When establishing a company in Kosovo, most investors focus on the type of company, tax rates, and bank accounts. However, if the insurance obligations and legal notifications that come into play immediately after the establishment are neglected, even a minor violation can lead to serious fines or even the suspension of operations.
In this guide, you will find:
- The legal notifications and obligations directly applicable to your company,
- The types of insurance that are legally mandatory and practically become “close to mandatory”,
- A practical insurance roadmap you can follow in the first 90 days,
- And the corporate support that Corpenza can provide during this process.
in a clear and practical manner.
Legal Framework for Company Formation in Kosovo: Where Do You Start?
All commercial companies in Kosovo are officially registered with the Kosovo Business Registration Agency (KBRA / ARBK). The establishment process is quite fast thanks to an EU-compliant business environment and digitalization.
Type of Company and Basic Documents
At the beginning of the establishment, you will complete the following steps:
- Choosing the type of company:
- sole proprietorship
- general partnership
- limited liability company – LLC (the most common model)
- joint stock company – JSC (for large-scale structures)
- branch (foreign company branch) etc.
- Preparing the articles of association / founding act, statute, and list of partners (especially for JSC).
- Filing the identification documents of the founders and authorized representatives.
There is no minimum capital requirement for LLCs in Kosovo. However, for JSCs, the requirement of minimum capital of €10,000 is an important threshold. When planning your capital structure, both tax and future credit/incentive processes should be considered together.
The registration with KBRA/ARBK is usually completed within 1–3 business days. This speed is one of the advantages that make Kosovo regionally competitive.
Mandatory Steps Immediately After Establishment
Registration in the commercial registry is just the first step. Typically, you will complete the following processes:
- Obtaining a tax number and fiscal number – opening a taxpayer account with the Kosovo Tax Administration (TAK).
- Opening a bank account – Especially in structures with foreign partners, “beneficial owner” documentation becomes critical.
- Sectoral licenses – There is a requirement to obtain licenses from relevant ministries and authorities in regulated sectors such as finance, insurance, health, and construction.
One of the most critical topics that come into play after this stage is insurance obligations and employee notifications.
The Infrastructure of the Kosovo Insurance System: Why is CBK Important?
The insurance system in Kosovo is supervised by the Central Bank of Kosovo (CBK), which is the main authority for monetary and financial stability. The framework law for the insurance sector is Law No. 05/L-045 on Insurance. This law regulates:
- Licensing of insurance and reinsurance companies,
- Capital adequacy and corporate governance standards,
- Protection of consumers and insured parties,
- Supervision of insurance brokers.
If the company you establish is not an insurance company, this structure is important for you in the following way:
- For every commercial insurance you obtain for your company, you must work with a CBK licensed insurance company or broker.
- Otherwise, in the event of serious damage, both the compensation process carries significant risk and an unlawful structure would be established.
If you have more specific plans such as opening an insurance company or a branch of a foreign insurance company, it is necessary to examine the licensing regulations published by the CBK and the insurance law in detail.
Insurance That is Really Mandatory for Companies
Kosovo legislation does not explicitly state “you must obtain this policy” to everyone establishing a company. However, some insurances become effectively mandatory either directly by law or indirectly (license, contract, tender conditions, etc.).
Mandatory Motor Vehicle Liability Insurance (Motor Vehicle TPL)
There is mandatory liability insurance (Motor Vehicle Third Party Liability – MTPL) for every motor vehicle registered in Kosovo.
If your company:
- Has a fleet of passenger vehicles registered in its name,
- Uses vehicles for field teams, service, distribution, or logistics,
it is legally mandatory to obtain MTPL for each of these vehicles.
In practice, companies typically combine MTPL with:
- Comprehensive cover,
- Extended liability,
as protecting not only third-party damages but also the company’s assets (vehicles, cargo, equipment) becomes critical in traffic accidents.
Sectoral and Contractual Obligations
Some insurances, although not listed as “mandatory” in the law, gain an effectively compulsory character due to sectoral regulations, licensing processes, and contractual practices:
- Employer’s liability insurance
- Especially in sectors with high occupational health and safety risks such as construction, manufacturing, and mining,
- Due to labor law and compensation lawsuit practices,
- It often becomes a standard in the internal procedures of large employers and collective labor agreements.
- Public liability / general liability insurance
- In all areas where third parties enter and exit, such as shopping malls, hotels, restaurants, clinics, warehouses, logistics centers,
- Construction sites, public event areas,
it often becomes a sought-after condition in:
- Municipal licenses,
- Lease agreements,
- Large B2B contracts.
- Construction All Risks / Erection All Risks (CAR/EAR)
- In construction and assembly projects,
- It is required as an integral part of public tenders and large private projects.
- Professional liability insurance
- In professions such as law, consulting, engineering, architecture, and healthcare,
- It becomes effectively mandatory through professional chamber regulations, licensing processes, and contracts with corporate clients.
In summary: During the company formation phase, you need to determine in advance which liability insurances are essential for licenses or large contracts based on the sector you will operate in.
Essential Insurance Set: Not Mandatory but Indispensable
The market practice under CBK supervision and corporate consultancy resources define a core insurance basket for companies in Kosovo. In Corpenza’s Kosovo insurance guide, this structure is categorized as follows:
- Mandatory: Motor Vehicle TPL
- Core: Employer’s liability, public liability, property, business interruption / profit loss
- Sectoral: CAR/EAR, professional liability, product liability
- Management & digital: D&O, cyber, crime/trust, electronic device insurances
- Human resources: Group health, life, personal accident, travel health
Core Commercial Insurances
- Employer’s liability
- Covers workplace accidents, occupational diseases, and the legal/compensation liability of the employer.
- Complements the basic protection provided by public social security from a commercial risk management perspective.
- Public liability (general liability)
- Covers bodily and material damages that third parties may suffer (customers, visitors, suppliers, etc.).
- It is critical, especially in retail, hospitality, logistics, health, and construction sectors.
- Property insurance
- Covers physical assets such as buildings, machinery, equipment, and stocks against risks like fire, flood, earthquake, theft, etc.
- Banks and leasing companies usually require this insurance when providing financing.
- Business interruption / loss of profit
- Covers loss of turnover and profit when operations cease after significant damage.
- It is a critical safety cushion, especially for single-location production facilities and logistics centers.
Management, Product, and Digital Risks
- Product liability
- Comes into play for damages caused by products you market as a manufacturer or importer.
- It is particularly important for Kosovo companies exporting to the EU market.
- Directors & Officers (D&O)
- Covers claims against the personal liability of board members and senior executives.
- It is common in companies with developed corporate governance culture, foreign partnerships, or plans to attract investment.
- Cyber insurance
- Covers risks such as data breaches, system outages, and ransomware attacks.
- In an environment where data protection obligations similar to GDPR are increasing, it is rapidly approaching “core” status, especially for e-commerce, SaaS, and fintech companies.
Insurance and Notification Obligations in Employee Employment
As soon as you employ staff, not only payroll and income tax but also social security, occupational health and safety, and indirectly insurance obligations come into play.
Public social security vs. private insurance: Clarify the distinction
Employment of workers in Kosovo requires notifications in the following areas:
- Notification to the tax office (TAK) – Regarding income tax and withholding.
- Notification to social security institutions – For pension and social protection obligations.
This public system provides employees with a minimum social security foundation. However:
- In the event of a workplace accident or occupational disease, the employer’s legal and financial liability continues.
- High compensation claims are not limited to the social security system.
Therefore, it is necessary to make a clear distinction between public social security and employer’s liability (private employer liability insurance). The former is a legal obligation, while the latter is a strongly recommended private insurance layer to manage compensation risks.
Foreign Employees and Health Insurance
In the processes of residence and work permits for foreign personnel, proof of health insurance or general insurance coverage is often required. This ensures the safe positioning of both your employee and your company in terms of immigration and labor law.
For companies working with multinational teams, group health, personal accident, and travel health insurances improve the employee experience and strengthen the employer brand.
Practical Insurance and Compliance Roadmap for the First 90 Days
When you establish a new company in Kosovo, systematically addressing the following steps within the first 90 days reduces legal risks and optimizes insurance costs:
Week 1: Legal Form and Activity Analysis
- Clarify the type of company (LLC, JSC, branch) and partnership structure.
- Review your activity codes (NACE):
- Are you in a regulated area such as construction, health, finance, insurance, transportation?
- Do you have plans for public tenders, large retail chains, or exports to the EU?
This analysis is the first step in determining which insurances are legally mandatory and which are contractually effectively mandatory.
Weeks 2–4: Obtaining Mandatory and Core Policies
- If there are vehicles registered under the company:
- Obtain Motor Vehicle TPL policies.
- Evaluate comprehensive and extended liability coverages according to your operational scale.
- For physical locations such as offices, warehouses, and production areas:
- Implement property insurance (fire, flood, earthquake, theft, etc.),
- Public liability (for visitors and third parties).
- If you have construction, project, or assembly work:
- Design CAR/EAR policies in accordance with contract and tender specifications.
Months 1–3: Human Resources and Governance Layer
- As your number of employees increases:
- Gradually add employer’s liability,
- Group health and personal accident insurances.
- For foreign executives and specialists:
- Design travel health,
- Comprehensive international health plans according to immigration regimes and company policies.
- As the corporate structure and scale grow:
- Consider advanced risk management tools such as D&O (director liability) and
- Cyber insurance.
While taking all these steps, pay particular attention to ensuring that the policies are arranged through CBK licensed companies in compliance with Kosovo law. It is possible to check the CBK’s licensing and supervision documents through official documents.
How Does Corpenza Add Value? – A Professional Approach to Insurance and Obligations in Kosovo
For international investors, Kosovo is an attractive market due to fast company establishment, competitive costs, and EU-compliant regulations. However, different legal systems, language barriers, and sectoral regulations can create significant costs, especially in the first year, through misinterpreted insurance and notification obligations.
As Corpenza, in Kosovo we offer an integrated consultancy approach in the fields of:
- Company establishment and structuring (LLC, JSC, branch, subsidiary),
- Residence and work permits,
- International accounting, payroll, and tax compliance,
- Staff leasing and tax optimization through posted worker model,
- Mapping insurance requirements based on activities and sectors.
On the insurance side, instead of directly selling policies:
- We analyze together which policies are:
- Legally mandatory,
- Effectively mandatory due to license/contract,
- In the “good to have” category from a risk management perspective.
- We provide a roadmap for establishing a structure in line with local and international insurance providers licensed by CBK.
- If you have an international group structure, we develop structuring proposals to ensure that your global policies do not overlap or create gaps with local coverages in Kosovo.
This way, you can position your business in Kosovo not only according to legal minimums but also according to corporate risk management standards.
Conclusion: Think Strategically About Insurance and Obligations When Establishing a Company in Kosovo
Establishing a company in Kosovo is quick and relatively low-cost. However, the following topics that arise immediately after the establishment:
- Tax and social security notifications after KBRA/ARBK registration,
- Mandatory Motor Vehicle TPL for company vehicles,
- Sector-dependent insurances such as employer’s liability, public liability, CAR/EAR, professional liability,
- Policies that protect your assets and cash flow such as property and business interruption policies.
are fundamental elements that make your business sustainable and trustworthy in the eyes of investors.
Correctly structuring this framework during the establishment phase not only prevents unnecessary insurance costs but also ensures you obtain the correct coverage level for your real risks. When it comes to international structures, foreign employees, or cross-border operations, establishing this balance becomes almost indispensable with a professional perspective.
Corpenza helps you establish your business on a legally solid and commercially flexible ground, whether your goal is a regional operation or a center opening to Europe, by addressing company formation, insurance requirements, payroll, posted worker, and investment with residency/citizenship processes under a single roof.
Important Disclaimer: This article is prepared for general informational purposes; it does not constitute legal, tax, or financial advice. Since Kosovo legislation and practices may change over time, we recommend checking current official sources and relevant laws before making decisions and seeking support from a qualified lawyer, financial advisor, or professional consultant.
