Limited Liability Companies
Limited Liability Companies
Thus, according to point 1 of article 68 ‘, the limited liability company is a commercial company, established by natural or legal persons, who are not responsible for the company’s obligations and personally cover the company’s losses up to the significant part of the signed contributions.
The partners’ contributions constitute the registered capital of the limited liability company’. Point 23 of this article states that ‘each partner enjoys his share in the company, in proportion to the contribution he has made to the capital. The registered capital of the company is divided among the partners in quotas, according to this report. Limited liability companies cannot offer their percentages as an investment to the general public. Unless otherwise provided by this law, the relationship between the partners may be defined in the company’s statute.
The partners’ contribution can be in cash or in-kind (movable/immovable property or rights). The statute sets out how donations are paid. The partners of a limited liability company appreciate the contributions in mutual agreements and express their values in money. If no agreement can be reached, each of the partners may apply to the relevant court to charge an appraisal expert with a decision with binding effect. The partners’ report or the expert for the evaluation of the contributions is submitted to the National Registration Center, together with the other data required for registration.
Regarding the registration of these limited liability companies, Article 69 states that ‘The limited liability company is registered under Articles 26, 28, 32 and 35 of Law no. 9723, dated 3.5.2007 “On the National Registration Center.” If the company has set up a website, the information notified to the National Registration Center shall be published on this website and made available to interested parties. This means that the registration of companies is an administrative procedure done by law no—9723 of 2007 for the NRC.
Also, cases of bankruptcy or procedures to declare bankruptcy are regulated by the new law no—110 of 201,6 “On Bankruptcy,” which entered into force in May 2017. As I wrote above, the 2008 law did not respect the tradition of laws in this area that existed in the Albanian legal system during the 1990s. The 2008 law was amended only twice in ten years (once in 2011 and once in 2014) and only in cases of increased capital requirements in public joint-stock companies. This law is considered one of the principal regulations of companies in Albania. It coexists with other unique laws that affect businesses’ direction, such as the law on foreign investment, the law on small and medium enterprises, or the law on public-private partnerships.
The role of traders and trading companies in the economy
In developed countries and emerging economies, companies provide significant contributions to employment, economic growth, and innovation. They also play an essential role in the so-called entrepreneurial ecosystem. Companies bring diversity and dynamism to both existing and new industries. Like firms, they also influence new technologies, products, and business models, digitization, and increased levels of internationalization.
This applies to limited liability companies or a large number of employees and those who have a small staff or where the founders are self-employed. The largest number of companies are businesses with few employees or self-employed. In our time, now that globalization and rapid technological development make the race even more difficult and aggressive, trade companies can no longer be considered immobile, especially since the interaction between different economic actors has begun to be articulated. Moreover, trading companies are not static entities in a world-changing more and more while maintaining a reduced size.
Various studies link commercial companies’ development with limited economic growth responsibilities, with job creation, especially in developing countries. According to one study conducted by Ayyagari et al. (2007), in high-income countries, companies contribute an average of 50% of the national product (GDP).
Entrepreneurial activity is an essential element and an indicator of the growth of a transition economy. At the same time, new businesses serve as a powerful catalyst for developing industries and the revival of those that remained in a state of stagnation. Moreover, sales and employment grow faster in private economic enterprises than in-state ones. The main difficulty of commercial companies in an economy lies in providing financing from banking institutions or due to their low credit, as is the Republic of Albania.
Engel (2002) points out that firms that manage to obtain sufficient funding also have higher economic growth. The structural transformation of the Albanian economy has been slow and has remained influenced by foreign investment. The sectoral structure of the economy has remained mostly unchanged over the past five years.
Small businesses are seen as the engine of the economy, which must have limited responsibilities to grow and enable you to do so from the country’s business climate. But one of the main problems with the emergence of excessive enthusiasm about entrepreneurship is that this initial enthusiasm can affect the distortion of the image of their impact on a country’s economy, and sometimes limited liability companies manage to create employment.
Only for their shareholders and do not affect the economic growth of a nation. This is not just one of the criticisms leveled at limited liability companies. Often they tend to stay in small shapes and sizes and do not tend to expand. For example, many limited liability companies in the UK have limited liability but no employees. While many other firms only employ employees but cannot be called as forms of commercial enterprise.
Even in Albania, as in other Balkan countries, most of the companies are services related to services, about 60% of them, while enterprises in the field of agriculture make up only 10% of the value. Added. The industry contributes 19.5% of the value-added, mainly with foreign companies’ contribution, which operates in machinery equipment, chemical products, and other products such as iron, steel, and clothing.
The service industry provides half of the jobs in the entire economy, followed by industry and the construction sector (27%) and agriculture (24%), which have not undergone radical changes since 2012. Over 99 percent of companies are commercial companies, providing 76% of the added value to the economy and almost the same percentage of employees. Thus, Albanian companies’ main characteristics are the possession of a very heterogeneous economic structure, where the service sector dominates, and in other Balkan countries, where most companies are occupied but have a very high degree of innovation.
