Albania’s economy has been growing steadily over the past few years, with a focus on attracting foreign investment. The country has made significant progress in improving its corporate environment, making it easier for companies to operate and do business in Albania.
The nation has enforced several reforms to simplify the process of starting a business, obtaining permits, and paying taxes. Additionally, Albania has a competitive tax system, with a flat tax rate of 15% for both individuals and corporations. This article mentioned the basic regulations and procedures of setting up a firm in the country, to ease up the process of business registration for entrepreneurs.
Regulations of registrations
When it comes to company registration in Albania, several regulations must be followed. The first step is to choose a unique name for the firm and register it with the National Business Center. This can be completed digitally through the website or in person. Once the name is approved, the corporation must be registered with the National Registration Center. This includes submitting the syndicate’s articles of association, which outline the organization’s structure and governance.
Another important aspect of enterprise registration in the nation is obtaining a tax identification number. This is required for all companies and can be obtained from the tax authorities. Additionally, companies must register with the social security authorities and obtain a social security number for each employee.
Main procedures of business registration
Besides the above-mentioned regulations, a few other steps must be followed carefully. These steps are mentioned below.
Choosing a corporate framework
In Albania, there are four types of business structures: sole proprietorship, limited liability, joint stock, and partnership.
Sole Ownership
The sole proprietorship is the simplest and most common type of corporate structure in the country. It is maintained and functioned by a sole person, who is answerable for all actions of the firm. This structure is easy to set up and requires minimal paperwork.
Limited Liability Company
Limited liability companies (LLCs) are also popular in Albania. LLCs require more paperwork and formalities than sole proprietorships, but they offer greater flexibility and protection.
Joint Stock Company
These companies are owned by shareholders, who are not personally liable for the debts and obligations of the business. Joint stock companies require a higher level of capital and formalities than other structures.
Partnerships
Partnerships are a corporate structure in which two or more individuals share ownership and responsibility for the business. Partnerships require a formal agreement outlining the terms of the partnership, and they can be more complex than other structures.
Obtain permits
When it comes to registering a firm in Albania, obtaining the necessary corporate permits is crucial.
Trade registration paper
This credential confirms the firm’s registration and includes information such as the syndicate’s name, address, and legal representatives.
Tax certificate
This certification confirms that the company is registered for tax purposes and includes the company’s tax identification number. It is important to note that companies must renew this certificate annually.
Corporate License
This permit confirms that the firm is authorized to conduct business in that specific municipality.
Submit the documents
When registering a company in Albania, there are the following main documents that are mandated.
- A duplicate of the Articles of Association must be submitted.
- A Memorandum of Association must be delivered.
- List of enterprise’s objectives.
- The Certificate of Incorporation must be submitted.
- The Tax Identification Number (TIN) must be delivered.
- A duplicate of the company’s Corporate License must be submitted.
- A duplicate of the Bank Report must be delivered.
- A duplicate of the Lease Agreement must be submitted.
