Macedonia Info
Joined: 20 Apr 2007
Posts: 14
Home Country: macadonia
|
 Posted: Fri May 11, 2007 5:19 am Post subject: DOING BUSINESS IN MACEDONIA / MACEDONIA BUSINESS GUIDE |
 |
|
DOING BUSINESS IN MACEDONIA
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Société à Responsabilité Limitée (SARL) - Limited Liability Company
Minimum Capital Requirement: 307,348
City: Skopje
Registration Requirements:
Procedure 1. Check the uniqueness of the company name and pick up a company registration form
Time to complete: 1 day
Cost to complete: MKD 400
Comment: Company registration forms are now available at the central register's website at www.crm.com.mk or can be bought at any bookstore which is selling administrative materials.
Procedure 2. Deposit the legally required initial capital in a bank and pay the registration fee; obtain deposit and payment evidence.
Time to complete: 2 days
Cost to complete: no charge
Comment: The principal capital amounts 5.000 Euro. In time of foundation - registration, initial capital that must be paid is 2.500 Euro. Each founder must pay 1/3 of the total LLC's capital before founding the LLC if the deposit is monetary.
Procedure 3. Notarise the company deeds and other documents.
Time to complete: 1 day (1hour)
Cost to complete: MKD 2,000 (200 denars per document)
Comment: The following documents should be notarised:
- Statement given by the manager of LLC that he/she is agreed to manage the LLC.
- Signature of the manager of LLC. Statement issued by the founders of LLC that within last year nether of them was a shareholder in other company that went into bankruptcy or liquidation.
- Foundation Agreement;
- Statement issued by the founders of LLC and members of the management authority of LLC and supervisory authority that all necessary activities for registration of LLC are undertaken in accordance with the Law on Trade Companies and confirmation that LLC is created in accordance with the Law on Trade Companies.
Procedure 4. Procure extracts of the criminal record of the first directors.
Time to complete: 2 days
Cost to complete: MKD 800
Comment: The competent authority for issuance of extracts from criminal records is the principal court in which area is the residence of the manager.
Procedure 5. Optain letter of attention from bank
Time to complete: 1 day
Cost to complete: no charge
Comment: The founders should obtain a Letter of Attention from the bank that should be presented to the Central Register of Republic of Macedonia and the bank account will be opened right after the registration in the Central Register is done
Procedure 6. Registration with the Central Registry
Time to complete: 6 days
Cost to complete: MKD 5100
Comment: Company founders can prepare registration documents themselves. If professional service is used, a fee of EUR 500 is charged for one month of service. A one-stop-shop system was implemented on 01 January 2006. The Central Register of Republic of Macedonia is the unique institution for registration of LLC and other forms of trade companies, foreign representative offices, and others.
Procedure at the Central Register covers:
(a) registration of the company in the Trade Register;
(b) providing the statistic number for the company;
(c) opening of the bank account of the company;
(d) registration of the company in the Public Revenue Office - Tax Office;
(e) publishing of the company's creation notice on the web site of the Central Register ( www.crm.com.mk )
Procedure 7. Make a company seal
Time to complete: 1 day
Cost to complete: MKD 400-2,400
Comment: The fee may vary from D400 to D2,400 depending on the type and quality of the material for the seal. The original of the court decision for company registration is required.
Procedure 8. Notarise the company registration certificate
Time to complete: 1 day
Cost to complete: see comments
Comment: The price per page of the registration certificate is D50 plus D100 on the total amount for notary service and signature.
Procedure 9. Register with the Social Security Office.
Time to complete: 1 day
Cost to complete: MKD 100
Comment: Fill out and file appropriate forms.
Procedure 10. Inform the Employment office for hiring employees.
Time to complete: 2 days
Cost to complete: MKD 200
Comment: For this is necessary to the employment office to be submitted the appropriate forms plus employment contract and forms for notification of the social security fund.
FORMS OF BUSINESS ORGANISATION
1. Limited liability company
2. Joint stock company
Common forms of business organisation are the limited liability company and the joint stock company. Skopje, the capital, is the country’s financial centre.
TAXATION
Corporate tax
Main rate: 15%
Resident companies are taxed on their worldwide income; non-resident companies are taxed only on Macedonian-source income. A company is resident if it is established under the law of Macedonia or if it has its legal seat there. The corporate tax rate is 15%. Dividends paid between resident companies are not taxed.
Individual tax
Progressive rates to 24%
Resident individuals are subject to tax on their worldwide income; non-residents are taxed only on Macedonian-source income. An individual who has a permanent dwelling available in Macedonia, or who is present for 183 days in the calendar year, is resident in Macedonia. Tax is charged on total income at progressive rates up to 24%. Dividends received from resident companies are reduced by 50% and included in taxable income. A 50% tax reduction is available to foreign experts working in Macedonia.
Capital gains
Company gains generally taxed as income
Capital gains of companies are taxed as income. However, in the case of gains on the sale of equipment or immovable property, only 70% of the gain is included in income. Gains by individuals on the sale of securities and immovable property are reduced by 70% and taxed at 15%. In certain circumstances, gains derived by individuals on the sale of immovable property are exempt.
Indirect tax
VAT standard rate: 18%; Lower rate: 5%
Value-added tax (VAT) applies to most transactions at the standard rate of 18%. A reduced 5% rate applies to food, water, books and newspapers. Exports are zero-rated. Exemptions include the supply and renting of dwellings, banking and financial services, insurance, health and education.
Registration is compulsory for businesses with taxable annual turnover above MKD 1.3m, but voluntary registration is possible below this limit.
Tax administration and compliance
Tax year: Calendar year
Companies must make monthly advance tax payments based on the profits of the previous year. A tax return must be filed by February 28th following the tax year, and any final tax due must be paid within one month of the due date for the return.
Employment income of individuals is subject to deduction of tax at source, creditable against the final tax liability. An individual tax return is due by March 15th following the tax year, and an assessment is raised by April 30th to collect final tax payable. Some income of individuals, such as certain interest and agricultural income, is taxed by final withholding.
Additional tax information
Withholding taxes: Dividends 0% (provided income out of which dividends are paid has been subject to tax), Interest 10% and Royalties 15%. The rates may be reduced under an applicable tax treaty.
Tax treaties: Macedonia has concluded several tax treaties, and some treaties of the former Yugoslavia still apply.
Dividends: Taxable, with a 50% reduction for individuals. Dividends paid between resident companies are exempt.
Revenue protection: There is transfer-pricing legislation but no anti-tax-haven (CFC) rules.
Groups: Consolidation is possible for resident 90%-owed groups.
Incentives: Environmental protection; foreign investment; free-trade zones; modern technology; newly established companies.
Other taxes: Customs duties, Inheritance and gift tax, Property tax, Transfer tax on real estate and rights. |
|
Register
Log in
FAQ
Search
Memberlist
