The Limited Liability Company in Albania, also known as Shoqëri me Përgjegjësi të Kufizuara (Sh.p.k.) is the usual company type that small and medium enterprises are advised to take. Company formation in Albania of a Limited Liability Company is encouraged by the government and has just a few procedures (some of them can be performed online).
Here is the requested information necessary for the registration of a LLC: name of company, date of the act of incorporation, activity, if it has Albanian ownership or not, headquarter, amount of the share capital, number of shares and their value, information about the entrepreneurs, information about the manager.
When setting up a LLC in Albania, the investor must submit to the NRC the following papers: the standard application, foundation act, articles of designation of company’s bodies, proof of payment of the share capital, copy of document of identification, copy of the administrator’s identification acts, document that verifies manager’s signature. If one of the legal entities is foreign, the company must submit additional documents.
There’s a minimum share capital of 100,000 Lek (about 725, Euro cash or property) required, divided into shares of nominal value of minimum 1,000 Lek. Before the formation of a Limited Liability Company in Albania, the entire minimum capital must be subscribed by the partners and paid.
The shareholders are responsible for the company’s debts only in the limit of their contribution to the initial capital.
The Limited Liability Company in Albania is ruled by the decisions taken by the General Assembly. The company can have one or more administrators (if there are more than one, than they are equally responsible for the company’s decisions).The administrators have the right to manage the company no longer than five years. There are no resolutions regarding the investiture or the retirement for this position.
The LLC in Albania is indebted to prepare annual financial statements.
A Sh.p.k can be transformed in a Joint Stock Corporation, if specific criteria are fulfilled. This is possible only if the company is on the market for more than a year. It is a partners’ decision. The administrators are responsible for elaborating a report regarding the economic and legal aspects of the change. Also the modification must be submitted to the National Register Center.
If the number of partners decreases to one, the Limited Liability Company registered in Albania becomes a sole proprietorship, after submitting a request of change to NCR.