How to Open an SHPK (LLC) in Albania as a Foreigner — 2026 Step-by-Step Guide

Albania has quietly become one of Europe's most attractive places to incorporate. Companies with annual revenue under roughly €140,000 pay 0% corporate income tax through 2029, foreigners can own 100% of an Albanian company, and registration takes days — not weeks. The standard vehicle for doing business here is the SHPK (Shoqëri me Përgjegjësi të Kufizuar), the Albanian equivalent of an LLC, SRL or GmbH.

This guide walks through the entire 2026 process of opening an SHPK as a foreigner — the documents, the costs, the real timelines (including the part most guides skip: the bank account), and the mistakes we see foreign founders make most often. It is written by a licensed accounting firm in Tirana that registers companies for foreign clients every month.

1. What is an SHPK?

An SHPK is a limited liability company under Albanian Law No. 9901/2008 "On Entrepreneurs and Companies". It is by far the most common legal form chosen by foreign investors, for good reasons:

• Minimum share capital of 100 ALL — less than €1. There is no requirement to deposit large capital to incorporate.
• Limited liability — shareholders are liable only up to their contribution.
• One shareholder is enough — a single founder (individual or company, Albanian or foreign) can own 100%.
• No nationality or residency requirements — both shareholders and the administrator (director) can be foreign nationals living abroad.
• Flexible governance — a single administrator manages the company; no board is required.

The alternative form, the SH.A. (joint-stock company), requires minimum capital of 3.5 million ALL and is only relevant for larger ventures, banks or companies planning to issue shares. For consultancies, e-commerce, trading, IT services, real estate and holding activities, the SHPK is almost always the right choice.

2. Why foreign entrepreneurs choose Albania

The full investment case is covered in our Why Albania page, but the headline numbers driving incorporations in 2026 are:

• 0% corporate income tax for companies with annual gross revenue below 14,000,000 ALL (≈ €140,000), under Law No. 29/2023 — valid through 31 December 2029.
• 15% flat corporate income tax above that threshold — still among the lowest rates in Europe.
• 8% withholding tax on dividends — compare that with 26% in Italy or 26.375% in Germany.
• Double taxation treaties with 40+ countries, including Italy, Germany, the UK, France, Switzerland and Austria.
• EU candidate country — Albania is progressively aligning its legal framework with EU standards.
• Low operating costs — office space, salaries and professional services cost a fraction of Western European levels.

If you are weighing Albania against your home jurisdiction, our detailed Albania vs Italy tax comparison puts concrete numbers side by side.

3. What you need before you start

For a standard incorporation with foreign individual shareholders, you will need:

• Valid passport (or national ID for EU citizens) of each shareholder and of the administrator.
• A registered office address in Albania — this can be a rented office, a virtual office contract, or premises made available by your accountant.
• Company name — checked for availability in the National Business Center register.
• Founding act and statute (bylaws) — drafted in Albanian (bilingual versions are common practice for foreign founders) and signed before a notary.
• A clearly defined business activity — used to assign your NACE activity codes at registration.
• Power of Attorney (only if registering remotely) — notarised and apostilled in your home country, authorising a local representative to act for you.

4. The registration process, step by step

5. How much it costs in 2026

Realistic budget for a standard single-shareholder SHPK with foreign ownership:

Beware of providers advertising "€99 company formation" — the number usually excludes notary fees, translations, the registered address and the tax registrations that make the company actually usable.

6. Taxes your SHPK will pay

A quick map of the Albanian tax landscape for a newly registered SHPK in 2026:

• Corporate income tax (CIT): 0% if annual gross revenue stays below 14,000,000 ALL (≈ €140,000), under Law No. 29/2023 through 31 December 2029. Above the threshold: flat 15%.
• Dividend withholding tax: 8% when profits are distributed to shareholders (domestic rate; double taxation treaties may further affect cross-border treatment).
• VAT (TVSH): standard rate 20%; registration mandatory once annual turnover exceeds 10,000,000 ALL. See our full guide to VAT in Albania.
• Payroll: employer social and health contributions of 16.7% of gross salary; the employee contributes 11.2%, plus progressive personal income tax withheld at source.
• Local taxes: modest municipal taxes (signage, property, cleaning) depending on the municipality and premises.

7. Opening an SHPK remotely (without visiting Albania)

A large share of our foreign clients register their company without setting foot in Albania. The mechanism is a Power of Attorney (POA):

1. We draft a bilingual POA covering name reservation, notary deeds, NBC registration and tax registrations.
2. You sign it before a notary in your home country and have it apostilled (Albania is a party to the Hague Apostille Convention).
3. The original is couriered to Tirana; a certified Albanian translation is attached.
4. Your local representative signs the founding documents and completes the registration on your behalf.

The only step where banks sometimes prefer to meet the beneficial owner in person is the account opening — though several banks now accept video identification for straightforward cases. Plan for one short trip or choose a bank with remote onboarding; we advise on this case by case.

8. Seven common mistakes to avoid

1. Treating the bank account as a formality. Company registration takes days; bank KYC for foreign shareholders takes weeks. Start collecting source-of-funds documentation early.
2. Assuming the 0% CIT applies automatically. It depends on revenue, activity classification and anti-abuse rules. Verify your specific case before committing.
3. Using a residential address informally as registered office. The address must be supported by a valid lease or ownership document — the tax office does verify.
4. Forgetting fiscalization. Issuing even one invoice outside the mandatory e-invoicing system exposes the company to fines. Connection must be in place before the first sale.
5. Skipping the VAT analysis. Voluntary VAT registration is sometimes advantageous (e.g. if your clients are VAT-registered businesses or you export services). Decide deliberately, not by default.
6. Ignoring substance and home-country tax rules. If you manage the company entirely from abroad, your home jurisdiction may claim its tax residence. Real local substance — and advice on both sides — matters. Our Albania vs Italy comparison covers this in depth for Italian founders.
7. Choosing the cheapest formation agent. The registration is the easy part. What you need is the firm that answers in 24 hours in March when the tax office sends a notice — see what ongoing support includes.