The Institutional Organization of Enterprises in Albania was established in 2007 with the law on Traders and Commercial Companies, continuously complementing the legal framework, referring to the manner of establishment, organization, administration, and conduct of enterprise activities regardless of the origin of the capital, aiming to attract foreign investments.
General information on Trade Structures
There are various forms of economic organization in Albania, differentiated based on:
- Organizational Scale – simple family-based organization and fully-fledged commercial forms
- Type of partners – individuals and/or legal entities.
- Type and value of capital – the law stipulates whether there is a minimum capital requirement for the establishment of a commercial company, depending on the organizational form. The contribution can be in cash, liquid or illiquid assets, and services.
Business registration at the National Business Center (QKB)
According to the Council of Ministers Decision no. 252, dated April 29, 2022, on the procedures for offering online services, all services provided by state institutions, including the initial registration service and any other business registration at the National Business Center (QKB), will be carried out through the e-albania state portal for Albanian citizens and foreigners residing and domiciled outside the territory of Albania. The application for the initial registration of commercial companies is jointly made by all the founders, by an authorized company administrator, or by any authorized person, submitting a completed application for initial registration, the statute, and the deed of establishment, if prepared as separate documents, as well as the appointments of the company’s organs if not included in the aforementioned acts. The law obliges founders to specify the division of the company’s capital, the value and type of contribution, and whether the subscribed contribution has been paid.
Administration and Company Organs
The administration of commercial companies is carried out by the founders jointly or by assigning the administration responsibility to one of the partners, or by appointing one or more administrators, individuals elected by the partners’ assembly. For more developed forms of commercial organization, such as Limited Liability companies, the organization and conduct of activities are exercised through the General Assembly of Partners, while Joint Stock Companies have a dual control structure through the General Meeting of Shareholders and the Board of Directors.
Capital Required for Business Establishment
The law does not specify a minimum contribution for the creation of Collective and Limited Companies, while the required capital for the establishment of a Limited Liability Company is 100 ALL.For the establishment of a Joint Stock Company based on a public or private offerings, the law on traders and commercial companies requires a minimum capital of:
- 2,000,000 ALL for private offering companies
- 10,000,000 ALL for public offering companies
The tax system
The business taxation system in Albania is as follows:
- businesses that offer professional services with an annual turnover of up to 14 million ALL will not be taxed until 2029
- businesses with an annual turnover exceeding 14 million ALL will be taxed as follows: • 15% income tax on profits
- 15% income tax on profits
- 8% tax on dividends
Opening a tax account and obtaining the Fiscalization Certificate are carried out through e-albania.
Advantages of Business in Albania
- The opportunity for businesses to have qualified employees with lower salaries than in other Balkans and European countries.
- Low capital requirements for the company establishment.
- The tax system, which turns Albania tax heaven compared to many other developed countries.