Options for registering companies in Albania
Albania is a unitary republic in Southeast Europe and a candidate country for European Union membership. Its legal framework provides several recognised structures through which foreign investors can establish a local business presence.
Commercial entities are governed principally by Law No. 9901 on Entrepreneurs and Commercial Companies and are registered through the National Business Center (QKB). Foreign ownership is generally permitted across the recognised corporate structures.
Each structure differs in legal identity, tax obligations, capitalisation requirements and operational control, directly influencing how foreign companies enter and manage the market.
Albania offers international investors the following legal structures for establishing a local presence:
Limited liability company (Shoqëri me Përgjegjësi të Kufizuar – Sh.p.k.)
A private company with separate legal personality whose shareholders' liability is limited to their contributions.
- A Sh.p.k. is a separate legal entity and shareholder liability is limited to subscribed capital. In contrast to a branch office, it exists independently from its owners and permits 100% foreign ownership.
- A Sh.p.k. is commonly used for commercial operations, service activities and investment holding structures. It conducts business in its own name and enters contracts independently.
- The statutory minimum share capital for a Sh.p.k. is ALL 100 under Albanian company legislation. Capital is divided into quotas recorded in the company founding documents.
- A Sh.p.k. requires at least one administrator responsible for management and legal representation. Shareholders exercise authority through resolutions and ownership rights.
- Profits are generally subject to corporate income tax at 15%. The company must maintain accounting records, submit tax filings and comply with annual reporting obligations.
- Beneficial owners must be reported through the beneficial ownership register maintained by the competent authority. Banks commonly require authorised signatories during account onboarding.
- This structure does not provide public share issuance, whereas a joint stock company supports share-based capital structures. Regulated activities remain subject to separate licensing requirements.
Joint stock company (Shoqëri Aksionare – Sh.a.)
A share-based company with separate legal personality designed for larger ownership and governance structures.
- A Sh.a. is a separate legal entity with shareholder liability limited to capital participation. Compared to a representative office, it possesses full commercial capacity and legal independence.
- A Sh.a. is commonly used for larger enterprises, investment projects and businesses requiring transferable share ownership. The structure accommodates broader shareholder participation.
- The minimum share capital requirement for a private Sh.a. is ALL 3,500,000. Share capital is represented through shares and recorded in accordance with company law.
- A Sh.a. operates through formal governance arrangements that include management bodies required by law. Corporate appointments and decision-making processes are more structured than a Sh.p.k.
- Corporate income is generally taxed at 15%. Statutory bookkeeping, financial reporting and other compliance obligations apply throughout the company's existence.
- Beneficial ownership disclosures remain mandatory for qualifying shareholders and controllers. Banking institutions usually verify authorised representatives before activating corporate accounts.
- In contrast to a Sh.p.k., this structure carries more extensive governance requirements and corporate formalities. Sector-specific approvals remain necessary where regulated activities apply.
Branch office
A registered extension of a foreign company that carries out business activities without separate legal personality.
- A branch office is not a separate legal entity and the foreign parent remains responsible for its obligations. Unlike subsidiaries, the branch operates as part of the overseas company.
- A branch office is commonly used for direct commercial operations conducted under the foreign company's identity. Business activities are undertaken through the parent enterprise.
- No minimum capital requirement applies specifically to a branch office in Albania. Operational funding is provided by the foreign company supporting the local establishment.
- A branch must appoint an authorised representative to manage and represent its Albanian operations. Corporate decisions ultimately remain connected to the foreign parent company.
- Income attributable to Albanian operations is generally subject to corporate income tax at 15%. Accounting records, tax filings and statutory reporting obligations continue to apply.
- Beneficial ownership reporting obligations apply where required by Albanian legislation. Banks generally request documentation identifying authorised representatives and controlling persons.
- Unlike a Sh.p.k., a branch office does not create a separate liability shield around local operations. The parent company remains directly exposed to branch obligations and liabilities.
Representative office
A non-commercial presence of a foreign company established for representation, liaison and promotional activities.
- A representative office is not a separate legal entity and acts on behalf of the foreign company. In contrast to a branch office, it is not intended to conduct revenue-generating business.
- A representative office is commonly used for market research, relationship building and promotional activities. It serves as a local contact point for the foreign enterprise.
- No minimum capital requirement is prescribed for a representative office in Albania. Operating resources are provided directly by the foreign parent organisation.
- A representative office requires an appointed representative responsible for local administration. Governance authority remains with the foreign company that established the office.
- A representative office cannot trade and generates no business revenue. Corporate income tax on trading profits does not apply because commercial activities are not permitted.
- Beneficial ownership and registration disclosures apply where required by law. Financial institutions commonly require authorised signatories and supporting identification documentation.
- This structure does not allow revenue generation or commercial contracting, whereas a branch office may conduct operational business activities. Separate regulatory approvals may still apply for specific functions.
Comparison of the common types of companies in Albania
Information verified against Albania's National Business Center (QKB), and General Directorate of Taxes.
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