Company Formation in Albania — Foreign Investor Guide
Complete legal guide for establishing a company in Albania: Sh.p.k. (LLC) or Sh.a. (JSC), tax rates, required documents and registration process.
Company Formation in Albania
Albania has emerged as one of the most attractive investment destinations in the Western Balkans, offering among the lowest corporate tax rates in Europe, a fast company registration process and a foreign investor-friendly legal framework. NextEra Legal's Tirana office guides clients through every stage of Albanian company formation.
Why Form a Company in Albania?
Albania offers a compelling value proposition for foreign investors: a 0% corporate income tax on annual turnover up to 14 million Lek (~€140,000), a 15% flat corporate tax above that threshold, proximity to EU markets with CEFTA trade agreements, and a growing tech and startup ecosystem centered in Tirana's Blloku district.
Our firm has managed company formation processes end-to-end for 46+ brands in Albania since 2018, including software companies, gaming studios, construction firms and food & beverage businesses.
SH.P.K — Albanian LLC (Shoqëri me Përgjegjësi të Kufizuar)
The SH.P.K. is the most common company type for foreign investors in Albania. Key features:
Minimum shareholders: 1 (individual or legal entity)
Minimum capital: 100 Lek (~€1)
Liability: Limited to capital contribution — personal assets protected
Corporate tax: 0% up to €140,000 turnover; 15% above
Dividend tax: 8% on distributed profits
VAT rates: 20% standard / 10% reduced / exempt categories
Registration time: 24–48 hours via the QKB (National Business Center)
SH.A — Albanian Joint Stock Company (Shoqëri Anonime)
The SH.A. is appropriate for large-scale investments, banking, insurance or companies planning a public offering. Minimum capital requirements: 3,500,000 Lek (~€35,000) for private companies; 10,000,000 Lek (~€100,000) for publicly listed companies. Mandatory external audit of financial statements applies.
Registration Process
1. Company name reservation at the National Registration Centre (NRC)
2. Preparation of articles of association
3. Notarization and apostille of documents
4. Registration with QKB (automatic assignment of NIPT tax number, municipal registration and social security registration)
5. Bank account opening
6. VAT registration (mandatory if turnover exceeds €140,000)
Required Documents (Foreign Investors)
Valid passport (notarized copy, apostilled)
Criminal record certificate (apostilled, translated into Albanian by sworn translator)
Articles of association and formation decision
Proof of business address in Albania (lease contract or virtual office)
Power of attorney if not attending in person
Residence Permit
Company formation does not automatically grant residence rights, but company directors and shareholders can apply for a 1-year residence and work permit based on their company ownership, renewable based on ongoing business activity.