In Albania, non-profit organizations are established and operate in accordance with the aw No.8788, date 7.5.2001 “On Non- Profit Organizations”. Pursuant to the Law, all the 668 non- profit organizations offering their services are organized as:
- Unions / Associations
- Foundations, or
- Centers.
They offer non-profit activity in accordance with their purpose of creation. In other words: even when a non-profit organization (NPO) exercises economic activity, all the incomes deriving from it should be used as a financing tool for accomplishing other objectives as defined in the statute of that organization.
Regardless of the legal establishment, all the founders of a non-profit organization should register it at Tirana’s First Instance Court. Only in this way, a non-profit organization acquires legal personality.
As mentioned above, the number of such organisation is already considerable in Albania. Upon that, the Assembly of the Republic of Albania – to facilitate the process of their registration – approved the Law no. 80/2021 “For registration of non- profit organizations”. The new law aims to provide:
- More transparency on NPOs’ activity
- Digitalization of the registration process
- Modernization of the database of NPOs
- Public access to the electronic database.
What’s new?
- Electronic Register
Any request for registration, whether submitted in writing or electronically, will be registered and stored electronically.
- Authorities
The new (electronic) register will be established by the High Judicial Council and administered by Tirana’s First Instance Court.
- Registration Procedures
The right to register the name of a NPO is made on the basis of the priority principle. In other words, it will be given to the first legal application for registration.
Necessary data for the registration are:
- The name of the NPO
- The form of organization
- The founding date
- All the founders’ identification data
- Headquarters
- The purpose and field of activity, and/ or
- Other legal requirements, and
- Supportive documents.
A NPO acquires legal personality the day when Courts’ decision on its registration becomes final. From this moment, it can be registered electronically at the Electronic Register of Non- profit organizations.
However, not only the initial registration is reflected electronically. Any subsequent change in the initial data, should be reflected as well in the relevant file of the organization.
Upon this registration, an unique identification number will be generated electronically by the competent Court. This number is important for identifying the organistion:
- In the electronic register of NPOs
- As a taxable person before central and local tax authorities
- For social and health insurance scheme
- For labor relations
- For any other statistical and/ or identifying purpose.
The new legal changes will be followed by the implementation of:
- A National Electronic Register (NER)
- The digitization of new data and related archives of NPOs
- The implementation of an Information Management System (IMS)
Digitalization is not a new phenomenon in Albania. Our Country has made several legal amendments in order to provide a better and faster access to information. You can read more on this here, or Subscribe to Legit for the updated information on digitalization.