Originally from:
Legal Aspects of Doing Business in Europe - 2nd Edition - Looseleaf
Legal Aspects of Doing Business in Europe - 2nd Edition - Electronic
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Albania
Valentina Zaçe and Ardiana Sinani
University of Tirana
Tirana, Albania
Introduction
Quite naturally, in the world, there ismuch competition between the poor countries to attract
foreign capital. The introduction of foreign capital opens to these countries large possibilities
for employment, new technology will enter, modern methods of organization and scientific
administration will be applied, the domestic market needs will be better met, and new perspectives
for export will be introduced. Not only developing countries but all former
socialist countries are aware that the foreign investments do not endanger their independence
and well-being. Consequently, they offer favorable conditions to foreign investors.
Albania was probably the last European country to give the green light to the introduction
of foreign capital. The decrees issued hastily after the events of July 1990 were not only
too late but in important ways, they were limited and not correct. Still joint ventures with
the participation of domestic and foreign capital became a reality in Albania. It should be
stressed that despite the goodwill for establishing several enterprises in all fields, a large
number of foreigners’ bids are unequally allocated between the various branches of the
economy. Such a situation finds its explanation in the fear the foreigners have to invest in
Albania, especially in the low profit branches, fear having to do with the grave economic
situation and the political instability that have existed inAlbania. Several limitations, inaccuracies
and contradictions observed in the legislation approved for foreign investments
and foreign trade inAlbania havemarkedly influenced in this direction.Even those foreigners
investing in Albania in their majority have been Albanians by origin so it has been
national sentiment alongside with the economic interest that has served as an incentive.
During 1992–1993, an evolution of the political and economic situation is evident, as well
as an obvious improvement of the legislation relevant to foreign trade and foreign
investments.
The Actual Political Social and Economic Climate
Political Situation
Political Situation in the Country
During 1992–1993, Albania experienced serious political shocks. Governments rapidly
succeeded each other. We could rightly refer to a deep political, governmental and
Albania
Introduction
The Actual Political Social and Economic Climate
A Brief Outlook on the Legal System
Foreign Trade in Evolution: Commercial Companies
Customs Code and Tariffs and Foreign Trade
Aspects of Taxes
The Foreign Currency Market System
Labor Aspects
Conclusion
Valentina Zaçe and Ardiana Sinani, University of Tirana, Tirana, Albania
