The life cycle of a business

Initial Registration Legal reference

• Law No. 9723, dated 03.05.2007, “On Business Registration”, as amended.
• Law No. 9901, dated: 04.14.2008, “On Traders and Commercial Companies”, as amended.

The primary obligation for any natural or legal person seeking to carry on commercial activities in the Republic of Albania is to register with the Business Registration Authority (BRA). The entities required to register in the commercial register maintained by the BRA are:

1. Natural persons exercising commercial economic activities;
2. Simple partnerships according to the provisions of the Civil Code;
3. Commercial companies;
4. Branches and representative offices of foreign companies;
5. Savings and loan associations and their unions;
6. Any other entity for which registration is mandatory under Albanian legislation.

Entities registered under Law No. 9723 of May 3, 2007 “On Business Registration,” as amended, are issued an electronically generated unique identification number (NUIS/NIPT). Registration in the commercial register also constitutes simultaneous registration with the central and local tax administrations, in the social security and health insurance scheme, and with the labor inspectorate. Registration is carried out at all QKB counters or online on the eAlbania platform. For more information Click here. What is required for initial registration?

Documents for initial registration

• Application form;
• Submission of the application for registration at QKB;
• Supporting documents.

The list of accompanying documents for registration can be found at the service desks or on the official website of the QKB.After the application is approved, the QKB electronically notifies the tax authorities (central and local) of the registration of a new entity for tax purposes and electronically transmits the entity's data (NUIS/NIPT, etc.). Changes during the business cycle Legal reference

• Law No. 9723, dated 03.05.2007, “On Business Registration”, as amended.
• Law No. 9920, dated 19.05.2008, "Tax Procedures in the Republic of Albania," as amended.

Every entity that performs an initial registration also bears the obligation to register every change in the notified data and in the supporting documents that are deposited in the commercial register maintained by the National Business Center. For more information on the change of data as well as the list of supporting documents, Click here.Closing a business (deregistration) Legal reference

Legal basis for closing the business

• Law No. 9920, dated 19.05.2008, "Tax Procedures in the Republic of Albania," as amended.
• Law No. 9723, dated 03.05.2007, “On Business Registration”, as amended.
• Law No. 9901, dated: 04.14.2008, “On Traders and Commercial Companies”, as amended.

The closing of a business is done by means of an application for deregistration. Entities are deregistered from the commercial register in cases provided by the legislation in force, for the dissolution and invalidity of legal persons, the distribution of a simple partnership, in cases of the termination of the exercise of activity by a natural person, as well as in any other case provided by the legislation in force. Deregistration is performed:

• voluntarily by the entity;
• based on a final court decision;
• according to the provisions of special laws.

For more information on the application procedure at QKB Click here. Deregistration of the Taxpayer Persons registered with the tax authority may be deregistered in the following cases:

Instances when a taxpayer is deregistered

• natural and legal persons, pursuant to the provisions of the law "On Business Registration," as amended;
• non-profit organizations, based on a court decision;
• the tax representative, upon fulfillment of the tax obligation as such;
• persons who, according to the bankruptcy law, have been declared bankrupt by a final court decision;
• public legal persons, in accordance with the legislation of the field that determines their activity.

The National Business Center or the court, immediately upon receiving the request for deregistration from the taxpayer, immediately notifies the competent tax authority of the registration of the commencement of liquidation procedures or of the request for deregistration of a natural person or of the application for deregistration of a legal entity, even when the application for deregistration is made without carrying out liquidation. The competent tax authority, within 10 business days from the date of submission of the deregistration request, is required to verify the tax status of the entities and simultaneously notifies the QKB or the court and the entity. When the tax authority, based on a risk analysis, deems it necessary to conduct an inspection at the premises where the entity operates, this period may not exceed 30 business days, including the time required for the inspection. The National Business Center or the court may not carry out the deregistration if, within the aforementioned 30-day period, the tax administration objects to the deregistration in writing. The tax administration's objection to the taxpayer's deregistration shall indicate the amount of the taxpayer's unpaid tax liabilities and, in the case of a legal entity, the fact that it has not submitted the financial statements closing its operations until liquidation, or has not filed its tax returns. In the event that entities registered with the National Business Center or the court have outstanding tax liabilities, they are automatically deregistered once they have paid all tax obligations, including liabilities arising in cases where deregistration is carried out through liquidation. In the event that the tax authorities' objection to the deregistration was made as a result of failure to submit financial statements or tax returns, then, Upon their submission, the competent tax authority is obligated to immediately withdraw the objection to the cancellation, and the National Business Center immediately carries out the cancellation of the taxpayer. If, despite the settlement of the obligation for which the registration was opposed, the competent tax authority has not withdrawn its objection, the entity submits to the National Business Center the document proving the settlement of these tax obligations. In this case, the National Business Center immediately carries out the entity's deregistration and immediately notifies the competent tax authority and the taxpayer. Caution: Tax deregistration does not eliminate existing tax liabilities nor prevent the tax administration from assessing or collecting tax liabilities. For any procedure that the tax authority and the QKB carry out under this article, from the start of the registration procedure until final registration, the taxpayers are notified at the same time. The date of a taxpayer's deregistration with the tax administration is the date of deregistration with the QKB or court. Date of deregistration for self-employed persons in commercial or mobile service activities, for the head of household who employs individuals as domestic workers, caregivers, etc. of self-employed persons in commercial or mobile service activities, of the head of household who employs individuals as domestic workers, caregivers, etc., of tax representatives, and of the farmer is the date the tax administration approves their deregistration, but with effect as of the date the deregistration request was filed.