North Macedonia is one of the most emerging countries in Southeastern Europe. Gaining independence in 1991 from Yugoslavia, it had quite the challenge to transform itself from being a planned economy, to an open market.
Nowadays, as a NATO member and EU candidate, North Macedonia offers a lot of opportunities when it comes to new businesses investing in the country.
Services and industry are main sectors that drive the economic growth in the country, while the textile sector is the main source of foreign trade.
Why should you invest in a business in North Macedonia?
The country is considered as one of the easiest in Europe to launch a business. In just 4 hours, you can open your own company here. The tax environment in North Macedonia is very favorable, as it has one of the world’s lowest corporate income tax rates.
There are several investment zones which offer 10 years tax holidays for profits, incomes, VAT, etc. The geographical position of North Macedonia is also very favorable, as it is close to two of the main European transport corridors.
One of the key industries which are considered attractive in the country are:
- Automotive components
- Information and communication technology
- Food processing
- Wine industry
Excellent tax environment
As mentioned above, one of the biggest advantages of the Macedonian business climate are the favorable tax rates. You can see how taxes range in the country in the following list:
- Personal income tax – 10%
- Profit tax / Corporate income tax – 10%
- Value added tax (VAT) – 18% (general tax rate) and 5% (preferential tax rate)
- Property tax – 0.1-0.2%
- Inheritance and gift tax – 2-5%
- Sales tax on real estate – 2-4%
- Custom duties – 5-20%
- Industrial products – 3%
- General average – 5%
If the entity that has business operations in North Macedonia comes from a country that signed the Double Taxation Avoidance Treaty with North Macedonia, the tax rate for that income assessed in the Law should not exceed the tax rate which is applied for the income determined in the Agreement.
Registering a company
When you are sure about the type of business you want to open, and define your general strategy and financial plan, the next step is to register your company in the Central Registry of North Macedonia. This is a state-owned organization which represents the central informative base of legal entities in the country.
Information that should be delivered to the Central Registry about your company are:
- Company Name – The official legal entity name that you want to represent your company. It should be unique and still not registered by anyone else yet.
- Company Address – Physical address where the company will execute its business activities. Your address represents an official location through which the governmental institutions are going to contact you for any business activities concerning your company.
- Official Email Address – The official communication between the company and the government institutions will be done through this email.
- Company Founder – The name of the person who is the owner of the business and guarantees with its monetary or non-monetary deposit.
- Company Manager – The name of the person who executes all of the business activities in the company, signing documents, etc.
- Company Type – Short description of the general field where the company operates. There are several types of companies that can be registered in North Macedonia. You can see more on that in the following part of this article.
- Bank for Collaboration – Commercial bank where the company will be doing all of its financial activities. If the founder decides to open a company with a 5.000 euros deposit, it is needed to have a chosen bank upfront, so the bank can create an account with limited time until the company is not fully established and has its own bank account.
What types of companies can you register?
Before you open a company, it is important to be aware of the legal possibilities available, and which type of company is the most adequate for your business. Main forms available in North Macedonia are:
- General Partnership – Made by two or more partners with the same responsibilities and management powers. The partners’ own properties can be used in a case of liquidation of the company.
- Limited Partnership – This type can have one general partner with unlimited liability, and one with limited liability. The general one is doing all the decisions.
- Limited Liability Company (LLC) – Business entity launched by an owner (DOOEL) or several owners (partnership – DOO) who are guaranteeing only with the property of the company. This type of business usually has more employees. In order to launch an LLC in Macedonia, you need 5.000 euros as deposit in cash or inventory.
- Joint-Stock Company (AD) – A business type made for large companies where the liability is limited. The minimum share capital is 25.000 euros.
- Limited Partnership by Stock – A business form represented by at least three shareholders, general partners and silent partners.
- Sole Proprietors – Smallest organizational structure by one person, who guarantees with its private properties
Why is Aleksandar-AK the ideal accounting partner for your business in North Macedonia?
Want to start with your business in North Macedonia? We provide a complete solution for your needs. You do not need to worry anymore about the challenges of starting in a completely new market, as well as the administrative service and invoices.
All of the companies registered in the country are obliged to have annual account every calendar year, prepared by a certified accounting office.
Our team is dedicated to providing you the best service possible. Now, you can really focus on developing and realizing your business ideas in this country.
Aleksandar-AK as an accounting office was opened in 1999, and with 22 years of experience, we now operate more than 350 local and international companies. Our mission is to develop a strong relationship with every one of our clients, based on trust and confidence.
Do you want Aleksandar-AK to be your accounting office for your business in North Macedonia? Make a calculation for your business, and we will contact you immediately.
You can also contact us right now on +38970360766 or firstname.lastname@example.org