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How to Open a Business in Albania as a Foreign Citizen

Edukim, Keshilla, Kontabilisti

August 25, 2026

Albania is attracting an increasing number of foreign entrepreneurs who want to invest, relocate or provide services from the country. Its strategic location, relatively straightforward company registration process and growing business environment make it an interesting destination for international investors.

Foreign citizens are permitted to establish and fully own a business in Albania. However, choosing the right legal structure and understanding the tax, accounting and immigration requirements is essential before starting operations.

This guide explains the main steps for opening a business in Albania as a foreign citizen.

Can a Foreigner Open a Business in Albania?

Yes. A foreign citizen can register a business, become a shareholder in an Albanian company or establish a branch of a foreign company.

In most sectors, foreign investors may own 100% of the business without needing an Albanian shareholder or business partner.

The most common options are:

Registering as a sole trader;
Establishing a Limited Liability Company (LLC);
Becoming a shareholder in an existing Albanian company;
Registering a branch or representative office of a foreign company.

The appropriate structure depends on the planned activity, number of shareholders, expected turnover, level of investment and long-term business objectives.

Sole Trader or Limited Liability Company?

Choosing the correct legal structure is one of the most important decisions when opening a business in Albania.

Sole Trader

Registering as a sole trader may be suitable for an individual who intends to operate independently, such as a:

Consultant;
Freelancer;
Software developer;
Online service provider;
Independent professional;
Small retailer or service provider.

This structure is generally easier to administer. However, there is no complete legal separation between the individual and the business. The owner may therefore be personally responsible for obligations arising from the activity.

Limited Liability Company

A Limited Liability Company, known in Albania as an SHPK, is generally more suitable when:

The business will have one or more shareholders;
A larger investment is planned;
Employees will be hired;
The company will enter into commercial contracts;
A clearer separation is required between the owner and the business;
The activity is expected to expand in the future.

An Albanian LLC may be fully owned by a foreign individual or a foreign legal entity. A foreign citizen may also serve as the company’s administrator.

The cheapest or fastest option is not always the most appropriate one. The structure should be selected after considering liability, taxation, expected turnover and future plans.

What Documents Are Required?

The required documents depend on the legal structure, planned activity and circumstances of the applicant.

Generally, the following information and documents may be required:

A valid passport;
A registered business address in Albania;
A lease agreement or ownership document for the business premises;
A description of the planned economic activity;
Contact information;
Articles of incorporation and company statute for an LLC;
Details of the shareholders and administrator;
Beneficial ownership information;
A power of attorney when the registration is completed by a representative.

Documents issued outside Albania may need to be officially translated, notarised, legalised or apostilled. The exact requirements depend on the country of origin and the type of document.

For this reason, the documentation should be reviewed before the registration application is submitted.

How Is a Business Registered in Albania?

1. Choose the Legal Structure

The first step is deciding whether the activity should operate as a sole trader, LLC, branch of a foreign company or another legal form.

This decision affects the owner’s responsibilities, accounting obligations, taxation and administrative costs.

2. Define the Business Activities

The activities that the business intends to perform must be clearly identified during registration.

Some activities may also require a specific licence, permit or professional authorisation. This should be checked before the business begins operating.

3. Secure a Business Address

Every business registered in Albania must declare an official address.

The use of the premises should be supported by a valid lease agreement, ownership document or another acceptable legal document.

4. Prepare the Registration Documents

For an LLC, the incorporation documents normally include the company statute, incorporation act and information about the shareholders, administrator and beneficial owners.

The documents must correctly reflect the ownership structure, decision-making authority and planned business activities.

5. Submit the Registration Application

Business registration is completed through the National Business Center, known as the QKB.

The Albanian National Business Center provides dedicated registration services for both Albanian and foreign citizens. Once the application is approved, the business receives its unique identification number, commonly known as a NUIS or NIPT.

Official information about business registration services is available from the Albanian National Business Center.

6. Confirm the Tax Responsibilities

After registration, the business must verify its tax responsibilities. Depending on its legal form, activity, turnover and employees, these may include:

Income or corporate profit tax;
Value Added Tax;
Social and health insurance contributions;
Employment-related taxes;
Withholding tax;
Local taxes and fees;
Periodic tax declarations.

Tax obligations are not identical for every business. They must be assessed according to the specific circumstances of the activity.

7. Set Up Fiscalisation and Invoicing

Businesses that issue invoices must comply with Albania’s fiscalisation requirements.

Depending on the activity, this process may include:

Obtaining an electronic certificate;
Registering the business location;
Selecting compliant invoicing software;
Configuring cash and non-cash payment methods;
Registering operators and electronic invoicing devices;
Testing the invoice issuance process.

The business should complete this process before issuing its first invoice.

8. Open a Business Bank Account

A separate business bank account is recommended for proper financial management and, depending on the legal form and activity, may be necessary for conducting business operations.

The bank may request information concerning:

The shareholders and administrator;
The beneficial owner;
The planned business activity;
The expected source and movement of funds;
The company’s clients and countries of operation.

Bank requirements may vary, particularly when the shareholder or administrator is a foreign citizen.

Does Opening a Business Provide a Residence Permit?

Registering a business does not automatically give a foreign citizen the right to live or work permanently in Albania.

Business registration, visa applications and residence or unique permit applications are separate legal procedures.

Albanian legislation provides a unique permit for self-employed foreign citizens. The relevant authorities may assess factors such as:

The economic interest of the proposed activity;
Its expected positive impact on the economy;
The available capital for implementing the business plan;
The applicant’s accommodation and financial resources;
The legality and viability of the planned activity.

Depending on the applicant’s nationality, a Type D visa may also be required before applying for the relevant residence or unique permit.

Official information on residence and unique permit categories is available from the Albanian Ministry of Internal Affairs.

The company formation and immigration procedures should therefore be planned together, while recognising that each requires a separate application and approval.

Common Mistakes to Avoid

Foreign entrepreneurs should avoid the following common mistakes:

Choosing a legal structure based only on the initial cost;
Declaring a business address without proper documentation;
Starting operations before setting up fiscalisation;
Failing to register the administrator or employees correctly;
Mixing personal and business funds;
Starting a regulated activity without the necessary licence;
Assuming that company registration automatically guarantees a residence permit;
Ignoring accounting obligations during the first months;
Missing tax declaration and payment deadlines.

Correcting these issues later may result in additional costs, administrative delays or penalties.

What Should You Decide Before Applying?

Before registering your business in Albania, you should determine:

The activity you intend to perform;
The amount of the initial investment;
Expected turnover and operating expenses;
Whether you will work alone or employ other people;
Whether you require a visa or residence permit;
The most suitable legal structure;
Your monthly accounting and tax obligations;
Whether the activity requires a licence or special authorisation.

Planning these elements in advance helps prevent unnecessary changes and ensures that the business is compliant from the beginning.

Professional Assistance with Company Formation in Albania

Opening a business in Albania as a foreign citizen can be a relatively straightforward process when the legal structure and documentation are prepared correctly.

However, registration with the National Business Center is only the first step. The new business must also organise its accounting, fiscalisation, tax declarations, bank account, employment procedures and, where applicable, visa and residence permit applications.

If you are planning to open a business in Albania, Kontabilisti.eu can assist you with: