A foreign company can be present in Albania without conducting commercial activities by opening a representative office. The representative office serves to promote and represent the parent company, but it does not sell, invoice, or generate income. Below you will find the complete process, from the documents required from the parent company to registration at the National Business Center (QKB) 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.
The representative office is the lightest presence. It allows you to have a point in Albania to promote the parent company, to network, and to do market research, but without conducting profit-making activities and without issuing invoices.
Dega you are allowed to work directly under the parent company, to sell and invoice, but it remains her full responsibility.
A new Ltd. It is a separate Albanian company with limited liability for its capital.
A simple rule: a representative office is chosen when you only want a presence without sales. If you want actual activity under the parent company, choose a branch. If you want a separate entity, choose an LLC.
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The representative office can promote the parent company, maintain contact with clients and partners, conduct market research, and coordinate activities. It cannot sell, issue invoices, or generate revenue in Albania. Precisely for this reason, it is not taxed on profit, as it does not generate any.
The bulk of the work isn't the application itself, but collecting the parent company's documents and preparing them for Albania. Their names vary from state to state, but the content is the same everywhere.
The document by which the company was established and its rules. If the statute has changed over the years, the updated version is also deposited, with the full text of the changes.
Issued from the commercial register of the country of origin no more than 90 days prior to 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.
Required when the parent company has been in operation for more than one year. The latest approved financial statement, kept according to the standards of the country of origin, is sufficient.
Usually, a decision by the shareholders' meeting or the company's administrator, which clearly states that a representative office is being opened in Albania and designates the person who will manage it. It specifies the headquarters, the purpose of the representation, and the representative. To make it easier for you, we have prepared a sample guide that you can download. here.
Valid passport or ID card of the person who will lead the representative office in Albania.
Every foreign official document must first be apostilled, according to the Hague Convention, or consular legalized 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 understood to be any document signed by a foreign state institution or a notary.
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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, fill out the company data form, upload the documents, and sign the application electronically. 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 the representative office receives the NIPT, it is automatically registered with the tax authorities and other bodies. Since it does not conduct profit-making activities, it does not pay profit tax.
If the office hires staff in Albania, salary obligations arise, i.e., insurance contributions and payroll tax. For details, see the tax page or request a consultation.
Read also: How foreign businesses register in Albania.
Any change to registered data must subsequently be registered. When the articles of association or bylaws of the parent company are changed, the complete text with the amendments must be filed. The application for amendment is made through e-Albania, from the business account.
Closing a representative office is done through liquid limit to the legal person.
The representative office does not carry out profitable activities and does not issue invoices. The branch or LLC serves this purpose.
Okay. Since it doesn't generate revenue, it doesn't pay profit tax. If it hires staff, it has payroll obligations.
Dega conducts real commercial activity and issues invoices. The representative office only represents the parent company, without sales and without invoices.
The legal representative of the company can authorize a person in Albania by power of attorney to carry out the registration.
All foreign official documents must be apostilled or consular legalized and translated into Albanian by an approved translator.
Read also: How Foreigners Start a Business, Work, and Reside Legally in Albania.