How to Start a Business in Albania?

Starting a business in Albania has become easier in recent years thanks to government reforms aimed at simplifying procedures, reducing bureaucracy, and promoting investment. The process is largely digital, with most registrations handled through the National Business Center (QKB/NBC). Below is a detailed guide on how to establish your company in Albania.

1. Choose the Legal Form of Your Business

The first step is deciding on the legal structure that best fits your activities. The most common options are:

• Sole Entrepreneur (Person Fizik): Simple and inexpensive, ideal for freelancers and small activities.
• Limited Liability Company (Sh.p.k.): The most popular form for both local and foreign investors. Liability is limited to the company’s assets.
• Joint Stock Company (Sh.a.): Suitable for larger businesses with multiple shareholders.
• Branch or Representative Office: For foreign companies wishing to operate in Albania without creating a new legal entity.

2. Reserve a Business Name

Before registering, you must choose a unique name for your company. This is done electronically through the National Business Center (NBC) portal. The system will check if your preferred name is available and reserve it for you.

3. Prepare the Required Documents

The exact documentation depends on the legal form, but generally includes:

• Founding decision or articles of association (in case of multiple shareholders).
• Identification documents of shareholders and administrators.
• Proof of registered office (lease agreement or ownership certificate).
• Capital deposit certificate (for Sh.a. and certain Sh.p.k. cases).

All documents in foreign languages must be translated into Albanian by a sworn translator and legalized with apostille (if applicable).

4. Register at the National Business Center (QKB/NBC)

Company registration is centralized at the National Business Center, which also serves as a “one-stop shop.” The application can be filed only online via e-Albania system.

Once the application is approved, you will automatically receive:

• A Business Identification Number (NUIS/NIPT).
• Tax registration with the General Tax Directorate.
• Social and health insurance registration.
• Automatic VAT registration (if applicable).

The process usually takes 1–2 working days, making Albania one of the fastest countries in the region for company setup.

5. Open a Bank Account

After registration, you must open a business bank account in Albania. This is used for all financial operations, including capital deposits, transactions, and tax payments. Banks may request company documents, identification of shareholders/administrators, and proof of business activity.

6. Obtain Necessary Licenses and Permits

Certain activities (such as construction, pharmaceuticals, energy, telecommunications, etc.) require additional licenses. These are issued by the National Licensing Center or relevant ministries. Most licenses can now be applied for online.

7. Meet Tax and Accounting Obligations

Businesses in Albania must comply with regular tax and reporting requirements, including:

• Corporate Income Tax (15% standard rate).
• VAT (20%, with some exemptions).
• Payroll taxes and social contributions.
• Annual financial statements filed with the National Business Center.

It is highly recommended to hire a certified accountant or legal consultant to ensure compliance.

8. Start Operations

Once registered, licensed (if required), and equipped with a bank account, your business is ready to operate. At this stage, you can:

• Hire employees and register them with social insurance.
• Sign contracts and issue invoices.
• Apply for business incentives (if you qualify for government programs).

Practical Tips for Entrepreneurs

• Use professional assistance: A lawyer or accountant can simplify the process and avoid delays.
• Plan your tax strategy early: Consider whether reinvested profits may be tax-exempt.
• Stay compliant: NBC and tax authorities are strict with deadlines; late filings may lead to fines.
• Leverage Albania’s digital tools: Most procedures are online, reducing the need for physical visits.

Conclusion

Opening a business in Albania is a straightforward and efficient process compared to many countries in the region. With digital registration, low costs, and a supportive legal framework, entrepreneurs can establish their companies in just a few days. By carefully choosing the right structure, fulfilling legal requirements, and maintaining compliance, you can successfully launch and grow your business in this fast-developing market.