Cost of Opening and Running an Sh.p.k. (LLC) in Albania

Introduction

“How much does it cost to open a company in Albania?” is usually the first question foreign entrepreneurs ask us. It is a good question, but it is only half of the picture. The opening is a one-off cost; what decides whether the company is affordable is what it costs every month and every year once it exists.

This article puts both halves together for the most common company form, the Sh.p.k. (shoqëri me përgjegjësi të kufizuar, the Albanian limited liability company). It is written for founders who are planning a budget and want realistic orders of magnitude before they decide. We cover:

• the one-off cost of opening an Sh.p.k., including the option of doing it with a power of attorney
• social and health insurance contributions, the main fixed monthly cost
• local taxes and fees paid to the municipality
• the taxes on profit and dividends, and when 0% applies
• VAT: when registration becomes compulsory
• accounting and other running costs you should plan for
• worked examples, common budgeting mistakes and practical advice

The amounts below are approximate. They describe a typical small company and are meant for planning. The exact figures for your company depend on its structure, its activity, the municipality where it is registered and the people it insures — we confirm them for your case before you commit.

The Costs at a Glance

Before going into detail, here is the overall structure of the costs of an Sh.p.k. The first row is paid once; the others recur for as long as the company exists.

The Cost of Opening an Sh.p.k.

Opening an Sh.p.k. means registering it at the National Business Center (QKB). After registration the company receives its NIPT, the tax identification number, and exists as a legal entity. In practice the opening involves:

1. agreeing the company name, activity, share capital and the administrator
2. preparing the founding act and the statute of the company
3. providing a registered address in Albania
4. preparing the identity documents of the shareholders and the administrator
5. submitting the application to the QKB and obtaining the registration and the NIPT
6. registering the company with the tax administration for the obligations that apply to it

The cost of opening an Sh.p.k. is around €500, all-inclusive. That figure covers:

• the power of attorney, which allows us to complete the procedure in Albania on the founder’s behalf, so the founder does not have to be present for each step
• the notary
• the translation of the documents into Albanian

The only fee paid separately

If your documents need an apostille in your country, that fee is paid there, to the competent authority. Whether an apostille is needed depends on the country that issued the documents.

The share capital you decide to contribute is not a cost either: it is the company’s own money.

→ How foreign documents are apostilled or legalised for Albania

Opening with a Power of Attorney or in Person

Founders can either come to Albania and sign in person, or authorise someone in Albania with a power of attorney. Both lead to the same company; the difference is in time, travel and organisation.

Many founders combine the two: the company is opened with a power of attorney, and they visit Albania later for the steps where a bank or another institution wants to see them in person, such as the business bank account.

→ Business bank account for non-residents

Social and Health Insurance: the Main Monthly Cost

Once the company exists, it must declare and pay social and health insurance contributions for the people it insures, starting with the administrator. For the administrator this comes to around 14,800 lekë a month.

This is the cost that founders most often forget when they compare countries. It is paid every month, whether the company has income yet or not, as long as there are insured people on the payroll.

What makes the amount higher or lower

• the declared salary: contributions are calculated on it, so a higher salary means higher contributions
• the number of insured people: each employee adds their own contributions
• the personal situation of the administrator, for example whether they are already insured elsewhere

Because these factors differ from company to company, treat around 14,800 lekë a month for the administrator as the planning figure, add the contributions of any employees, and ask us to confirm it for your structure.

→ Payroll, declarations and accounting

Municipal Taxes and Fees

Each Albanian municipality charges local taxes and fees to the businesses registered in its territory, for example for services such as cleaning and public lighting. For a small company the total is around €50–200 a year.

Where in that range your company falls depends on:

• the municipality where the company is registered, since each sets its own local taxes
• the activity of the company
• the premises it uses, if any

The municipality sends its own assessment. It is a modest cost, but like every other obligation it should be paid on time.

Taxes on Profit and Dividends

The taxes below come from the Income Tax Law (Law no. 29/2023, as amended), which we checked against the consolidated text published by the General Directorate of Taxes.

The 0% regime and its condition

The 0% rate is the reason many small companies choose Albania, but it has a clear condition: gross income of up to 14 million lekë a year. It applies until 31 December 2029. If the company exceeds that limit, its profit is taxed at the standard 15%.

Note that the limit is based on income, not profit. A company with high turnover and small margins can be above the limit even if its profit is modest.

Dividends

The 0% regime concerns the tax on the company’s profit. When the company pays that profit out to its shareholders as dividends, the 8% tax on dividends applies separately. Plan both when you calculate how much you will actually receive.

→ Corporate tax in Albania, explained

VAT: When It Becomes a Cost of Running the Company

A new Sh.p.k. is not automatically registered for VAT. Registration becomes compulsory when turnover reaches 10 million lekë in a calendar year. A company whose turnover exceeds 5 million lekë may also register voluntarily. Notaries and bailiffs are registered regardless of turnover.

The standard VAT rate is 20%. VAT is charged to customers and paid over to the State, so in principle it is not a cost of the company — but it changes your prices, your invoicing and your accounting work, and that does have a cost.

→ VAT in Albania: rates and registration

Accounting and Compliance

Every Sh.p.k. must keep accounts, submit its declarations to the tax administration, handle payroll and contributions for its insured people and prepare its annual financial statements. For a foreign founder this is normally done by a local accountant.

We do not publish a single price for accounting, because the work depends on the company:

• how many invoices and payments it records
• whether it has employees, and how many
• whether it is registered for VAT
• whether it trades with other countries

We give a fixed quote once we know these details, so that the monthly cost is clear from the start.

→ Annual financial statements

Other Costs to Plan For

Beyond the items above, these costs depend entirely on your business model, so we do not give a general figure for them — but they belong in your plan:

• Registered address or office: the lease for the address where the company is registered
• Bank account: the bank’s own fees for a business account
• Translations for later procedures, such as residence permits (the translations for the company opening are included in its cost)
• Licences and permits if the activity requires them
• Invoicing software for issuing the company’s invoices
• Residence permits if the founder plans to live in Albania

→ Business licences and permits

Examples

The examples below show how the figures combine. They are illustrations, not quotes.

Budgeting Mistakes to Avoid

Professional Advice

FAQ – Frequently Asked Questions

Conclusion

Opening an Sh.p.k. in Albania is affordable: around €500, all-inclusive — power of attorney, notary and translation. The more important numbers for your budget are the running costs — around 14,800 lekë a month of social and health insurance for the administrator, around €50–200 a year of municipal taxes, and accounting.

On the tax side, a company with gross income of up to 14 million lekë a year pays 0% corporate tax until 31 December 2029, and 15% above that; dividends are taxed at 8%, and VAT registration becomes compulsory at 10 million lekë of turnover. Plan with these figures, and ask us to confirm them for your case.