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Doing Business in Berat

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DOING BUSINESS IN Municipality of Berat HOW TO OPEN AND DEVELOP A BUSINESS IN BERAT This publication is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this publication are the sole responsibility of Tetra Tech and do not necessarily reflect the views of USAID or the United States Government. 1 The Guide to Doing Business is a publication that seeks to be of assistance to all those interested in opening a business in Berat. It offers detailed practical information on every step to fulfilling their dream. In addition to providing information not only on how to design a business plan, the Guide offers tips on marketing and promotion, information on the city and potential sectors for investments as well as advice for appropriate contacts and locations. It also helps with the identification of potential stakeholders for business collaboration. Petrit Sinaj Moreover, the Municipality of Berat staff offers other business Mayor of Berat services seeking to successfully meet foreign investors’ demands and explore opportunities to engage in joint projects. Berat is a city with plenty potentials for all entrepreneurs who wish to expand their business. As part of the UNESCO World Cultural Heritage list, its cultural heritage has made Berat a world cultural international destination, where historical values merge with the rare natural beauties of the landscapes surrounding the city, with the agribusiness and bio products, rich cuisine, and, above all, with the traditional hospitality. The National Park of Tomor and the canyons of the Osum River provide opportunities for eco-tourism and rural tourism. After the 2014 administrative-territorial reform, the Municipality of Berat’s territory was expanded to encompass four former communes and 50 villages.While the city of Berat has a development strategy mainly oriented to historic and cultural tourism and agribusiness development, the municipality’s priorities included projects focused on revitalization of cultural heritage combined with agritourism and adventure tourism, by intertwining the cultural heritage offered by the historical center with the natural resources offered by newly-expanded territory. In this aspect, the Municipality of Berat welcomes any initiative of entrepreneurs, individuals or partners with concrete project to develop their initiatives to boost the city’s economic potential and improve the quality of life of its citizens. I would like to thank the USAID Planning and Local Governance Project for the support provided to the Municipality of Berat in the preparation and publication of the Guide to Doing Business, which will now be part of the promotional package of the city and a valuable guide for all local offices that offer service to businesses. 3 Contents 1. Start Up Resources 5 2. Basics 6 a. Develop Business Plan b. Register Your Legal Structure and Trade Name c. Taxes and Fees d. Construction permits e. Guidelines on Planning d. Other Issues 3. Selecting a Location 19 4. Insurance 20 5. Financing 21 6. Financial Institutions 22 7. Creating Jobs 23 8. List of Institutions (Directory) 24 4 START UP If you want step-by-step assistance or an immediate start in business, there are some free and extraordinary resources in RESOURCES Berat that can help you in every step of your way. Bashkia Berat The mission of the Department of Strategic Development Blvd. Republika, Berat and European Integration is to design and implement city- [email protected] development projects focusing in tourism and cultural heritage as the www.bashkiaberat.gov.al basis for economic growth. This department develops and implements projects with international partners, EU, and private investors. Blv. Dëshmorët e Kombit Albanian Investment Development Agency’s main objectives Prime Ministers’ Office, are to attract foreign investment, and increase the competitiveness 3d Floor, Tirana of the Albanian economy through the support for small and Tel: +355 (0)42 251 001 medium-sized enterprises (SMEs), as well as through innovation. [email protected]/[email protected] Rr. “Muhamet Gjollesha”, Nr.56, Agriculture and Rural Development Agency (ARDA) Tirana provides support to food sector entrepreneurs in their preparation Tel: +355 4 22 28 318 for benefiting from European Union funds, restructuring, E-mail: [email protected] modernization and specialization in specific outputs and markets www.azhbr.gov.al based on Albania’s competitive advantages. Blv. Republika The Business Improvement District of Berat (BID) is a Administrative Unit 3, 3d floor local business association that seeks to promote businesses in the [email protected] Republika Boulevard and revitalize this area by transforming it into a focal point for social-economic life and tourism development. CBS Headquarters Creative Business Solutions (CBS) is a business consulting Rr. Mustafa Matohiti, company and project implementation organization. CBS mission is No. 4, 3d Floor, Tirana, Albania to drive sustainable economic growth projects through innovative, Email: [email protected] customer centric and environmentally friendly practices in Tel: +355 4 4536891 Agriculture, Tourism, Local Development, SME’s and financial sector. CBS is well known for implementing development projects in Albania with spillover effects in the Western Balkans. www. fondibesa.com Fondi Besa (Besa Fund) – Berat Office is one of the most Tel: +355 (0)32 23 43 15 important microfinance institutions in Albania that offers micro, small and medium loans to individuals, supporting them to start, extend and further improve income generating activities. Clients of Besa Fund Sh.A. are people from all walks of social and economic life, including unemployed and business startups. 5 BASICS These are essential a. Develop Business Plan steps you need to take in starting your own b. Register Your Legal Structure and Trade Name business. Read on for detailed information on c. Application for Tax ID to National Business Center each of these steps. d. Obtain Insurance Visit the Municipality of Berat’s website: e. Look into Local Permits, Zoning, and Licenses www.bashkiaberat.gov.al for step-by-step f. Special Considerations guidance on which city permits you will need. You’ll also find info on other requirements and conditions that Develop a Business Plan may apply to the type of business you wish The importance of a business plan to open as well as tips and additional useful Failing to plan is planning to fail. Oversights and mistakes are information. much cheaper on paper than in real life.A business plan helps owners avoid pitfalls from the start. If you need capital, the importance of preparing a business plan cannot be overstated. Free one-on-one business planning assistance is available through the organizations listed in the “Startup Resources” section. Don’t forgo consultation. Before you bring your plan to a bank or other lender, get some qualified opinions. 6 A GUIDE TO YOUR BUSINESS PLAN Below is an overview of a typical business plan, but there are many ways to approach business planning. Look online for resources, sample plans, and sample templates.Treat the business plan as a living document; one which you nurture and learn from, and as something that helps bring life to your business. Introduction • Provide a detailed description of the business and its goals • Discuss ownership of the business • Discuss the legal structure • List the skills and experience you bring to the business • Discuss the advantages you and your business have over competitors Marketing • Discuss the products/ services offered • Identify the customer demand for your products/ services • Identify your market, its size and locations • Explain how your products/ services will be advertised and marketed • Explain the pricing strategy Financial Management • Explain the source and the amount of initial equity capital required to start up your business • Develop a monthly operating budget and a monthly cash flow for the first 3 years • Provide projected income statements and balance sheets for a 3-year period • Discuss your break-even point • Explain your personal balance sheet and method of compensation • Discuss who will maintain your accounting records and how they will be kept • Provide “what if” statements that address alternative approaches to any problem that may develop 7 Operations • Explain how the business will be managed on a day-to-day basis • Discuss hiring and personnel procedures • Discuss insurance, lease or rent agreements and issues related to your business • Account for the equipment necessary to produce your products or services • Account for production and delivery of products and services Concluding Statements • Summarize your business goals and objectives • Express your commitment to the success of your business Register your legal structure & trade name Register with the National Business Center in Berat. Apply for a Tax ID to the local tax office Register with the local tax office and with the municipality, where you will obtain information required for this registration. 8 WHERE TO REGISTER A BUSINESS? • At the National Business Center office • Online • For more information on business registration please visit the NBC website www.qkb.gov.al Applications for permit and/or license or for related subcategories are submitted to any NBC helpdesk or to the central office in Tirana or any other service desk installed in the local governance offices in the Municipality of Berat. The cost of submission of application is 100 Albanian Lek (ALL). The application may be submitted to any service desk regardless of the location of the business activity. The application consists of a completed application form.Attached to it are the required support documentation.The applicant or a duly authorized person may submit the application form to the NBC service desk. NBC may not require the submission of additional documents or provision of other information that are not foreseen in the application form. 9 The building tax is 0.2% of the value of the building to be LOCAL used for any economic activity.
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