In order to attract investors, a number of measures have been implemented by the Albanian government and a set of fiscal policy was applied.
The National Register Center represents the entry point for all type of business and all the related processes (work inspection authority, the social and healthcare security).
The entrepreneurs have a number of company types to choose when starting doing business in Albania, related to their needs and possibilities.
Sole entrepreneurs in Albania or sole proprietorship are the less complex forms of business, formed by a person with unlimited liability on the debts of the company. The procedure of registration is made by submitting information regarding the owner, business type, location, the estimated annual income, annual turnover, tax on turnover.
Albanian General Partnerships can be formed by two or more partners with unlimited liability on the obligations of the company. The contribution of the partners must be equal, but no minimum share capital is required. The company is managed equally by the partners unless agreed otherwise. If one of the partners is willing to transfer his rights to a third person, the approval from the remaining partner is required.
The Limited Partnership in Albania is composed by two entities: the general partner and the limited partner. The limited partner is responsible for the company obligations up to the limits of his contributions, opposed to the general partner. Also there is no minimum share capital required.
Limited Liability Company in Albania (Shoqëri me Përgjegjësi të Kufizuara- Sh.p.k.) is formed by shareholders and has a required share capital of 100,000 Lek (725 Euro), equally divided into shares of min 1,000 Lek .The General Meeting of the Shareholders have the power of taking decisions. Sh.p.k can also have one or two managers, who equally share power.
Join Stock Companies (Sh.a) are formed by partners responsible for the company’s debts and gains only up to their contribution to the initial capital. The contributions can be formed by cash or property. There are two types of join stock businesses: with private offer (for which the share capital is minimum 2 mil. Lek, approx. 14,500 Euro), or with public offer (with a basic capital of 10 mil. Lek, approx. 72,511 Euro). The main difference is that the stocks of the public joint stock companies are registered at the stock market.
A foreign company may open a branch if the business requires it. The procedure is very simple and usually doesn’t take longer than a day. In order to open a branch, the foreign investor must submit a number of documents at the National Register Center: a decision of opening a branch from the General Meeting of the foreign company, the contract that proves the connection between the branch and the foreign company, proof of registration of the foreign company and notarized foundation chart.
After application, the branch must be registered at the Tax Office in order to receive the Identification Number as a Taxable Person and the tax certificate.