Albania allows full foreign ownership and management of companies. There are no nationality restrictions on who can be a shareholder or director, and foreign individuals or legal entities can own 100% of an Albanian business.
The legal framework is designed to encourage international investment while ensuring compliance with local registration and tax procedures.
Shareholding by Foreigners
Foreign nationals and foreign companies can freely own shares in any Albanian company type, including:
-
Sh.p.k (limited liability company)
-
Sh.a (joint stock company)
-
Branches or subsidiaries of foreign entities
There are no local partner requirements, and shares can be held by individuals, corporate entities, or a mix of both. The only restriction applies to certain land ownership rights, which may require a local company structure.
Foreign shareholders must provide:
-
A valid passport or company registration extract
-
Legalized and translated documentation (if applicable)
-
Power of attorney, if appointing a representative
Shareholding structures must be declared during registration with the National Business Center (QKB).
Foreign Directors and Legal Representatives
A foreign citizen can act as the sole director, administrator, or legal representative of an Albanian company. Residency in Albania is not required to hold the position.
However, once appointed, the foreign director must:
-
Be registered officially in the QKB company extract
-
Obtain a fiscal number (NIPT) for income tax purposes if residing or earning income in Albania
-
Fulfill responsibilities related to tax filings, business management, and regulatory compliance
In practice, many foreign directors appoint local accountants or legal advisors to assist with administrative tasks and filings.
Remote Ownership and Management
It is possible to own and manage an Albanian company remotely, but certain tasks may require:
-
A local address for official correspondence
-
A legal representative or proxy to sign documents in Albania
-
Appointment of a local administrator, depending on the business activity or industry
Bank account setup, tax declarations, and licensing may be difficult without local assistance, even if legally allowed.
Tax and Reporting Obligations
Foreign directors are subject to Albanian tax laws if they receive income from the company. This includes:
-
Personal income tax on director fees or salaries
-
Social insurance contributions, if officially employed
-
Withholding taxes on profit distributions to foreign shareholders
All foreign shareholders and directors must ensure the company complies with Albanian accounting, tax, and corporate reporting laws. Non-compliance may result in fines, license suspensions, or criminal liability.