How to Set Up an Entity in Albania

Setting up a legal entity in Albania can be particularly attractive for companies seeking a cost-efficient gateway to the Balkans, with growing integration into European markets and a business-friendly regulatory environment. Albania combines relatively low administrative and capital requirements with full foreign ownership rights, making it appealing for investors and companies looking to expand operations in Southeastern Europe.

Overall, the process is fairly streamlined and well-suited to foreign investors. The main challenges usually involve ensuring correct documentation (often translated and notarized), meeting local formalities, and navigating compliance requirements post-incorporation (tax registration, social security, etc.). The key benefits include flexibility, quick setup (especially for small companies), limited liability, and the ability to operate with 100% foreign ownership.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Albania?

Opening an entity in Albania means formally registering a locally-recognized legal entity (such as a limited liability company or joint-stock company) with the national corporate register and obtaining all necessary legal identifiers. Once registered, the entity acquires legal status to enter into contracts, hire employees, open bank accounts, and conduct business under Albanian law.

Foreign companies may also establish a branch or representative office, though the most common route for foreign investors is establishing a local company (subsidiary).

Entity overview in Albania

Below is a summary of what setting up an entity in Albania typically involves.

Step-by-step guide: How to open an entity in Albania

Step 1: Choose the right structure

The most common structure for foreign investors is the Sh.p.k. (LLC), as it offers limited liability, minimal capital requirement, and simple governance, suitable for small to medium businesses. A Joint-Stock Company (Sh.A.) is more appropriate for larger ventures or those intending to raise capital publicly or have many shareholders. Foreign companies may also consider setting up a branch or representative office if they prefer not to form a separate legal entity.

An Sh.p.k. can be founded by a single shareholder (natural or legal person), who can also act as the sole director, which simplifies governance and management.

Step 2: Verify business name availability

The first practical step is to choose and check the availability of your desired company name via the QKB registry (the corporate register managed by the National Business Center). This can often be done online through the official QKB portal.

If the name is available, you reserve it through the registry as part of your incorporation submission. Naming restrictions generally require the name to be unique and not misleading or identical to existing entities.

Step 3: Prepare incorporation documents

You will need to prepare and (if required) translate and notarize several core documents. Typical required documents include:

• Memorandum / Articles of Association (or founding agreement)
• Founders’ decision or resolution to form the company and appoint directors
• Identification documents of all shareholders and directors (IDs or passports): foreign passports must often be legalized or apostilled and translated if not in Albanian/English
• Proof of registered office address in Albania (e.g., lease agreement or property certificate)
• Bank confirmation of paid-up share capital (for structures requiring capital deposit), though for Sh.p.k., the minimum capital is nominal ALL 100.

If using a legal representative rather than incorporating yourself, you may also require a notarized power of attorney.

Step 4: Register with QKB

Submit the incorporation package online through the National Business Center / QKB. Applications can often be submitted by a legal representative (i.e., remote incorporation via power of attorney is accepted).

Once accepted, QKB issues a Registration Certificate and a unique company number (tax-ID / business ID) recognising the company as a legal entity under Albanian law.

Step 5: Register for tax and social security

After registration, the company must register for tax purposes to obtain its tax identification number (NIPT / BIN) via the tax authorities. The company must also register with social/health insurance authorities if it plans to hire employees.

Normally, municipal or local revenue offices are also notified, especially concerning local business or property taxes, after the company gets registered.

Step 6: Open a corporate bank account

To operate, the company will need a corporate bank account in its name. KYC requirements typically include a company registration certificate, notarized incorporation documents, shareholder/director identification, and proof of registered address. For foreign shareholders/directors, banks may require additional documentation such as passport copies, proof of residence, and potentially legalized/translated documents. Legal representatives can handle this process, but actual bank account opening may require the director (or authorized person) to visit the bank in person.

In practice, while incorporation can take 1–2 days, opening a bank account may take up to several weeks, depending on the bank and the completeness of paperwork.

Step 7: Set up payroll and employment compliance

If you plan to employ staff, once registered, you must ensure compliance with local labor law: register as an employer with social and health insurance authorities, onboard employees under formal employment contracts, withhold and remit payroll taxes and social contributions. Social contributions and employer obligations must follow local law.

You should also ensure compliance with municipal requirements (e.g., reporting office address, rent or property registration, local taxes) if required under local regulations.

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Post-registration obligations

After successfully registering your entity in Albania:

• You must file corporate income tax returns according to the schedule established by the tax authorities. Tax compliance must follow local accounting standards
• If your business is VAT-liable, you must also register for VAT and file VAT returns at the intervals required (monthly or quarterly) under local legislation
• Maintain an up-to-date corporate register (including directors, shareholders, and beneficial owners) and report any changes promptly to QKB (or relevant registry)
• Employers must ensure employees are registered for mandatory social and health insurance; contributions are declared and paid through the tax system, while the social security scheme is administered by the Social Insurance Institute (ISSH)
• Keep accounting, payroll, and transaction records for the legally required period (as per Albanian tax and corporate law), so they’re available for audits or inspections.
• If your business premises change (lease, address, property), or if there are changes in shareholding or company structure, update the registry and notify relevant local authorities

Taxes and financial considerations

You are responsible for:

• Corporate income tax: Standard rate is 15%
• VAT: Standard rate is 20%; companies with VAT-eligible activities must register and collect/remit VAT
• Payroll/social contributions: If you hire employees, employer and employee social/security/health contributions apply under the Albanian social security law
• Accounting standards: Companies follow national accounting and tax rules; financial statements and tax filings must comply with requirements under Albanian law (e.g., bookkeeping, annual reports, tax returns)

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Albania?
Under normal conditions, registration is typically completed in 1–2 business days after filing with the National Business Center. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
For the standard limited liability company (Sh.p.k.), the minimum paid-up share capital is only ALL 100.

Can foreign companies own 100% of an entity in Albania?
Yes. Foreign investors can own 100% of shares in an Albanian company, without the need for local partners.

Do I need a local director or representative?
No. A foreign shareholder may also serve as a director. There is no mandatory local residency requirement for directors or shareholders.

How much does it cost to register an entity?
Because the minimum capital is negligible, base costs are minimal. Typical service providers charge around € 990 for basic Sh.p.k. incorporation (excluding ongoing costs). Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. You need the legal entity registered, tax ID, and employer registration before hiring. However, if you want to start hiring immediately and avoid waiting, Deel’s Employer of Record (EOR) service lets you hire and pay talent compliantly while your entity setup is in progress.

Can Deel help me open an entity in Albania?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance — including coordination with local experts and authorities in Albania.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.