Albania, a small southeastern European country, is recognized for its rich history, beautiful landscapes, and most importantly its open economy. Over the last couple of decades, the country has taken multiple progressive steps to attract foreign investment. One way it has achieved this is by simplifying the previously complex process of registering a foreign company in the country.
Step 1: Decide on the Type of Business Entity
The first step to registering a foreign company in Albania is deciding on the type of business entity to establish. The most common types are Limited Liability Company (LLC), Joint Stock Company (JSC), Branches, Representative Offices, and Partnerships. The LLC is particularly suitable for small and medium enterprises due to its limited liability and flexible management system.
Step 2: Register a Trade Name
Your company’s trade name should be unique and must meet the requirements specified by the Albanian law. Before going ahead to register, one can search for the uniqueness of the proposed name in the Albanian National Registration Center (NRC) database.
Step 3: Open a Bank Account
It’s a pre-requisite to open a bank account in an Albanian bank where the initial capital of the company will be deposited. The minimum deposit varies based on the company’s business entity type.
Step 4: Draft Articles of Association
Drafting of your company’s Articles of Association is an important process representing the company’s constitution and stipulates key details including company name, business activity, and ownership structure.
Step 5: Register with the National Registration Centre (NRC)
After drafting the Articles of Association, the next step is to register your company with the NRC. Here, the company registration application and a list of necessary documents including proof of capital deposit and notarized Articles Association should be submitted for approval. It usually takes three to four business days for the NRC to process the registration
Step 6: Tax Registration
Upon company registration, the NRC will automatically issue the company with a unique identification number, which is also your tax identification number. This is followed by VAT registration at the local tax office if your company intends to engage in VAT liable activities.
Step 7: Register for Social Security
After tax registration, your company needs to be registered for social security contributions at the local office of the Social Insurance Institute.
Albania has potential and opportunity for growth and it offers business-friendly legislation. The business environment encourages foreign investors by offering equal treatment to Albanians and foreigners. By following the above steps, a foreigner can register a company in Albania without much hassle. Nonetheless, it is always advisable to seek the help and guidance of local experts or organizations that are familiar with the process, legislation, and the local market.
Sure, here are some suggested related links:
Ministry of Economic Development, Tourism, Trade and Entrepreneurship
National Business Center (QKB)