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GUIDE for INVESTMENTS in POLOG PLANNING REGION with a Map of Free Economic/Industrial Zones

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GUIDE for INVESTMENTS in POLOG PLANNING REGION with a Map of Free Economic/Industrial Zones GUIDE FOR INVESTMENTS IN POLOG PLANNING REGION with a map of free economic/industrial zones For the publisher and commissioner: Centre for Development of Polog Planning Region 2 Njegosheva Street, 1200 Tetovo Tel: 00389 044 618 062 E-mail: [email protected] www.rdcpolog.mk Investment Guide is prepared by: Target Communications DOOEL Skopje 2 Nikola Vapcarov str., 5th floor, Business Building Centar, 1000 Skopje Tel: 00389 2 2700 101, Fax: 00389 2 2700 101 E-mail: [email protected] www.targetcomm.com.mk Gratitude to: Guide for investments in Polog planning region is made under the project of the Ministry of Lo- cal Self Government „Enlargement of functions of the centers for development of planning regions towards the implementation of activities/services for support of the private sector”. “E-guide for investors has been prepared and published with financial support of the Ministry of Local Self Government in the framework of the activities for the establishment of business centers in all of the eight regions”. “Map / collection of free industrial zones at the level of planning region is prepared and published with financial support of the Ministry of Local Self Government in the framework of the activities for the establishment of Business Centres in all eight planning regions”. The Center for Development of Polog planning region and municipalities in Polog planning re- gion, for the cooperation in the process of collecting and analyzing data. • Ministry of Local Self-Government is responsible for implementation of the policy for promotion of balanced regional development and in cooperation with other ministries, takes measures for stimulation of the development, defines and implements policies for promotion of balanced re- gional development in accordance with the objectives of the economic policy of the Government of Macedonia and with the program documents for integration of the Republic of Macedonia in the European Union. • Centre for Development of Polog Planning Region (CDSPPR) is Regional Coordination Centre with the main task to accelerate growth and reduce regional disparities by strengthening the capacity of the networks in the local rural community, the business sector, stimulating the development of local and regional level, strengthening the principle of public private partnership, and action aimed at enhancing the quality of life. 4 PREFACE t is a great honor and pleasure for me to The guidebook which is prepared in printed and present you the potentials of the Polog re- electronic form, offers two types of information: gion through the guide for investments in general information on the assessment of the fea- Polog planning region. sibility of investment in the context of the environ- IInvestments are a major factor for dynamic eco- ment in the region (the conditions for starting and nomic development. Access to information is the running a business; the main economic branches; first step in attracting investors’ interest in starting available workforce, social environment; tax incen- an economic activity in the region. The creation of tives and access to additional sources for financing available data on regional resources, potentials and a business) and an overview of the industrial zones benefits for investing is extremely important for (free buildings and sites for construction with in- the investors, domestic and foreign, who are facing centives for investment). major problems regarding the systematic review of The guide for investments in Polog planning re- relevant information for the Polog planning region. gion is technically and financially made and sup- The guidebook for investors present key infor- ported under the project of the Ministry of Local mation for starting and running a business in the Self Government : “Enlargement of functions of region and allows domestic and foreign investors to the centers for development of planning regions perceive, analyze and compare the economic char- towards the implementation of activities/services acteristics, business climate, and potential advan- for support of the private sector”. tages of the region. The document transparently I am convinced that this document will meet the shows the readiness and willingness of the region’s needs and desires of investors and will contribute nine municipalities to assist the needs of domestic to investment growth in the Polog planning region. and foreign investors. The main purpose of the presented information is to increase investment in the region through eas- ier access to benefits for investors offered at re- gional and municipal level. Fatmir Saiti- Manager of the Polog planning region 5 GUIDE FOR INVESTMENTS IN POLOG PLANNING REGION Table of Contents 1. General information about Republic of Macedonia .......................................................................22 1.1 Introduction ...............................................................................................................................22 1.2 Climate .......................................................................................................................................22 1.3 Hydrography ...............................................................................................................................22 1.4 Demographics ............................................................................................................................23 1.5 Political and judicial system .....................................................................................................24 1.6 Economy .....................................................................................................................................25 1.7 Tourism .......................................................................................................................................28 1.8 Financial system ........................................................................................................................29 1.9 Transport ....................................................................................................................................31 1.10 Telecommunications .................................................................................................................33 2. Business environment in the Republic of Macedonia .....................................................................34 2.1 Starting a business ....................................................................................................................34 2.1.1 Establishment of the company ................................................................................................34 2.1.2 Form of a company (types of companies) ................................................................................34 2.1.3 Funds required for initial capital ..............................................................................................35 2.1.4 Method of establishment of companies by foreign entities ..................................................35 2.2 Legal framework for doing business ........................................................................................36 2.2.1 Legal framework for the activities and structure of legal entities �������������������������������������������36 2.2.2 Annual financial statements .....................................................................................................36 2.2.3 Auditing ......................................................................................................................................36 2.3 Taxes ...........................................................................................................................................37 2.3.1 Value Added Tax ........................................................................................................................37 2.3.1.1 VAT taxpayers ............................................................................................................................37 2.3.1.2 Period of payment of VAT .........................................................................................................37 2.3.2 Corporate income tax ...............................................................................................................37 2.3.2.1 Taxpayers who pay corporate income tax ...............................................................................37 2.3.2.2 Tax period...................................................................................................................................38 2.3.2.3 Tax rate .......................................................................................................................................38 2.3.2.4 Avoidance of double taxation ..................................................................................................38 2.3.3 Personal income tax ..................................................................................................................38 2.3.3.1 Tax rate .......................................................................................................................................38 2.3.3.2 Tax Payment ..............................................................................................................................39 2.3.3.3 Avoidance of double taxation ..................................................................................................39 2.3.3.4 Taxpayers of personal income tax ...........................................................................................39
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