Kosovo Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kosovo, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Overview

Many local importers are also wholesalers, distributors, and retailers. Locally-owned supermarket chains ETC (ELKOS), Meridian Express, and Viva Fresh all operate large stores in key cities, supplementing and replacing traditional family-owned businesses in these areas. Foreign companies have successfully partnered with local businesses to open large furniture stores, such as JYSK and Lesna, and supermarkets such as Interex, SPAR Kosovo, and Conad. Because Kosovo is land-locked, all goods arrive by road, limited rail service from either Albania or North Macedonia, or air. Goods usually arrive at border crossing points and are then taken to customs terminals for clearance. The closest seaports are Durres, Albania and Thessaloniki, Greece (about 130 miles and 170 miles from Pristina, respectively). Modern highways connect Pristina to Durres (4 hours) and Skopje (90 minutes).

Using an Agent or Distributor

Foreign companies doing business in Kosovo are not required to have a local agent, but it is advisable to retain one to gain insight into local economic and market conditions. Kosovo does not have laws regulating local agent and distributor agreements, except for dental products, where a contract with a licensed distributor is required. Any local agent or distributorship relationship should be clearly defined, stipulated by contract, and contain an alternative dispute resolution clause. Agreements should also be registered with local courts in case of a legal disagreement.
U.S. Embassy Pristina is a Department of State Commercial Partnership Post, providing business facilitation and Commercial Services to interested U.S. and U.S.-affiliated businesses. Some of the typical services the U.S. Embassy Pristina Commercial Team can provide include initial market checks, international company profiles, international partner searches, single company promotions, trade show representation, and virtual introductions.

Establishing an Office

The procedure for business registration is the same for local and foreign owners. There is a single procedure to file and obtain a unified registration, fiscal and VAT number through registration centers operating in 36 municipalities.

The steps to establish an LLC are: (i) register with the Kosovo Business Registration Agency (KBRA); (ii) design a company seal; and (iii) register future local employees for the pension scheme with the Tax Administration. While a company seal is not required by law, it is generally expected in customary practice. Business registration takes approximately four to five days. Registration can be as an individual business, a general partnership, a partnership, a limited-liability company, a foreign company, or a joint-stock company.

Registration forms vary by type of business and can be found on the KBRA’s website.

There is no limitation on foreign ownership of local companies and foreign investors face no restrictions on moving capital and profits outside of Kosovo. There is however a limitation to registering a business in Kosovo, as the owner or CEO of the international company needs to sign the registration documents the limitation being that the Government of Kosovo has not yet established eSignature that would allow the owner/CEO to sign the documents remotely– therefore, it is recommended to find a local partner in Kosovo who will handle the paperwork for registration of the business.

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.

Franchising

There are no legal requirements for franchising. With improved legal and physical infrastructure, the Kosovo market is receptive to franchising opportunities, especially in the hotel, restaurant, and hospitality industries. Kosovo opened its first U.S. food franchise in 2016 to much fanfare, and significant demand remains for other U.S. brands.

Current U.S. franchisees and licensees operating in Kosovo include, Century 21, Coca-Cola, Enterprise, Hertz Rent-a-Car, KFC, Burger King, Popeyes, Firehouse Subs, Marriott, Best Western, Nike (distribution license for Kosovo), and RC Cola (bottling license in Kosovo, distribution rights for Serbia, North Macedonia, Albania, and Montenegro). Four Points by Sheraton opened in Pristina, and a Courtyard by Marriott opened in June 2025. A Hilton Hotel is expected to open in December 2025, and there are plans for a Grand Hyatt to open in Pristina.

Direct Marketing

Many foreign companies actively market their products and services in Kosovo. Internet advertising is common, but more traditional means of advertising, such as television and radio, are generally more effective. Social media marketing has gained significant prevalence during the pandemic, particularly via Facebook and Instagram.

Joint Ventures/Licensing

The Foreign Investment Law (Kosovo Assembly Law 04/L-220) allows foreign investors to wholly own businesses in all sectors of the economy, with the exception of the manufacturing or distribution of military products, where their equity is limited to 49 percent. Foreign investors in all other areas are subject to the same licensing requirements as local investors. Licensing is done by the economic regulator in the respective sector. 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. Since 2024, the Foreign Investment Law has been replaced by Law No. 09/L-209 on Sustainable Investments, marking the Government of Kosovo’s continued approach to streamline and facilitate foreign investments in the country.

Express Delivery

FedEx, DHL, and UPS operate in Kosovo. It normally takes two days for express delivery to arrive from major U.S. cities, and the service is generally reliable. Goods arriving via express delivery undergo the same customs procedures as goods arriving through other channels. The de minimis amount for customs duty purposes is applied to goods worth less than €22 per delivery.

Due Diligence

During the end of 2024, Kosovo received its first-ever sovereign credit rating from Fitch Ratings, assessed at BB- with a stable outlook. The rating is expected to lower borrowing costs, attract foreign investment, and enhance access to global capital markets. All U.S. businesses are advised to perform their own due diligence prior to developing relationships with local firms. U.S. companies are strongly encouraged to perform due diligence checks on private firms to ensure that the local company:

  • is not facing any bribery or corruption charges;
  • maintains a certain level of financial stability that will enable it to meet financial obligations; and
  • holds, along with its owners, a solid professional reputation in Kosovo.
     

Businesses are also encouraged to consult the chambers of commerce (American, Kosovo, Turkish, and German).
In addition, the U.S. Embassy’s Economic/Commercial team offers fee-based International Company Profile (ICP) services containing limited background checks on local companies.

eCommerce

According to data from the Kosovo telecom regulator, more than 90 percent of Kosovo households regularly use the internet. The number of individuals using mobile internet has reached 103.4 percent penetration, or a total of 1.9 million users, due to some customers using multiple lines per person. While Kosovo has the highest internet penetration rate in the region, the eCommerce sector remains nascent. Since the start of the COVID-19 pandemic, more companies in Kosovo are experimenting with using eCommerce. Most commercial banks have introduced internet banking and all utilities offer online bill payment options. Kosovo follows EU standards for eCommerce and consumer protection. Well-known eCommerce websites – including Amazon, Aliexpress, and ASOS – ship limited goods to Kosovo. According to data from the Kosovo Statistics Agency, the majority of online purchases in Kosovo are made through E.U. and U.S. retailers. Payment methods for eCommerce transactions include e-banking, credit cards (Visa and Mastercard), and cash-on-delivery for the domestic market. While third-party payment methods such as PayPal and Payoneer generally do not offer services in Kosovo, some users find workarounds leveraging banks in neighboring countries. In December 2024, Kosovo was officially recognized by Amazon on all its platforms allowing its citizens to use services such as amazon.com and AWS. While in July 2025, the CBK announced that Google Pay and Apple Pay officially offered services in Kosovo through selected banks.

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