Company Structure & Tax
Understand the company structure, share capital requirements, tax regimes and governance rules that apply to your Albanian company before you register.
Why Structure Matters Before You Register
The legal structure you choose determines your liability, your governance obligations, your minimum capital requirement, and — critically — which tax regime applies to your company from day one. Getting this decision right before filing with the QKB is far easier than restructuring afterward, and it shapes everything from how quickly you can open a bank account to what you owe in your first year of trading.
This page brings together the structural comparison, share capital rules, governance obligations and tax regime overview you need to make that decision — and our advisory package below if you’d like a structuring recommendation specific to your situation, backed by a written memo you can act on.
COMPANY INCORPORATION
COMPANY STRUCTURE & TAX ADVISORY
fixed advisory fee
PACKAGE OF COMPANY STRUCTURE & TAX ADVISORY INCLUDES:
- One-on-one structuring consultation covering Sh.p.k., Sh.a., branch and representative office options
- Share capital and ownership structure recommendation
- Draft Articles of Association / governance documents tailored to your chosen structure
- Tax regime assessment — VAT, corporate tax and small-business eligibility
- Written structuring memo summarising the recommended structure, capital and tax position
- Follow-up call to confirm your final decision before registration
Comparing Albania’s Company Structures
The right vehicle depends on your ownership plans, activity, capital and whether you already operate a company abroad:
| Structure | Best For | Liability | Min. Capital | Notes |
|---|---|---|---|---|
| Sh.p.k. (LLC) | Most SMEs & foreign subsidiaries | Limited to capital | Nominal (from ~ALL 100) | Most common vehicle for foreign investors |
| Sh.a. (Joint Stock) | Larger, regulated or capital-raising businesses | Limited to shareholding | From ~€16,000 | Board structure required; used for banking, insurance, etc. |
| Branch (Degë) | Foreign company extending existing operations | Parent bears full liability | None separately required | Not a separate legal entity; scope tied to parent |
| Representative Office | Market research & liaison only | N/A — no legal personality | None | Cannot invoice or trade commercially |
| Sole Trader | Resident freelancers & small local operators | Unlimited personal liability | None | Simpler, but no asset protection |
Figures shown are indicative and should be verified against current legislation and your specific activity before filing.
Share Capital & Ownership
- The standard Sh.p.k. requires only a nominal minimum share capital — there is no material capital barrier for most foreign-owned formations.
- A Sh.p.k. can be formed by a single shareholder, individual or corporate, holding 100% of the shares.
- The Sh.a. (joint stock company) requires substantially higher minimum capital and a more formal governance structure, and is typically used for regulated or capital-intensive activities.
- Capital can generally be contributed in cash; contributions in kind are possible but require additional valuation documentation.
Governance Requirements
- Every company must have at least one appointed administrator, who can be a foreign national resident anywhere.
- Shareholder decisions (approving accounts, appointing or removing administrators, amending the Articles) must be documented and, for material decisions, filed with the QKB.
- Companies must maintain a beneficial owner (UBO) register and keep it current as ownership changes.
- Standard bookkeeping and e-invoicing obligations apply from the point of registration, regardless of company size.
- Sh.a. companies additionally require a more formal board and, depending on size, statutory audit.
Tax Regimes for New Companies
The tax regime applicable to a newly registered Albanian company depends on annual turnover, activity type and applicable exemptions. The following overview is for general guidance — always verify with a qualified Albanian tax adviser.
| Regime | When It Applies | Rate | Key Condition |
|---|---|---|---|
| Small business regime | Annual turnover up to €140,000 | Reduced / preferential | Eligibility and current rate must be verified — thresholds have changed in recent years |
| Standard corporate tax | Annual turnover above €140,000 | 15% on net profit | Default regime for most companies |
| Dividend tax | On profit distributions to individual shareholders | 8% withholding | Applies regardless of the distributed amount |
| VAT — standard | Annual turnover above €100,000, or voluntary registration | 20% standard rate | Optional below threshold; mandatory above |
| Social & health contributions | Calculated on salary, for employees and administrators | Minimum ≈€112 / month | Applies per person on payroll, including the administrator |
| Annual municipal tax | Local municipal services (cleaning, greenery, etc.) | ≈€80–€150+ / year | Varies by municipality and company turnover |
⚠ Fact-check note — for internal review
Tax thresholds, VAT registration limits and small-business eligibility rules have changed multiple times in recent years. All tax rates and thresholds must be verified by a qualified Albanian tax professional before publication. Do not rely on these figures without review.
How the Advisory Works
Share your ownership, activity & plans
Structuring consultation call
Structure, capital & tax recommendation drafted
Written memo delivered for your review
Follow-up call to confirm before registration
Typical timeline: the consultation and written memo are usually delivered within 3–5 business days of receiving your information.
Information We Need From You
- Intended shareholders and their nationalities (individual or corporate).
- Planned business activity and, if known, expected first-year turnover.
- Whether you plan to hire staff in Albania, and roughly how many.
- Whether you already operate a company abroad that might act as a parent for a branch.
- Your priorities — speed, liability protection, minimum ongoing compliance, or future fundraising plans.
Fee Schedule — Additional & Ongoing Services
Beyond the fixed package above, the following services are priced individually. Your adviser confirms an exact quotation once your structure, nationality and banking preference are known.
| Service | Indicative Fee |
|---|---|
| Structuring advisory — full package (as above) | €350 fixed fee (credited toward formation if you proceed) |
| Articles of Association drafting only (structure already decided) | from €200 |
| VAT registration filing | from €150 |
| Tax regime opinion letter (for banks, investors or partners) | from €250 |
| Annual governance compliance review | from €300 |
| Shareholder resolution drafting (per resolution) | from €80 |
| Accounting & tax compliance (monthly) | from €150 / month |
| Corporate governance & admin support (monthly) | from €300 / month |
| Statutory audit coordination (Sh.a. or qualifying Sh.p.k.) | quoted individually |
⚠ Practical note
Structure decisions are far cheaper to get right at registration than to unwind afterward. Converting a Sh.p.k. to a Sh.a., changing a branch into a subsidiary, or restructuring ownership after the fact typically costs more in fees and lost time than the advisory itself. If there’s any doubt about which structure fits — especially where future fundraising, licensing, or a co-founder relationship is involved — it’s worth resolving before you file with the QKB, not after.