Macedonia is an agro-industrial country on the Balkan Peninsula. This Republic is relatively young and small, so its economic development is dynamic. Tourism is well developed in the country – a number of health resorts are located on its territory. The leading branches of agriculture are tobacco, vegetable, and fruit growing, sheep breeding, winemaking, and textile industry. If you consider this jurisdiction, it is possible to arrange a legal presence here in one of these forms.
Major Forms of Legal and Business Presence
If you wish to found a business entity in Macedonia, this can be practically arranged in one of these most widespread forms:
- Limited Liability Company − body corporate that can have from 1 to 50 members who don’t bear any financial liabilities in excess of their contributions. The basic required capital is EUR 5,000.
- Public Joint-stock Company − a body corporate entity that can be formed by two members at least. The basic chartered capital requirement for this enterprise is EUR 25,000. Its shares may be listed and freely transferred to third parties.
- Partnership − a minimum of two partners are required for this business option. It can have two variations (1) general partnership − where all partners bear the unlimited liability for the results of the partnership’s operation, and (2) limited partnership − where should be at least one partner who bears the unlimited liability while other partners risk losing only within the amount of contributed funds to such a partnership.
Registration Requirements and Steps
The procedure for registering a company in Macedonia is simple and consists of just a few steps:
- Defining commercial priorities and a business name for a future entity.
- Collecting details about founders, beneficiaries, and managers of an enterprise
- Arranging a registered office for an entity and a minimum capital for incorporation.
- Drafting and submitting the Articles of Association along with other documents required for the registration.
- Register with the tax authorities and social systems.
- Entering the company into the Central Register of Macedonia.
- Making and receiving a company’s seal.
- Applying for and getting additional licenses and permits (necessary for regulated types of activities only).
Legal and Regulatory Framework
The procedure for opening a company in Macedonia is simple. Now some types of companies can be registered through the Central Register, where the amount of expenses is cut by 10% of the basic tariff. Thanks to such an electronic system, the registration procedure takes a maximum of 2 days. There is no requirement for the residency of company directors and shareholders.
It should be noted that Macedonian legislators pay great attention to the development of labor law in the new economic conditions. The 1991 Constitution enshrines the right of everyone to work, free choice of occupation, protection at work and material assistance during temporary unemployment, the right of every employee to be paid daily, to weekly rest and annual leave, join the trade unions, and strike.
Major state authorities in the area of doing business are the Central Registry of the Republic of Macedonia, the Ministry of Economy, and the Securities and Exchange Commission. Principal legal acts in the area of doing business are the Company Law and the Law on Securities.
Tax System of Macedonia
Company incorporation in Macedonia may be suitable taking into account the next tax highlights the jurisdiction is associated with:
- Corporate income tax (CIT) rate − 10%
- Personal income tax (PIT) rate − 10%
- Value-added tax rate − 18%
- Withholding tax rates − (i) dividends −10%, (ii) interests − 10%, (iii) royalties − 10%
- Capital gains tax rates − (i) corporate − subject to the basic CIT rate, (ii) individual − subject to the basic PIT rate.
Advantages of the Jurisdiction
Company registration in Macedonia may be promising in view of the next potential benefits:
- simple company registration process (one-stop-shop-system);
- many tax advantages;
- Macedonia signed 33 double taxation agreements protecting the foreign investors and their assets on the Republican market;
- quick start of activities;
- prices for utilities for companies are among the lowest in Europe.
How Prifinance Specialists May Help You
You mustn’t come to Macedonia to open a company. Prifinance’s specialists can do this for you, acting as your trustee. The staff of Prifinance has more than 60 employees of various profiles, including experienced lawyers, accountants, PR managers, and HR specialists. Our partners are such well-known companies as CardPay, CSOB, Citadele, Raiffeisen Bank, and others. If you need help, our specialists will be happy to provide you with services for starting and running a business.
We offer prompt company registration and bank account opening services in Macedonia and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.