You've decided to open your business in Albania. The opportunity is clear. But the system is unfamiliar and you don't know where to start.
This is the moment when many foreign investors and professionals get stuck, not for lack of will, but for lack of information.
This article is written specifically for you. Here you will find every important procedure, the necessary documentation, and the deadlines, all organized as a practical guide.
No Restrictions: Albania Welcomes Foreign Investors
One of the most common misconceptions is that foreign nationals have legal restrictions on opening a business in Albania. The reality is quite the opposite.
Albanian law does not discriminate against foreign investors. You can own 100% of the shares of a limited liability company (LLC) without any requirement to have a local partner. You can be the sole administrator, open branches or representative offices, freely withdraw capital and profits abroad, and register a natural person in your name.
Albania has signed foreign investment protection agreements with dozens of countries, and its strategic investments legislation provides additional guarantees for major projects.
Every foreign investment creates jobs, transfers knowledge, and contributes to economic growth. This is also the stance of the latest tax policies, as you will see below.
Read also: How foreign businesses register in Albania.
Which Legal Form to Choose
Before taking any further steps, you need to make an important decision: will you act as a sole proprietor or form a limited liability company (LLC)?
The choice directly affects personal risk, the method of taxation, and the future flexibility of the business. In our practice, three factors determine the decision.
Number of Partners
If the business has only one owner, both forms are legally possible. If there are two or more owners, the only option is an LLC. A sole proprietorship is registered by a single individual only and cannot officially be shared with other partners.
Personal Wealth Risk and Protection
As a sole proprietor, you and your business are one and the same in the eyes of the law. If the business accumulates tax liabilities, unpaid bills, or loans, creditors have the right to go after your personal assets: your bank account, your vehicle, your apartment.
LLC, as the name itself indicates, limits liability. You guarantee and are responsible only for the amount of capital invested. Your personal assets remain protected.
For low-risk activities, such as professional services, consulting, or simple commercial operations, a sole proprietorship is often the right solution. For activities with higher financial or legal exposure, an LLC provides the necessary protection.
Tax Differences
This is the most misunderstood aspect. The tax differences between the two forms are minimal.
Income tax, VAT, social security and health insurance contributions, and fiscalization: all these obligations are identical for both a natural person and an LLC. The only difference concerns dividend tax.
When a company distributes profit to its partners, this distribution is taxed at the rate 8%. This tax is applied only at the time the dividend is paid. If the profit remains in the company's account and is not distributed, there is no dividend tax.
A natural person does not have this layer of taxation because there is no separate legal entity.
Tax Residency: What You Need to Know as a Foreign National
This aspect deserves special attention and is often overlooked.
According to Article 8 of Law No. 29/2023 “On income tax”, Any person who stays in Albania for more than 183 days within a tax year becomes an Albanian tax resident. As a tax resident, he declares and pays tax in Albania on his worldwide income, not just on income generated by his Albanian business.
This rule has significant implications. If you are an investor with income from other countries and plan to live in Albania for an extended period, changing your tax residency must be carefully planned. Albania has double taxation avoidance agreements with many countries, but every situation has its own specifics.
Every foreign national, before making the final decision on the legal form and residence, should consult with specialists to assess the specific circumstances.
Read also: Should I register as a sole proprietor or as a company?
How to Start a Business: Special Power of Attorney
When a foreign national wants to open a business in Albania without being physically present throughout the process, the most practical and cost-effective solution is to issue a special power of attorney.
The special power of attorney is a notarial act by which you authorize a trusted person in Albania, who holds an electronic signature and has an active account on the e-Albania platform, to carry out registration procedures and to apply on your behalf to state institutions.
The total cost is about 50 euros and includes the notary fee and the translation service. The notary drafts and signs documents only in Albanian. Your signature is placed on the Albanian document, while its contents are read to you by a licensed translator during the notarial session.
The special power of attorney grants the authorized person the right to submit the statute and the founding act signed by the founder himself, to sign any other legal documents required during the registration process, and to pursue the procedures before the state authorities through to completion.
Why is the Special Prosecutor the safest route?
Someone might ask whether the power of attorney can be avoided if the administrator comes to Albania himself. Legally, yes. But there is a decisive practical reason.
To obtain the unique license, the foreign national must already have a clear status: be employed by a registered company, or be its partner and administrator. But the business cannot open without someone physically signing in Albania. The unique license, on the other hand, cannot be obtained before the business is open and the owner's or employee's status is established.
The chain is clear. The business opens first. Then the foreign national is appointed as a partner or signs the employment contract. Only after that does he apply for the unified license while he is outside Albania, as required by law.
The recommended approach is to appoint by special power of attorney an Albanian citizen with an electronic signature and an active e-Albania account. They will handle the business registration and all necessary documentation, while you apply for the unified license from abroad.
If the Power of Attorney is Signed Outside of Albania
If you are unable to appear before an Albanian notary, the special power of attorney may be signed before a notary abroad. In this case, the document must be issued with an apostille seal in accordance with the applicable regulations. The 1961 Hague Convention, which certifies the authenticity of the foreign notary's signature.
After the apostilles, the document must be legally translated into Albanian by a licensed translator and submitted, along with both copies—the original and the translation—to the Albanian notary or the relevant authorities.
This journey is a bit longer and carries additional costs, but it remains entirely feasible and is regularly undertaken by foreign investors from around the world.
Example of a power of attorney:
Special Prosecutor
Today, on this date Two thousand twenty before me, Notary ___________, registered with _ with _ at the notary's office located in ____, The interested party personally appeared and requested that this power of attorney be drafted with the following content:
Representative: paternity , born in , with date and resident of _, , ___, of full age and with full legal capacity to act, identified with , no. ___, with release date _, who requested the editing of this power of attorney based on ____, and stated that:
I appoint Mr./Ms. as my legal and special representative. _ paternity Born in __, Albania, more _ and resident of ______; of full legal capacity and authority to act, identified by ID card bearing personal number. _, to whom I grant full legal authority and competence to represent me before National Business Center (NBC) to carry out all legal procedures for the registration of the limited liability company (LLC) or as a sole proprietor, in which I will be its administrator.
The legal representative has the right and full legal authority to sign any document required for the establishment and registration of the company.
The legal representative has the right and full legal authority to submit the articles of incorporation and the founding act, signed by the founder himself, and to pursue all legal procedures through to the company's full registration.
The legal representative has the right and full legal authority to appear before any state institution to submit and retrieve legal documents until the purpose of this power of attorney is fulfilled.
This power of attorney remains in effect until its purpose is achieved or it is revoked by a notarial instrument.
I hereby consider the actions taken by my legal representative, from this moment on, to be accepted and valid within the legal framework, as if I had performed them personally.
Representative: _____________ [signature]
Opening a Bank Account
Banks in Albania have tightened their requirements for identification and verification of the source of funds, in line with international anti–money laundering regulations. The process of opening a bank account as a foreign national requires prior preparation.
Many banks today require not only the standard documentation but also the unique permit or at least confirmation of the application for it. This has made early coordination with the bank essential.
AlProfit Consult assists its clients throughout this process. We communicate directly with the bank, submit all necessary documents in advance, and obtain confirmation that the file is complete. Only after the bank confirms that everything is ready does the client come in person to sign. This avoids unnecessary trips.
How long does the whole process take?
With complete and prepared documentation, the deadlines are firm.
The company's registration takes 2 to 3 business days and includes registration with the QKB, obtaining the NIPT, and publication in the Commercial Register.
Opening the bank account, tax registration, and preparation for fiscalization take 1 to 2 weeks and include registration with the Regional Tax Directorate, activation of the fiscalization system if applicable, and opening the bank account.
Some processes may be delayed if there are hold-ups from banks or public institutions, but with complete documentation this rarely happens.
Single Permit: What It Is and When It's Needed
The Unique Permit is the document that allows a foreign national to legally reside and work in the territory of Albania. It is regulated by Law No. 79/2021 “For foreigners” and the secondary legislation for its implementation.
Article 17, point 17 of Law No. 79/2021A unique permit is the permit issued by the authorities of the Republic of Albania that allows a foreign national to legally stay in the territory of the Republic of Albania for work purposes.“
There are two main types of unified license for economic purposes.
Single Permit as an Employer
Its issuance requires the prior approval of the National Employment and Skills Agency (NEPA), which assesses whether there is a need to hire a foreign national for that position.
Required documentation: photocopy of passport with at least three months of validity beyond the permit's expiration date; payment order; recent 47×36 mm photograph with a white background; employment contract in accordance with the Labor Code; proof of accommodation (notarized lease agreement or hotel stay contract); proof of professional qualification (diploma, certificate, CV or reference); 12-month bank statement; documents on the legal status of the host entity and a bank certificate for fund transfers in the last 12 months.
Single Permit for the Self-Employed (Owner or Natural Person)
This category applies when a foreign national establishes his business as a sole proprietor, or when he is a partner and manager of a trading company.
Required documentation: photocopy of passport with at least 3 months of validity beyond the permit's expiration date; payment receipt; recent 47×36 mm photograph with a white background; proof of accommodation (notarized lease agreement or hotel stay contract); proof of professional qualification (diploma, certificate, CV or reference); 12-month bank statement; bank balance certificate with a minimum of €5,000 according to current practice; business project ideas according to AKPA guidelines when required; proof of business registration with the QKB and proof of sufficient financial means in accordance with the legal framework.
Procedure and Deadlines
The application goes through two verification phases, at the Employment Office (AKPA) and at the Migration Directorate. The law provides for a period of 4 to 12 weeks from the date of application.
The initial application must be submitted while the individual is outside the territory of Albania. The renewal must be submitted 60 days before the expiration of the existing permit, and during this process the individual must be inside Albania.
The validity of the unique permit is one year, renewable. After five years of lawful and uninterrupted residence, the foreign national may apply for a long-term residence permit of type C, with no fixed term.
The service fee for AlProfit Consult for both types of single permit, for both the initial application and the renewal, is 500 euros.
Visas and Entry into Albania
Not all foreign nationals require a visa. Albania has visa-free agreements with all European Union member states, the United States of America, the United Kingdom, Japan, Canada, and many others.
Citizens of other countries must apply before entering Albania. The full list and costs are published by the Ministry of Foreign Affairs. Applications are submitted at Albanian embassies or consulates, or online via and sheAlbanian.al. The visa status can be checked at e-visa.al.
There are three main types of visas. The A visa is the air transit visa. The C visa allows a stay of up to 90 days within a 180-day period and is used for tourism, business visits, or training, with a validity of up to five years. Visa D is the long-stay visa for stays over 90 days and is the first step when planning to work or settle. After entering on a D visa, apply for a residence permit or a single permit.
Step-by-Step Procedure
Step 1: Entry into Albania
A foreign national enters on a D visa when required, or visa-free under international agreements. If the purpose is employment, the invitation or employment contract must be ready before entry.
Step 2: Securing the Accommodation Contract
Before any application, the first and most important document is the proof of accommodation. This document certifies that the individual has a valid and lawful address within Albanian territory.
Either a notarized lease agreement or a hotel stay agreement is accepted. A lease agreement without notarization is not accepted as legal proof of residence. This document is required for both the unified permit and for opening a bank account and registering with the civil registry. We recommend notarizing it as soon as possible, because anyone who starts the process without it will run into delays.
Step 3: Applying for a Residence Permit or a Unique Permit
Within 30 days of entering the territory, the foreign national submits an application to the Regional Directorate of Border and Migration. The application is made online through the e-Albania platform or in person at the counters.
Step 4: Verification by AKPA
When the application involves employment, the National Employment and Skills Agency assesses whether there is a need for that job position and whether the terms of employment comply with Albanian legislation. This verification usually takes 5 to 10 working days.
Step 5: Issuance of the Permit and Registration in the Civil Registry
Once the documentation is approved, the unified permit is issued as a physical card with a one-year validity. Within 10 days of obtaining the permit, the individual registers as a temporary resident with the Civil Registry Office of the local municipality where they reside. This registration provides the individual with an official address and is a prerequisite for many further administrative procedures.
Step 6: Renewal
The application is submitted 60 days before the permit expires, while the individual is in Albania. The documentation varies by category and reflects the previous year's activities. The business must not have any unpaid obligations to the tax authorities.
Fiscal and Tax Framework
Albania has a relatively simple tax system with low rates. For many foreign investors, this is a pleasant surprise.
Profit Tax
The standard corporate income tax rate is 15%.
But Law No. 29/2023 has set the 0% rate for profit tax for all businesses with annual gross revenue under 14 million lek (approximately 140,000 euros), regardless of legal form, until December 31, 2029. Constitutional Court Decision No. 52/2024 has extended this benefit to self-employed professionals as well.
Value Added Tax (VAT)
The obligation to register for VAT arises when annual turnover exceeds the threshold provided by law. The standard VAT rate is 20%, with reduced rates for certain sectors such as tourism and food products.
Social and Health Insurance
Every employee and employer has a legal obligation to pay social and health contributions. The rates are calculated on gross wages and are shared between the employee and the employer. Foreign nationals holding a single permit are treated as domestic employees for the purposes of this obligation.
Unique Tax Identification Number (NIPT)
Every legal entity and every natural person engaged in economic activity automatically receives the NIPT upon registration with the QKB. This number is used in every interaction with the tax authority and in every fiscal document.
Fiscalization
Fiscalization is the electronic system for reporting transactions in real time to the General Directorate of Taxes. Every required business issues electronically fiscalized invoices. The obligation depends on the legal form and the nature of the activity.
Why Albania
Albania today offers an increasingly attractive environment for foreign investors.
Workforce — young, educated professionals with strong language skills in English, Italian, and Greek, at relatively low costs compared to Western Europe.
Low tax rate — Profit Tax 15% or 0% through 2029 for small businesses creates real room for healthy business margins.
Infrastructure — Tirana Airport connects the country with major European destinations. New regional airports and infrastructure projects are ongoing.
Tourism — Albania is attracting more and more visitors, creating significant opportunities in hotels, restaurants, recreational activities, and the development of coastal and mountain real estate.
Medical and dental services — Private clinics offer good quality at significantly lower prices than Western Europe. Medical tourism is on the rise.
Call centers and outsourced services — Italian, Greek, and British companies are setting up support operations in Tirana and other cities.
Real estate — increased interest from foreign buyers, especially in the Albanian Riviera, Tirana, and Saranda.
AlProfit Consult: Your Business's External Economist
Many foreign investors arrive in Albania with clear ideas but encounter the same obstacle: the system is unfamiliar, the institutions are numerous, and every mistake comes at a cost.
AlProfit Consult removes this barrier. We have built a service model that covers the entire business life cycle, from founding to potential winding-down. The client communicates with us. We communicate with everyone else.
Business Registration — We handle the entire incorporation process, from drafting the articles of association and registering with the Business Registry to obtaining the NIPT. We coordinate the power of attorney procedure when the administrator is not physically present.
Financial and accounting administration — We maintain accounting in accordance with Albanian standards, prepare financial statements, and ensure tax compliance. We serve as external accountants for businesses that do not need an in-house finance department.
Tax services — We manage tax returns, calculate liabilities, and communicate with the Tax Directorate. We keep you informed of any legal changes that affect your business.
Unique permits — We handle the entire application process, from gathering documentation to filing and following up with the relevant institutions. We also coordinate with the bank to open the account.
Opening the bank account — We communicate directly with the bank, submit the documents, and notify you when everything is ready for signing.
Registration for public services — social security, VAT, fiscalization, and any other administrative registration.
Office address — Our office can serve as your company's registered address until a physical operation is established.
Liquidation and deregistration — When the business ceases operations, we manage the legal closure procedure in compliance with all legal requirements.
We have built a closed-loop of services because your business needs all of these at the same time. Unique license, opening a bank account, tax registration: all three happen almost simultaneously and require coordination. We provide that coordination.
Frequently Asked Questions
Can I own 100% shares as a foreign national?
Yes. Albanian law does not limit foreign ownership. You can be the sole shareholder and the sole director.
Can I start a business without physically being there?
For the most part, yes, through a special power of attorney. Opening the bank account requires in-person presence for signing.
When should I apply for a unified permit?
Apply while you are outside of Albania, once the business is open and your status as an owner or employee is established. Don't wait to find a job and then apply.
Can I get a job without a unique permit?
No. Fines for the illegal employment of foreign nationals range from 350,000 to 400,000 lek.
What is the tax difference between a sole proprietor and an LLC?
The only tax difference is the 81% dividend tax, which applies only when the LLC distributes profits to its partners. All other taxes are identical.
Do I become an Albanian tax resident if I open a business here?
Tax residency depends on the number of days of stay, not on business registration. Staying more than 183 days a year makes you a tax resident of Albania. This aspect requires careful planning.
Are there any restrictions on transferring capital abroad?
Invested capital and profits may be freely transferred in accordance with foreign investment legislation.
Read also:Capital gains tax 0% in Albania: Who benefits and how? And Dividend Tax: How Does Profit Distribution Work? And Business Registration in Albania: Steps and Costs.