Starting a Business in Albania: What you need to know

Starting a business in Albania can be a relatively straightforward process, but the decisions made before registration may have important legal, financial and operational consequences. Choosing the appropriate legal form, defining the ownership structure, appointing the administrator and determining the scope of activity are essential steps that should be carefully considered from the beginning.

The registration of a business is only the first stage. Depending on the nature of the activity, additional obligations may arise in relation to taxation, employment, licensing, accounting, beneficial ownership and ongoing regulatory compliance.

For this reason, obtaining legal guidance before registration can help investors avoid unnecessary risks and establish the business on a clear and legally compliant foundation.

1. Choosing the appropriate legal form
2. Requirements for foreign founders
3. Documents required for registration
4. Registered office and business activity
5. Share capital, shareholders and administrator
6. Registration procedure
7. Tax and accounting obligations
8. Licences and additional permits
9. Banking and Initial Operational Requirements
10. The importance of legal assistance

1. Choosing the Appropriate Legal Form

The main legal forms available in Albania include:

• Sole Trader (Person Fizik): suitable for small businesses operated by one individual. The owner conducts the activity in their own name and is personally liable for the business obligations.
• Limited Liability Company – LLC (Shoqëri me Përgjegjësi të Kufizuar – sh.p.k.): the most commonly used structure for local and foreign investors. It has a separate legal personality, and the shareholders’ liability is generally limited to their contributions.
• Joint-Stock Company – JSC (Shoqëri Aksionare – sh.a.): generally suitable for larger businesses, substantial investments or activities requiring a more complex ownership and governance structure.

The appropriate form should be selected based on the nature of the activity, the level of risk, capital requirements, number of founders and future expansion plans.

2. Requirements for Foreign Founders

Foreign individuals and companies may establish and own a business in Albania under generally the same registration framework as Albanian founders. In most sectors, an Albanian shareholder or business partner is not required.

Foreign founders should generally provide:

• a valid passport or identification document;
• a registered business address in Albania;
• the company’s incorporation documents;
• details of the shareholders and administrator;
• information on the ultimate beneficial owner;
• corporate documents from the country of origin, when the founder is a foreign company.

Documents issued abroad may need to be apostilled or legalised and officially translated into Albanian. Certain regulated activities may also require a licence, professional qualification or additional approval before operations begin.

3. Documents Required for Business Registration

The documents required depend on the chosen legal form and whether the founder is an individual or a company. In general, the registration process may require:

• a valid identification document or passport;
• the company name and registered office address;
• the articles of association and incorporation act;
• details of the shareholder or shareholders;
• appointment and identification details of the administrator;
• a clear description of the business activity;
• information on the ultimate beneficial owner;
• corporate documents, when the founder is a foreign legal entity;
• a power of attorney, when the application is submitted through a legal representative.

4. Registered Office and Business Activity

Every business registered in Albania must have an official registered address and a clearly defined scope of activity.

• Registered Office (Selia e Shoqërisë): the official address where the business is registered and receives legal or administrative communications.
• Business Activity (Objekti i Veprimtarisë): a description of the commercial activities the business intends to carry out.

The business activity should be drafted carefully and broadly enough to cover the company’s present and future operations. Certain activities may require additional licences, permits or professional authorisations before the business can begin operating.

5. Share Capital, Shareholders and Administrator

When establishing a company in Albania, the founders must determine the ownership and management structure.

• Share Capital (Kapitali Themeltar): represents the contributions made by the shareholders. For an LLC, the minimum share capital may be symbolic, while a JSC is subject to higher legal capital requirements.
• Shareholders (Ortakët/Aksionarët): may be Albanian or foreign individuals or legal entities. Their ownership percentages and contributions must be clearly defined in the incorporation documents.
• Administrator (Administratori): is the person authorised to manage and legally represent the company. The administrator’s powers, term of appointment and any limitations should be properly established.

A clear corporate structure helps prevent future disputes and ensures that decision-making and representation powers are legally defined.

6. Business Registration Procedure

Business registration in Albania is completed through the National Business Center (QKB). Once the required documents are prepared, the application is submitted electronically and the business is registered in the Commercial Register.

The main steps include:

• verifying and reserving the business name, where necessary;
• preparing the incorporation documents;
• submitting the registration application;
• obtaining the business identification number (NIPT/NUIS);
• registering the ultimate beneficial owner;
• completing the initial tax and administrative requirements.

At Emini Law Firm, we prepare and review the incorporation documents, submit the registration application, coordinate the beneficial ownership registration and guide clients through the legal steps required for the business to begin operating properly.

7. Tax, Accounting and Ongoing Compliance

After registration, the business must comply with the applicable tax, accounting and reporting obligations in Albania. These requirements may vary depending on the legal form, annual turnover, number of employees and type of activity.

Key obligations may include:

• maintaining proper accounting records;
• issuing invoices in accordance with fiscalisation rules;
• submitting periodic tax declarations;
• paying social and health insurance contributions;
• registering employees and complying with labour legislation;
• updating the Commercial Register when company details change;
• filing beneficial ownership information and any required updates.

We guide clients through the initial legal and administrative obligations following registration and coordinate, where necessary, with accountants and other professionals to ensure the business starts operating on a compliant basis.

8. Licences and Additional Permits

Business registration does not automatically authorise every type of commercial activity. Certain sectors require additional licences, permits or professional approvals before operations can begin.

These may apply to activities such as:

• tourism and accommodation;
• construction and engineering;
• energy;
• transport;
• healthcare and pharmaceuticals;
• education;
• financial or professional services.

Before registration, the activity should be reviewed to determine whether any sector-specific authorisation is required.

9. Banking and Initial Operational Requirements

After registration, the company may need to open a business bank account and complete several practical steps before beginning its activity. Banks may request information regarding the company’s ownership, administrator, business purpose and source of funds.

The initial requirements may include:

• opening a business bank account;
• depositing the share capital, where applicable;
• providing beneficial ownership and compliance information;
• activating fiscalisation and invoicing systems;
• registering employees before they begin work;
• arranging accounting and payroll services;
• obtaining sector-specific insurance, where required.

10. The Importance of Legal Assistance

Starting a business in Albania requires careful planning, the correct legal structure and compliance with registration, tax and regulatory obligations. Legal assistance before and during business registration helps ensure that the company is established under the appropriate legal structure and in compliance with Albanian legislation.

Proper legal guidance can prevent errors in incorporation documents, ownership arrangements, management powers and regulatory obligations.

At Emini Law Firm, we support local and foreign clients throughout the entire process, from selecting the appropriate legal form and preparing the required documents to completing registration and advising on post-registration obligations.