{"id":17180,"date":"2022-10-22T19:56:31","date_gmt":"2022-10-22T19:56:31","guid":{"rendered":"https:\/\/alprofitconsult.al\/?page_id=17180"},"modified":"2026-05-18T19:27:07","modified_gmt":"2026-05-18T19:27:07","slug":"general-information","status":"publish","type":"page","link":"https:\/\/alprofitconsult.al\/en\/regjistrimi-biznesit\/person-fizik\/informacion-i-pergjithshem\/","title":{"rendered":"Sole Proprietorship as a Business Structure: What It Is and When to Register"},"content":{"rendered":"

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Home Page<\/a><\/span> | How to Register a Business in Albania<\/a><\/span> | Individual<\/a><\/span> | Sole Proprietorship as a Business Structure: What It Is and When to Register<\/span><\/span><\/div>\n\n\n

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A sole proprietorship is the simplest and most common form of business registration in Albania. According to the National Business Center<\/a>, over 196,000 active businesses operate as sole proprietorships, nearly four times more than LLCs (sh.p.k.).<\/p>\n\n\n\n

It is the preferred structure for independent professionals, freelancers, and single-owner businesses.<\/p>\n\n\n\n

Who Must Register as a Sole Proprietorship?<\/h2>\n\n\n\n

Any individual engaging in commercial economic activity is legally required to register as a sole proprietorship with the National Business Center (QKB), pursuant to Article 22 of Law No. 9723\/2007<\/a>.<\/p>\n\n\n\n

This obligation applies to:<\/p>\n\n\n\n

Standard Traders.<\/strong> Individuals who sell goods or provide services for profit, where the scale of the activity requires a commercial organization.<\/p>\n\n\n\n

Independent Professionals.<\/strong> Lawyers, notaries, accountants, physicians, engineers, and artists, provided a specific law grants them the status of a trader.<\/p>\n\n\n\n

Agro-Business Operations.<\/strong> When the activity focuses primarily on the processing and sale of agricultural or livestock products.<\/p>\n\n\n\n

A natural person whose activity is of a very small volume (small trader) is not required to register, subject to the thresholds approved by order of the Minister of Finance.<\/p>\n\n\n\n

What the Law States<\/h2>\n\n\n\n

The sole proprietorship structure is regulated by the Civil Code and Law No. 9723, dated May 3, 2007,<\/a> \"On Business Registration\" (as amended), which remains in force.<\/p>\n\n\n\n

According to the Civil Code<\/a>, a trader is a natural person who exercises an independent economic activity that requires a standard commercial organization.<\/p>\n\n\n\n

Three Essential Rules:<\/p>\n\n\n\n

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  1. The sole proprietor is personally liable for all business obligations with their personal assets, including movable and immovable property, as well as any other rights of economic value.<\/li>\n\n\n\n
  2. A sole proprietor loses their status as a trader upon ceasing operations or being legally forced to do so. This results in deregulation from the commercial register.<\/li>\n\n\n\n
  3. If the sole proprietorship maintains a website, all information reported to the QKB must be published there as well.<\/li>\n<\/ol>\n\n\n\n

    Advantages and Disadvantages<\/h2>\n\n\n\n

    Advantages<\/h3>\n\n\n\n