Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Macedonia
Macedonia is among the top investment destinations in the European region. Apart from having a stable economy, investors are trooping to the country because of a great business climate. The government is providing a very competitive tax regime and offering a wide array of incentives. Indeed, there are some of the reasons why many business owners are looking forward to the company to incorporate in Macedonia.
At the same time, Macedonia is also a member of the North Atlantic Treaty Organization and European Union. This means it has access to big and diverse markets outside the country.
The country is holding a high score in terms of ease of starting a business. Investors are finding it easy to build their businesses from the ground because processes are simplified.
The business processes are being regulated by the Company Law enacted in May 2008. The government has made amendments since the passage of the law to adapt to the changing business environment. It shows that the country is doing its best to maintain its attractiveness as an investment haven. Macedonia knows the importance of offering competitive perks to its investors.
Benefits of Having a Company Incorporate in Macedonia
The Macedonian government is giving investors a lot of reasons to set up their business in the country.
Registration Process is Easy and Hassle-free
The authorities are making sure that the investors are not finding it difficult to register their companies. The government set up a one-stop-shop system, so the entrepreneurs do not have to go to many places when the company incorporated in Macedonia. Every process can be processed in a simpler and quicker manner.
Required Documents are Helping the Company Set Up
The regulator is asking for the Articles of Association of the company. It includes information about the investors, business address, representative of the company, and its nature of activities, among others. These documents are helping the company to account for all necessary details to begin operations.
Regulator Can Give Quick Approval
Business owners are always on the lookout for the approval of their company after submitting the requirements. If the government finds no problem, your company can easily receive approval. So, make sure you comply with every requirement.
Tax Regime is Attractive to Investors
Foreign investors are considering the tax regime of the country before they put up a business. They are favouring countries which offer competitive rates. In Macedonia, the value-added tax is 18 per cent, which is one of the lowest tax rates among European countries.
Types of Companies Business Owners Can Open in the Country
Before your company incorporate in Macedonia, you will have to choose the type of business you want to set up. Each of them caters to the specific needs and preferences of an investor. Here they are:
- limited liability companies
- joint-stock companies
- limited partnerships
- general partnerships
- sole proprietorships
Among the mentioned types of business, the limited liability company is most preferred in Macedonia, mirroring the trend in most European countries. Because it is easy to incorporate, investors are choosing this corporate structure so they can start their operations quickly.
A limited liability company requires at least one stockholder and 50 at most to be established. The minimum share capital for the entity is amounting to EUR 5,000, which should be deposited in a bank account.
Macedonia has a very welcoming market. This prompts the surge of foreign investors as well to the country. With this, the country is allowing them to purchase shelf companies. They can start operating this business once they secure ownership from the Central Registry.
Meanwhile, if you are setting up a Joint Stock Company, you are going to prepare a higher share capital amounting to EUR 25,000. The shares of a joint company can be registered with the Public Stock Exchange for trading.
A general partnership is requiring two or more members to set up the business under a deal in Macedonia. They are sharing the same responsibility and managerial powers in running the business. In addition, it does not have a minimum share capital.
Meanwhile, the limited partnership needs at least one general partner who has unlimited liability on profits and debts.
Setting Up the Limited Liability Company in Macedonia
To establish a limited liability company in Macedonia, foreign investors are submitting the necessary documents and information to the Trade Register and some local agencies in Macedonia. As mentioned, they are preparing EUR 5,000 as minimum initial capital for the business.
The company is also submitting its articles of association to the Central Registry of Macedonia. After they, they are applying for company seal, tax compliance, social contributions, and other related business matters.
How to Company Incorporate in Macedonia
To company incorporate in Macedonia, you have to draft and notarize the articles of association and secure the signature specimen of the manager first.
The one-stop-shop for the businesses, backed by Macedonia’s Central Registry, is the sole agency in-charge for all company registrations in the country. When the company founders submit the notarized documents, it is recorded to the Trade Register. It is given a statistic number.
After this, the company also registered with the Public Revenue Office. The notice of the company formation will then be published on the Central Register’s website. Following this, the company is set to open a bank account for itself.
The company is also accomplishing the registration of Employment Agency via the Central Registry. The agency is allowing the registration of the first company directors and employees with social funding.
Searching for Your Company’s Professional Consultant
When your company incorporate in Macedonia, you might need assistance from a corporate service provider. When you are engaging with one, make sure to do a background check first. This is to make sure you are doing business with a legitimate company which has the right expertise.
If you are looking for a team of accounting professionals, reach out to 3E Accounting. We are a dedicated team ready to help you and your company in every step of the way. Contact us.