Albania flag

ALBANIA


Albania is a constantly changing jurisdiction. Among other things, it takes baby steps towards the disruptive upgrade of your business environment. In particular, this can be illustrated by the simplification of business registration procedures and various incentives in many industries, including for foreign investors. As a result of these efforts, Albania has already become a hub for many startups, many of which are located in the country's capital, Tirana.

Besides the favorable conditions for business, Albania is good and benefits from its strategic geographical position, wealth of natural resources, skilled and inexpensive labor force. Sectors such as tourism, energy, agriculture, transport, telecommunications are among the leading industries for investment. Foreign entrepreneurs consider these areas first to set up a company in Albania.


Advantages of Albanian legislation for establishing a new company


Investors will benefit from a number of offers if they choose Albania as a place to operate their business:

  • Like the whole quick and easy company creation process;
  • Albania is a party to an agreement for the avoidance of double taxation with about 40 countries;
  • Low cost of labor compared to other European countries;
  • Low corporate income tax rate;
  • Strategic geographic location;
  • No currency controls.

    • Types of companies

    These are the main legal forms to choose from in Albania:


  • The limited liability company is a legal form created by natural or legal persons who are liable only to the extent of their contribution to the chosen investment in the business.
    • A
  • Stock company is created for large corporations that intend to trade shares in the stock market, banking and digital corporations. Investments can be made in money or property rather than services. JSC shares can be ordinary or preferred.
    • A
  • Branch – an extension of the parent company each time – is created for marketing, promotional or research purposes. None for capital needs.


    • Other legal forms to choose from when setting up a company in Albania: general partnership with all partners jointly liable for business obligations and profit sharing; A Limited Partnership organized by two partners, one with full liability and the other with limited liability to the extent of his/her investment.


    General requirements for establishing a company in Albania.

    Business and Financial Operations


    The Commercial Registry of Albania is the main government agency responsible for company incorporation. The list below highlights the general requirements for establishing a company in Albania:

  • Choose the unique company name and get approval of the business activities from the Commercial Registry of Albania.
  • Preparation and submission of articles of association and articles of incorporation for registration at the Company Registration Office.
  • Opening a corporate account at the Bank of Albania to deposit the necessary matching capital.
  • Registering a business for tax purposes at the Municipal Internal Revenue Service.
  • Register your staff with health insurance companies and social security authorities.
  • Obtain a certificate of incorporation and a unique company stamp.


    • It is important to note that the subsidiary will be liable for all debts and liabilities. The parent company will not be liable for potential losses under any circumstances, but may retain full control over the newly formed entity.


    Incorporating the company in Albania is always a streamlined multi-stage process that involves several repeated steps, but with the assistance of teams of experts and lawyers from Smart Startup UK, specialized in setting up offshore and trading companies, it can done quickly and easily.

    Documents for establishing a company in Albania


    To start the process of establishing a company in Albania, entrepreneurs must provide the following set of documents:

  • Statutory documents: Memorandum of Association, Decision of the Board of Directors or power of attorney (can also be signed with an electronic signature).
  • Bank certificate to confirm that the bank account has been opened in the Albanian bank and the required initial investment has been deposited.
  • A rental agreement showing the legal address of a new company in Albania. The documents must be in the Albanian language!

    • Taxation in Albania


    Both federal and local governments impose taxes in Albania. The federal government applies gross income tax on a progressive basis. State tax compliance regulations refer to advance tax payments made quarterly with the submission of an annual tax return by the end of March of the following year.


    Corporate income tax is applied at a flat rate of 15%. Value added tax is charged at 20% as a standard rate, with 10% and 6% as reduced rates; certain medical services and the supply of certain medical products are exempt from tax.


    Foreign investors setting up businesses in Albanian free zones benefit from tax exemption for the first five years.


    CREATE A COMPANY


  • Verify and Save Business Name - Obtain Registrar's Approval for Business Name
  • Company registration, including state fees
  • Legal address for 1 year
  • Nominated director for 1 year
  • Create a company account
  • VAT registration
  • Opening an account in: OTP Bank, Tirana Bank
  • Opening a personal bank account
  • Opening an account with a European digital fintech operator
  • Help with online trading and opening an account at viva.com for online trading
  • Accounting services - 12 months
  • Annual renewal (payable from the second year)

    • *Within 35 days


    IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company. Please, if you are interested, make an inquiry to us.


    What is the procedure!

    1. You submit a request for company registration using the request form.

    2. We check if the registration company name is free and eligible for registration.

    3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.

    4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.

    5. You receive all necessary company documents for verification.

    6. You receive details of your newly opened bank account.

    7. In the specified period (for Albania it is 35 days), you receive all the services included in the package.

    8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.


    All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!