Businesses in Albania
If you’re planning to expand your business or open a company in Albania, you need to know what are the types of businesses and organizations that will thrive in the Albanian economy, and all the necessary information on economic opportunities.
In Albania, these are the main types of businesses
Sole Proprietorship (Shoqeri e thjeshte)
This is the simplest way for exercising any type of economic activity in Albania. Physical persons must submit their requests at the National Business Center
General Partnership (Shoqeri Kolektive)
Each partner has the same representative right in relation to third parties, with the exception of cases foreseen in the company status. A general partnership is dissolved in the following cases:
Expiration of term
By a decision of partners
By starting the insolvency proceedings
The company has not been active for a period of two years
Limited Partnership (Shoqeri Komandite)
A limited partnership is composed of partners and at least one of them has a limited liability to the extent of his initial contribution. Meanwhile, other partners don’t have limited liability.
Limited Liability Partnership (Shoqeri me Pergjegjesi te Kufizuar)
A Limited Liability Partnership is a commercial association founded by physical and juridical persons, who are not held responsible for the obligations of the company. They don’t have personal liability and cover losses to the extent of their unpaid contributions. Each partner has his liability depending on his initial contribution. A Limited Liability Partnership cannot have a capital lower than Lek 100.
Corporation (Shoqeri Aksionere)
A corporation is a business structure and the capital is divided into shares between its founders. They can be physical or juridical persons who are not held responsible for the corporation obligations and cover losses only with the unpaid value of shares. A privately held company must have a capital of Lek 2,000,000. A public corporation must have a capital of Lek 10,000
Foreign subjects that are interested in establishing a branch or a representative office in Albania must have a legal personality in Tirana Trade Record. Afterwards, they must ask for a general license on trade activity from the tax office.
Foreign companies are equal to Albanian companies in terms of the legal frame. Branches are managed and organized separately and they carry out activities with third party on behalf of the parent company. However, a branch cannot generate revenues. They should only develop the activity of the parent company. The branch or the representative office is headed by a legal representative authorized by the parent company.
Dissolution for all corporation can take place because of
expiration of the term,
the achievement of the company’s social goal,
by the withdrawal of one or more members,
by a judicial act,
inactivity for a period of two years
Joint ventures are not regulated by a specific law. They are defined in the Civil Code and the Albanian legislation uses Sole Proprietorship name. Joint ventures consist of the contract between two or more people that agree to exercise an economic activity. Joint ventures are not legal entities. Foreign Investors are recommended to conduct preliminary negotiations on a dispute mechanism on a possible joint venture contract.