Albania Company Formation
Albania Company Formation: A Strategic Gateway to the Balkans and Europe Main Characteristics and the basic rules of Company registration in Albania
Located at the crossroads of Southeast Europe, Albania is rapidly emerging as an attractive destination for international investors seeking cost-effective and strategically positioned business opportunities. With its growing economy, liberal trade regime, and favorable tax incentives, Albania company formation offers an excellent entry point to both the Balkan region and the wider European market.
This comprehensive guide explains everything you need to know about setting up a company in Albania — including the types of business entities, benefits, requirements, taxation, and procedural steps for non-resident investors.
Why Choose Albania for Company Formation?
Albania’s government has taken significant steps to create a business-friendly climate, aligning its policies with EU standards and promoting transparency, digitalization, and foreign investment.
Key advantages of forming a company in Albania include:
- Strategic Location: Situated between Western Europe and the Balkans, Albania offers access to key regional and international markets.
- Low Corporate Tax: Competitive corporate income tax rates compared to other European jurisdictions.
- Pro-Business Legal Framework: Simplified registration procedures and investor-friendly laws.
- Free Trade Agreements: Preferential trade access through agreements with the EU, EFTA, and CEFTA.
- Affordable Operating Costs: Low labor costs, inexpensive real estate, and affordable administrative fees.
- EU Accession Candidate: Albania’s ongoing EU integration process makes it increasingly attractive for long-term investors.
- Digital Company Registration: Fully online registration through the National Business Center (NBC).
Types of Companies in Albania
Non-residents can choose from several company structures depending on their business goals and capital requirements:
- Limited Liability Company (Shoqëri me Përgjegjësi të Kufizuar – SHPK)
The most common and flexible form of company for foreign investors. It offers limited liability and requires a minimum share capital of ALL 100 (approximately €1). Suitable for small and medium-sized enterprises (SMEs).
- Joint Stock Company (Shoqëri Aksionare – SHA)
Designed for larger businesses, especially those planning to raise capital publicly. Requires a minimum share capital of ALL 3,500,000 (€30,000) for non-public and ALL 10,000,000 (€85,000) for public companies.
- Branch Office
A foreign company can register a branch in Albania without creating a separate legal entity. The branch operates under the parent company’s control and name.
- Representative Office
Used for marketing, research, and liaison activities — not for direct trading or commercial operations.
Advantages of Albania Company Formation for Non-Residents
- Full Foreign Ownership: 100% foreign ownership is permitted in most sectors.
- Fast Incorporation: Companies can be registered within days using the digital NBC system.
- Simple Tax System: Straightforward taxation with competitive rates.
- Low Cost of Doing Business: Administrative and operational costs are among the lowest in Europe.
- Access to EU Market: Through Albania’s trade agreements and proximity to major European economies.
- No Restrictions on Capital Repatriation: Profits can be freely transferred abroad.
Disadvantages of Albania Company Formation
- Developing Infrastructure: Although improving, some regions still face infrastructural limitations.
- Language Barrier: Albanian is the official language; legal documentation may require translation.
- Regulatory Complexity: Certain sectors (finance, energy, construction) may require additional licenses.
- Limited Domestic Market: With a small population, Albania’s domestic market is relatively limited, but its regional access compensates for this.
Requirements for Company Registration in Albania
To register a company in Albania, non-resident investors must provide the following:
- Proposed Company Name (verified for availability through the NBC).
- Founders’ Details: Valid passports or ID cards for shareholders and directors.
- Registered Office Address in Albania.
- Articles of Association outlining the company’s operations and structure.
- Share Capital Deposit (minimum depending on company type).
- Tax Identification Number (NIPT) registration.
- Business License (if required for regulated activities).
Procedure for Albania Company Formation
The process of forming a company in Albania is efficient and primarily handled online through the National Business Center (Qendra Kombëtare e Biznesit – QKB/NBC):
- Choose a Company Type: Select the most appropriate legal structure (LLC, JSC, Branch, etc.).
- Reserve Company Name: Verify and reserve the company name with the NBC.
- Prepare Incorporation Documents: Draft and notarize the Articles of Association and identification documents.
- Deposit Share Capital: Deposit the required capital into a bank account in Albania.
- Register the Company: Submit all documents to the NBC for registration.
- Obtain NIPT Number: The NBC automatically issues a Tax Identification Number upon registration.
- Register for VAT (if applicable): Required if annual turnover exceeds the VAT threshold.
- Obtain Licenses (if needed): Apply for any sector-specific licenses.
Timeframe for Company Registration in Albania
|
Process Step |
Estimated Duration |
|
Name Reservation |
1 business day |
|
Document Preparation and Notarization |
1–2 business days |
|
Company Registration with NBC |
1–3 business days |
|
Bank Account and Tax Registration |
1–2 business days |
Total Estimated Duration: 3 to 7 business days for full incorporation.
Corporate Tax System in Albania
Albania offers a simple and competitive tax framework that encourages both local and foreign investment.
|
Tax Type |
Rate |
Notes |
|
Corporate Income Tax (CIT) |
15% |
Standard rate for companies with annual turnover above ALL 14 million (~€120,000). |
|
Reduced CIT Rate |
0–5% |
For small businesses with turnover below ALL 14 million. |
|
Value Added Tax (VAT) |
20% |
Standard VAT rate. Certain sectors (e.g., tourism, agriculture) benefit from reduced rates. |
|
Withholding Tax on Dividends |
8% |
Applied to dividend payments to residents and non-residents. |
|
Personal Income Tax |
0–23% |
Progressive rate depending on income level. |
|
Tax Treaties |
40+ |
Double taxation treaties with many countries to prevent double taxation. |
Key advantage: Reinvested profits are deductible, and foreign investors can repatriate dividends freely without restrictions.
How We May Help You with Our Professionals
Our experienced team provides complete support for company formation in Albania, ensuring a seamless and compliant process for international investors.
We offer:
- Entity Selection Advice: Guidance on choosing the most suitable company structure for your goals.
- Document Drafting and Filing: Preparation and submission of all legal documents.
- Translation and Legalization: Certified translations for foreign documents.
- Registered Office Services: Provision of a local business address.
- Bank Account Assistance: Help with opening corporate bank accounts in Albania.
- Tax and Accounting Services: Ongoing accounting, bookkeeping, and compliance support.
- Business Licensing Support: Assistance with obtaining sector-specific licenses and permits.
Establish Your Company in Albania with Confidence
With its strategic location, affordable business environment, and growing international reputation, Albania offers tremendous potential for entrepreneurs and investors alike.
Our experts simplify every step of Albania company formation, helping you build a compliant, efficient, and profitable business foundation.
Contact us today to begin your journey toward establishing your company in Albania — your gateway to Southeast Europe and beyond.
Questions & Answers
1. What is the corporation tax rate in Albania?
The corporation tax rate in Albania is currently set at 15%. This rate applies to all profits generated by both local and foreign companies operating within the country. It is essential for businesses to adhere to this rate to ensure compliance with Albanian tax regulations.
2. How is personal income tax structured in Albania?
Albania employs a progressive personal income tax system. The rates are as follows:
- 0% on income up to 30,000 ALL.
- 13% on income from 30,001 to 150,000 ALL.
- 23% on income exceeding 150,000 ALL.
This structure allows for a fair taxation method based on earnings, benefiting lower-income individuals.
3. Are non-residents taxed on income earned in Albania?
Yes, non-residents are subject to taxation on Albanian-sourced income. The tax rate for non-resident individuals typically is at a flat rate of 15%. Non-residents must comply with Albanian tax regulations when earning income from jobs, services, or business activities within the country.
4. What is the VAT rate in Albania?
The standard VAT rate in Albania is 20%. However, a reduced rate of 6% applies to certain goods and services, such as hotel accommodations and certain foodstuffs. VAT is applicable to most commercial activities, and businesses must register for VAT if their annual turnover exceeds 2 million ALL.
5. Are there any tax incentives or exemptions available in Albania?
Yes, Albania offers various incentives to promote foreign investment and business development. These can include exemptions on specific activities, reduced corporate tax rates in certain sectors, and special free economic zones. It is advisable to consult with a tax professional to explore the specific incentives that may apply to your business.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
What types of companies can non-residents establish in Albania?
Non-residents can form several types of companies in Albania, including Limited Liability Companies (LLC), Joint Stock Companies (JSC), and Branch Offices. LLCs are the most popular choice due to their flexible structure and limited liability protection, making them suitable for small to medium-sized businesses. JSCs, on the other hand, are typically used for larger ventures requiring significant capital investment. Additionally, non-residents can also set up representative offices or branch offices of foreign companies to conduct business activities within Albania.
What are the benefits and advantages of company formation in Albania?
Albania offers numerous benefits for company formation, especially for non-residents. These include a favorable tax regime with a corporate tax rate of 15%, straightforward registration processes, and the ability to own 100% of the business as a foreigner. Furthermore, Albania is strategically located in the Balkans, providing easy access to European markets. The growing economy, favourable labor costs, and government incentives for foreign investments also contribute to making Albania an appealing destination for business formation.
What are the requirements for forming a company in Albania?
To establish a company in Albania, non-residents must provide several documents including a valid passport, proof of address, and a feasible business plan. Additionally, the company must have a unique name that hasn’t been registered, and the business must be registered with the National Business Center (NIPT). The minimum share capital requirements vary depending on the type of company being formed, similar to the expected local regulatory compliance. It’s advisable for non-residents to seek assistance from local legal experts to navigate the process effectively.
Are there any restrictions for non-residents when forming a company in Albania?
While Albania is generally welcoming to foreign investors, certain restrictions exist for non-residents. For instance, some sectors, such as gambling and media, may face limitations or require additional licenses. Additionally, non-residents need to comply with local regulations and ensure that they adhere to the laws regarding property ownership, especially in sensitive areas. Understanding these restrictions is crucial for successful business operations in Albania, and consulting with local legal experts is recommended to mitigate any potential issues.
How long does it take to form a company in Albania?
The process of forming a company in Albania is relatively quick and can typically be completed within 5 to 10 business days, depending on the type of company and the efficiency of documentation submission. After gathering all requisite documentation, including identity verification and business plans, you may proceed to register the company at the National Business Center. However, additional permits or licenses may extend the timeline. Engaging local consultants can expedite the process and ensure compliance with all legal requirements.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Albania
Overseas Territory: Europe’s Balkan Peninsula
Capital: Tirane
Region: Europe
Language: Albanian
Currency: Euro (EUR)
Time Zone: GMT+1
Dial Code: +355
Abbreviations: AL
Helping Your Company Thrive in Albania With us, starting and running a business in Albania will be easy and efficient!
- Full support of the company’s registration in Albania: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.