Macedonia Company Formation
North Macedonia Company Formation: A Strategic Gateway to the Western Balkans Main Characteristics and the basic rules of Company registration in Macedonia
North Macedonia has rapidly become one of Southeast Europe’s most attractive destinations for international investors seeking an efficient, cost-effective, and tax-friendly business environment. With a strategic location bridging Europe and the Balkans, a liberal investment climate, and favorable trade agreements with the EU, North Macedonia company formation presents excellent opportunities for entrepreneurs looking to expand into emerging European markets.
This comprehensive and comprehensive guide explores everything you need to know about setting up a company in North Macedonia — including advantages, company types, formation procedures, taxation, and how professional assistance can streamline your business setup.
Why Choose North Macedonia for Company Formation?
North Macedonia combines economic stability, competitive tax rates, and foreign investor-friendly policies to create an ideal business environment. As a candidate country for EU membership, it offers both growth potential and proximity to major European markets.
Key benefits of company formation in North Macedonia include:
- Strategic Geographic Location: Easy access to Central and Southeast Europe, Turkey, and the Middle East.
- Attractive Tax Regime: One of the lowest corporate tax rates in Europe at just 10%.
- Full Foreign Ownership: 100% foreign ownership permitted for all company types.
- No Restrictions on Profit Repatriation: Investors can freely transfer profits abroad.
- Investment-Friendly Policies: Streamlined registration processes and business incentives for foreign investors.
- Skilled and Affordable Workforce: Highly educated labor pool at competitive salary levels.
- Free Trade Agreements: Access to EU markets through CEFTA, EFTA, and bilateral agreements.
Types of Companies in North Macedonia
Foreign investors can choose from several company structures, depending on their business goals and investment scale.
- Limited Liability Company (Društvo so Ograničena Odgovornost – DOO / DOOEL)
The most common and flexible company type for local and foreign investors. Requires a minimum share capital of MKD 5,000 (approx. €80). Liability is limited to the amount of capital invested.
- Joint Stock Company (Akcionersko Društvo – AD)
Designed for larger businesses and those looking to attract shareholders. The minimum share capital is MKD 25,000 (€400) for private and MKD 50,000 (€800) for public JSCs.
- Branch Office
A foreign parent company can establish a branch to conduct business in North Macedonia without forming a separate legal entity.
- Representative Office
Intended for marketing and liaison activities only. It cannot perform commercial transactions or generate profit.
Advantages of North Macedonia Company Formation for Non-Residents
- Low incorporation and maintenance costs.
- Simple online registration procedures.
- No restrictions on business sectors for foreign ownership.
- Access to European and regional markets.
- Competitive taxation and regulatory simplicity.
- Access to government incentives for export-oriented businesses.
Disadvantages of North Macedonia Company Formation
- Language Barrier: Legal documentation is in Macedonian and requires certified translation.
- Developing Infrastructure: Some regions may lack modern facilities or transport links.
- Regulatory Complexity: Certain industries (e.g., energy, telecom, finance) require special licenses.
- Small Domestic Market: Domestic demand may be limited compared to larger EU economies.
Requirements for Company Registration in North Macedonia
To register a company, investors generally need the following:
- Company Name Reservation Certificate (verified by the Central Register).
- Founders’ and Directors’ Identification Documents.
- Registered Office Address in North Macedonia.
- Articles of Association / Memorandum of Incorporation.
- Proof of Paid-Up Share Capital.
- Bank Account Details.
- Tax and Statistical Registration.
All foreign documents must be translated into Macedonian and notarized or apostilled.
Procedure for Company Formation in North Macedonia
The company formation process is designed to be efficient and transparent. Here’s how it works:
- Choose the Company Type: Decide on the most appropriate legal structure (LLC, JSC, branch, etc.).
- Reserve the Company Name: Submit your chosen name to the Central Registry of North Macedonia.
- Prepare Incorporation Documents: Draft and notarize the Articles of Association and other founding documents.
- Deposit Share Capital: Transfer the required share capital to a Macedonian bank account.
- Register with the Central Registry: Submit all incorporation documents for official registration.
- Obtain a Tax Identification Number (TIN): Register with the Public Revenue Office for tax purposes.
- Register for VAT (if applicable): Mandatory if annual turnover exceeds the VAT threshold.
- Obtain Sector-Specific Licenses (if required): Depending on the nature of the business.
Timeframe for Company Registration in North Macedonia
|
Stage |
Estimated Duration |
|
Name Reservation |
1–2 business days |
|
Document Preparation & Notarization |
2–3 business days |
|
Central Registry Registration |
3–5 business days |
|
Tax and VAT Registration |
2–4 business days |
|
Bank Account Activation |
2–3 business days |
Total Estimated Time: Approximately 10–14 business days (around 2–3 weeks) for full incorporation.
Corporate Tax System in North Macedonia
North Macedonia boasts one of the most competitive tax systems in Europe, aimed at encouraging foreign investment and economic growth.
|
Tax Type |
Rate |
Notes |
|
Corporate Income Tax (CIT) |
10% |
Flat rate on company profits. |
|
Value Added Tax (VAT) |
18% |
Standard VAT rate (5% for specific goods). |
|
Withholding Tax |
10% |
On dividends, royalties, and interest paid to non-residents. |
|
Personal Income Tax |
10–18% |
Progressive rate depending on income. |
|
Double Taxation Treaties |
40+ countries |
Includes EU, UK, China, UAE, and others. |
Key Advantage: Profits reinvested within the company may benefit from deferred taxation, encouraging business expansion.
How We May Help You with Our Professionals
Our experienced team provides full-spectrum support for North Macedonia company formation, ensuring compliance, efficiency, and long-term success.
Our services include:
- Company name search and registration.
- Legal document drafting and translation.
- Registered office address and local representation.
- Assistance with bank account opening.
- Tax, VAT, and accounting setup.
- Business licensing and permits.
- Ongoing corporate compliance and secretarial services.
Start Your North Macedonia Company Formation with Confidence
With its pro-business tax regime, EU-access trade advantages, and affordable setup costs, North Macedonia is an excellent destination for entrepreneurs and investors expanding into the Balkans.
Our dedicated professionals simplify every step of the North Macedonia company formation process, from registration to compliance, allowing you to focus on growing your business.
Contact us today to begin your incorporation journey in North Macedonia — your gateway to a thriving and strategic European market.
Questions & Answers
What are the main types of taxes in Macedonia?
Macedonia has several key taxes, including income tax, value-added tax (VAT), corporate tax, and property tax. Income tax is typically a flat rate of 10% for individuals, while corporate tax also stands at 10%. VAT is applied at a standard rate of 18%, with reduced rates for certain goods and services.
How is personal income tax calculated in Macedonia?
Personal income tax is calculated on a flat rate basis. Individuals pay 10% on their taxable income after allowable deductions. Allowable deductions can include social security contributions, healthcare costs, and certain expenses related to education.
Are there any tax incentives for businesses in Macedonia?
Yes, Macedonia offers various tax incentives to attract foreign investment. These include reduced corporate tax rates for new businesses, exemptions on reinvested profits, and tax holidays for certain industries. Specific incentives can vary depending on the region and sector.
What is the procedure for filing taxes in Macedonia?
Taxpayers must submit their income tax returns annually by the end of April for the previous year. Corporate taxpayers need to provide financial statements along with their tax returns. Online filing is available, simplifying the process for individuals and businesses.
Is there a tax treaty network in Macedonia?
Yes, Macedonia has signed double taxation agreements with several countries to prevent double taxation of income. This benefits expats and foreign investors by ensuring they are not taxed twice on the same income. The list of countries with which Macedonia has agreements is available on the official government website.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
What types of companies can non-residents form in Macedonia?
Non-residents looking to establish a business in Macedonia can typically form two types of companies: a Limited Liability Company (LLC) and a Joint Stock Company (JSC). LLCs are more common due to their flexibility, limited liability protection, and minimal regulatory requirements. They require at least one shareholder and one director, and the capital requirement is relatively low. JSCs are suitable for larger businesses that plan to raise capital through the issuance of shares, requiring at least three shareholders and a higher minimum capital investment.
What are the benefits of forming a company in Macedonia?
Forming a company in Macedonia offers numerous advantages. The country has a favorable tax regime, including a flat corporate tax rate of 10%, which is one of the lowest in Europe. Additionally, Macedonia provides an excellent geographical location with access to both European and Balkan markets. The cost of doing business is relatively low, including operational costs and labor. Furthermore, non-residents can repatriate profits freely, making it an attractive option for foreign investors seeking to tap into Eastern European markets.
What are the general requirements for company formation in Macedonia?
To form a company in Macedonia, non-residents must fulfill specific legal requirements. These include choosing a unique company name, drafting the company’s Articles of Association, appointing at least one director and one shareholder, and registering the company with the Central Register of the Republic of Macedonia. Additionally, a minimum share capital is required: for LLCs, it is 5,000 MKD (about 100 EUR) and for JSCs, it is 2 million MKD (about 32,500 EUR). Non-residents may also need to provide a notarized declaration of their foreign status.
Are there any restrictions for non-residents wanting to set up a company in Macedonia?
While Macedonia welcomes foreign investors, there are certain restrictions to consider. Non-residents cannot own property, except for specific types of legal entities or project-related investments. Additionally, certain regulated industries, such as banking, insurance, and telecommunications, may have additional requirements or licensing restrictions. It is advisable for non-residents to consult with a local legal expert to navigate these regulations efficiently and avoid potential pitfalls in their business endeavors.
How long does it take to form a company in Macedonia?
The process of forming a company in Macedonia is relatively straightforward and can be completed within a short timeframe. Generally, it takes about 5 to 10 business days to register a company after submitting all the necessary documents, including the Articles of Association, director and shareholder details, and the application form to the Central Register. However, this timeframe may vary depending on the completeness of the application and any potential regulatory checks. Engaging a local legal or business consultant can expedite the process.
What do I need to consider before starting a company in Macedonia?
Before starting a company in Macedonia, it is crucial to conduct thorough market research to understand the local business environment, industry demands, and competition. Non-residents should consider the legal implications, tax obligations, and the availability of skilled labor. Additionally, understanding the cultural aspects of doing business in Macedonia, networking opportunities, and local regulations is vital for long-term success. Consulting with local experts can provide valuable insights and assist in making informed business decisions.
or contact our tax and company formation team at