{"id":17180,"date":"2022-10-22T19:56:31","date_gmt":"2022-10-22T19:56:31","guid":{"rendered":"https:\/\/alprofitconsult.al\/?page_id=17180"},"modified":"2026-07-14T14:03:43","modified_gmt":"2026-07-14T14:03:43","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 proprietor is the simplest and most common form of business registration in Albania. In this article, we will discuss in more detail sole proprietorships in Albania and the importance of this form for entrepreneurs. <\/p>\n\n\n\n

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 carrying out very small-scale activity, a small trader, is not required to register, in accordance with the thresholds approved by order of the Minister of Finance.<\/p>\n\n\n\n

Read also: Should I register as an individual or as a company?<\/a><\/p>\n\n\n\n

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

A natural person as a merchant is governed by the Civil Code and Law No. 9723, dated May 3, 2007<\/a>, For Business Registration, as amended, still in effect.<\/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