Types of Companies in Albania

If you are interested in knowing in-depth details on the types of companies in Albania, and/or you need assistance in registering any of the available legal entities, you can address our team of consultants, who can offer the necessary legal support.

What are the main business forms in Albania?

In the list below, our consultants present the main types of companies that can be registered in this country:

1. sole entrepreneurs in Albania or sole proprietorships are the least complex forms of business, formed by a person with unlimited liability on the debts of the company;
2. Albanian general partnerships can be formed by two or more partners with unlimited liability on the obligations of the company – the contribution of the partners must be equal, and no minimum share capital is required;
3. the limited partnership in Albania is composed by two entities – the general partner and the limited partner (the latter is responsible for the company obligations up to the limits of his contributions, opposed to the general partner);
4. the limited liability company in Albania (Shoqëri me Përgjegjësi të Kufizuara- Sh.p.k.) is formed by shareholders who must subscribe a minimum share capital equally divided into shares (this structure offers shareholders limited liability against debts, limited to their capital contributions);
5. joint stock companies (Sh.a) are formed by partners responsible for the company’s debts and gains only up to their contribution to the initial capital – the structure is similar to the limited liability company, only that the company’s shares can be traded on the stock exchange (which is not possible in a limited liability company).

What are the main ways of expanding a foreign company on the Albanian market?

A foreign company may open a branch if the business requires it. This is recommended in case the parent company abroad wishes to hold full ownership on the entity (this includes its liability, management, etc.). Another possibility is to set up a subsidiary, which implies registering one of the company types presented above (the private or the public limited companies).

Is it possible to register a representative office in Albania?

Yes, among the types of companies in Albania regulated by the local legislation, foreigners may also register representative offices (or liaison offices), which are set up for non-commercial purposes, in the sense that they can’t engage in economic activities.

What is the most common way to start a business in Albania?

Investors who want to start the process of company formation in Albania should know that the most common way to engage in a business activity is by registering a limited liability company. This is a legal entity suitable for small and medium-sized companies. It provides a set of advantages, which is why it is preferred by both local and foreign businessmen.

How can your team assist me in the process of registering a limited liability company?

Below, you can observe the main corporate services we offer our clients:

1. registration with the local institutions – the National Business Center, the Labor Inspectorate, the Public Registry of Beneficial Owners, the local municipality, etc;
2. drafting and signing the articles of incorporation;
3. obtaining the company’s seal;
4. activation of the electronic services necessary for the communication with the local institutions;
5. assistance in opening a bank account, etc.

How much does it cost to receive legal representation?

If you want to be represented in the process of starting a business here, please know that our consultants will charge a fee of ALL 30,000 for the services we have listed earlier. We provide other types of services, for instance, domiciliation services (necessary for securing a registered address), which are available at a minimum cost of ALL 6,000/month.

What is the duration of the company formation process in Albania?

It takes around 3 to 5 business days to complete the standard steps for company formation in Albania.

What are some of the corporate tax matters applicable in Albania?

Our consultants, specialized in company formation in Albania, have prepared a short list on some of the basic tax rules available here:

• investors who will set up a company in Albania are required to withhold personal income tax on salaries (after a personal allowance) and pay social and health contributions; the tax is charged at rates of 13% (up to ALL 2,040,000 a year) and 23%, depending on the salary threshold the employee reaches;
• corporate tax is charged at a standard rate of 15%;
• according to the General Directorate of Taxes, companies that generate a turnover below ALL 14 million benefit from a 0% corporate tax (we can offer more details on this tax rule);
• legal entities in Albania that sell products or services liable to the payment of the value added tax (VAT) must register for VAT with the tax authorities (voluntary registration is possible below the threshold) provided that their annual turnover is above ALL 10 million;
• the current standard VAT rate is 20%, but it must also be noted that some services and products are taxed with lower VAT rates (10%, 6% and 0%).

We invite you to contact us for more information on the types of companies in Albania.

Partner: Firmengründung in Albanien, Регистрация компаний в Албания