The formation and operation of commercial companies in Albania are governed by Law 7638/19.11.1992. This law recognises four types of companies:

a. Unlimited partnerships
b. Limited partnerships

c. Limited liability company
d. Company limited by shares (this type includes both public companies and commercial companies of the private sector)

As a rule, foreign enterprises choose the type of limited liability company.

The procedure for the formation of a limited liability company requires the filing of an application on the part of the administrator/s with the competent Court, including

a) the Articles of Incorporation and the Act of Establishment
b) the names of partners their birthdate and their residence address in Albania
c) the decision of the General Assembly of partners for the appointment of administrator/s
d) a power of attorney for the completion of the actions required for the registration of the company
e) minimum paid up share capital of 1000 USD (in case of a company limited by shares 2000 USD)

Following the approval of the Articles of Association by the competent court some further requirements must be complied with:

a) payment of a fee of 100 USD for the commencement of the business activity
b) payment of a municipal duty of 20 USD
c) conclusion of a social insurance contract for the employees of the Company
d) submission of the photograph of the administrator/s to the tax authority
e) opening of a bank account in the name of the new company twenty days after its registration in the tax register.

Athanassios Vamvoukos, Bahas, Gramatidis & Associates, Athens, Greece

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.