The limited liability company in Albania, also known as Shoqëri me Përgjegjësi të Kufizuara (Sh.p.k.) is the usual company type that small and medium enterprises are advised to set up. Company formation in Albania of a limited liability company is encouraged by the government and has just a few registration procedures (that can be concluded with the assistance of our team).
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How to set up an LLC in Albania in 2026
Here is the requested information necessary for the registration of an LLC: name of company, date of the act of incorporation, activity, if it has Albanian ownership or not, headquarter, amount of the share capital, number of shares and their value, information about the entrepreneurs, information about the manager.
When setting up an LLC in Albania, the investor must submit to the National Register Center (NRC) the following papers: the standard application, foundation act, proof of payment of the share capital, copy of document of identification, copy of the administrator’s identification acts, the document that verifies manager’s signature.
In the case the founder (or one of the founders) is a foreign legal entity, the company must submit additional documents. The shareholders are responsible for the company’s debts only to the limit of their contribution to the initial capital (minimum capital contributions must be made during the registration).
The limited liability company in Albania is ruled by the decisions taken by the General Assembly. The company can have one or more administrators (if there are more than one, then they are equally responsible for the company’s decisions). The administrators have the right to manage the company for a period no longer than five years. The LLC in Albania is indebted to prepare annual financial statements.
The basic traits of a limited liability company in Albania
Investors who want to open a company in Albania under this legal entity are invited to discover, in the list below, some of the main traits of this structure. Our consultantshave gathered the most important elements:
- the LLC in Albania allows 100% foreign ownership;
- as mentioned above, during the process of company incorporation in Albania, investors must subscribe a minimum share capital, which, according to the law, is established at ALL 100;
- the structure can be incorporated by 1 shareholder;
- for its functioning, at least 1 director must be appointed (the director and the shareholder can be the same person);
- the rules for setting up a company in Albania under an LLC or other entities are established by the 2008 Law on Entrepreneurs and Commercial Companies.
Registered address obligations
As we have reflected earlier in this article, during the process of company formation in Albania, investors must provide information on the company’s business address. It must be noted that companies registered in Albania must have a registered address in Albania as a mandatory step during the registration process.
In this sense, investors can opt to rent a regular office space when theyset up a company in Albania, or they may request the services of virtual office, through which clients can secure a local registered address.
It is also possible to purchase a ready-made company, which, in this situation, can be a legal entity incorporated as an LLC that provides the basic necessary characteristics for conducting business activities, among which we mention: registered address, bylaws, object of activity, etc.
Taxation of companies in 2026
LLCs in Albania are liable to taxation in this country, given that they carry out commercial activities. The LLC must pay the standard taxes charged to companies, such as the value added tax, the corporate income tax, employment taxes, withholding taxes and other.
In 2026, the corporate income tax is maintained at a rate of 15%, but it must be noted that companies operating in specific industries can benefit from a reduced corporate income tax, of only 5% (this can be the case of agribusinesses). Companies in this industry are also supported by the government, as they will benefit from VAT compensations (the new rule has entered into force in 2026). Currently, companies in Albania are charged with a VAT rate of 20%, but reduced rates are also available.
Residency requirements
Some European countries impose various residency requirements when establishing a limited liability company or other types of companies. In general, residency obligations can appear only for the directors appointed in local companies set up by foreign investors, or, at least, for a part of the total number of directors.
In Albania, it must be noted that neither the shareholders nor the directors of an LLC do not have to abide by any local residency requirements, therefore investors can appoint, if they prefer, foreign directors. This rule, however, can vary based on the type of entity the investors want to register here.We highly recommend you address our team of consultants in company incorporation in Albaniafor more details concerning this matter.
A Sh.p.k can be transformed into a joint stock corporation, if specific criteria are fulfilled. The administrators are responsible for elaborating a report regarding the economic and legal aspects of the change. Also, the modification must be submitted to the National Register Center. Please contact usfor legal representation in setting up an LLC in Albania.
Partner: Firmengründung in Albanien, Регистрация компаний в Албания