A Macedonian subsidiary is a form of business with a big part of the capital owned by a foreign company.
The subsidiaries are considered legal entities and may perform different activities than the one performed by the foreign company.
Usually the subsidiaries opened in Macedonia are created as limited liability companies and may be private or public.
At least one founder can form a limited liability company in Macedonia, the most elected form of Macedonian business, especially by small and medium entrepreneurs. The number of members cannot exceed 50 and their total contribution to the capital cannot be less than 5,000 EUR.
The management is assured by a manager appointed by the general meeting of the shareholders or by the articles of incorporation or by the statement of incorporation (when the private company is formed by a single member)
The joint stock company established in Macedonia may be with public invitation or without public invitation. The minimum share capital that has to be deposited at registration may be 50,000 EUR in case of a public limited liability company and 25,000 EUR in case of a joint stock company with shares not tradable to the public.
The management is assured by a board of managers appointed by the general meeting of the shareholders or by the articles of association.
The decision of incorporation of the subsidiary in Macedonia along with the company’s foundation deed and articles of association (or the statement of incorporation) must be notarized before registration in the Central Registry. After receiving the certificate of registration, the tax identification number and the VAT number the company must apply for the company’s stamp, necessary in the daily operations.
The process of registering a subsidiary in Macedonia usually takes around three days if all the documents are properly submitted.
The foreign investors choose to incorporate a subsidiary in Macedonia mostly because of the advantages related to the double tax treaty signed by this country over the years. A vast network with over 35 countries is available these days. The usual withholding tax of 10% paid for dividends may be minimized and in certain cases even abolished by the measures of the treaties.
The profits are taxed only in the country of origin and if are also taxed in Macedonia are refunded after a request of the payer.
The only evidence that the requester must bring is the certificate of taxation from the foreign company.