Operating a Business

flag Albania Albania: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited Liability Company or Sh.p.k. (Shoqëri me Përgjegjësi të Kufizuar)
Number of partners: Minimum one person.
Capital (max/min): ALL 100 (EUR 1).
Shareholders and liability: Capital must be totally paid up when the company is formed.
Public Limited Company or Sh.a: Shoqëri Anonime
Number of partners: No limit to holdings.
Capital (max/min): ALL 10 million with public participation. ALL 3.5 million without public participation.
Shareholders and liability: When the company is formed, 25% of the capital must be paid up.
General partnership
Number of partners: 2 persons or more.
Capital (max/min): No minimum capital required.
Shareholders and liability: All the partners are collectively liable for their company's losses.
Limited partnership
Number of partners: Two or more partners: "Limited" partners associated with "unlimited" partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: "Limited" partners are only liable for the company's losses to the extent of their initial investment.
The Competent Organisation
After being entered in the National Registration Center, the applicant must request a commercial license and a tax identification number.
 
Setting Up a Company Albania Eastern Europe & Central Asia
Procedures (number) 5.0 5.3
Time (days) 4.5 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Albania.
National Registration Center
Ministry of Economy, Trade and Energy (in Albanian), Business Registration.

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The Active Population in Figures

201820192020
Labour Force 1,400,0721,422,0891,402,604

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 65.82%68.32%69.61%
Men activity rate 75.71%77.15%77.43%
Women activity rate 55.54%59.12%61.46%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
40 hours, but in reality many employees work at the week-end.
Retirement Age
65 (men) and 60 (women)
Working Contracts
As in most European Union countries, there are fixed term contracts and open-ended contracts. Most Albanian contracts are open-ended.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
In 2019, the minimum wage was ALL 26,000 per month according to the International Labour Organization (latest available data).
Average Wage
The gross monthly average wage was ALL 52,380 in 2019 according to the National Institute of Statistics (latest available data).
Social Contributions
Social Security Contributions Paid By Employers: 16.7% of salaries
Social Security Contributions Paid By Employees: 11.2% of the gross wage

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Social Partners

Social Dialogue and Involvement of Social Partners
Albanians are allowed to be unionized (except for the military), but they do not have the right to strike.
Unions
List of Workers' Unions in Albania
Unionisation Rate
20%
Labour Regulation Bodies
Institute of Statistics of Albania (INSAT)
Chamber of Commerce and Industry of Tirana
Ministry of Labor

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Latest Update: July 2022