Setting up a Company in Albania

Company Formation in Albania: 2026 Complete Guide

With low tax rates, a fast incorporation process and a legal framework fully open to foreign investors, Albania has become one of the most attractive business hubs in the Balkans. A limited liability company (SHPK) can be registered with just 1 shareholder and 1 director, usually within 1–3 business days, at the National Business Center (QKB). This guide covers Albanian company types, current tax rates, formation costs, the step-by-step process and residence permit options, using verified 2026 data.

Table of Contents

• Company Formation in Albania
• Albanian Company Types
• Tax Rates in Albania (2026)
• Formation Cost and Timeline
• Accounting and Compliance Obligations
• Why Set Up a Company in Albania?
• Documents Required
• Tax Residency and Double Taxation

Albanian Company Types

The Albanian Commercial Law (Law No. 9901/2008) applies the same formation rules to domestic and foreign investors. Legal entities acquire legal personality upon registration in the commercial register. The three most common structures are:

Limited Liability Company (SHPK)

The SHPK is the structure most preferred by foreign investors. It requires just 1 shareholder and 1 director of any nationality, with no requirement to reside in Albania. The minimum paid-up capital is ALL 100 (approximately €1), and companies must submit financial statements every year after incorporation.

Joint Stock Company (SHA)

The SHA suits investors wishing to issue shares or make large-scale investments. Minimum capital is ALL 3,500,000 for companies not offering shares publicly and ALL 10,000,000 for public offerings. It requires at least one shareholder and one director, and its financial statements are subject to annual audit.

Representative Office (Branch)

Representative offices may not carry out income-generating activities; they are limited to non-commercial functions such as market research and promoting the parent company. There is no minimum capital requirement, but a local representative must be appointed.

Tax Rates in Albania (2026)

Albania's tax system governs income tax under Law No. 29/2023 "Tatimi mbi të Ardhurat". Resident taxpayers are taxed on worldwide income, while non-residents are taxed only on Albanian-source income. The infographic below summarizes the main rates applicable for 2026.

Company Types Comparison Table

Formation Cost and Timeline

An SHPK in Albania is normally registered within 1–3 business days after application to the QKB. An end-to-end process including advisory, bank account opening and tax registration typically takes 2–3 weeks. Total cost varies depending on capital amount, notary and registration fees, accounting and advisory services.

Formation Steps

1. Choosing the company name and business activity
2. Preparing incorporation documents and notarization
3. Registration in the commercial register at the QKB
4. Obtaining the tax identification number (NIPT)
5. Opening the corporate bank account

Residence Permit and Bank Account

Company formation alone does not automatically grant a residence permit; however, investment and business activity provide a strong basis for a residence permit application. A corporate bank account can usually be opened with banks such as Raiffeisen, Intesa Sanpaolo or Credins, and in most cases the client does not need to travel to open the account.

Accounting and Compliance Obligations in Albania

All companies established in Albania are required to keep books and prepare annual financial statements in accordance with applicable accounting standards and tax legislation. Although accounting processes vary by company type and size, the core obligations are similar for all businesses. Timely filing of tax returns and compliance with the electronic invoicing (fiscalization) system are critical to avoid penalties.

Filing Periods and Obligations

The corporate income tax return is filed annually, while VAT-registered taxpayers generally submit a monthly VAT return. Payroll and social security contributions are declared monthly. Companies exceeding certain thresholds have their financial statements subject to independent audit.

Electronic Invoicing (Fiscalization)

Albania operates a fiscalization system that transmits transactions to the tax administration in real time. Businesses must issue sales invoices electronically and integrate with the system. This framework aims to reduce the informal economy and improve tax compliance.

Why Set Up a Company in Albania?

In recent years, Albania has carried out significant reforms to attract foreign direct investment. Its geographic location, proximity to European markets and competitive cost structure make the country particularly attractive for SMEs and service-sector companies. The key advantages are summarized below:

• Low tax burden: the 15% corporate tax and 0% effective rate for small businesses are among the most competitive in the region.
• Fast incorporation: an SHPK can be registered within 1–3 business days in most cases.
• Full openness to foreigners: 100% foreign-owned companies are possible, and shareholders need not reside in the country.
• Low minimum capital: around €1 is sufficient for an SHPK.
• Strategic location: the Adriatic coast and EU candidacy offer long-term growth potential.

That said, obtaining professional advice to choose the right company type, plan taxes and fully meet compliance obligations minimizes potential risks.

Documents Required for Company Formation

The main documents required to set up a company in Albania are listed below. Most can be completed remotely through an authorized representative (via power of attorney):

1. Passport copies of shareholders and directors
2. Articles of association including the company name and business activity
3. A registered company address (local address)
4. Capital declaration
5. Notarized power of attorney for the authorized representative

Once the documents are complete, the application is submitted to the QKB, and the company acquires legal personality upon registration in the commercial register. The tax identification number (NIPT) is then obtained and a corporate bank account is opened.

Tax Residency and Double Taxation

Tax liability in Albania is based on residency. A company is considered resident if it is incorporated in Albania or its place of effective management is in Albania, and it is then taxed on its worldwide income. Non-resident companies are taxed only on Albanian-source income.

Double Taxation Treaties

Albania has signed double taxation treaties (DTTs) with numerous countries. These treaties prevent the same income from being taxed both in Albania and in the investor's home country, and can provide reduced withholding rates on dividends, interest and royalty payments. A DTT is also in force between Turkey and Albania.

Conclusion

With low tax rates, a fast incorporation process and investor-friendly legislation, Albania is one of the most attractive business hubs in the region. Choosing the right company structure, keeping track of current tax obligations and fully managing compliance processes are critical to the long-term success of your business. World Company Setup experts guide you through the entire process, from formation to bank account opening and accounting.

To choose the right structure and manage the process with confidence, you can also review other Balkan options such as company formation in Montenegro, or get a free quote.

References

1. Albanian Tax Administration (DPT) – Income Tax, Law No. 29/2023 (tatime.gov.al)
2. National Business Center (QKB) – Company registration information (qkb.gov.al)