Company Formation & Entity Setup in Albania

Shpk and Sha incorporation, National Business Center (QKB) registration, and post-formation compliance setup.

Albania Reviewed September 2026

Currency

ALL (Albanian lek)

Legal forms

Shpk · Sha

Minimum share capital

Shpk: ALL 100 (~€1) · Sha: ALL 3,500,000 private / ALL 10,000,000 public

Registration body

National Business Center (QKB), single-window registration

Formation timeline

As little as 1–2 business days

Corporate tax rate

15% standard · 0% for turnover up to ALL 14M (~€120,700) through 31 December 2029

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How company formation works in Albania

Albania applies a standard 15% corporate income tax rate, among the lowest in Europe, but the more consequential feature for small and growing businesses is the temporary 0% exemption under Law No. 29/2023: companies and self-employed individuals with annual gross turnover up to ALL 14 million (approximately €120,700) pay no profit tax at all, an incentive guaranteed through 31 December 2029.

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Matched to your business objective

Shpk

Liability

Limited to company assets

Min. capital

Shpk: ALL 100 (~€1) · Sha: ALL 3,500,000 private / ALL 10,000,000 public

The standard vehicle for an operating subsidiary of a foreign company — the default choice for most market-entry engagements in Albania.

Sha

Liability

Limited to company assets

Min. capital

Shpk: ALL 100 (~€1) · Sha: ALL 3,500,000 private / ALL 10,000,000 public

Used for larger operations, more formal governance needs, or entities seeking to raise capital publicly.

Branch

Liability

None separate — the foreign parent company bears full liability

Min. capital

None — no separate capital requirement

Useful for testing the Albania market before committing to a subsidiary, or for keeping a single legal entity across borders. Creates a taxable presence — profits are generally taxed in Albania.

Representative office

Liability

N/A — not a registered legal entity in most cases

Min. capital

None

For market research and liaison activity only — cannot sign contracts, invoice, or trade locally in most jurisdictions.

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What it takes to register, and how long

Formation runs through the National Business Center (QKB), single-window registration, typically taking As little as 1–2 business days.

Hard turnover cliff at ALL 14 million — — crossing it by any amount applies 15% CIT to the entire year's net profit, with no graduated transition
Independent VAT and CIT thresholds — — mandatory VAT registration applies above ALL 10 million turnover, regardless of CIT-exempt status, creating a band where a business is VAT-registered but CIT-exempt simultaneously
Raised contribution base for 2026 — — minimum monthly salary for social security purposes increased to ALL 50,000, affecting minimum employer contribution cost
Salary-dividend structuring — for owner-directors, balancing deductible salary (subject to PIT and contributions) against the flat 8% dividend tax on distributed profit

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Frequently asked questions

How does the 0% corporate tax exemption actually work?

Companies and self-employed individuals with annual gross turnover up to ALL 14 million pay no corporate income tax at all, guaranteed through 31 December 2029 under Law No. 29/2023. This is a hard threshold: crossing it by any amount applies the standard 15% rate to the entire year's net profit, not just the portion above the threshold.

Can a business be VAT-registered but still exempt from corporate tax?

Yes. VAT registration becomes mandatory once rolling 12-month turnover exceeds ALL 10 million, while the CIT exemption applies up to ALL 14 million — meaning businesses with turnover between these two thresholds are simultaneously VAT-registered and CIT-exempt, since the two thresholds operate independently.

Should an owner-director take salary or dividends?

Salary paid to an owner-director is a deductible business expense, reducing net profit, but is subject to personal income tax and social contributions. Dividends are taxed at a flat 8% after corporate tax has already been paid. The optimal split depends on the company's specific revenue and cost structure and should be modelled individually.

What is the minimum capital to form a Shpk?

A Shpk (limited liability company) requires only ALL 100 — approximately €1 — in minimum share capital, making it one of the most accessible entity formations in Europe. A Sha (joint stock company) requires substantially more: ALL 3.5 million for a private offering or ALL 10 million for a public one.

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The 0% turnover exemption is the single most consequential planning variable for small and growing businesses in Albania, precisely because it is a cliff rather than a graduated benefit. Companies approaching the ALL 14 million threshold should model the tax impact of crossing it well before year-end, not discover the consequence only when filing the annual return.

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