STABLE ECONOMIC MANAGEMENT AND LOW TAX RATES
Macedonia Company Formation and Residency
North Macedonia is a fairly young country that gained its independence in 1991. Kosovo, Serbia, Bulgaria, Greece, and Albania border the country. It provides the basis for company formation and investment opportunities for foreign investors and entrepreneurs. Thanks to its fertile valleys and forests, there is a thriving agricultural sector in the country. North Macedonia offers various advantages, such as taxes, to foreign entrepreneurs and investors who want to engage in commercial activities in the country. It also has numerous treaties (with more than 30 countries), such as double taxation treaties with the aim of creating a good fiscal environment.
Business Environment in North Macedonia
North Macedonia is one of the preferred countries for offshore company formation. There is a company law in North Macedonia that governs and regulates all aspects of company formation, including but not limited to business structures, activities, types of incorporation and procedures. Macedonia welcomes entrepreneurs interested in small and business ventures as more businesses can be established, thus providing more job opportunities for the locals.
Types of Companies in Macedonia
Foreign persons can establish and manage companies in North Macedonia with the same rights and privileges as local entrepreneurs. The country’s corporate legislation does not impose any restrictions on companies with foreign capital.
North Macedonia allows the following types of companies to be established:
General Partnership, Limited Partnership, Limited Liability Company (LLC), Joint Stock Company, Limited Partnership by Stock, Sole Proprietorship
Cost of setting up a company in Macedonia
Costs vary according to different demands such as the type of company in Macedonia, the number of partners, and Macedonian residence permit. Macedonia company formation time may vary according to needs and demands. Official expenses include official company establishment fees, notary costs, and translation costs. The country’s corporate legislation does not impose any restrictions on companies with foreign capital.
How to Get a Residence Permit in Macedonia?
All that is required to visit Macedonia is to have a passport, no visa is needed.
Your passport must be valid for at least 6 months. As an owner/partner/employee of a company, you can obtain a Macedonian residence permit. In this case, your first residence permit will have a validity period of 6 months, after which you can have a 1-year residence permit. If you renew your residence permit for 5 years without a break, you will have a chance to stay for 10 years. After the company is established, the partner of the company starts paying insurance premiums. After that, the spouse and the child under the age of 18 can obtain a residence permit.
Opening a Representative Office in Macedonia
A representative office of a foreign company is not a legal entity. Only activities of a research or information-gathering nature are allowed to be carried out. The registration of representative offices is carried out in the register of representative offices of foreign companies in Macedonia. The record is kept within the Central Register.
Opening a Corporate Bank Account in Macedonia
Before opening a corporate bank account in North Macedonia, go through all the options and choose a bank that offers all the services needed, such as online banking. Particular attention should be paid to services such as remote banking, online transactions, etc. To open a bank account in North Macedonia, you need to present identity documents and a document proving your address in the country. Non-residents can open a bank account in North Macedonia, but some banks may require you to have a local legal representative. The best and famous bank in Macedonia is NLB Banka Skopje.
What are the virtual office services in Macedonia?
Virtual office services in Macedonia are a set of possibilities for entrepreneurs who want to avoid opening a traditional office in Macedonia. These services are subject to low costs, and foreigners can take advantage of special facilities such as a notable business address, mail collection and forwarding, local phone number, private phone number, and voice mailbox on request. In addition, the collection of bank statements can also be provided upon request.
We can provide accounting services for your company in Macedonia
An accounting firm in Macedonia can be the right solution for your business, and there are many companies that outsource accounting services instead of a department that deals with such operations. Among the accounting services we can provide for your company, we provide payroll services, bookkeeping, VAT registration support, tax consulting and support for tax minimization methods if you want to reduce expenses in the company Dec.
It is also necessary to ensure that the annual financial statements of your company in Macedonia are presented in accordance with International Financial Reporting Standards.
Tax Rates in Macedonia
As an answer to the question of what advantages does setting up a company in North Macedonia bring, it is entitled to low corporate tax rates and lucrative tax advantages.
The country imposes a corporate tax rate of 10%, which is one of the lowest rates in Europe. VAT is at the level of 18% and dividend tax is at the level of 10%.
But the real appeal comes in the form of tax incentives. Among other advantages, the following incentives are provided to investors who want to establish a domestic or foreign company in Technological Industrial Development Zones:
Personal and corporate income tax exemption for the first ten years
Machinery, goods, raw materials, etc. exemption from customs duty for.
Long-term land lease for up to 99 years within the economic zone.
VAT exemptions (subject to conditions)
Corporate Tax is applied as a flat tax of 10%. At this rate, Macedonia is one of the countries with the lowest tax application in Europe, and it is planned to reduce this rate to 8% in the coming years.
The income tax rate applied in the country is also 10%.
The general application rate of Value Added Tax (VAT) is 18%, and VAT of 5% is levied on food products, public mains water, publishing and printing products such as books, newspapers and magazines, solar energy collectors, transportation, computer equipment and software.
Property Tax is 0.1-0.2%. Real Estate Sales Tax is applied at very low rates such as 2-4%.
Pension and Disability Insurance 21.2%
Health Insurance 9.2%
VAT is not charged up to an income of 300 euros.
Benefits of Company Formation in Macedonia
Low start-up costs
Qualified workforce
Low tax rates
Qualified workforce
Stable economic management
Macedonia Company Formation – Frequently Asked Questions for Bank Account and Other Requirements
We provide services in North Macedonia for company formation – residence permit, bank account opening – visa and all other areas you need.
The process of opening an account in North Macedonia differs greatly from bank to bank and depends on the client’s respective business model and background. In general, a bank account can be opened within a week.
Among the types of businesses you can set up in Macedonia, the limited liability company is the most adopted because of its ease of setup and the many benefits it provides to all investors.
Yes, companies from abroad can set up branches and subsidiaries operating in Macedonia through limited liability companies. The branches are completely subordinate to the parent company, and the subsidiaries are independent organizations.
Joint stock companies in Macedonia can be established with a minimum capital of €50,000 if they are publicly traded. As for the private ones, these can be registered with a minimum capital of 25,000 euros.
