Individuals and legal entities have the right to open a foundation in Albania. The foundation is a type of entity that is registered in accordance with the rules for non-profit organizations (NPOs), which regulate formal registration procedures, similar to the ones available when setting up a company in Albania. Our consultants can assist any party who wants to open a foundation in Albania.
Our teamwill provide legal assistance in gathering the necessary paperwork, addressing the responsible institutions, presenting the obligations and the responsibilities deriving from carrying an activity in Albania through this entity, offering information on the tax system and many other matters that may be of interest for our clients.
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Who can open a foundation in Albania?
According to the Albanian Constitution, the right to set up a non-profit organization (which also includes the foundation) is granted to any natural person or legal entity. The applicant can be a citizen/resident or a domestic legal entity, but it must be noted that foreign individuals and companies have the same right, just like in the case of the rules for company formation in Albania.
Important aspects concerning the registration of a foundation
In the list below, our consultants, who are also specialized in company incorporation in Albania, present a few aspects that we believe are of importance when registering a foundation:
- legislation – the main rules of law referring to the foundation are given by the Law No. 8788 On Non-Profit Organizations and the Article 46 of Law No. 8417 (The Constitution of the Republic of Albania);
- types – according to the law, there are 3 types of NPOs, the foundation, the association and the center;
- costs – it can cost around ALL 30,000 to open a foundation in Albania;
- registration authorities – the registration must be completed through the Court of First Instance (which must provide an answer on the registration in maximum 15 days since the application is made), but also with the tax authorities.
Register for tax purposes
Once the Court of First Instance has approved the registration, the representatives of the foundation can address the General Directorate of Taxes, where the procedure for tax registration will take place. The documentation that must be prepared in this case is regulated under the Guidance no. 24, dated 02.09.2008, On Tax Procedures in the Republic of Albania.
Some of the documents necessary in this case are: the decision issued by the court, the incorporation document (establishment act and statute), the identity documents of the legal representative/administrator, documentation attesting the headquarters and the registration form.
Once these documents are submitted and approved, the General Tax Directorate will issue a Tax Identification Number (TIN), which is also issued for investors who open a company in Albania (the institution handles the tax obligations of all types of entities, commercial or non-commercial).
Another obligation, following the completion of the tax registration steps, is to register the foundation’s beneficial owner in the Register of Beneficial Owners.
What happens if the foundation does not have any activity?
If, following its registration, the foundation does not have any activity, it can become an inactive entity. This status can be acquired upon request, when the representatives estimate they will not have business activities for a period of at least 12 months, or when the entity submits declarations of inactivity for a period of 12 months.
A foundation that becomes inactive can regain its active status upon request. Our consultants can provide more details on how to register this entity. We can also present the tax system applicable to it or to commercial entities, provided that you are interested in company formation in Albania. Please contact us for more details.