CONSTRUCTION LEGISLATION IN ALBANIA

Transcription

1 CONSTRUCTION LEGISLATION IN ALBANIA

2 Table of Contents Letter to Stakeholders 3 FREQUENTLY ASKED QUESTIONS (FAQ) 5 Which subjects can exercise construction activity? 5 Which institucion has the authority to licence construction activity? 5 Which are the main documentes required for license application? 6 Which are the tariffs for licensing? 6 What is important to know about the constuction? What is a city planning study? 7 What is an environmental study? 7 What is the partial city planning study? 7 City Planning 8 What are the city planning conditions? 8 Which are the bases for construcions? 8 Which conditions shoud a project meet? 8 Is it possible to construct out of city planning terrritories? 9 What is KRRTRSH? 9 What are the powers of KRRTRSH? 10 Which are the specialized bodies for city planning? 11 What are the powers of KRRT? 12 What are the first necessary steps required for construction? 13 What documents are required in order to obtain construction site permits? 14 What is the deadline for reviewing requests for construction permits in public property sites? 20 What is the deadline for reviewing requests for construction permits in private property sites? 20 What are the tariffs for a construction permit? 20 What is a utilization permit? 21 Requests for utilization permit 21 Construction on tourist zones 23 What is the tax rate for personal incomes deriving from ownership transfer of immovable property titles? 26 The local tax for buildings ownership transfer right is incompatible with personal income tax, isn t it? 27 Process of approval for construction license outside city borderline and relevant decision making bodies 28 What is important to know when opening a new business? Which subjects should register with the national registration center? 30 Which are the legal forms of business? 31 What documents are required for registration? 34 What are the registration tariffs? 36 Sources 38

3 Letter to Stakeholders Dear Reader, This booklet presents a summary of the legislation on the Construction Sector to be considered by those thinking of investing or doing business in Albania. We have provided you with this brochure to inform you on the laws and legislation of Albania in regards to the Construction Sector. This brochure is put together in the form of frequently asked questions and the information herein reflects the current legislation as of November Most of the questions are answered in a short form, therefore, you might deem it necessary to look at the legislation in more detail. We hope you find this brochure very useful in helping you with your investment plans in Albania. I would like to take this time to send a warm felt thanks to our partners and the Albinvest staff who worked restlessly to put this brochure together. As I close this letter, I thank you for taking the time to read this very useful information. CONSTRUCTION LEGISLATION IN ALBANIA Respectively, Viola Puci Executive Director Albanian Business and Investment Agency

4 SPOTLIGHT ON ALBANIA S CONSTRUCTION LEGISLATION

5 FREQUENTLY ASKED QUESTIONS (FAQ) Which subjects can exercise construction activity? Every Albanian or foreign legal entity or private individual can exercise construction activity in the Republic of Albania in spite of its organization form. Public or private subjects investing in construction with private funds or procuring with public funds, have the obligation to contract only licensed subjects. Which institucion has the authority to licence construction activity? CONSTRUCTION LEGISLATION IN ALBANIA Ministry of Public Affairs, Transportation, and Telecommunication, is the institution with the authority to license construction activity and construction companies. It is with an order from the minister of public affairs that a special structure named special commission for professional licenses is created. This commission has the authority to review and approve a license, change the classification of professional license and revoke that license.

6 Which are the main documentes required for license application? FREQUENTLY ASKED QUESTIONS (FAQ) The documentation accompanying different applications for license in construction is specified in Decision of Council of Ministers (DCM) nr.42, date This decision also approves the regulation with criteria and procedures for issuing professional licenses to legal entities exercising construction activity. Which are the tariffs for licensing? The following tariffs apply to all legal entities obtaining a professional license: 1. First time license to a company 1(one) EUR 2. An addition in the license (category or classification level) 1(one) EUR 3. Extension of company license 1(one) EUR 4. Change and addition of technical and legal supervisor 1(one) EUR 5. Change of company name 1(one) EUR 5. Extraction of information from Basic Register 1(one) EUR 6. Duplicate for legal entity 1(one) EUR 7. Re-licensing 1(one) EUR The applicant can pay the above tariff in one of the second-level banks or in the Albanian Post Office which has a special account for the Ministry of Public Affairs and attaches proof of payment to his application.

7 What is important to know about the constuction? What is a city planning study? A regional city planning study is a complex city planning which includes the territory of one or some municipalities or districts; Master plan is the city planning study for a specific topic which includes the entire national territory or special parts of it. What is an environmental study? Environmental study is conducted in order to determine the ecologic conditions of a particular environment. The general regulatory plan is a complex city planning study of a restricted territory, including the prospective territory of a city with its suburban zone, the territory of a village, residential area, vacation resort, industrial area, etc. What is the partial city planning study? CONSTRUCTION LEGISLATION IN ALBANIA The partial city planning study is a detailed city planning study, based on the general regulatory plan and it includes areas or parts of its territory where regulatory interventions are foreseen.

8 City planning City planning is the process of occupying a certain surface area of land for the purpose of construction from simple elements to the final constructions. FREQUENTLY ASKED QUESTIONS (FAQ) What are the city planning conditions? City planning conditions are obligatory technical conditions to be respected which define the development area of a construction (location in length, width, height, capacity, form, etc.) Which are the bases for construcions? All constructions in the territory of the Republic of Albania are based on regional and environmental city planning studies, on master plans, general regulatory plans, partial city planning studies in the stage of project ideas, technical project and application project. Which conditions shoud a project meet? All projects for any kind of on-the-ground or underground construction and engineering infrastructure in all the territory of the country are based on technical rules and conditions as well as legal and sub legal acts in force.

9 Is it possible to construct out of city planning terrritories? It is possible to construct out of urbanized territories only in those cases when such territories are specified in regional studies and master plans approved by relevant competent authorities. When preparing regional studies and master plans, exclusion from construction applies to agriculture land of the first, second, third and forth category as specified in a technical report from the regional department of agriculture and food in a specific region as well as protected natural areas. What is KRRTRSH? It is the highest governmental body which approves urban studies. KRRTRSH stands for Keshilli i Rregullimit të Territorit i Republikës së Shqipërisë (Council for Territory Regulation of Republic of Albania). KRRTRSH is a decision-making body with the Council of Ministers. The Prime Minister is the Chairman of KRRTRSH. The composition, number of members of KRRTRSH and their respective remuneration are approved with a Decision of Council of Ministers (DCM). CONSTRUCTION LEGISLATION IN ALBANIA

10 What are the powers of krrtrsh? FREQUENTLY ASKED QUESTIONS (FAQ) 10 KRRTRSH- approves the following studies: Projects tasks for studies approved by this body Regional city planning studies Master plans for areas with a surface over 10 hectares. Regional and partial city planning studies for development of tourist zones. Master plans for development of tourist zones. General regulatory plans, borderlines of constructors and suburban borders of cities which are administrative centers of a region and those of other cities with a population of over inhabitants. City planning studies for centers of cities with a population of over inhabitants Studies of partial city planning inside cities with a surface area of over 15 hectares. Studies for city parks, national parks and wildlife sanctuaries of biodiversity and protected natural areas Regional studies for harbors, airports and strategic zones.

11 Project ideas of general studies for road infrastructure, railroad, electricity, water-supply, canalization, phones, gas and oil pipelines, inside and outside the city areas Construction sites and projects for constructions therein with a surface of over 0.5 hectares, which are proposed, developed outside borderlines of cities, villages and residential centers. Which are the specialized bodies for city planning? The specialized bodies for city planning in the local government are: Council for territory regulation (KRRT)in the district council, in the Tirana municipality, and in all first category municipalities City planning section in the district council and first category municipalities (city planning directory in Tirana municipality) and the technical secretary of KRRT. City planning office in the municipality City planning office in the commune The creation and operation of KRRT is done with the proposal of District Council, Municipal Council of Tirana or other first category cities and is approved by the respective ministry. KRRT members are rewarded for their service. CONSTRUCTION LEGISLATION IN ALBANIA 11

12 What are the powers of KRRT? FREQUENTLY ASKED QUESTIONS (FAQ) 12 In both regional and municipality levels, KRRT approves and forwards proposals for changes related to: - tasks of project drafting for any kind of urban planning for the territory under its respective jurisdiction; - platform for urban planning competitions; - regional plan, master plans and general regulatory plan for cities within a district, and partial urban studies of any size and in compliance with the development programs; - border lines for construction projects and suburban borderline; - general and partial urban studies for communes; - general regulatory plans for communes; - general regulatory plans for villages; - construction sites with their respective destinations and specified urban conditions determined according to approved urban studies; - implementation plans for projects constructed in approved construction sites of any size; - construction sites and permits; - KRRT in district and municipality levels approves declarations for illegal exaggerations of construction works for an approved construction site and determines the appropriate sanctions in such cases.

13 What are the first necessary steps required for construction? Submission of a written request for approval of construction site and its urban conditions, as well as for any other urban study. This step is obligatory for all domestic or foreign private individuals and legal entities who want to construct any property. Submission of the request to approve any type of construction site must be done at the Urban Studies Department in the municipalities and urban office in the communes, depending on the location of construction site. The request for approval of a construction site must be drafted according to the approved urban plan for the specific area at hand. Otherwise the document is returned to the applicant until the urban study has been completed, either by the state entity or by the applicant itself the applicant on his own may conduct the urban study for the requested construction site to receive approval, as long as the study is conducted by licensed entities and in accordance with the urban development strategy of the district or area. CONSTRUCTION LEGISLATION IN ALBANIA 13

14 What documents are required in order to obtain construction site permits? FREQUENTLY ASKED QUESTIONS (FAQ) Form No.1 and No.6 (for wood cutting) and No.8 (demolition of existing buildings) if needed. 2. Property ownership certificate and attached with it an indicative map. This document must not be more than three months old and it should be the original copy. The document must specify the property area in square meters, as well as the property number and number of bordering properties. Attached to the property ownership document the applicant must also submit: - The applicant s procurement - Property origin - Decision of Commission for Property Restitution - Act of heritage - Property sale and purchase contract 3. Updated general plan of current condition of property, at a 1:500 scale in A3 paper format and confirmed by the Cadastre Unit of the Municipality. General plan must be signed by the Municipality (at a fee of 40 lek/m 2 ) 4. Form no. 3/1 together with the infrastructure updates entered in the general plan (this could be a photocopy). The following is a list of entities where infrastructure updates may be obtained: - Water-Supply Enterprise - Sanitation Enterprise - Power Enterprise - Telecom Enterprise

15 - Protection Against Fire Enterprise - Regional Environment Agency - Health and Hygiene Inspectorate - Opinion of the Urban Planning Office of the municipality or the mini-municipality in the case of Tirana. 5. Partial urban study of the area where the property will be developed. The study shall be conducted by the Municipality over the updated photocopy of the general plan (point 3). The study shall be conducted by a licensed architect for this type of category; the study document must be in original, singed and stamped by the architect, with a notarized copy of the architect s license attached. 6. The plan depicting the exact location of the property, at a 1:500 scale, showing distances and borders pertaining to the property and the road link; these points will be shown on the photocopied general plan drafted by the Cadastral Unit (point 3). This document will have to receive the signature by an architect and at the top of the plan must be specified details on the name of the property, number of floors of the property, road on which it is going to be constructed and property owners. CONSTRUCTION LEGISLATION IN ALBANIA Project idea of the property drafted by the Project Designer in 3D must be submitted in two original copies and signed by the project designer; with a

16 notarized copy of designer s license attached. 8. An explanatory report on the study and project at hand which is prepared and signed by the project designer it must be an original signed copy. FREQUENTLY ASKED QUESTIONS (FAQ) Outdoor systems, green areas, squares, parking lots, roads and schemes for movement of pedestrians and cars (scale 1:500 for studies or 1:200 for buildings). 10. Visual montage of the property placed above the existing area. 11. Notarized agreement with the owner of bordering property area specifying the number of bordering properties with the respective owners making the declaration in front of the notary. Validation of the number of the co-owners signing the declaration with the names in the mortgage certificates must be conducted in the case when the proposed type of construction consists of a bordering at the edge of the property. The above declarations are made in the presence of a public notary and stamped with dry seal. 12. Permit from the Institute of Cultural Monuments for those areas or properties under the protection of this institution. 13. Study by the Seismology Institute for properties/ buildings exceeding 8 floors 14. Certification from the Geological-engineering Institute for buildings exceeding 3 floors. 15. Photographic document of the area (photo size 20 x 30). 16. Notary declaration by property owner on the number of unsheltered individuals renting the ex-

17 private property, if this is a case. This declaration is accompanied with a certificate from the directorate of human Resources which is the authentication authority. 17. Within 30 days all forms must be fully completed. After that period, the file is returned to the municipality unit. An answer shall be received no sooner than 60 days from the date of submission. Construction site permit shall be obtained upon receipt of approval from KRRT and scrutiny of all decisions pertinent to the application. Every Albanian or foreign private individual or legal entity, who wants to construct in the Republic of Albania must be equipped with a construction permit. This is the only legal document which grants permission to construct. The construction permit is released to the legal entity licensed to perform construction work. Whether the land is private or public property, the legal entity licensed to perform construction work must submit the contract with the landowner of or the individual who has already obtained the construction site permit from KRRT. CONSTRUCTION LEGISLATION IN ALBANIA 17

18 Documents required for a construction permit are: FREQUENTLY ASKED QUESTIONS (FAQ) Form no. 3; 2. Form no.2 for the approved construction site permit and a notarized copy of valid construction company license; 3. The notarized contract signed between the landowner and the construction company and a notarized copy of valid construction license of the company. 4. An explanatory technical report on the construction project signed by the designer original copy in three copies (architect and constructor); 5. Notarized photocopy of valid designers licenses (architect, constructor); 6. Data from geological-engineering study of construction site; 7. Data from engineering and seismic study of construction site (for buildings exceeding 8 floors) for buildings under 8 floors - declaration from the Seismology Institute. Documents required for authentication of construction permit after the decision to approve the construction permit from KRRT.

19 1. Complete implementation project in three copies (according to the decision taken, forms submitted, and general plan of the Construction Permit); i.e. plans of architecture, construction, wiring, hydrosanitation, heating-ventilation (must be signed by the designer in original and accompanied with a table of contents for each specific project). 2. Implementation project must contain detailed data on the types of apartments, their respective area and the number of each type in the project. Electronic version of the building designs must also be submitted. 3. Basic construction calculations signed by constructors in original copies. 4. Outdoor systems plan with altimeter data, in three copies (attached also the implementation project), signed by the designers in original copies. 5. Work organization chart and plan, in three copies (attached also the implementation project), singed by the technical supervisor of the construction project in original copy. 6. Draft estimates based on average prices per square meter, declared by E.K.B. in three original copies signed from project designers. 7. Cleaning certificate obtainable from the Urban Environment Inspectorate this document is issued to the construction company to certify that the company has no unsettled obligation. 8. A certificate from the Tax and Market Entity at the Municipality this document is issued to the construction company so as to certify that the company is not subject to any unfulfilled obligation. CONSTRUCTION LEGISLATION IN ALBANIA 19

20 What is the deadline for reviewing requests for construction permits in public property sites? FREQUENTLY ASKED QUESTIONS (FAQ) 20 From the date of approval of destination and urban conditions of construction site to the presentation of request for construction permit in public property sites, review time should not exceed three months for sites up to 0.1 hectare, and six months for construction sites larger than 0.1 hectare. What is the deadline for reviewing requests for construction permits in private property sites? In cases of private property, the deadline for KRRT to make a decision for approval of destination and urban conditions of construction site, regardless of its size, is no later than six months. What are the tariffs for a construction permit? Before obtaining the construction permit document a legal entity or private individual should pay 1% of investment value based on the preliminary estimate. Additionally Before obtaining the construction permit document, a legal entity or private individual should pay the following tariffs for utilization of existing engineering, water supply, canalization, electrical, telephony, road network etc.: - 5% of investment value according to estimates when the construction project is inside city

21 boundaries. - 2% of investment value according to estimates when the construction project is outside city boundaries What is a utilization permit? The utilization permit is prepared by the investor or constructor after the completion of construction works. Requests for utilization permit The request for utilization permit is drafted by the investor or constructor and is accompanied with the following documentation: 1. Photos of the building frontage in A-4 print 1. Report from the technical inspector for the implementation of the project, including all changes made on the approved project (identifying all irregularities and quality of hidden work). 2. Technical Inspector s license. 3. Report from the supervisor for the implementation of construction project. 4. Supervisor s license. 5. Technical director s license. 6. KRRT decision for construction site. 7. KRRT decision for construction permit. CONSTRUCTION LEGISLATION IN ALBANIA 21

22 FREQUENTLY ASKED QUESTIONS (FAQ) Forms for construction site and the permit. 9. Approved general plan according to construction permit. 10. Approved project from the Municipality with respective stamps. (The plans for the underground floor, ground floor, typical floor, terrace floor and cross sections and images of the entire building). 11. Designers licenses (architect, constructor). 12. Control acts for all the construction stages 13. Agreement document between the construction company and property owner. 14. Inspection document from the Water-supply and Canalization Enterprise confirming that the constructor respected the project in terms of water, and sewage standards adopted by this enterprise 15. The charge sheet from KESH. sh.a: The electric branch of Tirana city which verifies that the object is accepted from the electric branch. 16. The confirmation from Waste Disposal Directorate for proper placement of disposal spots 17. Cleanliness declaration from the Environment Inspectorate. 18. The final estimate of completed work 19. Confirmation from Tax Office that the constructor subject has settled all tax obligations One original or notarized copy of the construction project, including the sheet board (if not deposited in the license file) will be deposited in the archive. One original or notarized copy of the wiring and plumbing project of the building, (if not deposited in the license file) will be deposited in the archive. One original or notarized copy of water supply and sanitation network approved from the water supply and sanitation enterprise, separate from inspection

23 act file and deposited in the archive. One copy of power grid shift approved from the respective enterprise separate from the inspection act file and deposited in the archive. NOTE: The documentation must come in two notarized copies, according to the above-mentioned list. The inspector report must be signed from the inspector, observer and supervisor. Construction on tourist zones Coastal, lake and continental tourist zones are approved with specific provisions. Standards adopted for construction inside such areas are determined by law. Construction development in tourist zones is determined in regional plans and the master plans for tourist development. Which institution approves construction site permits for tourist zones? CONSTRUCTION LEGISLATION IN ALBANIA 23 Construction sites for coastal lake and continental tourist zones are approved in accordance with city planning approved by KRRTRSH. Construction permits for coastal, lake and continental tourist zones are approved by KRRTRSH.

24 FREQUENTLY ASKED QUESTIONS (FAQ) 24 Is a foreigner, who owns a house/ apartment in albanian territory, considered a resident for tax purposes?? If this is the case, what are his/her annual tax obligations? The following are considered residents In the Republic of Albania: a) An person who: a. Has a constant residence in the territory of Albania, according to the clause 12 of Civil Code. b. Is an Albanian citizen and a consul, member of a diplomatic body or has a similar status outside the territory of the Republic of Albania b) A Person who continuously or frequently resides in the territory of Albania longer than 183 days during a taxable period. c) A legal entity which, according to trade legislation, has its permanent headquarters in the Republic of Albania. d) A private individual who, according to trade legislation, is registered in this capacity in the trade register of the competent court. So, if the person simply owns a house in the territory of Albania and is not a resident, he is then subject to tax obligations deriving from real estate, (local taxes) according to the table below:

25 Minimum Category of Buildings I. Residential Buildings Constructed before 1993 Municipality Zone 1 Zone 2 Zone 3 Tiranë Durrës Vlorë Fier Sarandë Pogradec Korçë Elbasan Berat Lushnjë Gjirokastër Shkodër Kavajë Lezhë Lekë/m 2 per year All other municipalities CONSTRUCTION LEGISLATION IN ALBANIA 25 Constructed during and after II. Other Buildings For trade and services Other III. Buildings in ownership or for use on territories approved as tourist villages

26 Furthermore, incomes from ownership of real estate, accessories and benefits thereof, incomes from other rights deriving from ownership on real estates and incomes from transfer of ownership on abovementioned properties are subject to Albanian tax law, regardless of one s residential statues in the Republic of Albania. FREQUENTLY ASKED QUESTIONS (FAQ) In case of purchase/sale of a real estate, is there any obligation to withhold 10% of transaction value from the buyer? If that is the case, how can the buyer take this money back? No, the buyer does not have such an obligation. 26 What is the tax rate for personal incomes deriving from ownership transfer of immovable property titles? Transfer of ownership on real estate, land, buildings is taxed with 10% of capital profit earned. This paragraph does not apply to the right to exchange ownership on land with the right of ownership on the building constructed on that land. In such case the income tax is applied according to paragraph 2, article 11 of the law nr.8438, date , On income tax, amended. The tax is paid before the registration of the real estate by the person making the transfer of

27 ownership right, according to the legal acts. The real estate will not be registered, without proof of tax payment with local real estate registration offices. The local tax for buildings ownership transfer right is incompatible with personal income tax, isn t it? Local taxes have a different reference system from the national tax system. Only taxes on buildings and land are paid on a local level as an annual obligation, as shown in the table under the second question, whereas income tax includes tax on incomes from real estate sale. A series of laws consulted for this purpose had no obligation whatsoever on real estate (an obligation known everywhere as annual obligation or tribute). Do we have this kind of obligation: Property or real estate tax? Annual tax on land and buildings, Law nr.9632, date 30/10/2006 CONSTRUCTION LEGISLATION IN ALBANIA 27

28 Process of approval for construction license outside city borderline and relevant decision making bodies FREQUENTLY ASKED QUESTIONS (FAQ) According to law nr date On land, land is divided in two categories: a) agricultural land, b) non-agricultural land. The same law prohibits any kind of construction on agricultural land outside city borderline without a decision from respective competent bodies, which, according to Albanian law, is the KRRTRSH (Council for Territory Regulation in the Republic of Albania). Construction can only be made on non-agricultural land. 2. KRRTRSH is the supreme national body with the Council of Ministers which approves city planning studies (Article 7-8, Law nr. 8405, date On city planning. 3. In the case of requests for construction out of the borderline on non-agricultural land, the initial step is to change the land destination. 4. The request for land destination change from agricultural to non-agricultural land is presented to regional city planning units by the interested person. At the same time it is mandatory to also present the regional city planning study. 5. This request is reviewed by the technical secretary of the regional council and later from the Territory Regulation Council (KRRT) in the regional council.

29 6. Documents pass on to Territory Regulation Council of the Republic of Albania and must be submitted to its technical secretary within 60 days after their confirmation from the KRRT of the region (article 6, law nr. 8405, date On city planning). 7. According to point 12, article 9 of law nr. 8405, date On city planning, KRRTRSH has the authority to grant licenses for construction sites and construction projects therein with a surface of 0.5 hectares to be constructed outside border lines of cities, villages and the residential centers in compliance with regional studies and regional master plans are under the competence. 8. For sites with a surface larger than 0.5 hectares outside borderlines, the respective regional council must first consult the opinion of the Ministry of Food and Agriculture and get an environmental approval or authorization from the Regional Environment Agency; (law nr date , On city planning and law nr. 8934, date , On environment protection. 9. The decision taken by K.RR.T.R.SH will be reflected in the registers of Real Estate Registration Office, which makes the destination change from agricultural to non-agricultural land. CONSTRUCTION LEGISLATION IN ALBANIA KRRT (Territory Regulation Council) is a decision making body with the regional council, Tirana Municipally and municipalities of first-category cities. 11. The regional KRRT (Regional Territory Regulation

30 Council) has the authority to grant construction permits for such projects. 12. In the case of constructions near surrounding fence of Mother Tereza airport, an agreement must be signed with the Civilian Aviation Directorate. FREQUENTLY ASKED QUESTIONS (FAQ) What is important to know when opening a new business? Which subjects should register with the national registration center? All private individuals or legal entities belonging to the following categories must register with the National Registration Center: 30 a. Private individuals exercising a commercial economic activity; b. Simple companies, according to Civil Code provisions; c. Commercial Companies d. Branches and representation offices of foreign companies; e. Savings and Credit Companies and Unions; f. Mutual Cooperation Companies;

31 Which are the legal forms of business? Albanian Law recognizes a variety of legal forms of businesses. Because these business forms vary from one another in terms of their legal responsibilities, the list of documents required for their initial registration also varies. Each applicant must make sure he/she knows the type of business he/she plans to register before the start of the initial registration. As mentioned above, individuals (sole entrepreneurs) engaged in commercial activity must register at NRC. These individuals are recognized by the Albanian Law with the term Physical Persons. The physical persons have the right to engage in commercial activities. Albanian Company Law defines four types of legal entities as follows: 1. General Partnerships: In general partnerships, all partners are business partners and have unlimited and collective responsibility for the debts of the company. Creditors can sue a partner for compensation for company debts only after notifications directed to the company have failed. The general partnership has a name that can include the name of one or more partners, with the words general partnership coming before or immediately after the name. CONSTRUCTION LEGISLATION IN ALBANIA 31

32 2. Limited Partnerships: In limited partnerships, limited partners participate along with unlimited partners who have the status of partners in general partnerships. The limited partners are held responsible for the debts of the company only up to the limit of their contribution to the initial capital. This contribution cannot be in services. FREQUENTLY ASKED QUESTIONS (FAQ) 32 A limited partnership has a name that can include the name of one or more of the partners, preceded by or immediately followed by the words limited partnership. 3. Limited Liability Companies (Sh.p.k.) The limited liability companies are established by one or more partners who support losses up to the limit value of their contribution to the statutory capital. If one person sets up the company, he/she is called sole partner. The limited liability company has a name that can include the name of one or more of the partners proceeded by or immediately followed by the words Shoqëri me Përgjegjësi të Kufizuara or the initials Sh.p.k., as well as the amount of the statutory capital. According to the current law, the minimum value of capital for this type of company is Albanian Lek. The capital is divided in equal shares, whose nominal value cannot be smaller than Lek. Otherwise, the company should be transformed into another form. For a Limited Liability company, the NRC may register the company without needing to see evidence that statutory capital has been paid. 4. Joint Stock Companies (Sh.a): Joint stock companies are those companies whose capital is divided into stocks and which are established by partners who are held responsible for the losses

33 only up to the limit of their contribution to the initial capital. The company can be established by and can have one or more partners. The joint stock company has a name, which may include the name of one or more shareholders placed before or immediately after the words Shoqëri Anonime or the initials Sh.a. The capital should also be mentioned. There are two types of joint stock companies: with or without public offering. The companies with public offering are those whose stocks are officially registered in the stock market, beginning with the date of the registration, or those which, in order to sell any type of stocks, use the services of banks, financial institutions, stockbrokers, or publications of any type and dissemination outside the media designated for those purposes. All other joint stock companies are companies without public offering. The minimal value of the initial capital for companies without public offering is 2 million Leks, while for companies with public offering it is 10 million Leks on the date that the statutes are signed. Registration at NRC for a Joint Stock Company requires evidence that the minimum initial capital has been paid. CONSTRUCTION LEGISLATION IN ALBANIA 33

34 What documents are required for registration? I- Application form To begin registration the applicant must fill in the application form. Before filing in the application form the applicant must know the information below: FREQUENTLY ASKED QUESTIONS (FAQ) 1. Application form is specific for different types of applying entities (physical persons or companies). This is the reason why the applicant must be sure that she/he knows that the application is for a physical person who must register in order to exercise a business activity or for a company and also the type of the company. The information regarding legal requirements for Limited Liability Companies, Joint Stock Companies and others, can be found in law Nr. 9901, Date This law can be downloaded form the official website of National registration Center Application form can be obtained in two ways: a) in every NRC counter or b) downloaded from official webpage of NRC 3. All application forms come with instructions. These instructions can be found in every NRC counter or downloaded from NRC s official website 4. Applicants can fill in the application form by a) downloading, electronically filling it in and printing it or b) with the assistance of NRC staff in every NRC counter or c) through internet using NRC function

35 5. Every NRC employee is available to help the applicant to fill all the obligatory data in the application form. B. List of accompanying documents Beside the completed application form, the applicant must also present the accompanying documents below: 1. Original identification documents (certificate, passport) which NRC staff must verify, copy, scan and then return to the applicant or representative. 2. Other data and documents. The list of documents required for initial registration is specific for different kinds of business. After the type of business to be registered has been identified, applicants may find the list of accompanying documents attached to the respective registration form which can either be taken at NRC counters or in NRC s official webpage CONSTRUCTION LEGISLATION IN ALBANIA 35

36 What are the registration tariffs? Registration tariffs are presented in the table below: FREQUENTLY ASKED QUESTIONS (FAQ) 36 Service Tariffs in Lek 1 Verification of possibilities to register the name of 100 the business entity 2 Reservation of the business entity name Transfer of reserved name Initial registration with registration forms-statute Initial registration with a statute prepared by 100 parties 6 Other obligatory registrations Registration upon request of each third party to 0 be provided with decision of the public authority (in addition to those made by the business entity itself). 8 Voluntary registrations Deregistration Issuance of extracts for data from commercial 100 register 11 Issuance of extracts of history of actions performed 100 by a single entity 12 Issuance of extracts related to entity situation Issuance of a copy of statute Issuance of a copy of balance-sheet Issuance of a copy of shareholders list Issuance of copies of other enclosed documents 100 (only of a single document) 17 Issuance of certificate duplicates Issuance of data related to residence address of 100 individuals notified to the NRC, in compliance with the law. 19 Application for license through NRC 1 20 Any other action provided by the law and not mentioned above 100

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38 SOURCES FREQUENTLY ASKED QUESTIONS (FAQ) 38 For more information please contact the following: Ministry of Public Works, Transport and Telecommunication For Company Registration/National Registration Center Law No. 9663, date On Concessions ; Decision of Council of Ministers Nr. 27, date On approval of rules for evaluating and granting concessions ; Public Procurement Agency

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40 FREQUENTLY ASKED QUESTIONS (FAQ) 40 Blv. Gjergj Fishta, Pall. Shallvareve, Tirana, Albania Tel: , Fax: info@albinvest.gov.al Web: