How to Start a Business in Albania: Entrepreneur's Guide
Step-by-step guide to starting a business in Albania — company types, registration process, taxes, banking, and practical advice for local and foreign entrepreneurs.
Why Start a Business in Albania?
Albania offers an attractive environment for entrepreneurs: low operating costs, a flat corporate tax rate, EU candidate status with access to European markets, and a young, educated workforce. The country has simplified its business registration process significantly — you can register a company in as little as 1 day through the National Business Center (QKB).
Key advantages: 15% flat corporate tax, 20% VAT, low labor costs (minimum wage ~40,000 ALL/€330/month), strategic location between EU and Middle East, and growing digital infrastructure.
Types of Business Entities
| Type | Albanian Name | Min. Capital | Best For |
|---|---|---|---|
| Sole Proprietor | Person Fizik (PF) | None | Freelancers, small traders |
| Limited Liability Company | SHPK (Shoqëri me Përgjegjësi të Kufizuar) | 100 ALL (~€0.80) | Most businesses, startups |
| Joint Stock Company | SHA (Shoqëri Aksionare) | 3,500,000 ALL (~€28,500) | Large companies, banks |
| Branch Office | Degë | None (parent capital) | Foreign companies entering Albania |
Most common choice: SHPK (LLC) — minimal capital requirement, limited personal liability, and the simplest ongoing compliance.
Registration Process
All business registration is done through the QKB (Qendra Kombëtare e Biznesit / National Business Center):
- Choose a business name: Check availability at QKB or online at qkb.gov.al
- Prepare founding documents: Articles of incorporation (akt themelimi), statute (statut), founders' IDs
- Open a temporary bank account: Deposit initial capital
- Submit to QKB: Online at e-albania.al or in-person at QKB offices
- Receive NIPT: Tax identification number (Numri i Identifikimit të Personit të Tatueshëm) — issued same day
- Register with tax authorities: Automatic during QKB registration
Timeline: 1 business day if documents are complete.
Cost: Registration is free. Notary fees for documents: 5,000–10,000 ALL (€40–80).
Tax Obligations
| Tax | Rate | Notes |
|---|---|---|
| Corporate Income Tax | 15% | Flat rate on profits |
| Small business tax | 0% | For annual turnover up to 10 million ALL (~€81,000) |
| VAT (TVSH) | 20% | Mandatory if turnover exceeds 10 million ALL/year |
| Personal income tax | 0–23% | Progressive: 0% up to 50,000 ALL/month, 13% up to 200,000 ALL, 23% above |
| Social insurance | ~24.5% | Split between employer (15%) and employee (9.5%) |
| Withholding tax | 15% | On dividends, royalties, interest to non-residents |
Key benefit: Small businesses with turnover under 10 million ALL (€81,000) pay 0% corporate tax. This is one of Albania's most attractive incentives for startups and small businesses.
Banking & Finance
Open a business bank account at any major Albanian bank: Raiffeisen Bank, BKT (Banka Kombëtare Tregtare), OTP Bank, Credins Bank, or Tirana Bank. Required: company NIPT, founder's passport/ID, QKB registration extract, and statute.
Albania's banking system is modern — online banking, mobile apps, SWIFT transfers, and POS terminals are standard. Currency: Albanian Lek (ALL), but Euro accounts are also available.
For Foreign Entrepreneurs
Foreign nationals can own 100% of an Albanian company — no local partner required. The process is identical to Albanian citizens, with the additional requirement of a translated and apostilled passport or identity document.
For longer stays, apply for a business residence permit through the Prefecture office. Requirements: business registration, proof of capital, health insurance, and criminal record check.
Practical Tips
- Hire a local accountant: Albanian tax compliance requires regular filings. A good accountant costs €50–100/month and is essential.
- Use e-Albania: The government e-services portal handles most bureaucratic interactions online.
- Labor contracts: Must be registered with the tax authorities within the first day of employment.
- Property rental: Business premises range from €200/month (small town) to €1,500+/month (Tirana center).
- Looking for commercial property or business services? Browse listings on Dyqani.app.
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Frequently Asked Questions
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