Foreign company branch and inclusion of Partners

In accordance with Law no. 9901, dated 14.04.2008 “On Traders and Commercial Companies,” we clarify the distinction between a “Foreign Company Branch” and a “Commercial Company” as two different forms of conducting economic activity in Albania.

A foreign company branch represents a dependent unit that carries out activities on behalf of a company registered abroad. It does not have separate legal personality, registered capital, or assets and liabilities distinct from the parent company. All obligations and assets of the branch belong to the parent company. Legal representation of the branch is carried out by a person appointed by the parent company, and registration is completed at the National Business Center (QKB).

According to the law, a foreign company branch cannot have partners or any other persons holding a share of its capital. All activities of the branch are conducted in the name of the parent company, which bears full legal and financial responsibility. The branch does not create ownership relationships with other legal or natural persons in Albania.

If an Albanian or foreign individual wishes to participate as a partner in the economic activity of a foreign company, the law provides two legal options: the first is the establishment of a new commercial company, in which the foreign company can act as a founding partner together with other individuals. This new company has independent legal personality and registered capital at QKB. The second option is entering into cooperation agreements, whereby the foreign company can collaborate with others on services or joint projects without creating a partnership.

In conclusion, a foreign company branch cannot include a partner. Any involvement of another person as a partner requires the establishment of a new commercial company in which the foreign company participates with capital. This procedure ensures transparency, legal accountability, and legal security for all parties involved.