Cost of Setting Up a Company in Albania

Published on October 4, 2025 and written by Cyril Jarnias

Albania, an emerging Balkan country, is attracting increasing foreign investment thanks to its economic reforms and continuously improving business climate. However, before embarking on the Albanian entrepreneurial adventure, it’s crucial to fully understand the costs associated with establishing a company in this country. This article will guide you through the various expenses to anticipate and propose strategies to optimize your investment.

Initial Outlay: Essential Registration Fees

The first step in creating your company in Albania involves paying the official registration fees. These costs are relatively moderate compared to other European countries, which constitutes a competitive advantage for Albania. Here’s the breakdown of main fees to anticipate:

• Registration at the National Business Center (QKB): approximately 100 LEK (less than €1)
• Obtaining tax identification number: free
• Social security and health insurance registration: free
• Notary fees for drafting and certifying articles of association: between 7,000 and 15,000 LEK (approximately €60 to €130)
• Official Gazette publication: 2,000 LEK (approximately €17)

It’s important to note that these fees may vary slightly depending on the type of company you wish to establish (LLC, Joint Stock Company, etc.) and the complexity of your structure. Additionally, if you opt for legal assistance or specialized firm services to complete these procedures, you should budget for additional fees, typically ranging between €500 and €1,000.

A positive aspect to highlight is the speed of Albania’s registration process. Thanks to digitalization of administrative services, it’s possible to establish a company in just 24 hours, allowing you to quickly start your operations.

Complying with Regulations: Anticipated Compliance Costs

Once your company is registered, it’s essential to budget for regulatory and tax compliance costs. These expenses, although recurring, are crucial for ensuring your company’s sustainability in Albania.

Bookkeeping is one of the most significant compliance expense categories. Accountant rates in Albania vary depending on your company’s size and complexity, but you can expect to pay between €100 and €500 monthly for this service. It’s highly recommended to hire a local professional to ensure compliance with Albanian accounting standards.

Albania has implemented a relatively simple tax system, but it’s important to budget for annual tax filing costs. Accounting professional fees for preparing and submitting tax returns can range between €200 and €1,000 annually, depending on your situation’s complexity.

Another aspect not to overlook is labor law compliance. If you plan to hire employees, budget for drafting employment contracts compliant with Albanian legislation (approximately €100-€200 per contract) and payroll management (€10-€30 per employee monthly).

Finally, depending on your industry, you might need specific licenses or permits. Costs vary considerably by field, ranging from a few hundred to several thousand euros. It’s crucial to thoroughly research your industry’s regulatory requirements before launching.

Investing for Success: Required Initial Investment

The initial investment needed to establish a company in Albania largely depends on your industry and ambitions. However, there are common elements to consider in your financial plan.

The minimum share capital required in Albania is relatively low, facilitating market entry for small entrepreneurs. For an LLC (Shoqëri me Përgjegjësi të Kufizuar), the minimum capital is only 100 LEK (less than €1). However, for a joint-stock company (Shoqëri Aksionare), the minimum capital rises to 3.5 million LEK (approximately €30,000).

Beyond share capital, here are the main investment categories to consider:

• Office rental: Prices vary considerably by location. In Tirana, the capital, expect €8-€15 per m² monthly for quality offices.
• Equipment and furniture: Budget at least €5,000-€10,000 to properly equip your premises.
• Technology and software: Investment in IT tools and management software can easily reach €3,000-€5,000.
• Initial marketing: A €2,000-€5,000 budget is recommended for launching your first marketing campaigns and creating your website.

It’s also crucial to budget sufficient working capital to cover operational expenses during the first months of activity. Generally, it’s wise to have a financial cushion equivalent to 6 months of operational expenses.

For foreign entrepreneurs, you should also consider costs related to relocating to Albania, such as moving expenses, housing search, and potentially Albanian language courses.

Managing Daily Operations: Operational Expenses to Control

Once your company is established and operational in Albania, it’s essential to understand and control your recurring expenses. Effective management of these costs can make the difference between your company’s success and failure.

Rent and Utilities

Rent often represents one of the most significant expenses for a business. In Tirana, office prices vary considerably by location and quality:

• City center: €10-€15/m²/month
• Outlying areas: €5-€8/m²/month

Don’t forget to add utilities (electricity, water, internet) which can represent 10-15% of the rent.

Salaries and Social Charges

Salaries in Albania are relatively low compared to other European countries, which can be a competitive advantage for your business. Here are some examples of average monthly salaries:

• Office employee: €300-€500
• Engineer: €600-€1,000
• Manager: €1,000-€2,000

Social charges in Albania are approximately 27.9% of gross salary for employers. It’s important to budget these additional costs when planning your human resources.

Taxes and Duties

Albania’s tax system is relatively simple, with competitive tax rates:

• Corporate tax: 15% (0% for small businesses with annual turnover under 14 million LEK)
• VAT: 20% (standard rate)
• Property tax: varies by location and property type

Marketing and Communication

To maintain and develop your business, budget for regular marketing expenses. Costs can vary considerably depending on your strategy, but a monthly budget of €500-€2,000 is common for SMEs in Albania.

Insurance

Don’t forget to purchase necessary insurance to protect your business. Costs vary by coverage, but budget €500-€2,000 annually for professional multi-risk insurance.

Rigorous management of these operational expenses is crucial for ensuring your company’s long-term profitability. It’s recommended to regularly review these costs and seek ways to optimize them without compromising your product or service quality.

Optimizing Your Budget: Effective Cost Reduction Strategies

To maximize your success chances in Albania, it’s crucial to adopt smart cost reduction strategies. Here are some approaches that can help optimize your budget while maintaining your operations quality.

Leverage Government Incentives

Albania offers various incentive programs to attract foreign investors. For example, companies operating in special economic zones can benefit from tax exemptions and simplified administrative procedures. Inquire with the Albanian Investment Development Agency (AIDA) about programs you might be eligible for.

Choose Flexible Office Solutions

Instead of renting traditional offices, consider more flexible options like coworking or virtual offices. These solutions can significantly reduce your fixed costs, especially during your company’s initial phases. In Tirana, several coworking spaces offer competitive rates, starting from €100 monthly per workstation.

Outsource Certain Functions

Outsourcing can be an effective strategy to reduce operational costs. Functions such as accounting, digital marketing, or customer support can often be entrusted to external providers at lower costs. Albania has qualified and competitive workforce in these fields.

Invest in Technology

Although it might seem counterintuitive, investing in appropriate technological tools can generate significant long-term savings. Integrated management software, online collaboration tools, or automation solutions can increase your productivity and reduce labor costs.

Optimize Your Taxation

Familiarize yourself with Albania’s tax system and ensure you benefit from all deductions and tax credits your company is entitled to. Working with an experienced local accountant can help you legally and effectively optimize your tax situation.

Form Local Partnerships

Establishing partnerships with local businesses can help reduce certain costs. For example, you could share resources, negotiate preferential rates with suppliers, or collaborate on projects to distribute costs.

Adopt Sustainable Practices

Adopting eco-friendly practices can not only improve your brand image but also reduce your operational costs. For example, using LED lighting, implementing energy management systems, or reducing waste can generate substantial long-term savings.

Remember that cost reduction shouldn’t come at the expense of your product or service quality. The goal is to find a balance between optimizing expenses and maintaining an excellence level that will distinguish you in the Albanian market.

Establishing a company in Albania can be an exciting opportunity for entrepreneurs looking to enter a dynamic emerging market. Although initial and operational costs are generally lower than many European countries, careful planning and rigorous management remain essential to ensure your business success.

By thoroughly understanding the different financial aspects related to establishing and managing a company in Albania – from registration fees to cost reduction strategies – you’ll be better equipped to make informed decisions and maximize your success chances in this promising market.