ABOUT ALBANIA

Amongst all the countries in Europe, Albania, officially the Republic of Albania, is a captivating nation located in the Balkan Peninsula, bordering the Adriatic and Ionian Seas. It is known for its rugged mountains, beautiful coastline, and a rich historical heritage influenced by Greek, Roman, and Ottoman civilizations. The capital of Albania is Tirana, which is its largest and most populous city, serving as the country’s main economic, cultural, and political hub. According to the report of the World Bank, Albania is classified as an Upper Middle-Income Economy, actively pursuing reforms to strengthen its market economy and integrate further with the European Union. The currency of Albania is the Albanian Lek (ALL), and the value of 1 Indian Rupee is approximately 1.13 Albanian Lekë (or 1 ALL is approximately 0.88 INR) as of today’s exchange rates (June 2025). The population of Albania is estimated to be around 2.8 million in 2024. Its neighbouring countries are Montenegro to the northwest, Kosovo to the northeast, North Macedonia to the east, and Greece to the south and southeast. The official language of the country is Albanian, with various dialects. The majority of the Albanian population identifies as Muslim, with significant Christian (Orthodox and Catholic) minorities. Currently, Albania has one major international airport, Tirana International Airport Nënë Tereza (TIA), serving as the primary gateway for international air travel. As Albania borders the Adriatic and Ionian Seas, it has several key commercial seaports, including Durrës, Vlorë, and Shengjin, which are crucial for facilitating international trade and connecting Albania to Europe and beyond.

The corporate income tax rate in Albania is generally 15%. However, there is a simplified tax regime for small businesses, and various incentives, including tax exemptions or reduced rates, are offered for investments in specific strategic sectors like tourism, manufacturing, and energy, or in designated economic zones. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Albania has to be done with utmost care, keeping in mind the laws of the country. The Albanian Investment Development Agency (AIDA) is the key institution for promoting investment and assisting foreign investors in setting up businesses. A foreign investor who is planning to start his business in Albania can form various company types, such as a Limited Liability Company (LLC/SHPK), a Joint Stock Company (SHA), or a Branch Office. A Limited Liability Company (SHPK) formed and registered in Albania generally allows foreign investors to own 100% of the company, offering a straightforward approach to direct investment.

In case an investor is planning to establish an LLC (SHPK) in Albania or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Albania and we will also guide you about how to follow the procedure while formulating your company in Albania.

Types of Business which can be started in Albania:

• Tourism & Hospitality: Albania’s stunning coastline, historical sites (UNESCO heritage), and untouched mountainous regions offer immense potential. Opportunities are vast in developing boutique hotels, resorts, eco-tourism ventures, adventure tourism, and cultural tour operations. Medical tourism is also emerging.
• Energy (Hydro & Renewables): Albania relies heavily on hydropower but has significant untapped potential for solar and wind energy. Opportunities exist in developing new hydro plants, large-scale solar farms, wind power projects, and modernizing existing energy infrastructure.
• Agriculture & Agro-processing: With diverse climate zones, Albania can produce a variety of agricultural products. Opportunities lie in modernizing farming techniques, cultivating high-value crops (e.g., olives, grapes, medicinal plants), and especially in agro-processing to add value for both domestic and export markets (e.g., olive oil, wine, processed fruits).
• Manufacturing: This sector is strong, particularly in textiles, footwear, and construction materials, often serving as sub-contractors for European brands due to competitive labour costs and proximity. Opportunities exist in expanding these industries and diversifying into other light manufacturing.
• Infrastructure & Construction: Driven by increased tourism, urban development, and EU integration efforts, there’s a continuous demand for investment in roads, ports, urban infrastructure, and commercial/residential property development.
• Information & Communication Technologies (ICT) & BPO: Albania has a young, educated, and multilingual workforce (especially in Italian and English). Opportunities exist in software development, IT services, BPO (Business Process Outsourcing), call centers, and digital solutions for local and international clients.
• Mining: Albania has reserves of chrome, copper, nickel, and coal. While past operations faced challenges, opportunities exist in modernizing extraction, mineral processing, and exploring new deposits with sustainable practices.
• Fisheries & Aquaculture: With its coastline and lakes, opportunities exist in sustainable fishing, fish processing, and developing aquaculture ventures for both domestic consumption and export.

Advantages of Starting Business in Albania:

• Strategic Geographic Location: Proximity to major European markets, with direct access via the Adriatic and Ionian Seas, making it a gateway to the Balkans.
• Low Labor Costs: Offers competitive labor costs compared to other European countries, making it attractive for manufacturing and service industries.
• EU Integration Path: As an EU candidate country, Albania is harmonizing its legal and regulatory framework with EU standards, providing a stable and familiar business environment.
• Attractive Tax Regime & Incentives: Features a relatively low corporate tax rate and various incentives for foreign investors in priority sectors.
• Growing Tourism Sector: A rapidly expanding tourism industry provides direct and indirect business opportunities across various sectors.
• Young & Multilingual Workforce: A youthful population with a good command of foreign languages, particularly English and Italian.

Business Opportunities for Indians in Albania:

There are excellent business opportunities in Albania for new investors who are planning to start their business abroad. As Albania continues its path of economic liberalization and EU integration, it presents untapped potential. Indian investors, with their strengths in pharmaceuticals, IT services, manufacturing (especially textiles and footwear), renewable energy, and infrastructure development, can find significant opportunities. There is also potential for collaboration in tourism, especially in promoting Albania as an emerging destination.

Imports & Exports:

Many goods are imported and exported from Albania. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Albania to India:

• Petroleum oils
• Ferro-alloys (e.g., ferro-chrome)
• Footwear
• Textile and apparel articles
• Copper and articles thereof
• Medicinal and aromatic plants

Major items which are imported in Albania from India:

• Pharmaceutical products
• Vehicles and automotive components
• Machinery and mechanical appliances
• Rice and other food preparations
• Textile fabrics and articles
• Chemicals
• Plastic articles

Manufacturing:

Opportunities in manufacturing are strong, particularly in the production of textiles and footwear for export, often under ‘processing’ agreements with European brands. There’s also potential in light manufacturing of construction materials, processed foods, and beverages for the domestic market.

Mining:

The mining sector in Albania holds significant reserves of chrome, copper, nickel, and coal. Opportunities exist in modernizing existing extraction operations, improving processing techniques, and exploring for new deposits, with a focus on sustainable and efficient practices.

Major Indian companies which are currently working in Albania:

While large-scale Indian corporate presence might be less prominent compared to some larger economies, Indian businesses have established connections, particularly through trade and specific investments:

• Pharmaceuticals: Indian pharmaceutical companies are major suppliers of medicines and healthcare products to the Albanian market.

• Textiles: Indian companies may be involved in sourcing or subcontracting arrangements within the Albanian textile industry.

• Trade: Indian traders are active in importing various goods from India into Albania.

• Some private Indian investors might have ventured into hospitality or smaller manufacturing units.

• GDP = $24.0 billion (2023 est.)

• GDP Growth = 3.6% (2023 est.)

• Ease of doing business rank = 82 (2020 – Note: The World Bank discontinued this report, but this is the last available ranking.)

• GDP per Capita = $8,529 (2023 est.)

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