Company in Macedonia
North Macedonia is a country located in the heart of the Balkan Peninsula. Due to its location between larger countries and its small size, it is not widely known to many Europeans, especially entrepreneurs. Meanwhile, for several years the local authorities have been actively courting investors from across Europe through a marketing campaign called “Invest in Macedonia. A number of actions taken by local decision makers since the first decade of the 21st century lead to dynamic development of the region and make it more attractive in terms of profitability of doing business.
Taxes in Macedonia
Open business in Macedonia can be a very interesting alternative for Central and Western European business. Thanks to the legislation there, it is now possible to speak of North Macedonia as one of the most tax attractive countries in Europe. Corporate income tax (CIT) is only 10%, and personal income tax (PIT) is between 10% and 18%, depending on the amount of income earned.
In addition, North Macedonia has signed free trade agreements with European Union countries, EFTA countries (Switzerland, Norway, Iceland and Liechtenstein), CEFTA countries (Albania, Moldova, Serbia, Montenegro, Bosnia and Herzegovina and Kosovo) as well as Turkey and Ukraine, resulting in duty-free trade with over 650 million entities.
Company registration in Macedonia
The government of this country is consistently pursuing a strategy whereby establishing a company in Macedonia is to be simplified as much as possible. This is why in recent years the so-called one-stop system has been introduced there, which enables investors to company formation in Macedonia in the form of a single submission of documents in only one institution. The whole process is supposed to take no longer than 4 hours, which means that registering
a company in Macedonia is simpler and faster than in most Western countries.
Foreign investors do not have to meet any additional requirements beyond those that apply to local entrepreneurs. The Macedonian commercial law stipulates that companies are independent entities, completely separate from their founders, partners or managers. The Macedonian legal system provides for five different forms of companies – joint stock company (AD), limited liability company (DOO), general partnership (JTD), limited partnership (KD) and limited joint-stock partnership (KDADA).
Open company in Macedonia in the form of a limited liability company can be done by not less than 2 and not more than 50 partners (the exception is DOOEL – a one-man limited liability company). In general, the contract of such
a company must contain the object of activity, the method of representation, the decision-making entity and the method of income distribution (or loss coverage), and the signatures on such contract must be certified by a notary public. The minimum share capital is €5,000.
North Macedonian economic zones
Technological-Industrial Development Zones (TIDZs) are the de facto Macedonian equivalent of special economic zones known in Poland. Investors who decide to open a business in such a zone may count on exemption from income tax even for a period of up to 10 years.
Moreover, they offer additional benefits in the form of ready-made infrastructure necessary for potential entrepreneurs. Each zone has the possibility of free-of-charge connection to utilities and exemption from fees for construction site preparation. Moreover, it is possible to obtain grants of up to EUR 500,000 to start construction, and the lease of land on preferential terms can be for up to 99 years.
Ready made company in Macedonia or buying a company in Macedonia
Due to the simplicity and speed of the process of establishing a business, buying a company in Macedonia is not very popular. Considering the existing facilitations for entrepreneurs, such procedure is not profitable.