Starting a Business in Albania: Administrative Procedures

Published on October 4, 2025 and written by Cyril Jarnias

Albania, a country experiencing strong economic growth located in the Balkans, is attracting an increasing number of foreign entrepreneurs looking to develop their businesses there. With its simplified procedures and business-friendly environment, Albania offers numerous opportunities for company formation. In this article, we will guide you through the main steps and required documents to launch your business in this promising country.

Albania’s Advantages for Entrepreneurs

Before diving into administrative procedures, it’s important to understand why Albania has become an attractive destination for foreign investors. The country has experienced consistent economic growth in recent years, with a GDP growth rate of 3.5% in 2024. Additionally, the Albanian government has implemented several reforms aimed at improving the business climate and attracting foreign investment.

Among the advantages offered to entrepreneurs are:

• Favorable taxation with a corporate tax rate of 15%
• Simplified and fast company formation procedures
• Competitive labor costs
• Strategic geographical location between Eastern and Western Europe
• Tax incentives for certain business sectors

These factors make Albania a prime destination for entrepreneurs seeking to develop their businesses in an expanding market.

Main Legal Forms for Company Formation in Albania

Before starting administrative procedures, it’s crucial to choose the most suitable legal form for your project. In Albania, the main legal structures available for foreign investors are:

1. Limited Liability Company (SHPK)

The SHPK is the most common and flexible legal form for small and medium-sized enterprises in Albania. It can be created by one or more individuals or legal entities, with a minimum share capital of 100 leks (approximately €0.80). Partners are only liable up to the amount of their contributions.

2. Joint Stock Company (SHA)

The SHA is typically chosen for larger-scale projects. It requires a minimum share capital of 3.5 million leks (approximately €28,000) for closed companies and 10 million leks (approximately €80,000) for companies making public offerings. The SHA must have at least two shareholders.

3. Branch Office

Foreign companies can also opt to open a branch in Albania. This structure does not have separate legal personality from the parent company but can conduct the same activities as the parent company in Albanian territory.

4. Representative Office

This form is suitable for companies wishing to have a presence in Albania without conducting direct commercial activities. The representative office is limited to promotional and prospecting activities.

Key Steps to Form Your Company in Albania

Once you’ve chosen the most suitable legal form for your project, here are the main steps to follow to form your company in Albania:

1. Company Name Reservation

The first step involves checking the availability of your future company name with the National Business Center (QKB). This procedure can be completed online on the QKB website and typically takes 1-2 business days. Once the name is approved, you have 30 days to finalize your company registration.

2. Preparation of Incorporation Documents

You will then need to prepare your company’s articles of association and the incorporation act. These documents must be drafted in Albanian and contain all information required by law, including:

• Company name and address
• Business purpose
• Amount of share capital and its distribution among partners
• Company management procedures
• Company duration (if not unlimited)

It is highly recommended to engage a local lawyer to draft these documents to ensure compliance with Albanian legislation.

3. Bank Account Opening

Opening a bank account in Albania is mandatory to deposit your company’s share capital. You will need to choose a local bank and provide the necessary documents, such as identity documents of partners, company articles of association, and proof of address.

4. Registration with the National Business Center (QKB)

Your company registration is completed with the QKB, which centralizes all administrative procedures related to company formation. You can complete this procedure online or by visiting one of the QKB offices directly. The processing time is typically 24 hours.

5. Obtaining Tax Identification Number (NIPT)

Once your company is registered, the QKB will automatically issue a tax identification number (NIPT). This number is essential for all your tax and administrative procedures in Albania.

6. Registration with Social Security and Health Insurance

You will then need to register your company and employees with the Social Security Institute (ISSH) and the Health Insurance Institute (FSDKSH). These procedures can be completed online or directly at the local offices of these institutions.

Required Documents Based on Legal Structure

The documents required to form your company in Albania may vary slightly depending on the chosen legal form. Here’s an overview of the main documents needed for each type of structure:

For an SHPK (Limited Liability Company)

• Duly completed registration application form
• Company articles of association
• Incorporation act
• Copy of partners’ identification documents (passport for foreigners)
• Proof of company address (lease agreement or property title)
• Bank certificate of share capital deposit
• Power of attorney if the application is submitted by a representative

For an SHA (Joint Stock Company)

In addition to the documents required for an SHPK, you must provide:

• Valuation report for contributions in kind (if applicable)
• Minutes of the constitutive assembly
• List of board of directors members
• Declaration of directors accepting their appointment

For a Branch Office

• Specific branch office registration application form
• Copy of parent company’s articles of association
• Extract from the commercial register of the parent company’s country of origin
• Decision by the competent body of the parent company to open a branch in Albania
• Copy of the branch legal representative’s passport
• Proof of branch address in Albania

For a Representative Office

• Representative office registration application form
• Copy of parent company’s articles of association
• Extract from the commercial register of the parent company’s country of origin
• Decision by the competent body of the parent company to open a representative office in Albania
• Copy of the office representative’s passport
• Proof of office address in Albania

It’s important to note that all documents drafted in a foreign language must be translated into Albanian by a sworn translator and, in some cases, apostilled or legalized.

Costs Associated with Company Formation in Albania

Forming a company in Albania involves certain costs that are important to consider in your budget. Here’s an overview of the main expenses to anticipate:

1. Registration Fees

Company registration with the QKB has been free since 2015, as part of the Albanian government’s efforts to encourage entrepreneurship. However, fees may apply for certain specific services, such as issuing certificates or extracts from the commercial register.

2. Minimum Share Capital

The minimum share capital varies depending on the chosen legal form:

• SHPK: 100 leks (approximately €0.80)
• Closed SHA: 3.5 million leks (approximately €28,000)
• SHA making public offerings: 10 million leks (approximately €80,000)

3. Notary Fees

Although notarization of articles of association is no longer mandatory since 2021, it’s often recommended to use a notary to ensure document compliance. Notary fees typically range between €50 and €200 depending on document complexity.

4. Translation and Legalization Fees

If you need to translate and legalize foreign documents, budget approximately €20-30 per page for sworn translation, and about €50 per document for apostille or legalization.

5. Registered Office Fees

If you don’t have premises in Albania, you’ll need to use a registered office service. Costs vary between €200 and €500 per year depending on the provider and included services.

6. Professional Fees

It’s highly recommended to engage local professionals (lawyer, accountant) to assist with your procedures. Budget approximately €1,000 to €2,000 for these services, depending on your project’s complexity.

Tax Particularities to Know

Taxation is a crucial aspect to consider when forming your company in Albania. Here are the main taxes and tax obligations your business will be subject to:

1. Corporate Tax

The standard corporate tax rate in Albania is 15%. However, reduced rates exist for certain categories of businesses:

• 8% for small businesses with annual turnover between 5 and 14 million leks
• 0% for businesses with annual turnover below 5 million leks

2. VAT (TVSH in Albanian)

The standard VAT rate in Albania is 20%. Reduced rates apply to certain goods and services:

• 6% for accommodation services in the tourism sector
• 0% for exports and certain services related to international trade

VAT registration is mandatory for businesses with annual turnover exceeding 10 million leks.

3. Social Security and Health Insurance Contributions

Employers must pay social security and health insurance contributions for their employees. Current rates are:

• 16.7% for employer’s social security contributions
• 11.2% for employee’s social security contributions
• 1.7% for health insurance (shared between employer and employee)

4. Personal Income Tax

Salaries are subject to progressive income tax with the following rates:

• 0% up to 30,000 leks per month
• 13% from 30,001 to 150,000 leks per month
• 23% above 150,000 leks per month

5. Filing Obligations

Albanian companies must comply with several filing obligations, including:

• Monthly declaration of social security contributions and income tax
• Quarterly VAT declaration (for VAT-registered businesses)
• Annual corporate tax declaration
• Annual financial statements to be filed with the QKB

Advantages and Challenges of Forming a Company in Albania

Before embarking on forming your company in Albania, it’s important to weigh the advantages and challenges you might encounter:

Advantages

• Simplified Procedures: Albania has significantly simplified its administrative procedures in recent years, making company formation faster and easier.
• Competitive Costs: Company formation and operating costs in Albania are relatively low compared to other European countries.
• Attractive Taxation: With a 15% corporate tax rate and tax incentives for certain sectors, Albania offers a business-friendly tax environment.
• Qualified and Competitive Workforce: The country has a young, well-trained population with competitive salary costs.
• Strategic Geographical Position: Albania offers easy access to Balkan and European Union markets.

Challenges

• Language Barrier: Although English is increasingly common in business circles, knowledge of Albanian can be an important asset.
• Evolving Legal System: The Albanian legal framework undergoes frequent changes, which can sometimes create uncertainty.
• Developing Infrastructure: Despite significant improvements, some regions of the country may still suffer from limited infrastructure.
• Corruption: Although progress has been made, corruption remains a challenge in certain sectors of the Albanian economy.
• Access to Financing: Small and medium-sized enterprises may sometimes face difficulties obtaining bank financing.

Conclusion: Albania, a Promising Destination for Entrepreneurs

Forming a company in Albania offers numerous opportunities for foreign entrepreneurs. With its simplified procedures, attractive taxation, and growing market, the country positions itself as a prime destination for developing business in Southeastern Europe.

However, as with any foreign establishment project, it’s crucial to prepare well and surround yourself with local professionals to effectively navigate the Albanian legal and administrative environment. By following the steps detailed in this article and considering the particularities of the Albanian market, you’ll maximize your chances of successfully establishing your business in this dynamic country.

Albania continues to implement reforms to improve its business climate and attract foreign investment. With its ambition to join the European Union and its strategic position in the Balkans, the country offers interesting growth potential for visionary businesses.