Set Up Business in Albania Has Requirements to Consider
Albania is a country with an upper-middle-income, and a GNI per capita of $4,180 and they have a population of about 2.9 million people. About 45% of them are living in rural areas. Based on the estimates of IMF, they had an increase in GDP of 3.9% in 2020.
Albania has a unitary, parliament constitution, and it is part of the United Nations, UNESCO, World Bank, WTO, NATO, and more. Albania is supportive of the capitals’ free movement or transportation, private property, incomes, or investments because they get protection from the law. The Albanian Commercial Registry is responsible for company formation and incorporation.
What You Must Do
- If you want to effectively conduct business in Albania, it is essential for U.S. companies to have an overview of the primary economic conditions and opportunities. You must do market research to know what you are entering. You can look up commercial guides, market updates, industry overviews, bank reports, best markets for you, and industry reports.
- Set up a limited liability company (LLC) because it is the most ideal for foreign investors. It only requires 1 shareholder and 1 director from any nationality. They do not have to travel or ordinarily reside in Albania for the business set up to be complete. There is a required paid-up capital of only €1. After the company setup of Albania, the locally incorporated companies must submit financial statements. These statements must be audited in case two out of three thresholds have been exceeded: a. $230,000 annual sales b. over $330,000 in total assets and c. There are over 30 employees.
The requirement of the new law is that only one document is needed for company formation and its constitution. Provide the company name form, incorporation date, founders’ identification data, object, seat, duration, data of persons in the administration, competences, and office terms, and representative/s specimen signature.
It would be best if you have a unique company name, and you can look online to help you come up with an exceptional company name. Once you have given the request, the agency will issue you a name reservation within a day after you finished filling out the application. The name reservation is suitable for 30 days, and it cannot be extended.
The Reasons Why Set Up a Business in Albania
- Albania is beautiful, and it is tucked away in the southeast of Europe, making it a great destination to invest in. The investment opportunities in Albania exist here for the common man and venture capitalist. Actually, doing business in Albania is very easy, and it can even have very few employees because they made it easy for direct and foreign investment. The country has a high score in terms of environmental performance, living standard, and happiness indexes. Hence, you can easily interact with locals and settle down in Albania.
- They made Albania attractive to bug businesses. They have a young and educated workforce, open trade zones, wage is lower compared to other countries in Europe. The foreign ownership of a company can be 100%. The government protection of companies has no cap on the profit, and tax benefits.
- There have been a lot of start-up ventures in Albania that have been successful, and they continue to grow over the years. Larger businesses show good profits in different sectors which include fintech, IT, financial services, banking, service, and construction industries.
- The law guarantees that foreigners who invest in Albania do not need prior authorization from the government, and they can invest in any sector. They can own the company 100% and they cannot be nationalized or expropriated, except if there is a particular case. For the interest of public use, and law definition. Foreigners can expatriate their funds and contribute in kind. They are protected by the law.
Great Business Ideas in Albania
Albania needs more food processing plants because they still have a low number, and they still import major food products from other countries. The market of Albania needs these products, and that offers a lot of opportunities for you as an investor. Their food demand will remain high. If you have good marketing and product quality, you will become successful.
Albania opens an excellent opportunity for investment services in different fields like orientation center, data processing, customer support, and more. These all give a competitive advantage for investors in this sector. It did not take long before it has become a favorite, and the majority of Albania knows many languages, and power labor has a low cost.
Set up a business in Albania today with the help of 3E Accounting so you will be guided on what to do.