Macedonia Company Formation and Why It is Good to Invest
Macedonia is in the Balkan Peninsula, and it was established after Yugoslavia collapsed. Macedonia share the borders of Greece, Albania, Serbia, and Bulgaria. There are about 2 million people in Yugoslavia, and approximately 64% are Macedonians, and 25% Albanians. The Macedonia residents are mostly Catholics, Orthodox Christians, Protestants, and Islam. The official language is Albanian, and its climate features moderate to subtropical. If you are planning a Macedonia company formation, take note of them.
Macedonia has a centralized and well-implemented registration for companies, and the government makes it easy for foreign investors to operate in the country. They need to use a variety of business forms, and the country’s registration process is less bureaucratic and easy.
Macedonia Company Formation
The Limited Liability Company (LLC) is the most common structure of business for investors because the registration easy. In addition, there are tax advantages and activities start fast. At least one shareholder but does not exceed to 50 can open an LLC in Macedonia, with a share capital of MKD 308,000. The Memorandum of Association and Articles of Association are the bases of an LLC incorporation in this country. The documents of a Macedonia company formation must have:
- Company name
- Core or main activity of the business
- Company headquarters in Macedonia
- Name of the bank where the company will open a bank account
- The owners’ names. If it is for a physical person: name, surname, residential address, ID card and passport copy. For a legal entity: The company’s current status issued by the trade register in their native country that is less than 3 months.
- An authorized representative – manager; a copy of their passport and ID card
- The initial capital which is a minimum of 5,000 euros
- Owner’s liabilities information and how the profit distribution is, based on the shares
- Anyone can be the director or company shareholder regardless of their nationality and citizenship
- Natural persons, as well as legal entities can be company shareholders in Macedonia
- The company must appoint a manager
- The legal address must be in Macedonia’s territory
- In the registration process, the founder’s passport and utility bills will be used
- The person establishing the company does not need to be present. They can have an authorized representative who acts on your behalf, but must have a power of attorney
- Documents needed to register must have a translation provided by an authorized translator. It must be notarized
- The company’s fact of registration will be put on the Central Register of the Republic of Macedonia
Purchasing a ready-made company in Macedonia
A lot of business persons would rather shorten their activities, without waiting for the formalities of registration. It is normally suitable for investors to choose a ready-made company because it only uses a simple DOO form, and it is already registered. Shelf companies have an advantage of fast ownership transfer, no registration, no debts, and the chance of getting local bank credits. The accounting history and market credibility of the shelf company matters when loaning from a bank.
Established companies in Macedonia have a 10% tax rate based on the registered income, which is among the lowest in Europe. The rate can also be applied to dividends of state companies. When it comes to value added tax, this is set at 18% in Macedonia on specific services, activities, and goods. Since the government is offering incentives and encouragements in the significant sectors of the country, businesses can develop easily. That is because they can benefit from tax exemptions, and there is a need to hire an accounting firm that takes care of the firm’s financial operations. It does not matter if it is a local or abroad LLC.
If you have any trouble opening a business in Macedonia, contact 3E Accounting. You can even go to us to help you with all steps of Macedonia company formation.