Macedonia is financially progressive and is tax advantageous. Its government has and wishes to continue to free up access to financing trade liberalisation policies and future tax incentives. Companies created in Macedonia will continue to enjoy the Government’s plans for create tax-free zones and reduced tax burden.
Macedonia is presently ascending to become a member of the EU and NATO’s 30th country member. It has a stable, improving economy. Corporate income tax is as low as 10%. Personal income tax ranges is a flat 10%.
The country has 33 double taxation agreements and various Free Trade Agreements. They are: three multilateral (SAA, EFTA, CEFTA): Two bilateral (Turkey and Ukraine).
IT companies enjoy its wireless national backbone infrastructure and digital telecommunications systems. The country has a highly skilled workforce hired with low labour cost. The country has two international airports and an excellent road network.
The benefits of creating a company in Macedonia
The most common Company formation is Macedonia is Limited Liability companies known as Drushtvo so Ogranichena Odgovornost (D.O.O). They may be formed with minimum share capital of 5,000 EUR (MKD 306,000) and just one shareholder who does not need Macedonian residency to complete incorporation. Substance requirements are very low. Virtual offices and shelf, ready-made companies are allowed. Streamlined and properly submitted documents take just ten working days to set up a company.
Macedonia’s government has an electronic One-Stop-Shop System enabling investors to register their businesses after 4 hours of submitting on application. There are 28 offices around the country to do the application. It takes 1-2 business days minimum in practice to complete the incorporation process.
Foreign, like Macedonian nationals may create five company types: limited liability companies, joint stock companies, limited partnerships, general partnerships, sole proprietorships. It is possible to set up branch and subsidiaries in the country.
MACEDONIA’S BUSINESS ENTITY TYPES
Starting a Limited Liability Company – Drushtvo so ogranichena odgovornost (DOO)
The company type of choice ideal for national and international investors. Chosen for its simple and quick company set up. Requires having a minimum of a single 1 resident/non-resident shareholding director. Paid-up capital is just €5,000 (MKD 306,000). Turnover under €170,000 does not require an annual audit.
Establishing a Macedonia one or two tier Joint Stock Company – Akcionersko Drushtvo (AD)
Entrepreneurs favours joint stock companies for SME setup. There are two types – one- and two-tier systems.
- A one-tier Joint Stock Company: Needs a pre-elected Board of Directors prior to incorporation
- A two-tier Joint Stock Company: Prior to the company’s incorporation it needs a pre-elected Supervisory Board with a minimum of native/foreign 3 directors and 3 shareholders
Starting A Macedonia Limited Liability Partnership Company – Komanditno Drustvo (KD)
Limited Liabilty partnership companies in Macedona requires that its company management is a managed with a minimum of two national/international nationality partners. One must be a limited partner, the other a general partner. Like D.O.O, unless a Limited Liability Partnership has annual sales over €170,000 it will not need an annual audit. A minimum paid-up capital of €1 is required for company incorporation.
HOW TO FORM A DOO COMPANY IN MACEDONIA
The one-stop-shop system company registrations is done via 28 digitally integrated offices in Macedonia.
