Setting Up a Company in Albania: Complete Guide

Why Choose Albania for Your Business?
Albania offers numerous opportunities for both local and foreign investors. Thanks to the National Business Center (QKB), businesses can now benefit from simplified procedures for company registration or opening a branch or representative office. Specifically, this one-stop-shop system, introduced with Law no. 131/2015, replaced the National Registration Center (QKR) and the National Licensing Center (QKL). Here’s everything you need to know about starting up a company in Albania.

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Types of Companies in Albania

Law no. 9901/2008 regulates business structures in Albania and defines five main types of companies. Thus, it is essential to choose the type that best fits your business needs when starting up a company in Albania.

1. Sole Proprietorship (“Tregtari”)

A sole proprietorship is a business owned and managed by a single individual. As a result, it is ideal for professionals such as lawyers, accountants, or consultants looking to start up a company in Albania.

2. Partnerships

• General Partnership
  In this structure, all partners have unlimited liability and jointly manage the company. However, specific administrators can be appointed if necessary.
• Limited Partnership
  This structure combines two types of partners: those with limited liability and those with unlimited liability. Additionally, only general partners with unlimited liability can manage the business.

3. Limited Liability Company

A Limited Liability Company (LLC) is one of the most popular and secure business structures in Albania.

• The minimum capital required is 100 ALL (1 Euro).
• Moreover, shareholders are not personally liable for the company’s debts when starting up a company in Albania.

4. Joint Stock Company

A Joint Stock Company (JSC) is suitable for larger enterprises with capital divided into shares.

• For non-listed companies, the minimum capital required is 3,500,000 ALL (€28,531).
• In contrast, listed companies require a minimum capital of 10,000,000 ALL (€81,516).

Branches and Representative Offices in Albania

In Albania, businesses can expand without establishing a new legal entity by opening branches or representative offices. Therefore, it can be part of your strategy when starting up a company in Albania.

Branches

• Definition: Branches are extensions of the parent company and are intended to generate revenue. They perform the same activities as the parent company.
• Legal Status: A branch is not a separate legal entity but operates as part of the parent company.
• Registration: To open a branch, companies must register with the National Business Center (QKB) and submit documentation, including the parent company’s decision to open the branch.

Representative Offices

• Definition: Representative offices focus on promoting the parent company’s activities rather than generating revenue.
• Function: They can enter into contracts on behalf of the parent company but are mainly used for visibility and marketing purposes.
• Registration: Representative offices must also register with the QKB. In addition, any official website must display the company’s unique identification number (NIPT).

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Benefits of Setting Up a Company in Albania

1. Fast Procedures:
   Registration is completed within one day at the QKB, without requiring a notary.
2. Low Initial Costs:
   An LLC can be established with as little as 1 Euro in capital. Starting up a company in Albania could not be more cost-effective.
3. Clear and Stable Laws:
   Albania’s regulatory framework provides incentives and legal protections for foreign investors. Starting up a company in Albania is supported by a transparent legal system.

Conclusion

In summary, setting up a company in Albania is straightforward and cost-effective. Thanks to fast procedures, low costs, and a business-friendly environment, the country is an ideal choice for both local and international entrepreneurs. Choose the most suitable company structure for your needs and start investing in this growing market.