ESTABLISHMENT AND REGISTRATION OF NOPS

Article 46 of Law no.8417, dated 21.10.1998 The Constitution of the Republic of Albania s amended, guarantees everyone’s right to be organized collectively for any lawful purpose, and that the registration of organisations or associations in court is completed according to the procedure as provided by law. Organizations or associations that pursue unconstitutional goals are prohibited by law.

Moreover, based on Article 4 of Law No. 8788 dated 07.05.2001 “On non-profit organizations”, as amended, any natural or legal person, domestic or foreign, has the right to establish a non-profit organisation, to be a member of or participate in the governing bodies or in the administrative staff of the non-profit organisation.

There are three forms of organization of an NPO: Association, Foundation and Center.

Read more:
→ Law No. 8788, dated 7.5.2001 “On non-profit organizations”.

No, social enterprise is not a separate form of organization of NPOs, and as such it is not registered as a separate entity. Social enterprise is a state-given status, according to the criteria set by Law No. 65/2016 09.06.2016 “For social enterprises in the Republic of Albania” The status is recognized by order of the Minister responsible for social affairs.

Pursuant to Law No. 8788, dated 7.5.2001 “On non-profit organizations”, the main documents necessary for registration are the Establishment Act and the Statute, which must specify the decision-making and executive bodies, in the form of the organization chosen.

Non-profit organizations, once established, must register at the Tirana Court of First Instance, in accordance with the conditions and procedures provided by law to be subsequently registered with the tax administration. Registration with the tax authorities and equipment with the Tax Identification Number Certificate (NIPT) is done by submitting it to the regional tax office where the NPO activity will take place.

According to Law no. 112/2020 and DCM no. 1088, dated 24.12.2020 from January 2021, non-profit organizations, after registration in court and with the tax authorities will have to register the beneficiary owner / s in the Register of Beneficiary Owners (RPP). Registration will have to be done through the unique e-albania government services portal within 30 calendar days from the date of registration of the organization.

The documentation to be submitted for registration to Tax Administration, according to the Law No.9920, dated 19.05.2008 “On tax procedures in the Republic of Albania” amended, is as follows:

• Notarized Court Decision, Statute and Establishment Act;
• Photocopy of the ID or Passport of the administrator or legal representative;
• Headquarters ownership data (lease or ownership act);
• The registration form (filled by the applicant).

Upon receipt of the Tax Registration Number Certificate (NIPT), to the NPO is provided the password that will serve for online declarations.

Read more on the registration here

Yes, it bears some costs. The cost range from ALL 7,000 to ALL 30,000 (including printing, notarization, travel, labour costs, etc).

Changes made by Court Decision are:

• Headquarters address;
• Executives (board / administrator);
• Name;
• Legal form.

Changes that are made to Tax Administration are:

• Reflection of changes made by Court Decision;
• Opening / closing of secondary addresses and issuance of relevant certificates;
• Changing tax responsibilities (addition / removal).

Read more Formulari i Ndryshimeve.

The inactive status of NPOs is made at the request of the entity or by the Tax Administration when the legal requirements are met, specified as following:

• Upon request of the entity – when the NGO decides to terminate the activity for a period longer than 12 months or indefinitely;
• By the Tax Administration in case the entity submits declarations of inactivity (with zero) or when it does not declare for a period of more than 12 consecutive months.

For the entire period that the entity is in the “Inactive” status, it is not obliged to submit tax Declarations (the generation of statements is automatically stopped).

Reactivation of the taxpayer is done when:

• Required by the NPO for reasons of resuming activity;
• If the Tax Administration field structures find out that the NPO is Active.

In cases when the NPO is active while in the “Inactive” status, it is penalized by the Tax Administration according to the provisions of Law No. 9920, dated 19.05.2008 “On tax procedures in the Republic of Albania” amended.

The steps to deregistration for an NPO are as follows:

• The NPO applies to the Court to initiate the deregistration procedure;
• After receiving the notification from the court, the Tax Administration verifies the taxpayer’s situation regarding its compliance with legal obligations (declarations and payments);
• Tax Administration notifies the Court of the above (confirms or opposes deregistration).