Albania
Financial Reporting Obligations for Companies in Albania
1. Registry for Submitting Financial Statements
In Albania, companies are required to submit their financial statements (annual reports) to the Qendra Kombëtare e Biznesit (QKB) (National Business Center) (https://qkb.gov.al/site/). This is the official registry where all financial and annual reports for companies must be submitted. The submissions can be made electronically through QKB's online system.
2. Legal Forms Obliged to Publish Financial Statements
In Albania, the following legal forms are required to submit and publish their financial statements (annual reports):
- Shoqëri me Përgjegjësi të Kufizuar (sh.p.k.)
Translation: Limited Liability Company
Notes: Obliged to submit annual financial statements to Qendra Kombëtare e Biznesit (QKB). - Shoqëri Aksionare (sh.a.)
Translation: Joint Stock Company
Notes: Obliged to submit annual financial statements and undergo mandatory audits regardless of size. - Shoqëri Komandite (sh.k.)
Translation: Limited Partnership
Notes: Obliged to submit annual financial statements; audit is required if thresholds are exceeded. - Shoqëri Kolektive (sh.k.)
Translation: General Partnership
Notes: Obliged to submit annual financial statements but exempt from audit unless specific thresholds are exceeded. - Organizata Joqeveritare (OJQ)
Translation: Non-Governmental Organization
Notes: Required to submit financial statements if they engage in economic activities above certain thresholds. - Zyra e Degës së Shoqërisë së Huaj
Translation: Branch Office of a Foreign Company
Notes: Obliged to submit financial statements following both Albanian and parent company’s reporting rules. - Bashkimi i Përkohshëm i Shoqërive (B.P.SH.)
Translation: Temporary Union of Companies (Joint Venture)
Notes: Obliged to submit financial statements during the period of their contractual activities.
Legal Forms Not Obliged to Publish Financial Statements
Some legal forms in Albania are not required to publish their financial statements but still need to maintain financial records for tax purposes. These include:
- Person Fizik (P.F.)
Translation: Sole Proprietorship
Notes: Exempt from publishing financial statements but must maintain financial records for tax purposes. - Person i Vetëpunësuar (P.V.)
Translation: Self-Employed Individual
Notes: Not required to publish financial statements, but financial records must be maintained for tax purposes. - Shoqëri Civile (Sh.C.)
Translation: Civil Company
Notes: Exempt from publishing financial statements; primarily formed for professional services or small business purposes. - Komunitet Fetar (K.F.)
Translation: Religious Community
Notes: Exempt from financial reporting obligations unless engaged in significant economic activities. - Kooperativa Bujqësore (K.B.)
Translation: Agricultural Cooperative
Notes: Exempt from mandatory financial statement publication but must maintain internal records. - Urdhër Profesional (U.P.)
Translation: Professional Order
Notes: Exempt from submitting financial statements unless it engages in substantial economic activities.
Notes
- Non-profit organizations (Organizata Joqeveritare, OJQ) must report their financials if they exceed certain economic thresholds.
- Entities involved in regulated sectors (e.g., financial institutions, insurance companies) have additional reporting and auditing obligations regardless of their legal form.
This detailed categorization ensures compliance with the local regulations and covers all possible legal forms in Albania, similar to the provided example for Croatia.
3. Companies Requiring Audited Financial Statements
In Albania, companies must have their financial statements audited if they meet certain conditions as per the Ligji Nr. 25/2018 “Për Kontabilitetin dhe Pasqyrat Financiare” (https://qbz.gov.al/eli/ligj/2018/05/10/25) and the Ligji Nr. 10091, datë 5.3.2009 “Për auditimin ligjor…” (https://qbz.gov.al/eli/ligj/2009/03/05/10091). The criteria generally include thresholds based on turnover, total assets, and number of employees. Below is a table listing the legal forms, audit rules, and criteria:
|
Legal Form |
Audit Rule |
Criteria (must meet at least two of the three) |
|
Shoqëri me Përgjegjësi të Kufizuar (sh.p.k.) (Limited Liability Company) |
Mandatory audit if thresholds are exceeded |
- Turnover (more than) 80 million ALL (~€650 000) - Total assets (more than) 40 million ALL - More than 50 employees |
|
Shoqëri Aksionare (sh.a.) (Joint Stock Company) |
Audit always required |
No minimum thresholds; audit is always mandatory for joint stock companies (sh.a.). |
|
Shoqëri Komandite (sh.k.) (Limited Partnership) |
Audit required if thresholds are exceeded |
- Turnover (more than) 80 million ALL - Total assets (more than) 40 million ALL - More than 50 employees |
|
Shoqëri Kolektive (sh.k.) (General Partnership) |
Audit required if thresholds are exceeded |
- Same as for sh.p.k.: turnover (more than) 80 million ALL, total assets (more than) 40 million ALL, or more than 50 employees |
|
Organizata Joqeveritare (OJQ) (Non-Governmental Organization) |
Audit required if thresholds are exceeded |
- Turnover (more than) 80 million ALL - Total assets (more than) 40 million ALL - More than 50 employees |
|
Zyra e Degës së Shoqërisë së Huaj (Branch Office of a Foreign Company) |
Audit depends on parent company obligations |
Follows parent company rules but may also be subject to Albanian audit requirements based on local thresholds |
|
Bashkimi i Përkohshëm i Shoqërive (B.P.SH.) (Temporary Union of Companies) |
Audit required if thresholds are exceeded |
- Same as for sh.p.k.: turnover (more than) 80 million ALL, total assets (more than) 40 million ALL, or more than 50 employees |
Key Criteria for Audit Obligation:
- Turnover Threshold: Companies with an annual turnover exceeding 80 million ALL (~€650 000) are required to undergo an audit.
- Total Assets Threshold: Companies with total assets exceeding 40 million ALL (~€325 000) must have their financial statements audited.
- Employee Threshold: Companies employing more than 50 employees are obligated to have their financial statements audited.
Special Considerations:
- Listed Companies: All companies listed on the Bursa e Tiranës (Tirana Stock Exchange) (https://www.tse.com.al/) must have their financial statements audited regardless of their size or thresholds.
- Medium and Large Companies: All medium and large-sized companies, as defined by Albanian law, are required to undergo audits. This includes companies that meet at least two of the three key criteria (turnover, total assets, and number of employees).
- Small Companies: Small companies that do not meet at least two of the three criteria are generally exempt from mandatory audits but can opt for voluntary audits if they choose.
4. Local Stock Exchange and Financial Statements Publication
Companies listed on the Albanian stock exchange Bursa e Tiranës (Tirana Stock Exchange) must publish their financial statements in accordance with exchange regulations.
5. Deadline for Submitting Financial Statements
The deadline to submit financial statements to the National Business Center (QKB) is typically within six months after the end of the fiscal year for most legal forms. Listed companies may have stricter deadlines as per the Tirana Stock Exchange regulations.
6. Companies Submitting Partial Financial Statements
Certain smaller legal entities with lower turnover or total assets (below 50 million ALL) are allowed to submit simplified financial statements. These companies typically include small enterprises and sole proprietorships.
7. Consequences for Late Submission of Financial Statements
Failure to submit financial statements on time can result in various penalties, including fines and potential legal actions. Fines range between 50 000 ALL and 500 000 ALL, and if a company fails to comply within the extended deadline, it risks being struck off the National Business Center register.
8. Requirements for Foreign-Owned Branches and Newly Established Companies
Foreign-owned branches operating in Albania must submit financial statements in line with both Albanian law and the regulations of their parent company. Newly established companies have until the end of their first fiscal year to submit their initial financial statements. Audit requirements for these entities depend on their legal form and whether they exceed specific thresholds.
Sources
| Source | Link |
| Qendra Kombëtare e Biznesit (QKB) | https://qkb.gov.al/site/ |
| Ligji Nr. 25/2018 “Për Kontabilitetin dhe Pasqyrat Financiare” | https://qbz.gov.al/eli/ligj/2018/05/10/25 |
| Ligji Nr. 10091, datë 5.3.2009 “Për auditimin ligjor” | https://qbz.gov.al/eli/ligj/2009/03/05/10091 |
| Bursa e Tiranës (Tirana Stock Exchange) | https://www.tse.com.al/ |
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