Introduction
In recent years, an increasing number of Italian entrepreneurs have been looking to Albania as a strategic destination for international expansion. The country is attracting growing interest thanks to its streamlined bureaucracy, competitive labor costs, and significant development in both the tourism and productive sectors.
From an operational perspective, setting up a company in Albania is a relatively straightforward process.
However, establishing a company in the right way—avoiding conceptual, tax, and banking pitfalls—requires a broader, integrated approach that takes into account Italian and Albanian regulations, as well as international agreements.
With an operational presence in both Italy and Albania, Rogai & Partners supports SMEs at every stage of the process: from initial planning to full cross-border operations, and through ongoing management.
Why Italian SMEs Are Looking to Albania
Albania offers:
- a fast and efficient bureaucratic framework;
- competitive operating costs;
- a strategic geographical location;
- growing openness to business relationships with Italian companies.
These opportunities, however, must be approached methodically. Many businesses make mistakes because they underestimate the impact on their Italian tax position, assume that simply “moving headquarters” is enough to change tax residency, or fail to properly address banking and documentation requirements.
Key Steps to Setting Up a Company in Albania
1. Preliminary documentation
- Identification document of the shareholder(s)
- Albanian tax identification number (NID)
- Power of attorney or proxy, if required
- Appointment of the director (who may be Italian)
- Definizione dell’oggetto sociale
- A real registered office (not a virtual one)
Attention: even at this early stage, it is essential to coordinate these elements with the Italian tax position. What may appear to be a purely formal step can have significant implications for corporate tax residency and potential challenges from the Italian Revenue Agency.
2. Articles of association and bylaws
Company incorporation in Albania is digital and very fast. However, speed can become a risk if insufficient attention is paid to:
- the powers and delegations of the director;
- fund transfer mechanisms;
- governance structures;
- risks related to CFC rules and “foreign incorporation” (esterovestizione);
- lack of consistency with Italian corporate structures and operations.
At this stage, the Firm carries out a dual review—both corporate and tax-related, Italian and Albanian—to avoid structures that may be formally compliant but fiscally risky.
3. Registration with the QKB
The QKB is the Albanian equivalent of the Chamber of Commerce. Registration is generally quick (24–48 hours), but it must be aligned with the Italian side to prevent accreditation issues, disputes over intra-group transactions, or banking blocks.
4. VAT registration (TVSH)
The Albanian tax system is linear, but operationally different in terms of deadlines, deductibility rules, and VAT management. Proper handling requires up-to-date knowledge of local regulations and their interaction with Italian tax law, particularly in relation to double taxation and intra-EU transactions.
5. Opening a bank account
Albanian banks apply very strict AML (anti-money laundering) procedures. Before opening a corporate bank account, they typically require:
- commercial contracts;
- full documentation for shareholders and directors;
- the company registration extract issued by the QKB;
- the physical presence of the director of the Albanian company.
The Most Common Mistakes to Avoid
Based on Rogai & Partners’ experience, the most frequent mistakes made by Italian companies include:
- treating Albania as a simple tax shortcut;
- ignoring tax consequences in Italy (tax residency, permanent establishment, CFC rules);
- failing to establish real economic substance;
- underestimating banking and AML compliance requirements;
- relying on online “ready-made solutions” or professionals without cross-border tax expertise.
The Rogai & Partners Approach
The Firm supports Italian SMEs through:
- a direct operational presence in Albania;
- a mixed Italian–Albanian team;
- coordinated tax, legal, and banking advice;
- validated corporate structuring models;
- ongoing assistance even after incorporation.
The goal is not simply to “open a company”, but to design a solid, sustainable, and tax-secure operation that aligns with the entrepreneur’s business objectives.
Conclusion
Starting a company in Albania can be an excellent opportunity to access foreign markets through a hub in the heart of the Balkans.
However, doing so without expert guidance means exposing the business to tax, banking, and operational risks that may emerge months—or even years—later.
Assessing, structuring, and coordinating are the three key principles for operating successfully between Italy and Albania.
Are you considering an expansion into Albania, or do you need to review a structure you have already set up?
Rogai & Partners can offer a confidential and practical preliminary assessment, drawing on hands-on experience and in-depth regulatory expertise on both sides.