Open a Representative Office in Albania

Foreign investors can open a representative office in Albania, a type of entity that is recognized under the local law. A representative office is also referred to as a liaison office and it defines an entity that is incorporated for the purpose of carrying out promotional/marketing activities on behalf of the parent company abroad (our team can assist during the incorporation formalities).

Please mind that it is not possible to open a liaison office in Albania for the purpose of developing commercial activities, as this type of structure does not allow profit-related operations. If this is your primary goal, you can always set up a company in Albania under one of the business forms designed for commercial operations.

How to open a representative office in Albania

Even though this entity is not set up for commercial purposes, it still needs to follow the basic procedure for company formation in Albania, which starts with the registration with the National Business Center (QKB). Just like in case of other business forms, the National Business Center will ask for a file of documents, mandatory for the official incorporation.

Our consultants in company incorporation in Albania can help you prepare, sign and gather the necessary paperwork, some of which refers to:

1. the completed application form (it can be signed by the representative of the parent company setting up the liaison office or by a third party who received the power of attorney, such as our team);
2. the foreign company’s bylaws;
3. an extract issued by the Chamber of Commerce operating in the country where the parent company is registered, which provides evidence on the fact that the applicant company is not bankrupt or in the process of dissolution;
4. a document signed by the board of directors of the parent company through which it is decided to open a representative office in Albania;
5. the name of the person who is appointed as the legal representative of the liaison office;
6. the parent company’s latest financial statements.

Ultimate beneficial owners rules

In certain European countries, depending on the legal entity registered by foreign applicants, there can appear the obligation to provide information on the ultimate beneficial owners. This applies in Albania as well, where such companies are required to disclose information on the company’s ultimate beneficial owner (UBO). The rule is available when a foreign company will open a representative office in Albania.

Some of the rules concerning UBOs are presented in the list below by our consultants in company formation in Albania:

• UBO disclosure obligations appear under the Law No. 112/2020 “On the Registry of Beneficial Owners”, which defines UBO as the individual who ultimately owns/controls a company;
• the UBO can have direct ownership of the company (which is defined as ownership of at least 25% of the shares);
• the definition also specifies that UBOs can have indirect ownership/control of one or more legal entities under the same group, in which he/she owns at least 25% of the shares;
• the UBO registration procedure must be made during the process of company incorporation in Albania or within 30 days after the new legal entity has been registered with the National Business Center;
• please mind that failure to comply with the registration period (of 30 days since the incorporation) can result in a fine of up to ALL 500,000 for the company and ALL 150,000 for its legal representative.

We mention that those who will open a liaison office in Albania are exempt from the payment of corporate taxes, given that the entity is not involved in commercial operations. However, taxes can arise from employment.

Our consultants can provide more details on the tax obligations and reporting available for this entity, therefore do not hesitate to contact us if you want to set up a company in Albania.