Foreign investors and business owners need to understand accounting and bookkeeping requirements for Albanian companies to ensure legal compliance and avoid penalties.
All companies operating in Albania, whether foreign-owned or local, must follow Albanian accounting standards and tax reporting rules.
Albanian companies are required to keep accurate accounting records that reflect their financial position, transactions, and operations.
These records form the basis for preparing tax declarations and submitting statutory financial reports.
Main Accounting Obligations
The core accounting and bookkeeping requirements for Albanian companies include:
– Maintaining accounting books in accordance with Albanian Accounting Standards (NAS) or International Financial Reporting Standards (IFRS), depending on company size and type
– Keeping records of all financial transactions, invoices, payroll, and contracts
– Preparing annual financial statements and filing them with the National Business Center (QKB) within six months after the end of the fiscal year
– Filing monthly VAT declarations (if VAT-registered) and other tax reports with the General Directorate of Taxes
– Archiving accounting records and documentation for a minimum of 10 years as required by law
Companies must use licensed accountants or accounting firms to ensure compliance with statutory standards and reporting deadlines.
Role of the Accountant
Albanian companies are not legally required to hire an internal accountant but must ensure that a qualified professional handles financial records and tax reporting. Many foreign-owned companies outsource accounting to licensed accounting firms specializing in corporate compliance.
The accountant’s responsibilities include maintaining daily books, preparing tax declarations, calculating payroll, handling social contributions, and advising on tax obligations. Errors or omissions in accounting can trigger fines, tax audits, or delays in official processes.
Audit Requirements
Certain companies—such as joint-stock companies or those exceeding revenue thresholds—are subject to statutory audit requirements under Albanian law. Audited financial statements must be prepared by licensed auditors registered with the National Accounting Council.
For small companies, audits are not mandatory unless specified by law or requested by shareholders or investors.
Accounting and bookkeeping requirements for Albanian companies are an essential part of operating legally and efficiently. Accurate records, timely reporting, and compliance with Albanian standards are critical to avoid penalties and support business growth.