Launching A Startup In Albania: A Practical Guide

Published on October 4, 2025 and written by Cyril Jarnias

Albania, a Balkan country undergoing economic transformation, is increasingly attracting the attention of innovative entrepreneurs seeking new opportunities. With its rapidly growing economy and efforts to attract foreign investment, Albania offers fertile ground for startup creation. In this article, we will explore in detail Albania’s advantages for startups, the most suitable legal structures, as well as available funding options to develop your entrepreneurial project in this promising country.

Albania: A Land of Opportunity for Innovative Startups

Albania has been experiencing a true economic renaissance in recent years, making it an increasingly attractive destination for entrepreneurs worldwide. Several factors contribute to this dynamism and provide an environment conducive to the emergence of innovative startups.

Sustained Economic Growth

Despite challenges posed by the COVID-19 pandemic, the Albanian economy has shown remarkable resilience. According to World Bank data, Albania’s GDP grew by 8.5% in 2021, one of the highest rates in Europe. This positive momentum is expected to continue in the coming years, with growth forecasts of 3.2% for 2025. This economic vitality creates a favorable climate for investment and innovation, offering numerous opportunities for startups.

Competitive Operational Costs

One of Albania’s main advantages for young companies is its low cost of living and labor compared to other European countries. Rent, salaries, and social charges are significantly lower than in Western European countries, allowing startups to reduce operational costs and allocate more resources to their development. For example, the average salary in Albania is about 400 euros per month, compared to over 2000 euros in countries like France or Germany.

Business-Friendly Regulatory Framework

The Albanian government has implemented several reforms aimed at improving the business environment and attracting foreign investment. Key measures include:

• Simplification of administrative procedures for business creation
• Implementation of tax incentives for foreign investors
• Creation of special economic zones offering tax and customs benefits
• Improved protection of intellectual property rights

These efforts have enabled Albania to advance in the World Bank’s Doing Business ranking, moving from 82nd place in 2015 to 63rd in 2024, demonstrating a significant improvement in the business climate.

Ideal Legal Structures for Launching Your Startup in Albania

Choosing the appropriate legal form is a crucial step in creating your startup in Albania. The country offers several options, each with its advantages and specificities. Here are the structures most commonly used by foreign entrepreneurs:

Limited Liability Company (LLC)

The LLC (Shoqëri me Përgjegjësi të Kufizuar) is the Albanian equivalent of the French SARL or American LLC. It is the most popular legal form for startups in Albania, due to its flexibility and management simplicity. The main characteristics of the LLC are:

• Minimum share capital: 100 leks (approximately 0.80 euro)
• Partners’ liability limited to their contributions
• Possibility of having a single partner
• Flexible management with one or more managers
• Profit taxation at a rate of 15%

The LLC is particularly suitable for small and medium-sized enterprises, as well as startups in the launch phase.

Joint Stock Company (JSC)

The JSC (Shoqëri Aksionare) is the equivalent of the French société anonyme. It is more suitable for large-scale projects requiring significant capital. Its main characteristics are:

• Minimum share capital: 3.5 million leks (approximately 28,000 euros) for closed companies, 10 million leks (approximately 80,000 euros) for companies making public offerings
• More complex governance structure with a board of directors
• Possibility to issue shares and bonds
• Profit taxation at a rate of 15%

The JSC is recommended for startups with ambitions for rapid growth and considering significant fundraising or a medium-term IPO.

Branch of a Foreign Company

For foreign entrepreneurs wishing to test the Albanian market without creating a separate legal entity, opening a branch can be an interesting option. The main characteristics are:

• No minimum capital required
• The parent company is responsible for the branch’s debts
• Administrative and accounting simplicity
• Profit taxation at a rate of 15%

This option allows for greater flexibility and direct control by the parent company over activities in Albania.

Funding Your Startup in Albania: Available Options

Funding is often the lifeblood for startups. In Albania, several options are available to entrepreneurs to finance their project and ensure their development.

Equity and Love Money

As in many countries, founders’ personal contributions and financial support from their network (family, friends) often constitute the first source of funding for Albanian startups. This approach allows starting the business without debt and maintaining full control over the company. However, amounts are generally limited and may prove insufficient for ambitious projects.

Government and European Aid

The Albanian government has established several support programs for startups and innovative SMEs. Notable initiatives include:

• The Albanian Innovation and Technology Development Fund (AIDA), which offers grants up to 400,000 euros for innovative projects
• The startup support program from the Ministry of Finance and Economy, offering grants up to 5 million leks (approximately 40,000 euros)
• European pre-accession funds (IPA), which support Albania’s economic development towards EU membership

These aids can constitute valuable support for startups, particularly in priority sectors such as information technology, agriculture, or tourism.

Business Angels and Venture Capital Funds

The private investor ecosystem in Albania is still developing but experiencing rapid growth. Several business angel networks have emerged in recent years, such as Albanian Business Angel Network (ABAN) or Tirana Angels. These individual investors can provide not only funds but also their expertise and network.

Furthermore, regional venture capital funds are beginning to show interest in Albanian startups. Notable examples include:

• South Central Ventures, which invests in the Western Balkans
• EBRD Venture Capital Investment Programme, supported by the European Bank for Reconstruction and Development
• Blue Ribbon, an investment fund dedicated to Albanian startups

These players can provide more substantial funding, usually in exchange for equity participation in the startup.

Bank Loans and Crowdfunding

Albanian banks offer financing products adapted to startups, although access conditions may be restrictive for young companies. The government has implemented credit guarantee programs to facilitate SMEs’ access to bank financing.

Finally, crowdfunding is beginning to emerge in Albania, with local platforms like Albanian Crowdfunding or regional initiatives like Funderbeam SEE. This option can be interesting for projects with strong social or environmental dimensions.

Conclusion: Albania, Fertile Ground for Bold Startups

Albania offers an increasingly conducive environment for the emergence and development of innovative startups. With its sustained economic growth, competitive operational costs, and constantly improving regulatory framework, the country positions itself as an attractive destination for entrepreneurs seeking new opportunities in Europe.

The simplicity of legal structures like the LLC, combined with the growing diversity of available funding sources, enables startups to launch and develop under favorable conditions. Sectors such as information technology, sustainable tourism, or innovative agriculture offer particularly promising prospects.

However, as with any entrepreneurial project abroad, it is crucial to prepare well and seek expert advice to navigate the local legal and economic environment. Mastery of the Albanian language or partnering with local contacts can also prove to be valuable assets for successful establishment.

Ultimately, Albania represents a unique opportunity for bold entrepreneurs looking to position themselves in a growing market at the gates of the European Union. With a strategic approach and good understanding of local specificities, your startup could well find in Albania the fertile ground necessary for its growth and international success.