Every day, a new firm appears, but entrepreneurship has always been risky and hard to predict even in the short term. So, it’s no wonder that someday, an enterprise may be wound up for many reasons in any part of the world, including Albania.
Reasons to dissolve a firm in Albania
Albania Company Dissolution might occur because:
- Stockholders decided on liquidating a company in Albania
- A Court came up with a corresponding verdict
- The partnership has expired
- A bankruptcy procedure has been launched
The given rules apply to joint stock companies, limited liability companies, and foreign enterprises operating in this European country.
The Legal Procedure For The Liquidation of An Albanian Company
Someday stockholders gather and decide on winding up. That’s the very beginning of the legal routine. The company’s managers are no longer in their position, while new appointments take place.
First, it’s a liquidator. His mission is to supervise the operation, protect the rights of the participants, help the business owner to complete the procedure, make sure it all doesn’t break the country’s law, and allocate assets between stockholders as soon as the enterprise’s liabilities are met. Secondly, it’s a custodian for the corporate records and books.
The Trade Register of the National Registration Center – that’s where the stockholders are expected to register their resolution to dissolve the enterprise.
The liquidator draws up an allocation scheme. It illustrates the allocation of the enterprise’s liabilities and assets between the parties. The document needs to be stored at the firm’s office.
Secondly, it’s up to the liquidator to notify the public about the company’s dissolution via local mass media and, in particular, where the distribution scheme is stored for public inspection. In addition to this, all the publications about the enterprise in mass media should be marked with the Albanian word “likujdimi” which denotes the very fact of the Albania Company Dissolution.
It doesn’t start after that notice in mass media. Any interested party has two months and a half to challenge the upcoming winding-up procedure. Once the dissolution operation is over the enterprise will have neither liabilities nor assets.
The Liquidation Process in Albania can be stopped but not to be reversed. It is carried out to do it once again. For example, some assets were overlooked. The Court makes a corresponding decision and the wind-up procedure starts again to have some assets re-liquidated.
The liquidator manages the company’s assets during the dissolution and also handles the creditors’ claims. Once all the company’s obligations are settled, the liquidator sets the opening as well as the closing date of the dissolution process and draws up a corresponding statement that, in turn, needs to be approved by stockholders as the final resolution.
The custodian is expected to keep the company’s records and books for up to seven years after the dissolution. The end of the winding-up procedure should be reported to The Trade Register of the National Registration Center. They should be also notified about the address of the custodian who keeps the company’s records and books.
Taxes and dissolution: crucial nuances
The dissolution of an enterprise suggests the end of its fiscal life. Once the winding-up procedure is over, the firm must undergo deregistration with the country’s tax authorities.
Shareholders get so-called liquidating dividends. They’re not derived from the company’s earnings, unlike other dividends. Such a transaction is classified as a return of capital. Therefore, as an issuer of such payments, you don’t need to pay taxes on the liquidating dividends because your shareholders are getting this from assets already taxed earlier.
Things change if it’s not a voluntary dissolution. Here the distributed funds are going to be taxed as typical dividends. That’s why it’s highly recommended for business owners to stick with voluntary Company liquidation Albania. Otherwise, they can’t count on tax advantages. Consult our attorneys before the winding-up routine to timely avoid unnecessary financial losses.
Albania Company Dissolution/Liquidation Services
If you intend to wind up your enterprise, prepare all the necessary documentation, in particular, corporate records, financial statements, and contracts of your firm. It all sounds simple, but as with any other field that has to do with jurisdiction, it has hidden pitfalls. So, if you lack experience in liquidation, it makes sense to rely on Limited Liability Company liquidation services in Albania and services specializing in the liquidation of other types of companies. Professional attorneys will guide you through the daunting task and also help to prepare documentation.
What documents are required for company liquidation in Albania?
To have your firm liquidated in this country, you need to prepare final statements, contracts, and corporate records of your enterprise. What’s more, your Board of Directors should issue a resolution to have your firm wound up. If there are multiple shareholders, you have to prepare a distribution scheme that illustrates the way your liabilities and assets are allocated between the partners.
What actions can I take if a company goes into liquidation in Albania?
You may try to have your firm sold. Of course, before that move, you ought to tackle financial issues with shareholders. Selling your company could be a hassle under some circumstances and instead, you may choose the official wind-up routine.
How long does the company liquidation process take in Albania?
It all depends on the size of your firm. It may last from 6 to 9 months. However, regardless of the size of your firm, you need to wait for two months and a half before the dissolution routine starts. A notice about an upcoming dissolution should be published in local media and if for two months and a half after the publication none of objections arise, the wind-up procedure may start.
What are the costs associated with liquidating a company in Albania?
Costs depend on the size of a particular firm, its debts, and dividends to be paid. To be exact, you are expected to allocate surplus funds to your stockholders and pay debts. Furthermore, Albanian law states that accumulated tax credits or tax losses vanish upon dissolution.
Is it mandatory to hire a professional for company liquidation in Albania?
It’s not obligatory, but you should realize that since it’s tedious, it makes sense to rely on the professional assistance of attorneys. They can help to avoid common pitfalls and wind up your firm faster.
Can a company liquidation be reversed in Albania?
To be exact, it can be stopped to be started once again. If some assets haven’t been dissolved, the process can be “restarted” to complete dissolution by a court decision.
How can I find out if a company has been liquidated in Albania?
Just monitor local mass media. As a rule, liquidators are obliged to inform the public about a company’s dissolution via local mass media. Furthermore, once the firm is on the path of its dissolution, all the publications in mass media that have to do with the firm are marked with “likujdimi” – an Albanian word.