Legal Framework in Kosovo
The Commercial Law Development Group within the Ministry of Trade and Industry (MTI) and KTA are responsible for the preparation of Regulations and Administrative Orders to provide Kosovo with a workable body of law to enable its economy to function according to Western, free market principles. So far nine Regulations have been adopted in the Commercial sphere, these are the regulations on Foreign Investment, Business Organisations, Contracts for the Sale of Goods, Pledges, Insurance Regulation and Supervision, Payment Transactions, Essential Labour Law, Standards for Financial Reporting and Establishment of a Pledge Filing Office.
Business Organisations, Contracts for the Sale of Goods, Pledges, Insurance Regulation and Supervision, Payment Transactions, Essential Labour Law, Standards for Financial Reporting and Establishment of a Pledge Filing Office.
The purpose of this regulation is to put in place certain legal guarantees that are necessary to encourage foreign investment in Kosovo. The most important provisions in the regulation provide that:
● Foreign investments will be governed by the principle of national treatment, meaning that they will be treated no less favourably than similar domestic enterprises; Foreign investments will be protected against unreasonable expropriations;
● Income from foreign investment may be freely transferred abroad and otherwise used in an unrestricted manner; Foreign Investments are protected against retroactive application of laws;
● Foreign investors are able to employ foreign nationals
The Business Organisations Regulation establishes the ways in which businesses can be organised and registered. The Pledge Regulation has been prepared in order to give Kosovo a modern law regulating all forms of secured transactions. Contracts for the Sale of Goods is a regulation that only covers sales law; it does not cover all areas of contract. It is based on the Vienna Sales Convention. In the coming months it is expected that Regulations on Bankruptcy, Mortgage, Protection of Competition and Intellectual Property will be adopted.
Good Corporate Governance
In terms of Good Corporate Governance the Standards for Financial Reporting Regulation has been instated and is entirely compatible with the internationally accepted accounting and auditing standards issued by the International Accounting Standards Committee (IASC) and the International Auditing Practices Committee (IAPC) of the International Federation of Accountants.
Source: ECIKS / Kosovo Trust Agency (KTA)