Expanding to a foreign country, such as Kosovo, requires plenty of planning and thought about everything from how you’ll recruit employees to what supplemental benefits you’ll provide. One of the most time-consuming but necessary steps is setting up a Kosovo subsidiary. Your subsidiary is the key to operating in Kosovo, and with it, you can hire employees, run payroll, and give out benefits.
Globalization Partners has a whole team ready to help you expand without going through the Kosovo subsidiary setup process on your own. When you use our Kosovo PEO, you can start work in the country immediately. You also won’t have to worry about Kosovo subsidiary laws because we’ll take on the risk for you as the Employer of Record.
How to Set Up a Kosovo Subsidiary
Most companies cannot arrive in Kosovo and immediately set up a subsidiary. You’ll have to consider many important factors that will change how you should set up your Kosovo subsidiary. One common factor that can influence Kosovo’s subsidiary laws is your location. Different regions or cities within the state could have their own laws, costs, availability, and more. Choosing a place that’s friendly to foreign incorporation can make the process easier and less time-consuming.
Next, look at what type of entity is best for your business needs and goals. For example, incorporating as a limited liability company (LLC) generally gives businesses lots of freedom to work in Kosovo. On the other hand, setting up a branch in the country will limit your activities. Kosovo will allow you to establish your subsidiary as an LLC, public limited company, branch, or representative office.
Most companies decide to incorporate as an LLC because it benefits their parent company and gives them the most flexibility to operate in the country. Set your LLC up using the following steps:
- Complete and file an application form.
- Create a company agreement and charter.
- Write a declaration of the registered agent’s consent to serve in that capacity.
- File a photocopy of the registered agent’s passport.
- Draft articles of incorporation and bylaws of the shareholders.
- Make photocopies of all shareholders’ passports.
Kosovo Subsidiary Laws
Kosovo’s subsidiary laws can change depending on where you are in the state and what type of entity you choose. LLCs have their own laws and regulations, including having at least one shareholder, one director, and one tax representative. You need only 1 EUR in minimum paid-up capital when you incorporate. You must appoint an auditor if you have total assets of 2 million EUR, see annual turnover of more than 4 million EUR, or employ more than 50 employees within that fiscal year.
Benefits of Setting Up a Kosovo Subsidiary
Although it may seem like a long and arduous process, the Kosovo subsidiary setup process will enable you to start working in the country legally. You can use an LLC to protect your parent company’s interest too, as you won’t have to worry about incurring any fines or litigation from the subsidiary.
Despite these benefits, it’s best to work with a global PEO to save time and stress. You won’t have to set up a subsidiary if you work with Globalization Partners, because we’ll use our existing Kosovo PEO. Your company can start working in a day or two, and you won’t need to worry about compliance. We’ll handle everything from hiring employees for your team to providing all statutory benefits, so you can focus your time on tasks that are important to your company.
Other Important Considerations
When you’re trying to incorporate successfully, you need to plan for every step of the process. Start by working with your accounting department to see how much money you’ll need for each step of the process. Then, clear your schedule so that you have enough time to devote to setting up the subsidiary. If you don’t understand Kosovo’s subsidiary laws, you’ll need to hire an accountant, lawyer, or consultant who can help you stay compliant throughout each step.
Let Globalization Partners Help With Your Expansion
Globalization Partners is the global expansion expert who can make your expansion easy. Contact us today to learn more about Kosovo subsidiary outsourcing and how you can expand without stress.