Doing business in North Macedonia (formerly known as Macedonia) is generally viewed as favorable for foreign investors due to its strategic location, low tax rates, and streamlined company registration process.
Here is a general guide on how to approach it:
1. Key Business Environment Advantages
- Low Tax Rates: The country offers a flat 10% Corporate Income Tax (CIT) and a flat 10% Personal Income Tax (PIT), which are among the lowest in Europe.
- Strategic Location: Its position in the Balkans, at the crossroads of European transport corridors, provides duty-free access to the EU and other regional markets through various trade agreements (e.g., CEFTA).
- Investment Incentives: Various incentives are available, especially in the Technological Industrial Development Zones (TIDZ), which can include a 10-year tax holiday on corporate and personal income, customs duty and VAT exemptions, and subsidies for job creation and capital investment.
- Streamlined Registration: The “One-Stop-Shop” system at the Central Register of North Macedonia aims to complete company registration quickly, often within a few days.
2. Steps to Register a Company
The most common legal structure for foreign investors is a Limited Liability Company (DOO) or a Single-Member Limited Liability Company (DOOEL).
- Choose a Legal Structure and Name: Decide on the company type (DOO is most common) and reserve a unique company name with the Central Register.
- Determine Capital and Founders:
- The minimum required capital for a DOO is €5,000. This capital can be contributed within one year of registration.
- Identify the owner(s) (shareholders) and the authorized representative (manager/director), who can be foreign nationals.
- Prepare Documentation: Typically includes:
- Articles of Association or a Founding Agreement/Statement.
- Verified copies of passports/IDs for individuals, or registration documents for foreign legal entities (often needing to be notarized and apostilled).
- Proof of the registered office address.
- Submit Registration Application: File the application and all supporting documents with the Central Register of North Macedonia (either in person or electronically through an authorized agent). The process includes obtaining a Tax Identification Number (TIN).
- Open a Corporate Bank Account: The appointed manager must usually appear in person at a local bank to finalize the opening of the company’s bank account.
- Secure Permits and Licenses: Depending on your sector (e.g., finance, construction, health, education), you may need to apply for specific operational licenses from the relevant ministry or national agency.
- Register for VAT: If your expected annual revenue exceeds the mandatory VAT registration threshold (currently around €30,000), you must register with the Public Revenue Office.
- Register Ultimate Beneficial Owner (UBO) and Foreign Direct Investment (FDI): Mandatory registrations that are typically handled by the registration agent during the incorporation process.
3. Potential Business Opportunities
Key sectors attracting investment include:
- Manufacturing: Particularly automotive parts, textiles, and chemicals, often benefiting from the TIDZ incentives.
- Information and Communication Technology (ICT): A fast-growing sector supported by a young, multilingual, and tech-savvy workforce.
- Agribusiness and Food Processing: Opportunities in tobacco, fruits, vegetables, and wine production.
- Energy: Focusing on green energy and renewable energy projects.
- Tourism and Hospitality: Especially in areas like Lake Ohrid and Skopje.
Important Note
While the registration process is simplified, navigating the local regulatory environment, obtaining necessary permits, and dealing with occasional bureaucratic inefficiencies can be challenging. It is highly advisable to engage a local legal, accounting, or professional consulting firm to assist with the company formation and compliance to ensure a smooth and correct setup.