors. The proceeds from the salesare held in trust by the PAK, without prejudiceto ownership or creditor claims againstthe old enterprise. The Liquidations allow aninexpensive exit from the market for thoseenterprises which clearly have no survivalprospects. Proceedings would be out of courtfollowing the procedures outlined in the Lawon Business Organisations (UNMIK Reg.2008/26).13.2 Privatisation of POEsBefore shares of a Central POE can besold, the Government has to adopt a writtendecision authorizing the Government PrivatizationCommittee to proceed with the tenderoffer and the sale of the shares. Such a governmentdecision has to be approved by a simplemajority vote of the Assembly of Kosovo.The POE Law states that a PrivatisationCommittee consisting of five ministers shallbe responsible for the tender, which shall beconducted according to the procedure set outin the Law on the Procedure for the Awardof Concessions. These procedural rules correspondin essence to the other concession rulesin the CEE/SEE region.The general structure of the tender procedureis as follows:1) Publication of tender notice (i.e. invitationto participate in the pre-selectionproceedings)2) Pre-selection of bidders3) Request for proposals (either in a singlestageprocedure or a two-stage negotiatedprocedure)4) Submission of proposals5) Evaluation of proposals6) Final negotiations with the best bidder7) AwardUnder certain circumstances, the Law on theProcedure of the Award of Concessions allowsfor the awarding of a contract without a priortender procedure (e.g. in case of an unsolicitedproposal for concession). However, since therelevant provisions are tailored to the awardof concession contracts, it is doubtful whetherthese exemptions may be invoked with regardto a privatisation process.31


14...16Entry and Exitfrom KosovoImportantLegislationThe new Law on Foreigners Law No.03/L-126 has adopted the regulationsfor foreigners entering the Kosovo.A foreigner, in terms of this law is a person,who is not a national citizen of the Republicof Kosovo. According to the new Law onForeigners a foreigner may only enter theRepublic of Kosovo with a valid travel document,in which a Visa or a permission to stayis recorded.The new Law on Foreigners Law No. 03/L-126 has adopted the regulations for foreignersentering the Kosovo. A foreigner, in termsof this law is a person, who is not a nationalcitizen of the Republic of Kosovo. Accordingto the new Law on Foreigners a foreignermay only enter the Republic of Kosovo witha valid travel document, in which a Visa or apermission to stay is recorded.Responsible for the issuance of Visas are thediplomatic missions and / or consular officesof the Republic of Kosovo (or other bodiesauthorized by the government of Kosovo).In practice, border authorities do not applythis new Visa regulation to persons fromWestern and European Countries, the US orCanada. There is a mutual treaty with Turkey.Visitors from countries which require visafor the EU are more likely to face an entryproblem, so should seek an invitation or authorisationbefore arrival. If resident for morethan 90 days, registering visitors must applyfor a Kosovo temporary residency permitdocument, which is similar to those issued toresidents. In practice, this materially facilitatesentry and exit and avoids the needs for entry/exit stamps in one’s passport and allows suchperson to act as the authorised representativeof a branch office. This is necessary if, for example,one wishes to register one’s vehicle.Because Serbia does not recognise Kosovoborders as valid borders, exiting from Kosovovia Serbia is only possible if one’s entry intoKosovo or Serbia was via a Serbian policedborder.32


15. Registration of Vehicles,Insurance, Import ofPersonal EffectsThere is no compulsory insurance for Kosovaremployees and no need for Kosovarsto carry health insurance in Kosovo. Internationalemployees must have health insurancefor their work permit.Third party liability insurance is compulsoryfor vehicles. As Kosovo is not part of the internationalGreen Card scheme, foreign registeredvehicles must buy separate “transit” insuranceeither at the border or at the Kosovoinsurance centre. An ex-pat can bring his/hervehicle into Kosovo and register it in Kosovoon a temporary basis for up to 3 years withoutpaying customs, provided it has not been deregisteredoverseas. No personal vehicle olderthan 8 years may be imported into Kosovo.KS plates are not recognized by or permittedinto Serbia proper. They are freely permittedby Macedonia, Montenegro, Albania, Bulgaria,Turkey, Greece, Croatia and most EUcountries (with the exception of Spain andSlovakia), but insurance must be purchased inthose countries.Personal effects up to certain limits (which aremore than 6 months old) can be brought intoKosovo without customs duties on a temporarybasis by international staff.16. Important LegislationA brief overview over the most importantlaw legislation in Kosovo (laws can be downloadedon the homepage of the Assembly ofKosovo):• Law on the Privatization Agency ofKosovo – 2008/03-L067administration, Privatization andLiquidation of socially-owned enterprises• Law on Contested Procedure – 2008/03-L006creation of legal provisions for resolvingdisputes from legal-civil relations ofnatural and legal persons in front of civilcourts• Law on Publicly Owned Enterprises –2008/03-L087governing the exercise of ownershiprights of publicly owned enterprises• Law on the Central Bank of Kosovo –2008/03-L074establishing the Central Bank of Kosovoand its powers• Law on Bank Licensing, Supervision andRegulation - 1999/21• Law on Executive Procedure – 2008/03-L008creating legal provisions for execution ofcivil court’s decisions and elimination ofprocedural obstacles during execution• Regulation No. 2008/22 – ImplementingCustoms Measures Regarding GoodsInfringing Intellectual Property Rightsregulating the protection of intellectualproperty rights in Kosovo• Law on Arbitration – 02/L-75governing arbitration and the recognitionand the enforcement of foreignarbitration awards• Law on General Safety of Goods – 02L-21creating legal provisions for the generalsafety of products put on the market• Law on Business Organizations –2008/26provides for creation, operation anddissolution of the common types ofbusiness organizations.• Law on Local Government Finance –2008/03-L049specification of financial resourcesavailable to municipalities (e.g.immovable property tax, business licencefee)33


17Important Linksand Addresses17.1 Websites of Institutionsin KosovoRepublic of Kosovo Assemblywww.assembly-kosova.orgThe Office of the Prime Minister of Kosovowww.kryeministri-ks.netMinistry of Trade and Industry of Kosovowww.mti-ks.orgKosovo Tax Administrationwww.atk-ks.orgCentral Bank of the Republic of Kosovowww.bqk-kos.orgThe Kosova Business Registration Agencywww.arbk.orgPrivatization Agency of Kosovowww.pak-ks.orgKosovo Customswww.dogana-ks.orgStatistical Office of Kosovoesk.rks-gov.net17.2 Websites ofInternational Institutionsin KosovoInternational Civilian Office in Kosovowww.ico-kos.orgEULEX KosovoEuropean Union Rule of Law Missionwww.eulex-kosovo.euEuropean Union in Kosovowww.euinkosovo.euWorld Bank - Kosovowww.worldbank.org/kosovo34


17.3 Business SupportInstitutionsInvestment Promotion Agency of KosovoMuharrem Fejza Street. N.N.Lagja e SpitalitKS - 10000 PrishtinaRepublic of KosovoTel: +381 38 200 36 527Fax: +381 38 212 807Email: info@invest-ks.orgWeb: www.invest-ks.orgInvestment Promotion Agency of KosovoOffice in ViennaNussdorfer Strasse 20/23A - 1090 Vienna,AustriaTel: +43 1 890 50 26Fax: +43 1 890 50 26 26Email: info@ipak-vienna.orgWeb: www.ipak-vienna.orgEconomic Initiative for Kosova (ECIKS)Nussdorfer Strasse 20/23A - 1090 ViennaAustriaTel: +43 1 890 50 26Fax: +43 1 890 50 26 26E-Mail: info@eciks.orgWeb: www.eciks.orgSME – Agency of KosovaMuharrem Fejza Street n.n.Lagja e Spitalit,10000 PrishtinëRepublic of KosovoTel: +381 38 200 360 07Fax: +381 38 212 807Email: naser.grajcevci@ks-gov.netWeb: www.sme-ks.orgKosovo Private Enterprise ProgramRadovan Zogovic Str, No.110000 PrishtinëRepublic of KosovoTel: +381 38 233 006Fax: +381 38 233 008Email: administrator@usaidkpep.orgWeb: www.usaidkpep.orgKosovo - Young EuropeansWeb: www.kosovo-young.com17.4 Additional ReadingKosovo (Bradt Travel Guide Kosovo):A tourist, historical and geographicalguide published in English (second editionNovember 2010) and available at www.amazon.comor www.amazon.de. The authors areGail Warrander of GW Legal and VerenaKnaus of Austria.Kosovo Chamber of CommerceNëna Terezë Street 20KS - 10000 PrishtinëRepublic of KosovoTel: +381 38 224 741Fax: +381 38 224 299E-Mail: info@oek-kcc.orgWeb: www.oek-kcc.orgAmerican Chamber of Commerce KosovoFehmi Agani 36/310000 PrishtinëRepublic of KosovoTel: +381 38 246 012Fax: +381 38 248 012Email: info@amchamksv.orgWeb: www.amchamksv.orgAleanca Kosovare e BizneseveDardania SB-6 6/6 B410000 PrishtinëRepublic of KosovoTel/Fax: +381 38 541 683Email: alenacakosovarebizneseve@gmail.comWeb: www.akb-ks.org35


18About InvestmentPromotion Agencyin Kosovo and itsoffice in ViennaOur vision, missionand our servicesThe Investment Promotion Agency of Kosovowas established as an Executive Agencyunder the administration of the Ministry ofTrade and Industry, regulated by the Law onForeign Investments no 02/L-33, article 19.In November 2006 the Economic Initiativefor Kosova (ECIKS), with financial supportfrom the Austrian Federal Ministry of ForeignAffairs through the Austrian DevelopmentCooperation, opened the first officialrepresentation of Kosovo abroad. The ViennaOffice of the Investment Promotion Agencyof Kosovo provides existing and potential foreigninvestors from German-speaking countries(Austria, Germany, and Switzerland)with free-of-charge services on a confidentialbasis.VisionTo support the economic developmentof Kosovo by stimulating and facilitatingforeign direct investments which will have adirect impact in reducing unemployment andincreasing the social welfare of our citizens.MissionImprove the image of Kosovo and attractinvestments through a proactive marketingcampaign and through offering free-ofchargeinformation and services to foreignpotential investors.ServicesOne stop shop for all investors - free of chargeservices:• Collection and dissemination of informationand assistance during all phasesof investments: pre-investments, investmentsand after care:• Providing of information on the generalbusiness environment and specific industries• Provision of information on Taxation,Employment, Customs, Real Estate andother relevant laws and regulations• Advice on business service providers:financial, consulting etc• Assistance with registration, licensing,work permits, and other documentation• Linking potential investors to Brownfield,Greenfield, and JV opportunities,including site visit organization• Assistance in dealing with administrationon all levels• After care services36


Notes37


Investment Promotion Agency of KosovoMuharrem Fejza Street n.n.Lagja e spitalit10000 Prishtinë, KosovoTel: +381(0) 38 200 36 527+381(0) 38 200 36 542Fax: +381(0) 38 212 807Email: info@invest-ks.orgWeb: www.invest-ks.orgOffice in Vienna Implemented byEconomic Initiative for Kosovo (ECIKS)Nussdorfer Strasse 20 / 23A-1090 Vienna, AustriaTel: +43 (1) 890 50 26Fax: +43 (1) 890 50 26 26Email: info@ipak-vienna.org,info@eciks.orgWeb: www.ipak-vienna.org,www.eciks.org40

More magazines by this user
Similar magazines