International businesses expanding into Albania often consider setting up a local presence through a branch office. A branch allows a foreign company to operate legally in Albania without incorporating a separate legal entity. Many investors ask how to register a branch of a foreign company in Albania and what the process involves.
Under Albanian law, a branch is not an independent legal entity but an extension of the foreign parent company. It operates under the parent company’s name and legal responsibility but must comply with Albanian registration and tax obligations.
Registration Process
The branch must be officially registered with the National Business Center (QKB) to operate in Albania. The registration process includes submitting certified documentation from the parent company, such as the certificate of incorporation, articles of association, and proof of legal existence in its home country. These documents must be legalized (apostille) and translated into Albanian by a certified translator.
The branch must also appoint a legal representative in Albania, who acts as the authorized person for managing operations and compliance. The representative’s identification and appointment must be included in the registration application.
What Happens After Registration
Once approved, the branch receives a Tax Identification Number (NIPT) and is registered for tax purposes in Albania. The branch can then sign contracts, hire employees, issue invoices, and conduct commercial activities on behalf of the parent company.
The branch must maintain accounting records in accordance with Albanian accounting standards and submit tax returns as required by law. Although it is not a separate company, the branch is subject to local tax obligations for its activities in Albania.
Why Open a Branch
Opening a branch can be a strategic way for foreign companies to test the Albanian market, establish operations with lower administrative costs, or comply with licensing requirements in regulated industries. However, a branch exposes the parent company to direct liability for the branch’s activities.
For foreign investors planning large-scale operations or seeking local partnerships, incorporating a subsidiary company (such as an sh.p.k.) may offer more legal separation and flexibility.
To register a branch of a foreign company in Albania, businesses must follow formal legal steps, provide certified documentation, and comply with Albanian tax and regulatory requirements.