Starting a Business in Albania: An Expat’s Guide

Published on September 30, 2025 and written by Cyril Jarnias

Albania, a Balkan country experiencing economic growth, is increasingly attracting foreign entrepreneurs drawn by its growth potential and business-friendly environment. With a rapidly transforming economy and competitive operational costs, Albania offers genuine opportunities for expatriates looking to start their business there. This comprehensive guide will walk you through the key steps to bring your entrepreneurial project to life in this promising country.

Understanding the Business Environment in Albania

Before diving into starting a business in Albania, it’s essential to thoroughly understand the country’s economic and entrepreneurial context.

A Growing Market

Albania has experienced sustained economic growth for several years, with consistently rising GDP. The tourism, information technology, agriculture, and energy sectors are particularly dynamic and offer numerous opportunities for foreign entrepreneurs.

A Regulatory Framework Favorable to Investment

The Albanian government has implemented various reforms to improve the business climate and attract foreign investment. These measures include simplifying administrative procedures, tax incentives for certain sectors, and enhanced investor protection.

A Skilled and Competitive Workforce

Albania has a young and increasingly skilled population, with good education levels and growing proficiency in foreign languages, particularly English. Labor costs remain competitive compared to other European countries.

Choosing the Right Legal Structure for Your Project

The choice of your company’s legal form in Albania will depend on several factors, including the nature of your activity, your growth objectives, and your tax strategy.

Main Legal Forms in Albania

• Limited Liability Company (SHPK): This is the most common form for small and medium-sized enterprises. It offers limited liability to partners and flexibility in management.
• Joint Stock Company (SHA): Suitable for larger-scale projects, it allows for raising more significant capital but involves stricter governance and reporting obligations.
• Branch of a Foreign Company: This option allows a foreign company to establish a presence in Albania without creating a separate legal entity.
• Sole Proprietorship: Suitable for entrepreneurs wishing to operate under their own name but does not separate personal and professional assets.

Selection Criteria

To select the most suitable structure, consider: – The minimum required capital – Tax and accounting obligations – Desired management flexibility – Growth and fundraising prospects – Protection of your personal assets

Key Steps to Start Your Business in Albania

Starting a business in Albania follows a relatively simple process, but still requires good preparation and adherence to certain formalities.

1. Develop a Solid Business Plan

Start by writing a detailed business plan that presents your project, strategy, and financial projections. This document will be essential for convincing potential partners or investors and will guide you through your steps.

2. Choose a Business Name

Check the availability of your chosen name with the National Business Registration Center (QKB). The name must be unique and not infringe on existing trademarks.

3. Prepare the Incorporation Documents

Draft your company’s statutes and gather necessary documents, such as copies of partners’ passports, powers of attorney if needed, and proof of company address.

4. Register with the QKB

Registration is done with the National Business Registration Center. This process can be completed online or in person. You will receive a unique identification number (NUIS) for your business.

5. Open a Professional Bank Account

Choose an Albanian bank or an international bank branch to open a bank account in your company’s name. This account will be necessary to deposit the share capital.

6. Register with Tax and Social Security Authorities

Register with the Albanian tax administration and social security agencies to obtain the necessary identification numbers.

7. Obtain Specific Licenses and Permits

Depending on your industry, you may need specific licenses or permits. Check with the relevant authorities.

Financing Your Entrepreneurial Project in Albania

Financing is a crucial aspect of starting a business, especially in an international context. Here are the main options available to you in Albania:

Equity and Love Money

Personal investment often remains the first source of funding for expatriate entrepreneurs. Don’t hesitate to seek support from close contacts to supplement your equity.

Bank Loans

Albanian banks offer business loans, but conditions may be stricter for foreign entrepreneurs. Prepare a strong application and consider providing additional guarantees.

Grants and Subsidies

The Albanian government and certain international organizations offer business support programs, particularly in priority sectors like innovation or agriculture. Check with the Albanian Investment Development Agency (AIDA).

Venture Capital and Business Angels

The venture capital market is still emerging in Albania, but opportunities exist, especially for innovative startups. Business angel networks are also beginning to develop in the country.

Crowdfunding

Crowdfunding platforms can be an interesting option for certain projects, particularly those with a social or environmental dimension.

Navigating Cultural Differences

The success of your entrepreneurial project in Albania will largely depend on your ability to understand and adapt to the local business culture.

Importance of Personal Relationships

In Albania, personal relationships play a crucial role in business. Take time to build a strong network and cultivate trusting relationships with your partners, clients, and suppliers.

Communication and Negotiation

Communication in Albania tends to be more direct than in Western Europe. Albanians appreciate frankness, but it’s important to remain diplomatic and respectful. In negotiations, be prepared to show patience and flexibility.

Hierarchy and Decision-Making

Albanian companies often have a fairly marked hierarchical structure. Important decisions are generally made at the highest level. Keep this in mind in your interactions with local partners.

Time Management

While punctuality is appreciated in business meetings, the concept of time can be more flexible than in Western Europe. Be patient and allow for some margin in your schedules.

Resources and Support for Expatriate Entrepreneurs in Albania

To maximize your chances of success, don’t hesitate to seek help and advice from available support structures:

Albanian Investment Development Agency (AIDA)

AIDA is your primary contact for obtaining information on investment opportunities and available support in Albania.

French-Albanian Chamber of Commerce and Industry

This bilateral organization can help you establish contacts with local businesses and provide valuable information about the Albanian market.

Incubators and Coworking Spaces

Structures like Oficina or Tirana Business Park offer workspaces and support programs for startups and entrepreneurs.

Expatriate Networks

Join expatriate groups on social networks or local associations to connect with other foreign entrepreneurs based in Albania.

Specialized Legal and Tax Advisors

Engage local professionals to guide you through the legal and tax aspects of your project. Their expertise will be valuable in avoiding costly mistakes.

Starting a business in Albania as an expatriate represents a stimulating and potentially very rewarding challenge. With careful preparation, a good understanding of the local context, and support from appropriate resources, you can transform this growing country into fertile ground for your entrepreneurial project. Albania offers genuine opportunities for bold entrepreneurs ready to adapt to a constantly evolving environment.