Starting a Business in Albania: A Complete 2025 Guide

 

 

Albania offers a growing and dynamic environment for entrepreneurs, but navigating the setup process requires careful planning and understanding of local laws.
Whether you’re opening your first small venture or expanding internationally, this guide explains how to register a business in Albania, select the right legal form, and avoid the mistakes that often cause problems for new owners.

Step-by-Step Process for Opening a Business

Register Your Business

Every new business must be registered through the e-Albania government portal.
Applications are reviewed by the National Business Center (QKB), and once approved, the business is assigned a Tax Identification Number (NIPT).
This number is your company’s official ID for tax declarations and all administrative procedures.

Create Your e-Albania Business Account

Before registering, create a dedicated business profile on e-Albania.

  • Sole proprietors can use their personal credentials.

  • Companies must register through their legal representative.

This profile gives access to all digital government services for managing your business operations.

Activate Your Tax Account

After registration, open an account on the e-Filing system managed by the Albanian Tax Administration.
This is where you submit monthly and annual tax declarations, manage employee records, and track fiscal obligations.
Use your NIPT and the initial password “Tatimetemia12” to log in for the first time.

Register Your Lease Agreement

If your company rents office or commercial space, the lease must be uploaded electronically to the tax portal.
When the landlord isn’t registered for tax purposes, the tenant must withhold 15% of the rent as tax at source.
Even if you own the property, reporting it adds transparency and avoids issues in audits.

Open a Corporate Bank Account

Within 20 days of completing registration, businesses are legally required to open a bank account in the company’s name.
You’ll need:

  • An extract from e-Albania,

  • The NIPT certificate, and

  • Company formation documents.

Most banks also recommend activating e-banking for smoother daily transactions.

Comply with the Fiscalization System

Since fiscalization is now mandatory, all invoices in Albania must be issued electronically.
This system replaces printed invoices, helps reduce tax evasion, and ensures transparent reporting between companies and authorities.

Choosing the Appropriate Legal Form

The legal form of your business determines how taxes are paid, who is liable for debts, and how partners share profits.
Below are the main structures allowed under Albanian law:

Limited Liability Company (Sh.p.k.)

A Limited Liability Company is ideal for small or medium enterprises, especially when two or more people are involved or the business carries financial risk.

  • Capital Requirement: Minimum 100 ALL.

  • Liability: Owners are protected; they only risk their initial investment.

  • Benefits: Professional image, easy profit sharing, suitable for growth or partnerships.

Sole Proprietorship (Person Fizik)

This is the simplest business form—perfect for freelancers or self-employed individuals.

  • Advantages: Quick to set up, minimal paperwork, and low operating costs.

  • Disadvantage: The owner is personally liable for all business debts.

This makes it ideal for small activities with limited risk but less suitable for businesses planning major expansion.

Freelancers are legally treated as sole proprietors in Albania and follow the same registration and tax rules.


Other Business Structures

  • Joint Stock Company (SHA): Used for large companies or those seeking investors. Requires 3,500,000 ALL in share capital and is governed by a board of directors.

  • Branch of a Foreign Company: Allows an international firm to operate in Albania without creating a new legal entity. The branch works on behalf of the parent company.

  • Representative Office: A non-commercial presence that conducts research or marketing only. It cannot issue invoices or earn revenue.

  • General or Limited Partnerships: Older forms rarely used today. Partners share management and, in some cases, full personal liability.

Mistakes Entrepreneurs Commonly Make

Registering Under the Wrong Legal Form

Choosing the wrong structure can lead to unnecessary taxes or personal risk.
Many individuals register as sole proprietors because it’s “easier” or form an LLC because it “sounds formal,” without evaluating actual needs.
Before registering, analyze your financial exposure, type of activity, and partnership arrangements.

Incorrect Tax Registration

Some businesses unnecessarily register for VAT (TVSH) or as large taxpayers, even when their turnover doesn’t require it.
This creates avoidable reporting obligations and higher administrative costs.
Always consult a professional before finalizing your tax setup.

Lack of a Clear Business Plan

Enthusiasm alone is not enough to sustain a company.
Many ventures fail because owners don’t calculate fixed costs, cash flow needs, or expected income.
A simple, realistic business plan—covering rent, payroll, taxes, and profit margins—can prevent costly surprises.

Neglecting Marketing

Marketing isn’t something to think about “later.”
Without visibility, your business will struggle to attract clients.
Invest early in branding, professional design, and digital marketing to establish trust and credibility in the market.

Handling All Procedures Alone

Trying to manage every step yourself may save money at first, but it often leads to delays, rejections, and compliance errors.
Working with a certified consultant ensures your documents are complete and correctly filedsaving both time and stress.

Professional advice is not an expense; it’s an investment in your company’s success.

Expert Advice

Launching a business is easier when you have the right partners.
With proper legal structure, careful tax planning, and professional guidance, you can avoid common mistakes and build a solid foundation for growth.

HLB Albania assists entrepreneurs and investors with:

  • Business registration and incorporation

  • Tax and accounting services

  • Financial consulting and compliance

📧 Contact us at [email protected] or visit our website to schedule a free consultation and start your business journey in Albania with confidence.