Albania Company Opening

Advantages of Albanian Law for Foreign Company Formation

Investors will benefit from a number of advantages if they choose Albania as a place to conduct their business:

• The generally fast and easy process of setting up a company;
• Albania is a party to double taxation treaties with approximately 40 trade countries;
• Low-cost labor compared to other European countries;
• Low corporate tax rate;
• Strategic geographical location;
• No foreign exchange controls.

Types of Companies in Albania

The main legal forms you can choose from in Albania are:

• Limited Liability Company, a legal entity established by natural or legal persons who are liable only to the extent of their contributions to the initial investment in the business.
• Joint-Stock Company, is established for large companies that wish to trade shares on the stock exchange. Investments can be made in cash or property, but not in services. JSC shares can be ordinary or preferred.
• Branch - an extension of the parent company - is usually established for marketing, promotional, or research purposes. There are no capital requirements.

Other legal forms that can be chosen when establishing a company in Albania are: a general partnership, with all partners jointly responsible for business obligations and profit sharing; and a limited partnership, founded by two partners, one with full liability and the other with limited liability proportional to their investment.

Documents for Establishing a Company in Albania

The Albanian Commercial Registry is the main state institution responsible for the incorporation and establishment of companies. The following list highlights the general requirements for setting up a company in Albania:

• Choose a unique company name and get approval for business activities from the Albanian Commercial Registry.
• Prepare and submit the Memorandum and Articles of Association for registration at the Companies Registration Office.
• Open a corporate account at an Albanian bank to deposit the required initial capital.
• Register your business with the Municipal Revenue Office for tax purposes.
• Register your staff with health insurance companies and the social security institution.
• Obtain the certificate of incorporation and a unique company seal.

It is important to note that a subsidiary will be independently responsible for all its debts and liabilities. The parent company will not be liable for any potential losses under any circumstances, but it can have full control over the newly established entity.

Company formation in Albania is a simplified multi-step process, but with the help of the team of specialists at World Company Setup, who are experts in company formation, it can be carried out quickly and easily.

Get Information on Obtaining a Residence Visa or Opening a Company in Albania

Company Setup Processes in Albania

To start the process of setting up a company in Albania, entrepreneurs need to provide the following documents:

• Legal documents: Memorandum of Association, Articles of Association, Board Resolution, or Power of Attorney.
• A bank statement confirming the opening of a bank account in an Albanian bank and the deposit of the required initial investment.
• A lease agreement to show the legal address of a new company in Albania.

The documents above are general, and a number of documents will vary on a case-by-case basis.

Taxation in Albania

In Albania, both national and local governments collect taxes. The national government applies a progressive income tax. State tax compliance rules refer to quarterly provisional tax payments and the filing of an annual tax return by the end of March of the following year.

The corporate tax is applied at a flat rate of 15%. The Value Added Tax is charged at a standard rate of 20%, and at reduced rates of 10% and 6%; certain medical services and the supply of certain medical products are exempt from tax.

Foreign investors who set up businesses in Albanian free zones benefit from a tax exemption for the first five years.

Company Setup in Albania

If you are interested in starting a business in Albania and getting it organized, please contact the World Company Setup team, and we will take your business endeavors to the next level, strictly adhering to the current laws and regulations in Albania.