Albania Company Formation and Residence Permit: What Is Actually Possible?

Introduction

“If I open a company in Albania, can I live there?” It is one of the first questions foreign entrepreneurs ask, and the honest answer is: a company can be the basis for a residence permit, but it is never the permit itself. The two are separate procedures with separate rules, and mixing them up is the most common reason plans stall.

This article explains what is actually possible. It is written for founders who want to set up a company in Albania and spend a significant part of their time there — not for people who only want an Albanian company while living elsewhere, and not for tourists. We cover:

• why company registration and residence are separate questions
• the legal framework: Law no. 79/2021 “On Foreigners”
• the routes that usually apply to company founders
• how visa-free and visa-required nationals approach the process differently
• what the authorities typically look at
• the order in which to do things
• family members, renewals and changes
• mistakes to avoid and our professional advice

We do not quote fees or processing times here: both depend on your nationality, your documents and the route that applies. For a firm answer about your situation, we review your case individually.

Company and Residence: Two Different Procedures

Opening a company and obtaining a residence permit are handled by different institutions and answer different questions.

A foreign citizen can own and manage an Albanian company without living in Albania at all. Equally, the existence of a company does not oblige the authorities to grant a residence permit. What links the two is the purpose of stay: if your reason for living in Albania is to run your own business, the company is part of the evidence for that purpose.

The Legal Framework: Law no. 79/2021

Entry, stay and residence of foreigners in Albania are governed by Law no. 79/2021 “On Foreigners”, together with its implementing acts, including Council of Ministers Decision no. 858 of 29.12.2021 on visas. Older articles online still refer to the previous law, which has been replaced — keep that in mind when you read advice from other sources.

The key idea of the law for company founders is simple: the permit type depends on your purpose of stay — work, self-employment, investment or family. Running your own company may fall under self-employment or investment, while working as an employee of a company (even one you own together with others) can fall under work. Which one applies depends on your role and your situation.

For nationals who need a visa, the law also defines long-stay (Type D) visas, among them a visa for self-employed persons (D/VP) and a visa for investors (D/I). These visas are the usual entry route before a residence permit is issued in Albania.

→ Read our residence and work permit service

Which Routes Usually Apply to Company Founders

Without going into categories that change with your individual facts, these are the situations that come up most often when a founder wants to live in Albania:

You run your own company

You are the owner and you manage the business yourself. The purpose of stay is linked to your own economic activity, so the company, its registration documents and its actual activity matter. This is the classic case for the self-employment or investment routes.

You are employed by the company

You are hired as an employee or administrator of an Albanian company — perhaps one owned by your foreign group. Here the purpose is work, and the employment relationship is at the centre of the application.

You join a family member

If your spouse or parent already holds an Albanian residence permit, the family route may apply to you — independently of whether you also own or work for a company.

Visa-Free and Visa-Required Nationals

Your nationality changes how you approach the process, not the basic principle.

If you can enter Albania without a visa

Citizens of many countries — including, for short stays, Turkey, Israel and China (the last under a reciprocal agreement for ordinary passports) — can visit Albania without a visa. That makes it easier to set up the company in person. But visa-free entry covers short stays only; living in Albania still requires the right permit. Check the current rules on e-visa.al before you travel.

If you need a visa

Citizens of countries such as India, Pakistan and Egypt need a visa, applied for on e-visa.al — unless they hold a valid multiple-entry Schengen, US or UK visa already used in the issuing country, or a valid residence permit from one of those countries. For a longer stay linked to the business, the Type D visas mentioned above are the usual entry route.

Our country guides explain these differences in detail:

• India
• Pakistan
• Egypt
• China
• Turkey
• Israel

→ Read our guide to Albanian visas

What the Authorities Typically Look At

The exact list depends on the permit, but applications by company founders tend to revolve around the same questions:

• Identity and status — a valid passport and, where relevant, your current visa or entry status
• The purpose of stay — documents showing that your business activity is real: company registration, your role, the activity itself
• Accommodation — where you will live in Albania, usually shown by a lease or property document
• Means and insurance — evidence that you can support yourself and health insurance valid in Albania
• Background — a criminal record certificate from your country, prepared with an apostille or legalisation

Foreign documents must be certified (apostille or consular legalisation, depending on the country) and usually translated into Albanian. Applications are submitted online through e-albania.al, with an in-person step for biometrics.

→ Read our guide to apostille and legalisation

The Right Order: Step by Step

Getting the sequence right saves the most time and money. For a founder who wants to live in Albania, the logical order is:

1. Decide the purpose and your role. Will you run the company yourself, be employed by it, or join family? This determines the permit route.
2. Choose the company structure with the permit in mind. Founder, shareholders, administrator and activity should support the route you need.
3. Prepare all foreign documents in one round. Company documents and personal documents for the permit both need certification — plan them together.
4. Register the company. The QKB registers it and assigns its NIPT.
5. Make the company operational. Bank account, tax registration and accounting — a company that exists only on paper is weak evidence of a business purpose.
6. Apply for the visa or residence permit. With the right documents and the company running, the application can show a coherent picture.

→ Our Sh.p.k. and NIPT registration service

Family Members, Renewals and Changes

A residence permit is not a one-time event. Three situations come up regularly:

Family members

Spouses and children usually apply on the basis of family reunification once the main applicant holds a permit. Their documents — marriage and birth certificates — need the same certification and translation as yours.

Renewals

Permits are issued for a limited period and must be renewed before they expire. At renewal the authorities look again at the purpose of stay, which is another reason why the company should be active and its accounts in order.

Changes in your situation

If your role changes — for example you sell the company or start working for another employer — the purpose of stay changes too. Check the consequences for your permit before you make the change.

Practical Examples

Two illustrative scenarios (not client cases):

Mistakes to Avoid

Professional Advice

From a consulting perspective, three principles help most founders:

→ Our accounting and tax service

FAQ – Frequently Asked Questions

Conclusion

Opening a company in Albania is straightforward for foreigners; living in Albania because of that company is possible, but it follows its own rules. The permit depends on why you are there and what you do — and Law no. 79/2021 is the framework that decides it.

If you plan both together — purpose, structure, documents and an active company — the residence application becomes a natural next step rather than an obstacle.