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Company Formation in Macedonia FYR

Overview :

Macedonia is vulnerable to economic developments in Europe – due to strong banking and trade ties and dependent on regional integration and progress toward EU membership for continued economic growth. FYR Macedonia has made great strides in reforming its economy over the last decade. The World Bank has actively supported the country in strengthening its competitiveness for sustained economic growth, improving the business environment, strengthening human capital, improving the transport and energy infrastructure, and supporting the decentralization process.

Advantages of Incorporating Business in Macedonia
  • Macedonia is a country that offers the lowest costs for doing business
  • Macedonia has signed free trade agreements with all countries in Europe provide a market of 660 million inhabitants where products could be exported without customs duties.
  • Macedonia has a high potential involving a large number of educated people who are ready to join the companies.
  • There is a stable market economic policy, low indebtedness, low inflation and that means favourable business conditions.
  • Macedonia has fee economic zones offering special benefits for companies that are investing.
  • Macedonia provides a flat corporate and personal income tax.
  • There is no VAT and customs duties for export production.

Tax Regime

It was the main idea of the new independent government to make the taxation regime attractive to foreign investors. A resident is a person who spends in Macedonia at least six months in a year; such a person must pay income tax on local and international source of income. Non-residents are liable to pay taxes only on income derived from activities conducted on the territory of the country. Companies are liable to corporation tax at a rate of 10%. Companies, partially or fully owned by foreign shareholders, receive significant reliefs and discounted rates for corporate tax purposes. Capital gains are taxed as a part of income tax.

Types of entities

Limited Liability Company :

Limited Liability Company is a trade company in which one or more natural or legal persons participate with one contribution each in the company’s pre-determined founding capital. The contributions may vary in amount. The members shall not be liable for the company’s liabilities.

Joint-Stock Company :

Joint Stock Company is a trade company in which the shareholders participate with contributions in the charter capital that is divided in shares. The shareholders shall not be liable for the company’s liabilities.

Branch Office :

A branch office is not a legal entity. It works on behalf of its mother company and all responsibility is borne by the mother company.

Representative Office :

Representative offices can be opened by foreign companies to carry out non-income generating activities, such as advertising or market research on behalf of their parent company.

Franchisee :

Franchising is a relatively new concept for the business community in Macedonia. The legal system in Macedonia accommodates franchise agreements, although Macedonian law does not explicitly cover franchising. The Macedonian Franchise Association was established in 2003 specifically to help domestic and foreign companies with these issues.

Joint Ventures / Licensing :

Existing legislation permits joint ventures, including a combination of foreign and domestic investment. With many large firms undergoing privatisation, joint ventures are becoming more common. A local company often joins forces with a foreign company that provides equipment and merchandise, while the local company provides buildings, warehouses, office space and personnel.

Time Required

It usually takes 2 days to incorporate a business in Macedonia FYR.