A welcoming business environment, coupled with low taxes for companies and a streamlined company formation procedure are some of the reasons why Albania present important potential to foreign investors. Business sectors like tourism have benefited from increased attention in recent years, both from domestic and foreign investors, however, tourism is just one example of a growing business field. Foreign investors in Albania can find notable opportunities in sectors like energy, mining, agriculture, transport, telecommunications, tourism, and others.

Albania has signed a number of free trade agreements, bilateral treaties as well as more than forty double tax treaties, all aiming to improve economic cooperation and encourage foreign investments.

Company formation in Albania is a streamlined process, one that includes a few key steps and that can be assisted by our team of agents who specialize in offshore company formation.
 

Types of companies in Albania

BridgeWest provides the formation  of the following types of companies in Albania:

• Limited Liability Company: this is a business form preferred by many investors because the liability of the founders is limited to their contributions to the capital. This company cannot trade its shares publicly.
• Joint Stock Company: a business form designed for large corporations, it shares the principles of limited liability, like the previous type, but it can offer its shares to the public.
• Partnership: This is the general and the limited partnership, each with different liability degrees for the founders.
• Branch, and Representative Office - Any foreign company is able to set up branch entities in Albania. This will be an extension of the parent company and will perform the same activities. The representative office can only be used for marketing or promotional purposes, no commercial activities.
• Sole trader: this a natural person who performs independent business activities; the set up is simple and it requires registration with the Commercial Register soon after the commencement of the actual business activities.

The limited liability company and the joint stock company are preferred business form because they offer the advantage of limited liability. The founders are liable only to the extent of the invested capital and the assets of the company are separate from their own. The business has legal capacity and, unlike in the case of the sole trader, in case of business failure, the founders will not pay with their own assets. The sole trader is an attractive option for those individuals who wish to start their own business and provide services, however, it does have the highest degree of liability. Similar liability appears in the case of the general partnerships and the limited partnerships (but only for the general partner).

The adequate business form can depend on the chosen business field, the number of associates and available capital as well as the future plans for expansion.

Choosing the suitable type of company is a essential step and one of our offshore company set up agents can help you with detailed information about each of the business type mentioned in this article. It is important to understand the characteristics, obligations and liabilities that arise with the creation of one business form or another.
 

Company formation steps in Albania

Company formation in Albania is a multi-step process and investors need to observe these requirements when opening a company. Our offshore company formation agents in Albania can help a foreign investor who wishes to start the process but cannot be present in the country during the entire formation phase.

The list below highlights the main requirements or steps for opening a company:

• Select a company name: this name should be unique and investors must observe the regulations that prohibit the use of certain words.
• Deposit the capital: the needed minimum share capital is deposited in a corporate bank account created with an Albanian bank.
• Draw up the company documents: the documents that attest the incorporation, the and Articles of Association (which can sometimes be called the Statute) are to be drafted and notarized.
• Submit the documents: once complete, the incorporation documents are filed for registration with the Office for the Registration of Companies.
• Tax registration: the next step is to register the companies for tax purposes and for VAT purposes.
• Other registrations: the company will also need to register for social security purposes and the Labor Inspectorate Office.

Please keep in mind that these apply to resident companies like the limited company and the requirements for branches or representative offices are different – in general, investors will be subject to lighter requirements but these legal entities will still need to be registered, have a registered office and observe the tax and reporting compliance (tax not applicable to representative offices).
 

Assistance for company registration in Albania 

BridgeWest, a European and offshore company formation agent, provides company formation services in Albania. Our assistance includes:

• drafting the Articles of Association (necessary for the company incorporation in Albania). The Articles of Association of an Albanian company can be signed through Power of Attorney (the same applies to Public Notary proceedings, a step required by the Albanian Law). 
• drafting all other documents required for opening a company in Albania. These documents include Specimen Signatures, Special Forms provided by the Company Registration Office in Albania, passport copies etc.
• arranging Public Notary procedures (The procedures for incorporating a company in Albania have to be done through an Albanian Public Notary);
• offering a Registered Office in this country for your company opened in Albania (if required). The registered office may be any address where the Albanian company declares to have its headquarters. The registered office of a company opened in Albania will be public.
• setting up a bank account for your Albanian company. This refers both to an initial share capital account as well as a current bank account after the company is formed. 
• recommending an accountant in Albania. Accountancy services are recommended for any new business registration in Albania.

Albania company facts

Taxation: The corporate income tax rate in Albania is 15% for companies with an annual turnover of 8 million ALL; companies outside of this tax bracket are subject to a simplified regime with a rate of 5%; companies with an annual turnover below 5 million ALL are exempt from corporate income tax. Other taxes for companies include the withholding tax on dividends, interest and royalties, social security contributions, the transfer tax, and the real property tax levied at a municipal level. The standard VAT rate is 20%, with a reduced rate for accommodation services (6%) and exempt services like the supply of medicine and medical services as well as a zero rate for exports. Registration for VAT purposes is required for all business entities that engage in the supply of taxable goods.

The general tax compliance rules refer to advance tax payments made on a quarterly basis and the submission of an annual tax return, by the end of March the following year.

BridgeWest is also able to offer ready-made Albanian companies and VAT registration. Moreover, we can also help you set up a bank account for your company in Albania, as our agents are very experienced in opening European and offshore bank accounts.

Please contact our team of European and offshore company formation experts for more information about opening a company in Albania as well as prices.