If you’re planning NGO registration in Kosovo, this guide gives you the clean path: pick the right legal form, assemble the file that actually gets approved, and set up governance and tax so you don’t fight re-filings later.
Good news: Kosovo’s framework is modern and recently refreshed. The core law is Law No. 06/L-043 on Freedom of Association in NGOs (amended Jan 5, 2024 by Law No. 08/L-244) with procedures detailed in Administrative Instruction 12/2022, updated Mar 3, 2025 by AI 02/2025.
Pick your legal form first: association or foundation?
Associations are membership organizations great for clubs, advocacy, professional bodies, or service groups with members who vote. Under the NGO Law, an association is formed by at least three founders (natural or legal, local or foreign). Founders that are legal persons must prove their own registration and name an authorized representative.
Foundations are non-membership organizations that manage assets for a purpose (scholarships, cultural programs, grants, social services). They can be established by one or more founders (natural or legal persons); the law and reputable summaries note an initial endowment/property requirement for foundations (often cited as €1,000 minimum), contributed by the founder(s) via founding act/will.
Practical tip: Choose association if you need democratic membership and elections; choose foundation if you’ll manage funds or property under a board without members.
(Note: The law also recognizes “institutes” as a non-membership form; most readers choose association or foundation.)
Where and how you register?
The competent body is the Department for Registration and Liaison with NGOs (within the Government; historically under MPA/MIA). The registration, operation and deregistration rules sit in AI 12/2022, amended in 2025 (AI 02/2025). You can file online or in person per the latest instruction.
Core file (both forms generally include):
Application form for association/foundation.
Founding act (resolution or deed of foundation).
Statute (bylaws) that meet the law’s content requirements.
IDs of founders and authorized representative (if any founders are legal persons: their extract + decision appointing a representative).
- Registered address in Kosovo and contact details.
Public-benefit status:
If your purposes benefit the public (education, health, social services, culture, etc.), you can apply for Public Benefit Status. The 2025 amendment sets a 45-day decision window for granting/refusing public-benefit status after evaluation of your file under Art. 37 criteria.
Timeframes:
Civil-society guidance indicates the department should issue a registration certificate within a defined deadline (often referenced as up to 60 days), unless they request fixes or deny with reasons. Always track the latest instruction for exact clocks.
What must be inside your Statute
Your Statute should clearly set out (at minimum):
Name, seat, purpose(s) (public or mutual benefit) and scope of activities.
Governing bodies and their powers:
Associations: typically General Assembly (members), Board, and Executive Director.
Foundations: Board of Directors/Trustees and Executive Director (no members).
Appointment/removal rules, meetings & voting, quorum, conflict-of-interest policy.
Financial management and reporting lines.
Amendment, dissolution, and asset-allocation on dissolution (assets must continue to serve nonprofit purposes).
Good move: mirror the law’s non-profit principle and asset dedication language in your dissolution clause to avoid back-and-forth.
Governance that actually works
Associations: Members elect the Board; the Board appoints/oversees the Executive Director. Keep member registry, minutes, and a clean voting record.
Foundations: No members, your Board is the highest body. Add a simple conflict-of-interest disclosure and related-party policy.
Economic activities: NGOs can run economic activities if the profits are fully reinvested in mission and you keep separate accounts for any commercial activity. The CIT Law requires separation of exempt and commercial activities for NGOs.
Kosovo recognizes Public Benefit Status (PBS) for NGOs whose purposes/activities meet statutory criteria. PBS is the gateway for tax advantages (see next section), although civil-society monitors note that some benefits are not fully specified or have been limited in practice—plan benefits conservatively and document your public-benefit programs clearly.
The 2025 amendment clarified the decision timeline (45 days) on PBS applications, good for planning grants and sponsorships.
Tax & VAT: What Applies to NGOs in Kosovo
Corporate Income Tax (CIT):
Standard CIT is 10% in Kosovo. However, income of NGOs used for public-benefit purposes is exempt from CIT (think grants, donations, and program income used exclusively for mission). NGOs must separate any commercial activity from exempt activity in their books.
- Donors (legal and natural persons) can generally deduct up to 10% of taxable income for qualifying public-benefit donations under Kosovo tax laws.
VAT: NGOs are not automatically VAT-exempt. VAT applies to taxable supplies of goods/services; public-interest activities (education, health, social, culture, etc.) have specific exemptions; grant/donation income isn’t a supply and typically sits outside VAT. Check your activity mix and the €30k general VAT registration threshold (and special exemptions for donor-financed projects).
Pensions & payroll: Standard payroll rules apply (withholding and 5% + 5% mandatory pension contributions for citizens/permanent residents). Plan onboarding and monthly filings like any employer.
Property tax: NGO property used for nonprofit purposes is exempt from immovable property tax under the property-tax law.
Bottom line: keep clean bookkeeping separating program vs. commercial activity, collect exemption letters where needed, and save all donor agreements and project budgets, auditors and the tax administration will ask.
Reporting & Maintenance
Keep governance records (member registry for associations, board minutes for foundations).
Report statute changes and other registration-data updates to the department within the timeframes they specify (the prior framework required prompt updates and equivalent procedures to initial registration).
Maintain annual financial statements under Kosovo accounting law and your donor agreements; retain supporting documents for audit/monitoring.
How many people do I need to found an association in Kosovo?
At least three founders (natural or legal, local or foreign).
Can only one person set up a foundation in Kosovo?
Yes, one or more founders may establish a foundation in Kosovo.
Where do I apply to set up a foundation in Kosovo?
With the Department for Registration and Liaison with NGOs under AI 12/2022.
Disclaimer: Every article is for information only and is not legal advice. For professional assistance with company registration in Kosovo, art@ruleandlaw.com
