By Alba Legal – Your Trusted Albanian Law Firm
Based on Law no. 10081, dated February 23, 2009, which reforms the business licensing process in Albania, the National Licensing Center (NLC) has started it’ s activity as a central public institution, which is subordinate to the minister responsible for economic issues, since June 2009.
This law aims at improving the business climate, through reduction of administrative barriers regarding free initiatives to conduct economic, commercial, or professional activities, or regarding the use of public goods, guaranteeing at the same time the safeguard of public interests, while carrying out the above-mentioned activities and using public goods.
With its one-stop-shop services and shortened, transparent and quick procedures, the NLC has reduced the administrative barriers to free enterprise, reduced the costs of business related to the licensing process and minimized the level of informality, thus improving considerably the business climate in Albania.
The NLC functions:
a. to handle licensing/permitting procedures, and procedures related to change and revocation, as provided with the licensing legislation;
b. to maintain and administer the National Register of Licenses and Permits;
c. to guarantee free access to the public, in accordance with the provisions of the legislation;
d. to inform and advise applicants and the public at large, as regards the license/permit procedures;
e. to give an opinion for any legal or sub legal initiative in the field of licenses/permits;
f. to conduct studies on the quality of the regulatory environment, to support with information, to provide analysis and advise to central and independent institutions regarding their normative and organizational initiatives in the field of licenses/permits, and to support the Ministry and/ or the Council of Ministers in drafting policies for improvement of the regulatory environment.
According to article 5 of the Law No. 18001, Carrying out activities and actions in the territory of the Republic of Albania is, as a rule, free and not subject to any license or authorization, except when otherwise provided with the law.
Licenses and permits, and/or respective subcategories which fall under the competence of the NLC are divided, into three groups.
1. The first group included those categories or subcategories that require only the applicant’s self-declarations, in order to evaluate whether criteria are properly fulfilled.
2. The second group included those categories or subcategories that besides the applicant’s self-declarations require also proof documents to be submitted by the applicant, at least for one of the criteria.
3. The third group included those categories or subcategories for which assessment of criteria (at least for one of them) must be based, not only in what is provided for in paragraphs 2 and 3 of this article, but also on a process of inspection, testing, competition, interview, or any other assessment method.
Depending to their nature and requirements to which they are subject, not all licenses and permits are subject to the examination by the National Licensing Center. As a general rule, applications for obtaining an authorization are examined directly by the competent public authorities without intervention of the National Licensing Center. Authorization process may become part of the licensing process in the case of the license belonging to Group III, as well as, only when the authorizations requirements coincide with one or more licensing requirements. Furthermore, the Law no 10081, dated on 23.02.2009 regulates 12 licensing areas, where licenses/permits are processed by/through the NLC or without the involvement of NLC.
As regards to the areas where the licenses/permits are processed without the involvement of NLC, the licensing system is regulated by the sector related legislation. Such licensing legislation exist in the following sectors :
– Banking financial service ;
– Non-banking financial services (insurance, securities, bondsof joint stock companies and local governance, collective investment enterprises, retirement funds etc.)
– Broadcasting services ;
– Services in energy sector (production, transmission, distribution, supplying and trading the electrical power; transmission, distribution, supplying and trading of natural gas; operation in the depositing premises of natural gas and operation in the NLG plants) ;
– Air, maritime and road transport services ;
– Gambling ;
– Postal services ;
– Concessions (law on concessions provides that certain economic activities are subject to a concession agreement , see factsheet no 1).
Licensing through NLC Requests for licenses/permits or respective subcategories may be done at the service window at NLC’s office in Tirana, or in any other NLC service window located in a municipality office a cost of 100 ALL.
An application may be done at any NLC service window, regardless of the applicant’s seat or location of activity Requests shall comprise filled out standard application forms and required enclosed documents. The applicant himself/herself or a person duly authorized may submit the request for application at the NLC service window. The NLC it’s not be entitled to require from applicants further documents or information, which are not included in the standard form.
The NLC review applications and take a decision within two working days from the request submission for group one and four working days for group two. The NLC makes a preliminary examination of the requests for the third group and when there is no ground for rejection publish in the Register preliminary decisions for transition to the second phase of review process, and notified by electronic means, the other institutions that are involved in the criteria examination process, for their part of criteria, falling under their competence.
The assessment of fulfillment of licensing or permitting criteria is based accordingly on: applicant’s self-declarations, documents issued by other public bodies or private institutions, assessments made, preliminary inspections taken place, tests, contests, interviews, hearings or other adequate methods that have been employed. The procedure to handle the applications for licenses or permits is clear, simple, transparent and is relied on the following:
a. ‘silent consent’ principle;
b. electronic communication and information means, including the possibility for on-line application;
c. the one-stop-shop model;
d. Integrated exchange of information and documents among public bodies.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
For legal assistance in Albanian Business Licensing, consult Alba Legal for case-specific guidance.
