Macedonia Limited Liability Company — Drushtvo so ogranichena odgovornost or DOO
- In Macedonia, a limited liability company needs 1 director who must be a natural person. There must be at least one shareholder who must be a resident in this country. For setting up this business entity, the minimum paid-up share capital must be at least €5,000 (MKD306,000).
- The shareholders are only liable for up to the amount of their contributions in the capital. The shares can also be transferred among the members freely. For a limited liability company in Macedonia, an annual audit is not required. The only case in which the annual audit is required is when the yearly sales are above €170,000 or in case of fairly large companies such as insurance and banks etc. An annual audit is not required for LLCs unless the entity has annual sales over €170,000, or for large entities such as banks and insurance companies.
Macedonia Joint Stock Company —Akcionersko Drushtvo or AD
The joint stock companies in this country are the most common choice for setting up of SMEs. These business entities can be managed in two ways:
- One tier set up where a board of directors has to be elected before the incorporation of the joint stock company.
- A two-tier set up where the Supervisory board represents the company. It has to be elected before the setting up of the entity.
- At least three directors and shareholders should be appointed. They do not have to be a resident in Macedonia.
- There are two ways to incorporate a joint stock company in this country:
- The first way of incorporation id where the shareholders contribute all the capital through the shares.
- In the second way of formation of this business entity, the shares are listed on the stock exchange and a public invitation is also sent. This process is difficult as compared to the other one. This process takes about three months and this is tedious.
- The minimum amount of paid-up share capital required for this kind of entity is €50,000. In the case of shareholder funded JSC and €25,000 in case of funding through stock exchange listing of shares. In the latter, 25 percent has to be paid before the formation and the balance amount has to be paid in installments within 3 years of the formation of such an entity.
- Once this entity is registered with the trade register, it is deemed as founded.
- The shareholders are only liable for up to the amount of contribution made by them.
- In Macedonia, for a joint stock company 100 percent foreign ownership is allowed.
- This business entity has to appoint an auditing unit in the company. This unit has to audit the financial statements of the company. After the audit, the financial statements have to be submitted to thePublic Revenue Office on an annual basis.
Macedonia Limited Liability Partnership — Komanditno Drustvo
In Macedonia, the management of a limited partnership company is exercised only by the partners of the company. Hence, it has to appoint at least two partners. One of these has to be a limited partner and the other one a general partner. These partners can be of any nationality. The minimum amount of the paid-up capital for the formation of this business entity is €1.
- For a limited liability partnership company, the general partners bear the liability for the debts and the obligations of the partnership. The liabilities borne by them are only up to the amount of the contributions made by them.
- For these business entities, the annual audits are not required except in cases where the annual sales are above €170,000, for banks or insurance-related entities.
Macedonia Branch Office
- In Macedonia, the branch office enjoys a total foreign control and ownership. The scope of the operations of for branch offices are set by their parent companies. It is mandatory for them to have a legally registered office. A representative manager also to be appointed. He also has the power of attorney of this company on behalf of this entity.
Macedonia Representative Office
- In Macedonia, the representative offices are permitted to be of foreign ownership. However, these are not allowed to carry out the revenue-generating operations in the country. The expense of such an entity has to be met through the inward medium of the foreign currency remittance. These entities are allowed to carry out the market researches and promote the products and services of their parent company.