North Macedonia is a country located in the Balkans region of Europe. It gained independence in 1991 after the breakup of Yugoslavia and is bordered by Serbia, Kosovo, Albania, Greece, and Bulgaria. The country has a population of approximately 2.1 million people and its capital city is Skopje. The official language is Macedonian and the currency is the Macedonian denar.
North Macedonia is a member of the United Nations, NATO’s Partnership for Peace program, and is a candidate for EU membership. The country has made significant progress in recent years in terms of economic and political reforms, and has emerged as a popular tourist destination in the Balkans region.
The country is known for its diverse natural beauty, including scenic mountains, lakes, and forests, as well as its rich cultural heritage, which reflects its long and complex history. North Macedonia is also famous for its delicious food, which combines elements of Mediterranean and Balkan cuisine, and is a source of pride for many Macedonians.
Types of business structures & minimum required paid-up capital
In North Macedonia, the minimum paid-up capital required for different business structures as reflected in the table below:
| S# | Type of business | Local Name | Minimum required paid-up capital |
| 1. | Limited Liability Company (LLC) | Drushtvo so ogranichena odgovornost | €90 |
| 2. | Joint Stock Company | Akcionersko drushtvo | €900 |
| 3. | Sole Proprietary | Sopstvenik na firma | No capital requirement |
| 4. | General Partnership | Zaednichko drushtvo | No capital requirement |
| 5. | Limited Partnership | Komanditno drushtvo | No capital requirement |
It’s important to note that the paid-up capital requirement is the amount of capital that has been subscribed and paid in by the shareholders at the time of incorporation. Paid-up capital is not the same as authorized capital, which is the maximum amount of capital that a company is authorized to issue.
Types of business structures
In North Macedonia, the main types of business structures are:
Limited Liability Company (LLC)
An LLC is a popular business structure for small and medium-sized businesses. It provides limited liability protection to its owners and is easy to set up and operate. An LLC can have one or more owners (known as members) and must have a minimum of one director.
Joint Stock Company (JSC)
A JSC is a type of corporation that is commonly used for larger businesses. It has a more complex structure than an LLC and is subject to more stringent regulations. A JSC can have one or more shareholders and must have a minimum of three directors.
Sole Proprietorship
A sole proprietary business is owned, managed, and controlled by a single person. All decisions are made by the owner, and hence, in the event of loss or debt, the owner is personally liable to compensate. A sole proprietary is mostly for individuals who have little to no capital, and heavily rely on their skills instead.
Partnership
A partnership is a business structure in which two or more individuals share ownership and management responsibilities. There are two main types of partnerships in North Macedonia: general partnerships and limited partnerships. In a general partnership, all partners have unlimited liability for the debts and obligations of the business. In a limited partnership, one or more partners have limited liability and are not involved in the management of the business.
In addition to these main business structures, there are also other types of entities in North Macedonia, such as non-profit organizations and branches of foreign companies. It’s important to choose the right business structure that suits your needs and objectives, and to seek professional advice to ensure compliance with legal and regulatory requirements.
Registration cost
In addition to the paid-up capital requirement, there may be other requirements for registering a business in North Macedonia, such as obtaining relevant licenses and permits, registering with the tax authorities, and complying with labor laws, etc.
Registering a company in North Macedonia involves various fees and expenses. Here is a breakdown of some of the costs involved:
Registration fee
The registration fee for a limited liability company (LLC) in North Macedonia is MKD 5,000 (approximately €90) and must be paid to the Central Register of the Republic of North Macedonia.
Legal fees
You may need to hire a lawyer to assist with the registration process, and their fees will vary based on their level of experience and the complexity of the registration process.
Notary fees
A notary public must verify the company’s articles of association and memorandum of association, and their fees typically range from MKD 300 to MKD 1,000 (approximately €5 to €18).
Translation fees
If any documents need to be translated into Macedonian, you may need to hire a translator, and their fees will vary based on the number of pages and the complexity of the documents.
Publication fees
Once the company is registered, you must publish a notice in the Official Gazette of the Republic of North Macedonia, and the fees for this vary based on the length of the notice.
Accounting and tax fees
After the company is registered, you will need to engage an accountant to manage the company’s tax affairs and file annual financial statements. These fees will vary based on the complexity of your business and the services required.
Office rental and other expenses: You may also need to factor in the costs of office rental, utilities, and other operational expenses that are necessary to run your business.
It is important to note that the fees and expenses associated with company registration in North Macedonia may vary based on the nature of your business and other factors. It is advisable to consult with a professional advisor to obtain an accurate estimate of the costs involved.
Business Environment in North Macedonia
The business environment in North Macedonia has been improving in recent years, with the government implementing several measures to attract foreign investment and promote economic growth. Some of the key factors that make North Macedonia an attractive destination, are discussed below.
Strategic location
North Macedonia is strategically located at the crossroads of major transportation corridors between Europe and Asia, making it an ideal location for businesses looking to expand into these regions.
Skilled workforce
The country has a well-educated and skilled workforce, with a high literacy rate and a growing number of graduates in technical and engineering fields
Low labor costs
Labor costs in North Macedonia are relatively low compared to other European countries, making it an attractive location for businesses looking to reduce their operating costs.
Business-friendly policies
The government has implemented several measures to promote entrepreneurship and foreign investment, such as reducing bureaucratic barriers, providing tax incentives, and establishing free economic zones.
Access to markets
North Macedonia has free trade agreements with the EU, Turkey, and other countries, providing businesses with access to a large market of consumers.
Despite these positive factors, there are still some challenges to doing business in North Macedonia, such as a lack of transparency and high corruption, an inefficient legal system, and limited access to financing. However, the government is taking steps to address these issues and improve the business environment in the country. Overall, North Macedonia presents an attractive opportunity for businesses looking to expand into Southeast Europe.
