Albania, a country on Southeastern Europe’s Balkan Peninsula, is known for being home to many castles and archeological sites. Its capital, Tirana, centers on sprawling Skanderbeg Square which is the site of the National History Museum, with exhibits spanning antiquity to post-communism. One major point of attraction to the country is the right of foreigners to engage in economic activities without the need to request permission or authorization. Albania’s legislation provides that in all cases and at any given time, foreign investments shall receive fair and equitable treatment and shall enjoy full protection and security. These are without any doubt, pointers to the rightness in the choice of setting up a business in Albania.
Among the types of commercial companies that may be established and operated in Albania is the Limited Liability Company (LLC). Also known as Shoqëri me Përgjegjësi të Kufizuara (Sh.p.k), it is the most popularly chosen type of legal entity by business owners entering into the Albanian Market. This is due to the flexibility in its structure and its suitability to a starting business.
One major benefit of setting up a Limited Liability Company in Albania is the ease and simplicity with which one can be set up. Coupled with this are the few sets of procedures required for its registration (some of which can be performed online). This helps to eliminate unnecessary inconveniences and time-wasting, ultimately leading to a quick and efficient business set up.
The Albanian Limited Liability Company is a cost-friendly type of company, considering the low company registration fees and the lack of share capital requirements. In this business type, there is no limitation on the number of shareholders, who can be either individuals or legal entities. Also, there is no restriction on the nationalities of shareholders, as they can be either foreigners or Albanians.
The minimum share capital for an Albanian LLC is ALL 100(approximately one Euro) and it can be established by one or more partners, natural persons or legal entities who are responsible only to the extent of their contributions to the company’s social capital. This infers that the liability of shareholders is limited to their contributions towards the share capital, and not their personal assets.
Another benefit of setting up an LLC in Albania is that taxes and other expenses necessary for incorporating the company are quite low. This ultimately results in more returns and profits for the investors and shareholders in the company.
There is much transparency in an Albanian Joint Stock Company, as the decisions regarding the overall management of the company are taken by the shareholders’ general assembly and day-to-day management is performed by directors appointed by the shareholders’ general assembly. Also, the law guiding the running of the company requires that annual financial reports be prepared.
So, are you in need of a business entity that is sustainable, able to effectively limit losses and flexible enough in its structure? Then, setting up a Limited Liability Company in Albania is one excellent decision to make.