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Doing Business in Lushnja DOING BUSINESS IN MUNICIPALITY OF LUSHNJA ECONOMIC DEVELOPMENT POLICIES AND INTEGRATION HOW TO OPEN AND DEVELOP A BUSINESS IN LUSHNJE 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 2 The Guide to Doing Business is a publication that seeks to be of assistance to all those interested in opening a business in Lushnje. 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 town 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. Moreover, the Municipality of Kuçova staff offers other business services seeking to successfully meet foreign investors’ demands and explore opportunities to engage in joint projects. Lushnja is a city that offers many opportunities for any entrepreneur who wants to grow his business. Home to the country’s largest agriculture and livestock development, Lushnja is also called as the capi-tal of agricultural exports, featuring several markets for the collection of agricultural products, and linked with a variety of exporters not only from the countries of the region and the Fatos Tushe European Union but also expanding the map of “Made in Albania” Mayor of Lushnje products to the Nordic countries, such as Norway and Sweden. Lushnje farmers have grown not only with traditional crops but are also diversifying their offer with much-needed-for-export blackberries and strawberries. Following the territorial reform, the Municipality of Lushnje expanded to incorporate ten former municipalities and 83 villages in its territory. Since the city of Lushnje has a development strategy focused mainly on agriculture and livestock, the priority for the Municipality of Lushnje is to improve the quality of agricultural products through agricultural extension service in order to promote sustainable agricultural development and achieve standards, rehabilitation and maintenance of the irrigation and drainage network, promoting the use of solar energy in the agricultural sector through central and local support schemes. In this aspect, the Municipality of Lushnje welcomes any initiative of entrepreneurs, individuals or partners with concrete project to develop their initiatives to boost the town’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 Kuçova in the preparation and publication of the Guide to Doing Business. The Guide to Doing Business will now be part of the promotional package of the town 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 If you want step-by-step assistance or an immediate START UP start in business, there are some free and extraordinary resources in Kuçova that can help you in RESOURCES every step of your way. Municipality of Lushnje The mission of the Economic Development Policies and Kongresi i Lushnjes, 9001, Lushnje Integration is to design and implement city-development projects Tel: 035 222 139 focusing in tourism and cultural heritage as the basis for economic www.bashkialushnje.gov.al growth.This department develops and implements projects with international partners, EU, and private investors. Blvd. Dëshmorët e Kombit Albanian Investment Development Agency’s main objectives Prime Minister Office, 3d Floor, are to attract foreign investment, and increase the competitiveness of Tirana,Tel: +355 (0)42 251 001 the Albanian economy through the support for small and medium-sized [email protected]/[email protected] enterprises (SMEs), as well as through innovation Rr. Muhamet Gjollesha, Nr.56, Agriculture and Rural Development Agency (ARDA) Tiranë, Albania provides support to food sector entrepreneurs in their preparation for Tel: +355 4 22 28 318 benefiting from European Union funds, restructuring, modernization E-mail: [email protected] and specialization in specific outputs and markets based on Albania’s www.azhbr.gov.al competitive advantages. CBS Zyra Qendrore Creative Business Solutions (CBS) is a business consulting Adresa: Rr. Mustafa Matohiti, company and project implementation organization. CBS mission is Nr 4, Kati III,Tirana,Albania to drive sustainable economic growth projects through innovative, Email: [email protected] customer centric and environmentally friendly practices in Agriculture, Tel: +355 4 4536891 Tourism, Local Development, SME’s and financial sector. Lagjja: Xhevdet Nepravishta Fondi Besa (Besa Fund) – Lushnje Office is one of the most Rr.“Kongresi” 37, Lushnje important microfinance institutions in Albania that offers micro, small Email: [email protected] and medium loans to individuals, supporting them to start, extend and www. fondibesa.com further improve income generating activities. Clients of Besa Fund Tel: 035 224 671 Sh.A. are people from all walks of social and economic life, including unemployed and business startups. Lagjja: Xhevdet Nepravishta Fondi Noa (Noa Fund) gives loans to individuals, small and Rr. Marin Barleti, Lushnje medium-sized businesses that seek to run their economic activities Tel: +355 68 40 29 806 and local economic development. Bulevardi Kongresi i Lushnjes FED-Invest is a financial institution built on corporative principles. Tel:+355 3522277 Its mission is to provide a variety of financial products and service, [email protected] particularly to the population living in Albania’s rural areas. 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 c.Application for Tax ID to National Business Center information on each of these steps. d. Obtain Insurance e. Look into Local Permits, Zoning, and Licenses Visit the Municipality of Lushnje’s website: f. Special Considerations www.bashkialushnje. gov.al for step-by-step guidance on which city permits you will need. Develop a Business Plan You’ll also find info on other requirements The importance of a business plan and conditions that may apply to the type Failing to plan is planning to fail. Oversights and mistakes are of business you wish much cheaper on paper than in real life.A business plan helps to open as well as tips owners avoid pitfalls from the start. If you need capital, the and additional useful importance of preparing a business plan cannot be overstated. information. 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 Lushnje. 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 Lushnje. 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.
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