A foreign company can operate in Albania by opening a branch without the need to establish a new company. Below you will find the complete process, from the documents required from the parent company to registration at the National Business Center and subsequent obligations.
A foreign company that will be present in Albania has three paths, and it's worth pausing to consider the choice before starting, because the consequences are different.
A branch allows you to work directly under the parent company. You can sell, invoice, and generate revenue here without creating a new company. The downside is that the branch is not a separate legal entity, so the parent company is fully responsible for its obligations.
One New LLC. It is a separate Albanian company. Your responsibility is limited to its capital and the parent company's assets remain protected, but you have a second entity to manage.
Representative office serves only to represent the parent company. It does not conduct profit-making activities and does not issue invoices.
It's a simple rule: the branch is chosen when you want real activity in Albania, but under the parent company. If you want a separate entity with limited liability, choose an LLC. If you only want a presence without sales, a representative office is sufficient.
Read also: How Foreigners Start a Business, Work, and Remain Legally in Albania
The biggest part of the work in opening a branch is not the application itself, but gathering the parent company's documents and preparing them for Albania. Their names vary from country to country, but the content is the same everywhere.
The document with which the company was created and its bylaws. If the bylaws have changed over the years, for example after a capital increase, the updated version is also filed, with the full text of the changes. If, according to the laws of the foreign country, this document is signed before a Notary, it is necessary for this document to be subsequently legalized with an Apostille seal.
Issued from the commercial register of the country of origin no more than 90 days before the application. It indicates that the company is active, who represents it, and whether or not it is in liquidation, and simultaneously serves as proof of registration in the foreign jurisdiction. Usually
Required when the company has been operating for more than one year. The last approved financial statement, kept according to the standards of the country of origin, is sufficient.
Usually a decision of the shareholders' meeting or the administrator, which clearly states that a unit is opened in Albania and appoints the person who will manage it. The branch does not have its own statute, so precisely this decision replaces it. It defines three things: the headquarters where the activity will be carried out, the object of activity, and the representative who will manage it. To make it easier for you, we have prepared a guiding template that you can download. here.
Valid passport or ID card of the person who will represent the branch in Albania.
Every foreign official document must first be apostilled, according to the Hague Convention, or be legally certified by a consulate for countries that are not part of it. After that, each document must be translated into Albanian by an authorized translator and notarized. An official document is defined as any document signed by a foreign state institution or a notary. Other documents do not require an apostille.
Collect the document
Articles of incorporation, bylaws, certificate of good standing, balance sheet, decision to open, and representative's identity.
Apostille and translation
Every foreign document is provided with an apostille or consular legalization and translated, certified in Albanian.
Apply on e-Albania
Fill out the form and sign the application electronically, either yourself or by proxy.
QKB Examination
QKB verifies the documents and application according to the law.
Take the NIPT
Registration ends within one business day, free of charge.
The application is submitted online on e-Albania, under the service “Application for the initial registration of branches or representative offices of foreign companies“Identify yourself as a citizen, fill out the form with the company's data, upload the documents, and electronically sign the application. Registration is free of charge and a response is given within one business day of application.
To sign the application, an electronic signature is required. If the legal representative of the foreign company does not have one or is not located in Albania, they can authorize someone here with a power of attorney, who will complete the application on behalf of the company.
Once you register the branch, it will be automatically registered with the tax authorities and other relevant bodies. Then there are a few practical steps remaining. Open a bank account in the branch's name, activate fiscalization, and if the activity requires it, obtain the relevant license or permit.
The branch is treated as a permanent establishment of the parent company and is taxed in Albania on the profit it makes here. Unlike a representative office, it has full obligations, keeps accounts, and declares regularly. The rate and calculation depend on the nature of the activity, so for details, see the page times Do you want a consultation.
An obligation that should not be forgotten is the Beneficial Owners Register. Within 30 days of registration, the branch must declare the individuals who ultimately control the parent company. This is a significant change from a natural person, who does not enter this register. More at Register of Beneficial Owners.
Read also: 10 Steps to Follow After Initial Registration
Any change in recorded data must subsequently be registered. When the articles of association or charter of the parent company are amended, the full text with the changes is deposited. The branch also deposits the annual financial statements of the foreign company. The application for a change is made through e-Albania, from the business account.
Branch closure is done by applying for deregistration and by submitting documents that prove the closure of liquidation procedures. For the complete mechanics of liquidation, read Dissolution of the limited liability company.
This acknowledges the legal personality of the parent company, therefore the parent company is responsible for its obligations.
Unlike a representative office, a branch carries out profit-making activities and issues invoices.
The Registry must register beneficial owners within 30 days of registration.
All foreign official documents must be apostilled or consular legalized and translated into Albanian by an approved translator.
The legal representative of the company can authorize a person in Albania by power of attorney to carry out the registration.
The decision of the parent company to open the branch, which determines its headquarters, business object, and representative, plays a role in the statute.