The formulation of a nonlinear composite shell element is presented for the solution of stability problems of composite plates and shells. The formulation of the geometrical stiffness presented here is exactly defined on the midsurface and is efficient for analyzing stability problems of thin and thick laminated plates and shells by incorporating bending moment and transverse shear resultant forces. The composite element is free of both membrane and shear locking behaviour by using the assumed natural strain method such that the element performs very well as thin shells. The transverse shear stiffness is defined by an equilibrium approach instead of using the shear correction factor. The proposed formulation is computationally efficient and the test results showed good agreement. In addition the effect of the viscoelastic material is investigated on the postbuckling behaviour of laminated composite shells.