Partnerships

Partnerships may be formed upon the agreement between two or more individuals. A Partnership is a business with multiple-owners, each of whom has invested in the business. According to Kosovo’s legislation, Partnerships are divided in two groups.

There are General Partnerships and Limited Partnerships.

General Partnership

General Partnerships do not have the status of a legal person. Nevertheless, it may enter into a contract, own property, sue or be sued in its own name. The General Partners of this business organization are natural or legal persons and/or business organizations. All the General Partners have the right to an equal share of all profits, losses, allocations and dividend distributions. 

The General Partnership is established through registration (at the KBRA) or by the application of the law. 

By the application of the law, the General Partnership it is established when two or more natural persons or businesses cooperate in the exercise of commercial activities, regardless of the fact that this cooperation is based upon a written agreement or an oral agreement. If the General Partnership is established through registration, the General Partners are determined in the Memorandum of Incorporation. 

Registration of a General Partnership

In order to initially register a General Partnership, the Authorized Representative must complete and submit at the KBRA the following documents: 

  • The special form prepared by KBRA
  • Identification copy of the owner/partner and of the authorized representative
  • The General Partnership Agreement containing all the information as required by the law. 
  • The authorized representative’s signed consent form might be required

Limited Partnership

A Limited Partnership is a specialized form of partnership. It is a type of business organization which is composed of at least one General Partner and at least one Limited Partner. The General Partner manages the business and make everyday business decisions, whereas the Limited Partner simply invests in the business and has little control over business operations.
Like the General Partnership, the Limited Partnership does not have the status of a legal person, nevertheless it has the right to enter into a contract, own property and sue or be sued in its own name.

Obligations of General Partners and Limited Partners

The General Partner is the only authorized party to act on behalf, or to create obligations on behalf of the Limited Partnership. The Limited Partner is not authorized to act on behalf of a Limited Partnership or to create obligations on its behalf.
A General Partner is jointly and severally liable for the debts and obligations of the Limited Partnership. A Limited Partner is not liable for any debts or other obligations of the Limited Partnership except as may be provided by the law.

Registration of a Limited Partnership in Kosovo

To initially register a Limited Partnership the Authorized Representative should submit these documents at the KBRA:

  • The Special Form prepared by the KBRA
  • Identification copy of the owner/partner and of the authorized representative
  • The Limited Partnership Agreement containing all the information as required by the law