Branch of a Foreign Company
Extend your existing company into Albania through a registered branch – no new subsidiary, no separate legal entity, full local operating capability.
Extend Your Company Into Albania – No New Legal Entity Required
A branch (degë) is not a separate Albanian legal entity – it is a registered extension of your existing foreign company, operating with the legal personality of the parent company and under its ultimate liability. The branch may have a different registered name where duly registered.
Albania For Business Sh.p.k. handles the full branch registration process: reviewing and legalising the parent company’s documents, appointing a branch representative, filing with the QKB, and setting up tax and accounting for the Albanian branch.
BRANCH ESTABLISHMENT IN ALBANIA
fixed package fee
PACKAGE OF ESTABLISHING A BRANCH IN ALBANIA INCLUDES:
- Review and preparation of parent company documents for filing
- Certified Albanian translation of all foreign-issued documents
- Power of Attorney preparation, if signed remotely
- Appointment of the branch representative
- QKB filing of the branch registration application
- Branch NIPT (tax ID) issuance
- Beneficial owner (UBO) declaration
- Initial tax and accounting registration for the branch
- Virtual office / registered legal address for 1 year
- Notary coordination services
Branch vs. Subsidiary (Sh.p.k.)
Both routes let a foreign company operate in Albania, but the legal and liability consequences differ significantly:
| Branch | Sh.p.k. Subsidiary | |
|---|---|---|
| Legal personality | None – part of the parent company | Separate Albanian legal entity |
| Liability | Parent company fully liable | Limited to the subsidiary’s own capital |
| Activity scope | Limited to parent’s registered activity | Can register its own, independent activity |
| Local ownership records | None – no separate shareholders | Own shareholder and beneficial-owner register |
| Typical use case | Testing the market, project-based presence, existing group structure | Long-term independent operations, risk separation |
Tax & Liability Considerations
Because a branch has no separate legal personality, the parent company remains fully liable for all obligations the branch incurs in Albania – including contracts, employment liabilities and tax debts. This is the central trade-off against a subsidiary: a branch can be faster and simpler to set up, but it does not create the liability separation a Sh.p.k. subsidiary provides.
Tax treatment of branch profits, transfer pricing between the parent and branch, and any double-taxation treaty relief should always be reviewed with a qualified tax adviser before choosing this structure.
The Registration Process, Step by Step
Prepare parent company documents
Certified Albanian translation
Appoint a branch representative
QKB filing of the branch application
Branch NIPT issued
Tax & accounting registration
Typical timeline: 1–3 weeks from engagement to a registered, tax-active branch, depending mainly on how quickly the parent company’s documents can be legalised in your home jurisdiction. QKB filing itself is usually completed within a few business days of a complete file being submitted.
Documents Required From the Parent Company
- Incorporation act and articles of association/statute of the foreign company, including subsequent amendments, where applicable.
- Document confirming registration of the foreign company in its home jurisdiction.
- Current-status document issued no more than 90 days before the application, containing registration and representation details and confirming whether the company is subject to liquidation or bankruptcy proceedings.
- Balance sheet for the latest financial year, if the foreign company has conducted business for more than one year.
- Resolution or other corporate act authorising the establishment of the Albanian branch.
- Documents identifying the persons responsible for administration and representation of the branch and their representative powers.
- Apostille or legalisation and certified Albanian translations where required.
Fee Schedule – Additional & Ongoing Services
Beyond the fixed package above, the following services are priced individually. Your adviser confirms an exact quotation once your structure, nationality and banking preference are known.
| Service | Indicative Fee |
|---|---|
| Branch establishment – full package (as above) | €1,600 fixed fee |
| Legalisation of parent company documents (per your home country) | from €150–€300, billed at cost |
| Additional certified translation (beyond standard scope) | from €40 per document |
| Legal address / virtual office – renewal after year 1 | from €600 / year (≈€50 / month) |
| Local branch representative service (if not self-appointed) | quoted individually |
| Bank account opening assistance (in-person visit required) | from €150 |
| Accounting & tax compliance (monthly) | from €150 / month |
| Corporate governance & admin support (monthly) | from €300 / month |
| Courier & document handling | billed at cost |
⚠ Practical note
A branch is only as strong as the liability shield it doesn’t provide. Because the foreign parent remains fully liable for everything the Albanian branch does, we recommend a branch primarily for market testing, project-based work, or activity that fits within an existing group risk framework – and a Sh.p.k. subsidiary where liability separation, local financing, or long-term independent operations matter more. We’re glad to talk through which fits your situation before you commit.