Company incorporation in Albania
With its pro-business climate and strategic position in Southeast Europe, company incorporation in Albania is drawing the attention of entrepreneurs looking to expand efficiently and affordably. The country offers a stable legal framework, low operating costs, and a growing reputation as a regional hub.
Favorable tax rates, minimal red tape, and a simplified registration process make Albania an attractive option for setting up a business. Whether you're launching a tech firm, a consultancy, or an import-export operation, the foundation is there for rapid, compliant growth. For entrepreneurs seeking new markets, Albania combines opportunity with ease of entry.
In the following sections, we’ll walk you through everything you need to know, from the legal structures available to the documents required and estimated costs, so you can make informed, strategic decisions.
Fast facts about doing business in Albania
Albania has emerged as a dynamic destination for investors seeking cost-efficient operations, simplified bureaucracy, and strategic access to regional markets. With an improving ease of doing business, the country is especially attractive to entrepreneurs who value agility and regulatory clarity.
Foreigners can own 100% of a company, and there are no restrictions on profit repatriation. Albania is also part of several free trade agreements, offering direct access to over 400 million consumers across Europe.
The local workforce is young, multilingual, and highly adaptable, making recruitment straightforward across various industries, including tech, manufacturing, and services.
Key economic indicators
Albania has shown steady GDP growth, averaging between 3% and 4% in recent years. The economy is diversified, with strong contributions from tourism, energy, construction, and agriculture. Inflation remains moderate, and the national currency (the Albanian lek) is relatively stable, supported by a well-managed central banking system. Unemployment rates have decreased consistently, and foreign direct investment (FDI) continues to rise, especially in sectors such as infrastructure and telecommunications.
Albania has shown steady GDP growth, averaging between 3% and 4% in recent years. The economy is diversified, with strong contributions from tourism, energy, construction, and agriculture. Inflation remains moderate, and the national currency (the Albanian lek) is relatively stable, supported by a well-managed central banking system. Unemployment rates have decreased consistently, and foreign direct investment (FDI) continues to rise, especially in sectors such as infrastructure and telecommunications.
Tax and legal environment
Albania offers a competitive tax regime. The standard corporate income tax is 15%, but small businesses with annual turnover under a certain threshold may benefit from reduced rates or exemptions. VAT is charged at 20%, with certain sectors eligible for reduced rates or zero-rating. Double taxation treaties are in place with more than 40 countries, helping reduce tax liabilities for international investors. The legal environment aligns with EU standards and OECD tax policy, ensuring transparency, contract enforcement, and investor protection. Company formation is regulated under the Commercial Law and supervised by the National Business Center.
Albania offers a competitive tax regime. The standard corporate income tax is 15%, but small businesses with annual turnover under a certain threshold may benefit from reduced rates or exemptions. VAT is charged at 20%, with certain sectors eligible for reduced rates or zero-rating. Double taxation treaties are in place with more than 40 countries, helping reduce tax liabilities for international investors. The legal environment aligns with EU standards and OECD tax policy, ensuring transparency, contract enforcement, and investor protection. Company formation is regulated under the Commercial Law and supervised by the National Business Center.
Why Albania is a top destination for incorporation
Low operational costs, combined with fast incorporation procedures, make Albania ideal for startups and established firms alike. Most companies are registered within 2 to 5 working days.
In addition to low taxes, affordable office space, legal services, and minimal capital requirements help reduce barriers to entry. The business culture is also shifting rapidly toward digitalization, with online company registration in Albania becoming the norm, saving time and reducing friction for international founders.
Strategic access to the Balkans and EU proximity
Albania is uniquely positioned, offering direct access to the Balkans, Central Europe, and the Mediterranean. It shares borders with Greece, Montenegro, Kosovo, and North Macedonia, and maintains strong logistics ties with Italy via ferry and sea freight.
Though not yet a member of the European Union, Albania is an EU candidate country and actively harmonizes its legal and regulatory systems to meet European standards.
This proximity to the EU, combined with competitive cost structures, positions Albania as a gateway for companies targeting both emerging and mature markets.
Investment incentives and economic zones
The Albanian government actively supports investment through a range of incentives and special economic zones.
Incentives include tax holidays, customs exemptions, and reduced infrastructure costs for businesses operating in priority sectors such as renewable energy, manufacturing, and ICT.
There are also Technological and Economic Development Areas (TEDAs) that offer additional benefits like streamlined customs procedures and preferential lease terms.
These zones are designed to encourage innovation and foreign direct investment, creating an ecosystem where new businesses can thrive with government support.
6 Key advantages of incorporating in Albania
One of the most compelling benefits is Albania’s favorable tax regime, particularly for small enterprises. Businesses with annual turnover under ALL 14 million enjoy a 0% corporate income tax rate, making it one of the most attractive tax structures in the region.
For companies exceeding this threshold, the standard corporate tax remains low at 15%, significantly undercutting the European average. This allows entrepreneurs to reinvest more capital back into growth from day one.
Building relationships may take time, but they are critical for smoother negotiations, faster decisions, and ongoing partnerships. A personal introduction or referral can open doors more effectively than a cold approach.
Albania is a member of multiple regional and international trade agreements, including the Central European Free Trade Agreement (CEFTA) and the EU Stabilization and Association Agreement.
These frameworks provide preferential access to over 400 million consumers, reducing or eliminating tariffs on goods and services across key European markets. This creates powerful leverage for companies looking to scale operations regionally.
Albania offers one of the lowest average wage levels in Europe, without compromising on workforce quality. Local talent is well-educated, multilingual, and highly adaptive to international business standards.
Operational costs, including office rental, utilities, and administrative services, remain significantly lower than in neighboring EU countries, allowing businesses to maintain healthy margins while scaling sustainably.
The country is investing heavily in transport, energy, and digital infrastructure, creating an increasingly connected and efficient business environment.
From modernized ports and airports to a nationwide digital ID and e-government platform, Albania is aligning itself with global standards of convenience and speed, especially valuable for online company registration and regulatory compliance.
Albania imposes no limitations on foreign ownership, allowing international investors to hold 100% equity in local companies. There is no need for a local partner or representative unless required by specific licensing regulations.
This provides entrepreneurs with full strategic control, simplifies profit repatriation, and removes common bureaucratic hurdles seen in other jurisdictions.
The Albanian government actively promotes foreign investment through sector-specific incentives, particularly in tourism, renewable energy, ICT, and agriculture.
These benefits include tax exemptions, subsidized infrastructure, and streamlined licensing in targeted economic zones. For companies operating in these sectors, government collaboration can translate into both short-term savings and long-term strategic partnerships.
6 common challenges for foreign founders
Understanding the local legal framework can be challenging without specialized guidance. While Albania has streamlined many aspects of company registration, the legal language, procedural nuances, and administrative steps may still be difficult to interpret for non-residents.
Engaging local legal or advisory support early can prevent misunderstandings, delays, or compliance risks that may arise from misinterpreting requirements.
Despite ongoing digitalization efforts, some processes still require in-person visits or physical documentation. Delays in notarizations, certifications, or public office approvals can occur, especially during peak periods.
Foreign founders often underestimate the time and attention needed to complete these formalities, which can impact launch timelines if not accounted for properly.
While English is widely spoken in business circles, official documents, websites, and forms are typically in Albanian. This language barrier can create friction when reviewing legal texts, filing reports, or understanding obligations.
Hiring a bilingual consultant or local representative can greatly streamline the communication flow and reduce risk of administrative errors.
Opening a corporate bank account in Albania may require in-person identification, notarized documents, and proof of address, which can complicate things for international founders.
Each bank may have slightly different policies, and response times can vary. Without preparation, this step can become a bottleneck in the incorporation timeline.
The Albanian business environment places high value on personal trust and relationship-building. While the process is increasingly formalized, decisions are often influenced by networks and local reputation.
Founders unfamiliar with these nuances may face slower negotiations or missed opportunities unless they invest in building genuine local connections.
Although Albania offers attractive tax rates, founders must still comply with monthly and annual filing obligations, which may differ from their home jurisdictions.
Deadlines for VAT filings, social contributions, and corporate reports must be observed precisely. Many foreign entrepreneurs choose to work with local accountants to ensure full tax compliance and avoid penalties.
Banking in Albania: What to expect
Opening a business bank account in Albania is a necessary step for full legal operation, but it can involve strict documentation and in-person procedures. Requirements vary by bank, yet typically include notarized incorporation documents, tax ID numbers, and identification of shareholders or directors.
Initial deposits may be required, depending on the bank and company structure. While some banks offer English-language support, founders are advised to bring a local representative for clarity during setup.
Opening a business bank account
Albania hosts both domestic and foreign-owned banks, with competitive services and modern digital tools. Local banks often offer faster service and better familiarity with local regulations, while international banks may provide multicurrency accounts and global access.
For international businesses, combining a local bank for operations and an international institution for global transactions can provide flexibility and risk management.
Local vs. International banking options
The process usually begins after company registration. Banks will request your company registration certificate, identification documents, and in some cases, a business plan or lease agreement.
An in-person visit is usually required, and remote setup is rare. Processing times range from a few days to two weeks, depending on the bank’s internal review.
Taxation and compliance requirements
All Albanian companies must register with the General Directorate of Taxes and comply with monthly and annual obligations. Tax filings must be submitted electronically, and businesses are responsible for maintaining clear and accurate records.
Companies that fail to comply with local tax standards may face fines or suspension of business activities, so establishing a relationship with a tax advisor is highly recommended.
Corporate Income tax and VAT overview
Albania applies a 15% corporate income tax for companies with annual turnover above ALL 14 million. Businesses below that threshold may qualify for reduced or zero tax, depending on the sector and structure.
VAT is charged at 20%, with exemptions or reductions for specific sectors such as health, education, or agriculture. Companies must register for VAT once turnover exceeds a designated threshold.
Foreign ownership and director requirements
Albania poses no restrictions on foreign ownership, allowing 100% foreign-held companies. Therefore a company can be registered with 1 single foreign shareholder and director, giving entrepreneurs full control and flexibility in structuring their business. Still local representation inside the country is often advised for matters such as litigation or government correspondence.
Reporting, payroll, and compliance duties
All companies must maintain monthly payroll records, employee contributions, and file regular financial statements. These are typically submitted by a licensed accountant or firm acting on the company's behalf.
Albania also requires the use of electronic invoicing and bookkeeping, aligning with EU digital standards. Ensuring proper reporting avoids costly administrative penalties and ensures smooth audits.
Residence and work permit options for entrepreneurs
Foreign entrepreneurs planning to reside in Albania can apply for a residence permit based on business ownership, usually valid for one year and renewable. Work permits may also be required if you intend to receive salary from the Albanian entity.
The process involves submitting your company documentation, personal ID, proof of address, and sometimes health insurance. Processing is relatively fast, and the requirements are more flexible than in many other European jurisdictions.
Company registration timeline
Incorporating a company in Albania is a straightforward and time-efficient process, especially when compared to other European jurisdictions. With proper documentation and guidance, most businesses can be fully registered and operational in 5 to 10 working days.
However, delays can occur if documents are incomplete, improperly translated, or not notarized according to local standards. Working with local professionals can help streamline each step.
Key registration phases
The company registration process in Albania involves a mix of legal, financial, and administrative procedures. While much of it is centralized through the National Business Center (QKB), coordination with banks and tax authorities is also required.
Each phase builds upon the previous one, so accurate execution at each step is essential for timely completion.
Estimated processing time
Most companies complete the process within one to two weeks. Registration with the QKB typically takes 2 to 3 business days, while banking, tax, and labor formalities can add several more.
Allow for extra time if translations, apostilles, or additional licenses are needed, especially in regulated industries like finance or healthcare.
Step-by-step: how to incorporate a company in Albania
The most popular structure for foreign investors is the sh.p.k. (Private Limited Company), equivalent to a limited liability company (LLC), due to its simplicity and limited liability protection.
It requires at least one shareholder and one director, who can be foreign individuals or entities.
Other forms include joint stock companies (sh.a.), branches, and representative offices, but sh.p.k. remains the most flexible for startups and SMEs.
The company’s Articles of Association outline the legal foundation of your business: name, capital, ownership structure, and operational scope. This document must be notarized in Albania and translated into Albanian if originally prepared in another language.
It is advisable to use a local notary familiar with commercial registrations to avoid common procedural errors.
Once your documents are ready, submit them to the QKB, the centralized portal for business incorporation in Albania. The submission includes identification documents, notarized statutes, and a formal request for registration.
Approval usually takes 2 to 3 working days, after which your company is legally recognized and issued a unique business registration number.
After QKB approval, open a corporate bank account with a local financial institution. You’ll be required to deposit the minimum share capital, which for a sh.p.k. is typically ALL 100 (less than 1 euro), unless otherwise specified by your business type.
The bank will issue a confirmation letter, often needed for tax and VAT registration.
Next, register with the General Directorate of Taxes to obtain your Tax Identification Number (TIN). If your annual turnover is expected to exceed the legal threshold, you must also apply for VAT registration.
This process includes submitting your QKB registration, bank confirmation, lease agreement, and ID of the legal representative.
The bank will issue a confirmation letter, often needed for tax and VAT registration.
If your company will employ staff, you must register with the Social Insurance Institute and Labor Inspectorate. This ensures legal employment, proper contributions, and regulatory compliance.
It’s essential to complete this step before onboarding employees to avoid penalties or operational disruptions.
Once all registrations are complete, your company can legally begin operations. However, compliance does not end at incorporation. You’ll need to maintain accurate financial records, submit regular tax filings, and stay up to date with labor and commercial law changes.
Ongoing compliance is crucial to ensure business continuity and avoid regulatory issues as your company grows in the Albanian market.
Albanian business culture & practices
Formal communication and relationship building
Albanian business culture is formal yet relationship-driven. Initial meetings typically require polite, professional communication, but trust and mutual respect are essential for long-term collaboration.
Building relationships may take time, but they are critical for smoother negotiations, faster decisions, and ongoing partnerships. A personal introduction or referral can open doors more effectively than a cold approach.
Navigating bureaucracy and public institutions
Public institutions in Albania are becoming more efficient, but administrative processes still rely on formalities. Patience and preparation are key, especially when dealing with government offices, permits, or certifications.
Understanding how procedures work, and when to escalate or follow up in person, can prevent unnecessary delays. Having a bilingual local contact is often an advantage when communicating with public entities.
How C2Z Advisory can help you succeed in Albania
At C2Z Advisory, we offer more than procedural assistance, we deliver strategic clarity, regulatory precision, and long-term support designed specifically for foreign entrepreneurs entering the Albanian market. Our team works closely with you to identify the optimal legal structure, taking into account your business goals, operational model, and expansion plans. Whether you’re launching a local subsidiary or testing a new market, we ensure your foundation is built on solid ground.
We provide hands-on support in drafting and notarizing incorporation documents, coordinating with notaries, translators, and local authorities to prevent costly mistakes or delays. Our presence on the ground allows for real-time follow-up and faster turnaround times.
Beyond setup, C2Z Advisory supports clients with ongoing compliance, accounting, payroll registration, and tax reporting. This includes navigating VAT filings, social contributions, and quarterly submissions, all aligned with Albanian legislation and international best practices. We also assist with banking relationships, helping you choose institutions aligned with your operational needs, and ensuring swift account setup through proper documentation and liaison.
For entrepreneurs planning to live or work in Albania, our immigration specialists handle the full process of residency permits, work authorizations, and renewals, ensuring you’re covered both as an investor and as an individual.
Finally, our advisory approach is proactive: we alert you to regulatory changes, policy updates, and local business trends that may affect your operations. This ensures your company stays compliant, agile, and competitive in an evolving market.
With our international perspective and local depth, C2Z Advisory is more than a service provider, we are your strategic partner for sustainable growth in Albania.
Frequently asked questions
Yes. Albania allows 100% foreign ownership of private limited companies and other business structures. There are no restrictions on equity participation or profit repatriation.
No. You can establish a company in Albania without a local partner or resident director. Foreign nationals can serve as sole shareholders and administrators.
The incorporation process typically takes 5 to 10 working days, depending on document readiness, bank procedures, and tax registration timelines.
The minimum capital required for a private limited company (sh.p.k.) is ALL 100, which is less than 1 euro. This makes Albania one of the most accessible markets for starting a business.
Yes. Company registration can be completed online through the National Business Center (QKB). However, some steps like notarization or bank setup may still require in-person presence or a local representative.