Obtaining Financial Licenses in Albania

Obtaining financial licenses in Albania is required for those who want to operate in this industry. Firstly, investors must incorporate a local business following the standard incorporation procedures and then, they need to contact the authorities responsible for the licensing procedure. Our consultants can provide legal representation to any interested party.

What activities are required to be licensed?

Most of the financial activities that can be developed in Albania need to hold an adequate financial license. In the section below, our consultants list some of the main activities for which mandatory licensing procedures must be initiated:

1. banking;
2. payment services;
3. foreign exchange;
4. lending;
5. leasing;
6. money transferring services, etc.

What institution is responsible for the issuance of a financial license?

The majority of the financial activities fall under the supervision of the Bank of Albania, which is responsible for the issuance of the licenses. However, other institutions may participate in this procedure, depending on the specific operations carried out by a company and the regulations of the law.

What are the main rules of law I should be aware of when applying for a financial license?

There are several rules of law that you should be mindful of if you want to enter the financial market in Albania and you need to obtain a financial license. In the following list, our specialists present the main regulations:

1. Regulation 14/2009 “on granting the license and the exercise of banking activity of banks and branches of foreign banks in the Republic of Albania”;
2. Regulation 1/2013 “on licensing, exercise of activity, revocation of the license and liquidation of credit portfolio created from the financial activity of non-bank financial institutions”;
3. Regulation 31/2007 “on licensing, organization, activity and supervision of foreign exchange bureaus”, etc.

What types of documents must I provide during the license application?

Applicant companies need to provide an extensive set of documents, some of which are:

1. the incorporation documents (bylaws, proof of address, information about shareholders and directors, etc.);
2. proof of having the required capital to invest in the company;
3. the company’s business plan;
4. the company’s governance structure;
5. the internal policies;
6. proof of being compliant with the anti-money laundering laws, etc.

If I am already licensed in my country of origin do I need a new license in Albania?

In the case in which you plan to expand your company on the Albanian market and you are already licensed for financial activities by the local regulator, please mind that you can not passport your current license. The Albanian law requires all applicants to obtain financial licenses in Albania in accordance with the local law (our consultants can provide in-depth information on all the conditions).

How long does it take to obtain a financial license?

The licensing procedure can take at least 6 months and up to 12 months, depending on the activity of the applicant, the complexity of the company, the documentation that must be analyzed by the regulator and many others.

Are there any limitations concerning foreign ownership?

In general, no. Those who want to open a company in Albania in the financial industry and want full foreign ownership can usually do so without any impediments. However, they need to provide in-depth information on the shareholding, ultimate beneficial owners and many others.

The licensing process for a financial company is more complex compared to the one of other business sectors and this is why we strongly recommend you get in touch with our team of consultants, who can provide professional consultancy services and legal representation and can also assist you during the process of company formation in Albania.