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Set up a Company in Albania

September 29, 2010, 4:30 pm
BridgeWest

Albania has recently become a viable choice for foreign investors due to the prospect of the EU integration and its transition to NATO. Its geographic and geopolitical location also makes Albania an interesting opportunity for both domestic and foreign investors willing to set up a company in Albania. The process of setting up a company in Albania is completed in a rather short period of time, the procedure is not complicated, but a legal expert advice and consultancy help in the incorporation procedure.

 

Preliminary activities before registering limited liability and joint stock companies in Albania

Prior to set up a company in Albania, the founders of any legal entity engaged in commercial activities in Albania must verify the uniqueness of their chosen company name. This action can be accomplished by two means, either online, via a specialized website, either by going to the National Registration Center where a clerk is asked to conduct a search to the registers' database. This phase does not last more than a day and it is charged with a fee of ALL 100.

Another important step in setting up an Albanian company implies preparing the company's documents, for example the articles of association and company charters. The elaboration of the documents necessary for set up an Albanian company can be made by a lawyer with experience in the commercial field.

The specialized lawyer will include in the articles of association the internal regulations of the company and details regarding it, such as the name, the address, details regarding the capital, details about the shares and the powers and liabilities attached to it and the names of the representatives.

In order to set up a company in Albania, the entrepreneurs must also open a bank account in which they will deposit the share capital, the amount of it depending on the type of company. For a Limited Liability Company the minimum share capital is ALL 100, 00, for an Albanian Joint Stock Company there must be deposited as share capital a minimum of ALL 2,000,000, for a Public Joint Stock Company the minimum share capital is ALL 10,000,000.

 

Registering limited liability and joint stock companies with the National Registration Center in Albania

In Albania the state has facilitated the registration process for companies. The National Registration Center acts as a new central public institution being the only place where the entrepreneur can complete the whole process, including tax registration, social insurance, health insurance and labor directorate registration.

In order to complete the process of setting up a company in Albania, the entrepreneur uses a single application procedure, which is even simpler to use since the electronic registry is fully operational. The requests may differ depending on the type of business registered, for example, the commercial entities may be registered by all the administrators of a limited-liability company or by all the members of the Supervisory Board of a joint-stock company or any person authorized by the subjects mentioned above by means of a notarized document authorizing that person. The branches on the other hand must be registered by the legal representatives of the branch or representation office, the legal representative of the parent company or any person authorized by one of the above-mentioned subjects.

The National Registration Center (NRC) issues a Registration Certification and Unique Business Identification Number, document needed among the articles of association, the name and address of the managing board and shareholders and other significant company documentation in order to complete the registration. The entire procedure should not last more than one day. In case the NRC requests additional information, the one-day-term may be exceeded.

 

Registering with the Municipality Bureau of Internal Revenue in Albania

Even though an Albanian company is set up once the registration certificate is issued, registering with the Municipality Bureau of Internal Revenue is an important step that follows.

The NRC notifies the Bureau of Internal Revenue about the new company within 24 hours. The entrepreneurs must then accomplish a certain procedure that consists in sending an application along with the company documentation and the registration certificate. There are a number of taxes that need to be paid, including environmental tax, green tax, property tax, the entire amount may rise to about ALL 85,000.

 

Making a company seal in Albania

The Order no.43 issued in 2012 by the Prime Minister Office provides that, for initial registration actions, there is no need for a company seal in relation with bodies of the Ministry of Economy, Ministry of Finance and Ministry of Labor. This decision was taken in order to support the on-line procedures and to limit the bureaucracy.

However, there are some actions that require physical forms (for example the declaration of employees) and most of the companies prefer to make a company seal.

 

Employee Registration in Albania

Any entrepreneur who wants to hire employees in Albania must accomplish the registration with the Employment Regional Directory. In order to complete the registration there must be provided certain documents: the Registration Certificate, the declaration of employed individuals, the Yellow Card (that provides the payment of an ALL 1,000 fee). The company must then submit the payroll every three month.

 

Setting up an Albanian company from abroad

Albanian Law not only permits but encourages foreign investment in most of the sectors of Albanian economy. Foreign investors are allowed to participate in economic activity, generally enjoying favorable conditions, being treated as Albanian nationals, except some limitations on the rights of land ownership. However an Albanian company can be set up quite easily by authorizing an assignee to carry out the incorporation procedures, but specimen signatures will be requested. Furthermore the procedure can be done online, without any physical implication on the National Registration Center website.

 

How long does it take to set up an Albanian company?

Setting up an Albanian company is a very short process, implying only a few procedures, of which most of them take only one day to complete. The whole process of setting up a company in Albania takes around four working days if all the documents were deposited.

 

BridgeWest offers company formation in Albania, including virtual office and other related services.

 




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