COMPANY REGISTRATION AND BUSINESS LICENSING

Two major initiatives taken by the Government of Albania which aim to improve the business climate are the establishment of the National Business Registration Center (NRC) and of National Licensing Center (NLC).  The legislation regarding business registration and licensing procedures is harmonized to EU standards with focus the reduction of administrative barriers for businesses operating in Albania.

Company Registration
The Commercial Law no. 9901 “On Entrepreneurs and Commercial Companies”) entered into force on 21. 05. 2008. This Law regulates the status of entrepreneurs, the founding and managing of companies, the rights and obligations of founders, partners, members, and shareholders, companies’ reorganization and liquidation.

According to the Commercial Law, the types of business entities are:

• General Partnership Company – A company is a general partnership if it is registered as such, conducts its business under a common name and the liability of partners towards creditors is unlimited.
• Limited partnership Company – A company is a limited partnership, if at least one partner’s liability is limited to the amount of his interest (limited partner), while the liability of other partners is not limited (general partners). General partners have the status of partners in a general partnership.
• Limited liability company– A limited liability company is a company founded by natural or juridical persons who are not liable for the company’s commitments and which personally bear losses only to the extent of any unpaid parts of stipulated contributions. Members’ contributions constitute the company’s basic capital.
• Joint stock Company – A Joint Stock Company is a company the basic capital of which is divided into shares and subscribed by founders. Founders are natural or juridical persons, which are not liable for the company’s commitments and which personally, bear losses only to the extent of any unpaid parts of the shares in the basic capital they subscribed.
• Branches and Representatives. According the Law No. 9901 persons authorized to manage a company may establish branches and representatives.
• Branches are places of business without legal personality. They have a degree of permanence, their own management, and enter into agreements on behalf of the company.
• Representatives are places of business without legal personality and without a management. They promote the business of the company and may also enter into agreements on behalf of the company.
• Joint Ventures – According the Albanian Civil Code the joint ventures (simple company) are established by two or more persons, whether individuals or legal entities, foreign or national, agreeing to engage in an economic activity in order to share profits deriving from them.