Company Liquidation & Strike-Off in Kosovo (2025)
Thinking about closing a company in Kosovo? You have three main paths:
Strike-off (administrative deregistration) when the company is inactive and clean;
Voluntary liquidation (members/shareholders wind-up and distribute assets);
Insolvency (bankruptcy reorganization or liquidation) under the new Law No. 08/L-256.
Which route fits your situation?
- Strike-off Kosovo is good for dormant entities with no assets, liabilities, staff, or pending cases. ARBK removes the company from the register after statutory checks. (ARBK describes deregistration in practice notes; it follows voluntary termination, bankruptcy, or court order.)
- Voluntary liquidation Kosovo is when you can pay all debts, want an orderly wind-up, notice creditors, sell assets, and distribute any surplus to shareholders; governed by the Business Organizations Law with court/creditor protections as applicable.
- Insolvency is when the company is unable to pay debts; the 2024 Bankruptcy Law 08/L-256 modernized reorganization and liquidation, including who can file and timelines.
Rule of thumb: If there’s any debt, staff, leases, or litigation, use voluntary liquidation or bankruptcy. Reserve strike-off for truly clean shells.
Strike-off (Administrative Deregistration)
When it fits: Inactive company, no operations, no debts, no employees, no proceedings.
Core mechanics:
- ARBK can deregister after voluntary termination, bankruptcy or court order, or as an administrative action following checks.
- You must also deregister from taxes. TAK says: file a deregistration request at the regional office; within 45 days TAK reviews and, if compliant, issues a Tax Certificate stating Business Deregistration.
Why strike-off can fail: outstanding tax returns, employer accounts not closed, bank accounts with balance, unknown payables, or pending cases. Clear those first, then apply.
Voluntary liquidation (members/shareholders decide to wind-up)
When it fits: The company is solvent; you want a controlled wind-down with creditor notice and asset distribution.
Legal basis & structure:
- Company law framework is Law No. 06/L-016 on Business Organizations, which governs organization types (LLC/JSC/etc.), dissolution, and winding-up mechanics.
- Typical steps: shareholder resolution to liquidate and appoint liquidator; notification to ARBK; creditor notice and claims window; settlement of debts and contracts; sale/distribution of assets; TAK deregistration; final accounts; ARBK deregistration entry. (The sequence mirrors ARBK practice materials.)
- Tax closure: TAK handles deregistration in ~45 days when all filings and payments are in order.
Regulated entities (finance, payments, insurers):
- If you are a bank/financial institution, payment institution (PI) or electronic money institution (EMI), CBK approval is required for voluntary liquidation. In December 2024 the CBK Board adopted a dedicated Regulation on Official Administration and Liquidation of Payment Institutions and Electronic Money Institutions, detailing liquidation procedures and supervision.
- Older sectoral laws also require CBK approval for bank/financial-sector wind-ups.
Good practice checklist: Pay employees and close payroll/pensions; Obtain tax clearance (VAT, CIT, withholding); Close bank accounts after final payments; Keep proof of creditor notices and settlement.
Insolvency (bankruptcy) under Law No. 08/L-256
When it fits: The company cannot pay its debts as they fall due or is balance-sheet insolvent.
Key reforms (2024):
The Bankruptcy Law 08/L-256 updated Kosovo’s regime for reorganization and liquidation; published in the Official Gazette Aug 6, 2024, entering into force 15 days after publication.
- The law sets rules on who can file, case commencement, creditor committees, stays, plan voting, and liquidations, all aimed at a faster, more predictable process.
What happens in practice:
- A debtor, creditor, or in some cases a single qualified creditor can initiate proceedings; the court opens the case, appoints an administrator, and imposes a moratorium. Plans may lead to reorganization or move to liquidation. (Recent summaries highlight a creditor-friendly modernization.)
- After completion, ARBK deregistration and TAK closure are processed based on court orders and final accounts.
Taxes, payroll, and last-mile closures
Whatever route you choose, you’ll need to tie off compliance:
- TAK deregistration: submit request; TAK reviews within 45 days and issues a certificate if all returns and liabilities are settled.
- Final VAT/CIT: file final VAT (if registered) and corporate income tax returns, pay balances, and keep receipts. (CIT rate context and VAT basics from reputable summaries help planning.)
- Payroll & pensions: if you had staff, ensure last payslips, withholding, and pension remittances are filed and employer accounts closed (general payroll framework; confirm current deadlines with TAK’s calendar).
- Bank accounts: close accounts once statutory payments and distributions clear; for regulated firms, follow CBK instructions.
Documents you’ll typically need:
Shareholder resolution (liquidation) or court decision (bankruptcy).
Liquidator appointment & ID, mailing address, and acceptance.
Creditor notice evidence and claims list (voluntary liquidation).
Closing financial statements and tax clearance (TAK certificate).
- ARBK filings: deregistration application and supporting documents referencing the legal basis (voluntary, bankruptcy, or court order).
- CBK approvals (if you’re a regulated entity).
Which route should you pick?
- No debts, no staff, no assets → Strike-off (fastest paperwork).
- Solvent, but winding down → Voluntary liquidation (controlled and creditor-safe).
- Insolvent → Bankruptcy (Law 08/L-256) for reorganization or court-led liquidation.
- Financial-sector firm → add CBK approval steps.
Is strike-off the same as liquidation in Kosovo?
No. Strike-off is an administrative deregistration (best for inactive, clean companies). Liquidation is a winding-up process with creditor steps and distributions; if insolvent, the Bankruptcy Law applies.
How long does TAK take to deregister?
TAK says it reviews deregistration requests within 45 days and issues a Tax Certificate if requirements are met. Afterwards our Lawyers in Kosovo will be informing you if there is any other necessary steps required to be taken.
What changed with Bankruptcy Law?
Adopted July 11, 2024, published Aug 6, 2024, in force 15 days later; it modernized rules for reorganization and liquidation, aiming for faster, creditor-friendly procedures. Making it easier for businesses and owners.
Disclaimer: The information in this post is not legal advice and may not reflect the latest changes. Please consult counsel for your specific case.
