How to Open an LLC (Sh.p.k.) in Albania as a Foreigner

Source: Law No. 9901/2008; QKB — qkb.gov.al. Figures above reflect the law as of the review date; always verify current thresholds before proceeding.

Albania has become an increasingly attractive jurisdiction for foreign entrepreneurs, digital nomads, and international businesses looking for a European base with competitive costs. Several features make the Albanian Sh.p.k. appealing:

• No foreign-ownership restrictions — a single foreign individual or foreign company can own 100 % of an Albanian LLC without needing a local nominee.


• Low minimum capital — the statutory minimum of 100 ALL removes a major financial barrier to entry.


• EU candidate status — Albania is an official EU candidate country, and its legal framework is progressively aligning with the EU acquis.


• Competitive operating costs — office rent, salaries, and professional services are significantly lower than in most Western European countries.


• Growing digital infrastructure — business registration is available online through the e-Albania portal, and electronic invoicing (fiscalization) is already mandatory.


• Strategic location — access to Adriatic and Ionian Sea ports, proximity to Italy and Greece, and a developing transport network.

For a broader overview of what it takes to launch a venture here, see our complete guide to starting a business in Albania.

Albanian commercial law is notably permissive regarding who may establish a limited liability company. The following categories of persons and entities are eligible:

• Foreign individuals — citizens of any country may be shareholders and/or administrators. There is no requirement for Albanian residency or a residence permit solely for the purpose of company ownership.


• Albanian citizens — any natural person with full legal capacity.


• Foreign legal entities — a company registered abroad can be a shareholder of an Albanian Sh.p.k.


• Mixed structures — any combination of Albanian and foreign, natural and legal persons, up to a maximum of 50 shareholders.

Administrator Requirements

The administrator (the person authorized to manage and represent the company) must hold an Albanian personal identification number. Foreign nationals who do not already have one will need to obtain it as part of the registration process. The administrator's mandate cannot exceed five years under the law, though it is renewable.

Residence Permit Considerations

Owning shares in an Albanian LLC does not, by itself, require or grant a residence permit. However, if you plan to live and work in Albania — for example, as the day-to-day administrator — you will likely need to apply for a residence permit separately. Our Albania residence permit guide covers the main pathways. Consult the relevant consular or immigration authority for up-to-date eligibility rules.

LLC vs. Sole Proprietorship

Not sure whether an LLC is the right structure? Read our comparison of sole proprietor vs. LLC in Albania to understand the differences in liability, taxation, and administrative burden.

Below is the typical sequence for registering a new Sh.p.k. at the National Business Center (QKB). Timelines can vary depending on document completeness and QKB processing capacity, so treat any time estimates as indicative rather than guaranteed.

Step 1 — Choose a Company Name

Select a unique company name that is not already registered with the QKB. You can search the commercial register on qkb.gov.al to verify availability. The name must include the legal-form suffix "Sh.p.k." (or its full Albanian form).

Step 2 — Draft the Articles of Incorporation

Prepare the founding act (akti i themelimit) and the statute (statuti). These documents define the shareholders, capital structure, share distribution, administrator appointment, decision-making procedures, profit distribution, and dissolution rules. While notarization is recommended, it has not been a strict legal requirement since 2021. The founding act must be uploaded to QKB within 30 days of signing.

Step 3 — Obtain an Albanian Personal ID Number (if needed)

If the administrator is a foreign national without an existing Albanian identification number, this must be obtained before filing the registration application.

Step 4 — Prepare Supporting Documents

Gather all required documentation (see the full checklist in the next section). Foreign documents generally need to be apostilled or legalized and translated into Albanian by a certified translator.

Step 5 — File the Application with QKB

Submit the registration application through the e-Albania portal or at a QKB service window. The application covers both the commercial registration and the tax identification number (NIPT). QKB also registers the company with the social insurance and health insurance authorities automatically.

Step 6 — Declare the Beneficial Owner

Under Law No. 112/2020 on the register of beneficial owners, every company must declare its beneficial ownership structure. This is done through the QKB as part of, or shortly after, the initial registration.

Step 7 — Open a Business Bank Account

Once you have the QKB registration certificate and NIPT, open a business bank account at a licensed Albanian bank. Banks will require the company's registration documents, identification of the shareholders and administrator, and beneficial ownership information. Requirements vary by bank.

Step 8 — Complete Post-Registration Setup

Activate your company's tax profile, enroll in the fiscalization system for electronic invoicing, set up your bookkeeping process, and ensure you understand your ongoing filing obligations.

The following documents are typically required to register an LLC in Albania. Exact requirements can vary depending on whether shareholders are individuals or legal entities, and whether any contributions are made in kind rather than cash.

For All LLC Registrations

• Articles of incorporation (akti i themelimit) — signed by all founders; must be uploaded to QKB within 30 days of signing.


• Company statute (statuti) — governs the company's internal operations, decision-making bodies, share transfers, profit distribution, and dissolution.


• Identity documents — valid passport or national ID card for each shareholder and administrator (uploaded in a confidential field).


• Beneficial ownership declaration — required under Law No. 112/2020.


• Administrator appointment document — if not already included in the statute.

Additional Documents for Foreign Shareholders

• Apostille or legalization — foreign-issued documents (passports, company extracts, powers of attorney) typically need an apostille (for Hague Convention countries) or consular legalization.


• Certified Albanian translation — all foreign-language documents must be translated by a certified/sworn translator.


• Power of attorney (prokurë e posaçme) — if the application is filed by an authorized representative rather than the shareholder in person; must be notarized.


• Company extract or certificate of incorporation — if a foreign legal entity is a shareholder, provide its current registration extract from the home jurisdiction, apostilled and translated.

Conditional Documents

• Bank receipt or proof of capital payment — only if the share capital has been paid in before registration.


• Expert valuation report — only if contributions are made in kind (e.g., equipment, intellectual property, or real estate).

Source: QKB — qkb.gov.al/info-rt/dokumentacioni-rt/. Always confirm the current document requirements before filing.

Albania's minimum share capital for an LLC is set at 100 ALL (approximately 1 EUR) under Article 70 of Law No. 9901/2008. This is one of the lowest thresholds anywhere in Europe and removes a significant barrier for foreign entrepreneurs.

Key Points About Share Capital

• No maximum limit — you can set the capital at whatever level is appropriate for the business.


• Capital need not be paid at registration — the law allows capital to be paid in after the company is formed, according to the schedule defined in the statute.


• In-kind contributions are permitted — assets such as equipment, vehicles, or intellectual property can constitute share capital, but an independent expert valuation report is required.


• Each shareholder's quota corresponds to their capital contribution and determines voting rights and profit distribution.

Practical Considerations

While the legal minimum is 100 ALL, you may want to consider a higher capitalization if your business will:

• Seek bank financing or credit facilities (banks assess paid-in capital as part of creditworthiness).


• Participate in public procurement or tenders where financial standing is evaluated.


• Work with suppliers or partners who assess the balance sheet before entering into agreements.


• Operate in a sector where a specific capital level may be required for licensing.

For a detailed breakdown of typical formation expenses, see how much it costs to start a business in Albania.

Registering the company is only the beginning. Albanian law imposes several ongoing obligations that start immediately after formation. Failing to meet them can result in penalties or administrative complications.

Tax Registration and Declarations

Your NIPT (tax identification number) is issued automatically as part of the QKB registration. However, you must ensure the company's tax profile is correctly set up with the General Directorate of Taxes (tatime.gov.al). Depending on your turnover and activity, you may need to register for VAT. Regular filings include monthly tax declarations, VAT returns (if applicable), and payroll declarations if you employ staff.

Fiscalization (Electronic Invoicing)

Albania's fiscalization system requires all businesses to issue invoices electronically through certified software. This is mandatory from the first transaction and applies to both B2B and B2C sales.

Bookkeeping and Financial Statements

Every LLC must maintain proper accounting records in accordance with Albanian accounting standards (or IFRS, depending on the entity size). An outsourced accountant can handle this for you. At the end of each financial year, the company must prepare financial statements and file the annual closing balance sheet.

Business Licenses and Permits

Depending on your sector and activity, you may need additional business licenses or permits. Common examples include food-safety certificates, environmental permits, professional licenses, and tourism licenses. Check whether your planned activity is subject to sector-specific regulation before commencing operations.

Beneficial Ownership Updates

Any changes in the company's beneficial ownership must be reported to the QKB within the time frame specified by law. The beneficial ownership register is maintained pursuant to Law No. 112/2020.

Understanding the Albanian tax landscape is essential before you begin trading. The main taxes that apply to an LLC include corporate income tax, VAT, withholding tax on dividends, payroll taxes, and local taxes. Rates and thresholds are set by law and may change — always verify the current figures with the tax authority or a qualified accountant before making financial decisions.

For a comprehensive overview, see our guide to the Albanian tax system.

Key Taxes to Be Aware Of

• Corporate income tax (CIT) — applies to the company's net taxable profit. The rate depends on the company's annual turnover bracket; verify the applicable rate for the current fiscal year with the General Directorate of Taxes.


• Value Added Tax (VAT) — mandatory registration above the legal turnover threshold; voluntary registration is possible below it. Check the current threshold and applicable rates before planning your pricing.


• Dividend withholding tax — applies when the LLC distributes profits to shareholders. The rate is set by tax legislation; confirm the current rate before declaring dividends.


• Payroll taxes and social contributions — if the LLC employs staff, it must withhold personal income tax and pay social and health insurance contributions. These are declared via the payroll declaration (listëpagesa).


• Local taxes and fees — depending on the municipality, the LLC may be subject to local business taxes, signage fees, or infrastructure levies.

Tax rates and thresholds are subject to change. This section is for general orientation only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.

Setting up a company in a foreign jurisdiction always involves a learning curve. These are the pitfalls we see most frequently among international clients establishing an LLC in Albania:

• Not apostilling or translating documents in advance — foreign documents that arrive without an apostille or certified Albanian translation cause delays. Have everything prepared before you start the registration process.


• Overlooking the administrator's ID number requirement — the company administrator needs an Albanian personal identification number. If the administrator is a foreign national, plan for this step; it can add time to the process.


• Choosing an inappropriately low share capital — while 100 ALL is legally sufficient, it may create practical difficulties when opening a bank account, applying for contracts, or seeking financing.


• Ignoring post-registration deadlines — tax registration, fiscalization enrollment, and the first monthly declarations have strict deadlines. Missing them from the outset creates compliance problems that are harder to fix later.


• Assuming the process is identical to their home country — Albanian commercial and tax law has its own specifics. Procedures that are optional or unnecessary elsewhere (such as beneficial ownership declarations or mandatory fiscalization) are obligatory here.


• Not opening a bank account promptly — some banks have extensive due diligence processes for companies with foreign shareholders. Start the bank account process as soon as you have your registration certificate.


• Drafting the statute too generically — a poorly drafted statute can cause disputes between shareholders or administrative difficulties later. Invest in a properly tailored statute from the start.


• Failing to plan for ongoing compliance costs — bookkeeping, tax declarations, annual financial statements, and statutory filings represent recurring obligations. Budget for professional accounting support from the beginning.

Foreign entrepreneurs sometimes consider registering as a sole proprietor (person fizik) instead of forming an LLC. Both structures have advantages and trade-offs.

When an LLC Is Usually the Better Choice

• You want limited liability — your personal assets are separated from the company's debts.


• You plan to have partners or investors join the business.


• Your projected turnover is above the threshold where corporate tax treatment becomes more favorable.


• You need the credibility that a formal company structure provides for contracts, tenders, or international clients.

When a Sole Proprietorship Might Suffice

• You are a freelancer or solo consultant with low overhead and no employees.


• Your expected turnover falls within the small-business tax regime.


• You prefer simpler bookkeeping and fewer administrative obligations.

For a detailed side-by-side comparison, read sole proprietor vs. LLC in Albania. If you are specifically looking at the sole-proprietor route, see our guide on how to register a sole proprietorship.

Navigating Albanian bureaucracy in a language you may not speak, with legal and tax rules that differ from your home country, is where professional support makes the difference. Ekonomist Pro provides end-to-end assistance for foreign entrepreneurs setting up an LLC in Albania.

Formation Services

• Company name search and reservation at the QKB.


• Drafting of articles of incorporation and statute tailored to your business needs and ownership structure.


• QKB registration filing — we handle the application, document uploads, and follow-up on your behalf.


• Beneficial ownership declaration filing.


• Bank account opening assistance — guidance on bank requirements and documentation preparation.

Ongoing Compliance

• Monthly bookkeeping in accordance with Albanian accounting standards.


• Monthly tax declarations and VAT filings.


• Annual financial statements and closing balance sheet preparation.


• Fiscalization setup and electronic invoicing compliance.


• Payroll declarations and employment-related filings.

Why Work With Us

• English-speaking team — all communication in clear, professional English.


• Single point of contact — one firm handling formation, bookkeeping, tax filings, and compliance.


• Transparent process — we explain each step and its requirements so you understand what is happening and why.

The following government websites provide official information relevant to LLC formation and business operations in Albania:

• National Business Center (QKB) — qkb.gov.al — company registration, commercial register search, document requirements.


• e-Albania portal — e-albania.al — online public-service portal including business registration applications.


• General Directorate of Taxes — tatime.gov.al — tax registration, declarations, VAT, fiscalization.


• Albanian Investment Development Agency (AIDA) — aida.gov.al — investment incentives, sector information, and support for foreign investors.

Government websites and their content change periodically. Always confirm that the information you find is current before relying on it for business decisions.