The legal form of organization of companies

The legal form of organization of companies

The legal form of organization of companies legal and regulatory frameworks establish and establish the ‘rules of the game’ in society and govern how government, enterprise, and civil society interact. These rules influence investment decisions, opportunities, and usable economic actors. Governments establish these rules to collect tax revenues, invest in public goods, including the protection of the law, safety, and maintain the health and safety of consumers and the environment. Agreeing to the rules is one of the costs of doing business.

A more ‘friendly’ legal environment for ‘companies’ would include:
1. Recognition of property rights;
2. Easy enforce ability of contracts;
3. A simple, transparent, and low-cost taxation system which is operational and perceived as fair;
4. Businesses can register with the authorities with a simple and inexpensive method, remotely or even via the Internet;
5. Business licensing requirements are minimal. When they are implemented, the objective is to maintain the health and safety of consumers and work rather than be used as a source of revenue for central or local government.
6. Labor regulations are balanced and flexible, protecting labor rights and equality of firms;
7. Companies, whether exporting or importing, interact with the central administration in an efficient, simple, and transparent manner.
8. Financial sector regulations (banks, insurance, leasing) recognize the difficulties of companies and have their own legal and regulatory instruments to put their assets at companies’ service.
9. Public administrations at the local level value entrepreneurs as contributors to economic growth, treat them fairly, and keep corruption minimum.
10. Legislation and regulations are sensitive to women and have laws and rules that enable them to have equal opportunities.
11. Companies can quickly establish and be members of joint organizations;
12. Bankruptcy legislation does not have high penalties for SME entrepreneurs.

The government, on the other hand, needs to have a high-level commitment to change the way bureaucracy works: for example, clearly identifying regulatory objectives, assessing the costs of new companies’ regulations, regularly communicating proposed changes, and consultation with companies, and clear instructions on how to comply with these regulations and mastering their capacity to administer rules. On the other hand, companies should take the initiative to become informed and qualified to discuss with the civil service through their membership in organizations, making honest efforts to understand its implementation, once approved throughout a consultative process.

According to the form of organization in the Republic of Albania, business firms can be established in the way of:
1. Individual business (sole proprietor);
2. Limited liability company;
3. Limited partnership (Limited co-ownership);
4. General partnership (General co-ownership);
5. Joint Stock Company (Corporation); and
6. Non-resident (foreign) enterprise.

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