A COMPREHENSIVE LEGAL AND PRACTICAL GUIDE FOR FOREIGNERS AND LOCALS:

Why Albania? A Growing Opportunity for Local and Foreign Entrepreneurs

Albania is quickly gaining attention as an emerging hub for new businesses and investments in the Western Balkans. With its favorable tax system, low operational costs, strategic location, and a growing digital infrastructure, the country offers excellent opportunities for both local entrepreneurs and foreign investors. Whether you’re from within the region or exploring the European market from abroad, Albania’s open investment climate and simplified business procedures make it an ideal entry point.

Why Entrepreneurs Are Choosing Albania?

Beyond the numbers, entrepreneurs are drawn to Albania for its lifestyle. The Mediterranean climate, vibrant café culture, and affordable cost of living make it a pleasant place to live and work. Cities like Tirana, Durrës, and Vlorë are rapidly modernizing while maintaining their charm.

The government continues to invest in digital services, infrastructure, and incentives for foreign investment. Free economic zones, grants for innovation, and favorable bilateral agreements with the EU are all part of the appeal.

 Understanding the Business Landscape

Before diving into the legal steps, it’s important to understand the environment you’re entering. Albania operates under a liberal legal regime for foreign investors, offering national treatment and equal rights to both Albanian and international business owners. Foreigners can own 100% of shares in local companies and repatriate profits freely. The government has also undertaken continuous reforms to reduce bureaucracy and increase transparency, particularly through the digitalization of public services.

Legal Forms of Business in Albania  

The most common legal structure for both locals and foreigners is the Limited Liability Company (sh.p.k.), due to its simplicity, low capital requirement (just 100 lekë/around 1 euro), and flexibility. For larger-scale projects or when seeking investors, the Joint Stock Company (sh.a.) is also an option. Foreign companies may also choose to open a branch office or a representative office, depending on their goals and whether they plan to engage in direct economic activity.

Another alternative, especially suitable for freelancers, consultants, or small service providers, is the sole proprietorship (person fizik). It offers quick and low-cost registration, requires no initial capital, and involves minimal administrative burden. Taxation is also favorable for sole proprietors, with simplified personal income tax schemes and, in some cases, reduced or zero tax rates depending on annual turnover and activity type. While it does not offer limited liability, it remains a flexible and efficient option for those starting small.

Step-by-Step Guide to Starting a Business:

Starting a business in Albania is a relatively quick process. Everything begins at the National Business Center (QKB), which serves as the single-window institution for business registration. Here’s how the process unfolds:

• Choose a name for your company and check availability in the online register.

• Prepare the founding documents, including the Articles of Association and Founding Act, with assistance from a notary or legal advisor.

• Submit your application and documents to QKB. Foreign nationals need translated and notarized ID or passport copies.

• Register simultaneously with tax authorities, social insurance, and health insurance institutions.

• Obtain a NUIS (tax ID) and start operations.
  

All these procedures typically take 3 to 5 working days if the documentation is in order. The process has been streamlined in recent years, and much of it can now be completed online, especially with the help of a local partner like Manpower360. 

Documentation and Representation

Foreign nationals do not need to be physically present in Albania to open a business. Through a notarized power of attorney or a simple authorization, a trusted representative can handle the entire process. The required documents usually include a valid passport, proof of address, and information about the business activity.

Our legal team at Manpower360 can guide you step-by-step, including drafting the necessary documents, handling translations, and ensuring full legal compliance.

Licenses and Regulatory Requirements

While most businesses don’t need additional licenses, specific sectors—such as construction, transport, hospitality, pharmaceuticals, and energy—require special authorization from relevant agencies. It's crucial to check whether your activity is listed in the National Licensing Center’s database and plan accordingly. At Manpower360, we help you identify whether you need any specific licenses and handle the entire application process for you.

Taxation and Employment Considerations

Corporate income tax in Albania is competitive at 15%, and small businesses under certain thresholds benefit from reduced tax obligations. 

Moreover, Albania offers a highly favorable tax regime for businesses operating exclusively in the IT and software development sector. If your company’s registered activity is limited to IT, software services and hotels, you may qualify for a special 5% corporate income tax—a significant advantage for startups, outsourcing firms, and software developers.

VAT is set at 20%, but exemptions and lower rates apply in certain sectors. Payroll taxes and social contributions are moderate compared to the EU average, making Albania attractive for companies with growing teams.

From an employment standpoint, Albania also offers great flexibility in labor contracts, relatively low wages, and a growing pool of young, educated, multilingual professionals. The legal framework makes it easy to hire both local and foreign staff, with residence permits for employment or business being accessible within 30 days.

For international companies, Albania is quickly becoming a paradise for staff leasing and remote work setups—thanks to favorable labor laws, timezone compatibility with Europe, and high-speed internet across urban centers.

Real Estate, Banking, and Practical Integration

Once your company is set up, you may need to rent or purchase office space, open a business bank account, or find reliable service providers. While these steps may seem minor, they can be time-consuming—especially for foreigners unfamiliar with the local market.

Our team at Manpower360 can assist you in finding real estate solutions, choosing the right banking partners, and building a local network of professionals and suppliers to support your business operations. 

If you prefer to simplify the process even further, you can also use our own business location as your registered office address, giving you immediate access to a professional workspace and presence in the local market.

Beyond Bureaucracy: Starting a Business Without the Stress

For many foreigners, the idea of starting a business in a new country can feel overwhelming—not because the idea isn’t good, but because the local procedures seem unfamiliar. Albania may be business-friendly, but having the right local partner makes all the difference.

From helping you avoid unnecessary delays to making sure every paper is signed, stamped, and submitted on time, our job at Manpower360 is to let you focus on your business vision, while we take care of everything else.

Whether you’re sitting in London, Dubai, or Toronto, you can start your business in Albania without even boarding a plane. We’ll do the groundwork, represent you legally, and keep you updated at every step. You’ll land in Tirana with a registered company, a potential office space, and a network already waiting to meet you.

How Manpower360 Can Support Your Business Journey:

At Manpower360, we offer full-service support to individuals and companies looking to establish or expand in Albania. Our legal and administrative team handles all documentation, registration procedures, licensing, and compliance matters on your behalf. But our services go far beyond the legal setup—we also assist with market research, recruitment, real estate, and business networking, ensuring you feel fully supported in every stage of the process.

We understand that starting a business abroad can be both exciting and challenging. That’s why we offer a turnkey solution that removes the stress and simplifies your entry into the Albanian market. Whether you're looking to open a startup, a branch of a foreign company, or simply explore the feasibility of doing business in Albania, we tailor our services to your specific needs.

Build Your Vision with People Who Know the Ground:

We’re not just legal advisors—we’re connectors. At Manpower360, we work side-by-side with accountants, notaries, recruiters, developers, marketing agencies, real estate brokers, and local institutions. This means you don’t have to waste time finding trusted service providers. We’ve already built the ecosystem for you.

Let Albania Surprise You!

What if the country you barely knew could become the best decision you’ve ever made? Many of our clients come for business—but stay for the people, the food, the lifestyle, and the ease of living. Albania is more than a cost-effective destination—it's a place where ideas grow fast, and where newcomers are welcomed with curiosity and respect. Let us show you around—not just the paperwork, but the potential.

Talk to Us First

f you’re considering opening a business in Albania—or just exploring the possibility—get in touch with our team at Manpower360. We’ll offer you a free consultation, help you understand your options, and support you every step of the way. Whether you need full legal assistance, help with residence permits, or guidance on entering the local market, we’re here to make it easy.