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Types of Businesses under Albanian Legislation

Domestic and foreign investors have several options to organize their business activities in Albania. This can be achieved by registering the business as a sole proprietor, establishing and registering a commercial company, or registering a branch or representative office. Albanian legislation recognizes the following forms of organization for commercial companies:

 

· Sole Proprietor Considered the simplest form of organizing a commercial activity, created by an individual who bears unlimited liability regarding the obligations or debts of the business. The business registration procedure consists of registering the owner's details, the type of business, the address, and the estimated annual turnover.

 

· General Partnership A general partnership is a company that conducts commercial activity under a common name, in which the liability of the partners towards creditors is unlimited.

 

· Limited Partnership A limited partnership is a company in which the liability of at least one of the partners is limited to the value of their contribution, while the liability of the other partners remains unlimited. The partner whose liability is limited to the value of their contribution is referred to as a limited partner, whereas the partner whose liability is not limited to the value of their contribution is referred to as a general partner.

 

· Limited Liability Company (LLC) The Limited Liability Company is the most widespread form of commercial company. In this form, which may be established by natural or legal persons, the partners are not personally liable for the obligations of the company and cover the company's losses only up to the unpaid portion of their subscribed contributions. The company's capital is formed by the contributions of the partners, divided into quotas. Each partner enjoys their quota in the company, proportional to the contribution they made to the capital.

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