Subsidiaries in Albania may take many forms but all of them are characterized by the limited liability of the shareholders and the capital owned by the foreign company.
The foreign company is drafting the article of association of the subsidiary and may choose the management structure.
The advantages of owning a subsidiary in Albania are numerous and are related to the network of double tax avoidance signed by Albania all over the years. This way, the company is assured that the profits are not double taxed and the withholding taxes are minimized or abolished.
The most popular forms of business in Albania are the limited liability companies and the joint stock companies.
The form of limited liability company in Albania is adopted by the small and medium companies which must provide a minimum share capital of 100,000 LEK, dividend into equal shares of 1,000 LEK. The management is assured by one or two managers appointed by the foreign company. The general meeting of the shareholders is responsible for the major decisions.
The joint stock company may be opened or closed. The ones with private offer must provide a share capital of at least 2 millions LEK while the ones with public offer must provide a capital of at least 10 millions LEK. The stocks of the public joint stock companies are registered at the stock market.
The registration procedure of a subsidiary in Albania is very easy and takes around five days if all the requirements are met and all the documents are properly deposited.
The uniqueness of the name must be checked online or at one of the representative offices of the National Registration Center (which have its main location at Tirana).
The articles of association elaborated by the foreign company for its subsidiary and containing details regarding the internal regulations of the company must be notarized in order to be registered in the National Registration Center. As a result, the Registration Center will issue a Registration Certificate and a Unique Business Identification number for the newly established subsidiary.
This way the company is also registered for the health insurance and social security.
The registration of an Albanian subsidirary for the specific corporate taxes is made at the “Municipality Bureau of Internal Revenue” the company must register for taxes.
The last step of establishing a subsidiary in Albania is issuing a request for the company’s seal, necessary for the daily activities.