Albania offers promising investment opportunities for entrepreneurs looking to establish or extend their businesses. This article provides detailed information regarding Albania’s advantageous economic environment, types of companies, and business registration procedures.
Legal Entities in Albania
In Albania, business activities can be conducted through various types of business entities. The main types, along with their specific information, are summarized below:
Limited Liability Company: This form is the most important and widely used type of business entity in Albania. A limited liability company is an entity formed by individuals or legal entities. Each partner owns a share of the company proportional to their contribution to its capital. The company’s registered capital is divided among the partners based on their respective shares. The owners are not personally responsible for the company’s debts. The minimum capital is 100 Albanian Lek.
Joint Stock Company: A joint-stock company is a business entity with capital divided into shares held by its founders. The founders, either individuals or legal entities, are not personally liable for the company’s obligations. Instead, they only cover losses up to the unpaid value of their shares. A private joint-stock company must have a minimum capital of 2,000,000 ALL, whereas a publicly offered joint-stock company must have a minimum capital of 10,000,000 ALL. Shareholder contributions can be in cash or kind (movable or tangible assets).
Registration Procedure
For several years, Albania has provided public services digitally through the e-Albania platform. All public institutions offer a variety of services through online applications, including the registration of commercial companies. This process is conducted entirely online, and the application is reviewed by the National Business Centre.
As a preliminary step, before proceeding with the business registration process, it is important to check if the chosen name of the business is available and not already used by another company. This information can be easily accessed at the National Business Center’s website (hereinafter: NBC).
The registration process involves filling out an online form and uploading all the necessary documents according to the business type, through the e-Albania electronic platform. During this process, the beneficial owners must also be declared. The application must be submitted by individuals with an electronic signature issued by the National Information Service Agency. After submission, the NBC will notify within two business days whether the application has been approved or if any correction needs to be addressed.
The business registration documents must be submitted either as originals or notarized copies. The individual submitting the documents is responsible for their accuracy. The documents must be clear and readable, without any unverified changes in Albanian language.
Benefits of Doing Business in Albania
Central Geographic Position: Strategically located in the Western Balkans, Albania serves as a key link between northern and southern Europe, with access to major global trade routes.
Investor-Friendly Legal Framework: Albania promotes a favorable investment climate by permitting foreign ownership to own 100% of their operations and providing strong legal protection.
Preferential Market Access: Albania enjoys preferential market access through the General System of Preferences, allowing its products to enter major markets such as the United States of America, Japan, and Australia under favourable tax conditions.
Major Tourism Investment Focus: Albania is strongly investing in tourism infrastructure to promote high-end, sustainable tourism, including huge projects such as “Nations Road” and Vjosa Wild River National Park, which combine environmental conservation with tourism growth.
To read more about taxation in Albania click here.
To navigate the business registration process most efficiently, it is recommended to seek professional consultation. Our firm, with expertise in international taxation, can refer you to professionals experienced in Albanian business regulations. Contact us, and we would be delighted to arrange an introductory meeting with you.
