Establishing a subsidiary can demand a significant amount of time and energy that can take away from running a parent company.
G-P understands the struggles of expansion and can streamline the entire entity setup process. As the Employer of Record (EOR), we enable companies to begin operations in Albania without setting up new entities.
How to set up an Albania subsidiary
Setting up an Albania subsidiary requires careful planning. First, you need to consider where you want to establish a physical office space. Different areas and cities may have their own Albania subsidiary laws that can make expansion difficult. That’s why it’s best to research different areas in the country to find the best location to operate.
Once location is decided, you should start to consider different entities that make sense for your specific goals and needs. The entity you choose to incorporate as can impact how you work in the country. Companies expanding to Albania can establish as a limited liability company (LLC), joint-stock company, or representative office. Most companies choose to incorporate as an LLC.
The steps to set up an Albania subsidiary as an LLC include:
- Checking the uniqueness of you company name online or at a representative office of the National Registration Center.
- Drafting and notarizing articles of association that include internal regulations of your company.
- Receiving a Registration Certificate and Unique Business Identification number from the Registration Center.
- Registering for health insurance and social security.
- Registering for specific corporate taxes at the Municipality Bureau of Internal Revenue.
- Issuing a request for a company seal that’s needed for daily activities.
Albania subsidiary laws
Companies that incorporate as LLCs need at least 1 director and 1 shareholder of any nationality. They will not be required to travel to Albania for the process or live in Albania. There is also a small amount required from companies in paid-up capital.
Once the Albania subsidiary setup process is complete, you need to submit financial audits to Albania’s commercial registry. These statements need to get audited if companies exceed 2 of the 3 following values: annual sales of USD 230,000 or more, total assets over USD 330,000, or have more than 30 employees.
Benefits of setting up an Albania subsidiary
Companies that incorporate as LLCs will have limited liability from the parent company. The parent company won’t have to worry about litigation, and the subsidiary can operate under its own culture that fits Albania’s overall culture.
Other important considerations
Before you establish a subsidiary, you should set aside the time and budget to complete the incorporation process, as some steps involve fees.
It’s also common to decide on a company executive who will handle the incorporation process before starting. This person may need to travel back and forth to Albania, so they should ideally be well versed in Albania subsidiary laws, the local culture and language, and any key employment regulations. Otherwise, you should work with a consultant or lawyer who can help you understand and navigate the process.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.