LEGAL ALERT

The European Cooperative Society Enters Albanian Law

WHAT CHANGED

Law No. 77/2026 permits a European Cooperative Society (SHEB/SCE) to be formed and registered in Albania. It has legal personality, variable membership and capital, and normally limits members' liability to their subscribed contributions. Formation requires a cross-border element involving Albania and at least one EU Member State.

The law regulates formation, governance, member rights, accounts, restructuring and dissolution. On Albania's EU accession, the national provisions are repealed and existing SHEBs continue without interruption under Regulation (EC) No. 1435/2003.

WHO IS AFFECTED

Cooperative enterprises with cross-border activity, and the agricultural cooperation sector in particular — where Albania already applies a reduced 5% corporate income tax rate to agricultural cooperation companies under Law No. 38/2012, in force until 31 December 2029.

Also relevant to advisers structuring producer organisations, mutual and member-owned bodies with activity in more than one state.

WHAT TO DO

• Establish the relationship between the new SHEB form and existing agricultural cooperation companies under Law No. 38/2012, including whether the reduced tax rate follows the new form.
• As with the SE, establish the conditions of availability given Albania's position outside the EU before recommending the form.
• Note the employee involvement component, which mirrors the SE regime.