General Partnership

Ortakëri e Përgjithshme

A General Partnership in Kosovo is established between two or more individuals or legal entities to conduct joint commercial activities. Partners have unlimited liability and equal rights in decision-making.

Key Features

Formed by at least 2 partners (individuals or legal entities)

All partners jointly and severally liable

No separate legal personality

Decisions generally made unanimously

Advantages

Easier to establish and manage than other business types

Partners share capital, knowledge, and skills

Flexible management and operations

Income added to partners' personal tax declarations

Disadvantages

Unlimited liability — personal assets at risk

Conflicts may arise among partners during decisions

Limited capital — depends on individual partners' resources

Required Documents

Partnership Agreement

•Written agreement signed by all partners

•Includes rights, responsibilities, profit/loss sharing, dissolution terms

Identification Documents

•Valid identification for all partners

Proof of Address

•Lease agreement or deed for partnership address

Registration Steps

Choose a name including "Ortakëri e Përgjithshme" and register with ARBK

Submit documents to ARBK (in person or online)

Pay registration fees

Receive BIN number

Operations & Management

Jointly managed by all partners

Profits and losses shared per partnership agreement

Joint and several liability to third parties

Legal Basis

Legal Reference: Law No. 06/L-016, Art. 49, 50, 53, 57

• Article 49: Nature of Partnership

• Article 50: Partnership Agreement

• Article 53: Partners' Liability

• Article 57: Authority to Act on Behalf

• Kosovo Law on Business Organizations (Law No. 06/L-016)

Post-Establishment Obligations

Use registered trade name in all activities

Report changes in structure or address to ARBK

Follow partnership agreement for dissolution or withdrawal

Example Scenario

Two friends establishing a furniture production workshop might choose a General Partnership. By pooling capital and workforce, they can set up and manage the workshop, but must be aware of personal liability.

Conclusion

A General Partnership suits small and medium joint ventures. However, the risk of unlimited liability means the partnership agreement must be carefully drafted with clear partner rights and obligations.

Source: Kosovo Law on Business Organizations (Law No. 06/L-016) — Kosovo Consultancy

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