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ESTABLISHMENT AND REGISTRATION OF NPOS

Who can create an NPO?

The Constitution of the Republic of Albania guarantees everyone’s right to be organizes collectively for any lawful purpose. According to Law No. 8788 dated 07.05.2001 “On non-profit organizations”, the article 46, point 1 and 2, the registration of organizations or associations in court is done according to the procedure provided by law.

What are the main forms of organization of an NPO?

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”.

Is Social Enterprise a form of organization of NPOs?

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.

What documents are needed to establish an NPO?

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.

Where to register the NPO?

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.

What documentation is needed to register an NPO to the Tax Administration?

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

Is the process of establishing and registering an NPO costly?

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

Can changes be made to NPO documents after it has been registered? What changes should be made to the responsible authorities?

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.

If the organization has no activity, can it switch to inactive status?

If the NPO does not declare for a period of more than 12 consecutive months or has decided to terminate its activity for a period of more than 12 months or indefinitely, shall pass to inactive status.

How is transition to inactive status made?

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).

How is the NPO reactivated?

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.

What are the steps for deregistration an NPO?

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).