How to Close a Business in Albania: Deregistration, Liquidation and Final Obligations

Closing a business needs as much care as opening one. If activity stops but the entity stays active in the register, filing obligations continue and penalties can build up. This guide explains the main steps to close a business in Albania, for both sole traders and companies.

Sole trader or company: two different procedures

• A sole trader (natural person or self-employed) applies for deregistration at the National Business Centre (QKB) after settling open obligations.
• A company (sh.p.k., sh.a.) must go through liquidation: creditors are paid, remaining assets are distributed and only then is deregistration requested.

Liquidating an sh.p.k. step by step

1. Shareholders’ decision to dissolve the company and appoint a liquidator.
2. Registration with the QKB of the liquidator and their powers to represent the company.
3. Notice to creditors. The notice is published twice, 30 days apart, on the QKB website (and the company’s own site, if any). Creditors have 30 days from the last notice to file claims.
4. Opening balance sheet. The liquidator prepares a balance sheet at the start and a final one at the end. If liquidation lasts more than a year, annual financial statements are also prepared.
5. Winding up: collecting receivables, selling assets and paying debts, including taxes.
6. Distributing remaining assets to shareholders, only after the creditors’ deadline has passed and debts are paid.
7. Applying for deregistration at the QKB once the liquidator’s report is approved.

The law also provides for simplified liquidation, when all shareholders decide on it and declare before the court that all debts to creditors have been paid.

Settle open obligations, contracts and returns

• Final income tax return. When activity ends during the year, the return can be filed at any time, but no later than 31 March of the following year.
• VAT: monthly returns up to closure, and the treatment of remaining stock and assets.
• Employees: ending contracts under the Labour Code, the final payroll and deregistering them.
• Contracts: lease, suppliers, services and bank loans.
• Fiscalisation and banking: closing invoicing devices and certificates, and bank accounts after the final payments.
• Municipality: local taxes and fees up to the closing date.

Keep your accounting records

Closing the business doesn’t end the duty to keep records. Under the accounting law, accounting documents are kept for 10 years after the end of the reporting period. Decide who keeps them and where, as they may be requested in a later tax audit.

Mistakes to avoid

• Stopping activity without deregistering: filing obligations and penalties continue.
• Paying money out to shareholders before creditors and taxes are settled. Shareholders can be liable up to the amount they received.
• Forgetting local taxes or employee filings.
• Destroying records right after closing.

FAQ

How long does liquidating an sh.p.k. take?

The creditor notice periods alone take about two months. Total time depends on assets, debts and tax checks; for a small company, usually several months.

Can I suspend the business instead of closing it?

Yes, suspension is an option if you plan to restart. Some obligations remain during suspension, so discuss it with your accountant.

What happens to tax debts?

They must be paid during liquidation. A company should not be deregistered with open liabilities.

Close your business without surprises

Abacus prepares final returns, liquidation balance sheets and QKB filings. Contact us or explore our consulting services.

This article is for general information and is not a substitute for professional advice on your situation. Sources: Law No. 9901/2008 on Traders and Commercial Companies (Articles 191–204); Law No. 25/2018 on Accounting and Financial Statements (Article 8); Instruction No. 26/2023 on Income Tax.