74 | Investment in Macedonia 2017 Investment in Macedonia 2017 KPMG in Macedonia kpmg.com/mk © 2017 KPMG Macedonia DOO, a Macedonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Investment in Macedonia Edition 2017 Investment in Macedonia 2017 | 3 Preface Investment in Macedonia is one of a series of booklets published by KPMG to provide information to those considering investing or doing business internationally. Every care has been taken to ensure that the information presented in this publication is correct and reflects the situation as of May 2017 unless otherwise stated. Its purpose is to provide general guidelines on investment and business in Macedonia. As the economic situation is undergoing rapid change, further advice should be sought before making any specific decisions. For further information on matters discussed in this publication please contact Gordana Nikushevska, Partner and Srdjan Randjelovic, Director. KPMG in Macedonia Soravia Center, 7th floor 3 Filip Vtori Makedonski 1000 Skopje Republic of Macedonia Tel: +389 2 3135 220 Fax: +389 2 3111 811 [email protected] © 2017 KPMG Macedonia DOO, a Macedonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 4 | Investment in Macedonia 2017 Contents General Information .......................................................................................................... 7 Geography and climate .............................................................................................................7 Population and language ...........................................................................................................7 Infrastructure .............................................................................................................................7 Communications .......................................................................................................................9 Currency ....................................................................................................................................9 Labor force ................................................................................................................................9 Political system........................................................................................................................10 Macedonia and the European Union ......................................................................................10 Macedonia and NATO .............................................................................................................10 Economy .................................................................................................................................10 Opportunities for International Investors ...................................................................... 13 Protection and promotion of foreign investments ..................................................................13 Forms of foreign investments .................................................................................................14 Profit and capital repatriation ..................................................................................................14 Establishment of new business entities or acquisition of shares in existing entities ............14 Branches .................................................................................................................................15 Representative offices ............................................................................................................15 Capital markets .......................................................................................................................15 Banking and finance ................................................................................................................16 International private law ..........................................................................................................17 Company Law ...................................................................................................................19 Rules applicable to all forms of business association .............................................................19 Limited liability company (DOO) .............................................................................................23 © 2017 KPMG Macedonia DOO, a Macedonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Investment in Macedonia 2017 | 5 Joint-stock company (AD) .......................................................................................................25 Other forms of business association ......................................................................................28 Commercial Register ..............................................................................................................29 Real Estate ....................................................................................................................... 30 Types of real estate ownership ...............................................................................................30 Evidence of title ......................................................................................................................30 Acquisition of real estate ........................................................................................................31 Title review ..............................................................................................................................31 Project development ...............................................................................................................32 Participants in the development process ................................................................................33 Accounting and Auditing ................................................................................................ 35 Accounting ..............................................................................................................................35 Auditing ...................................................................................................................................37 Taxation ............................................................................................................................ 38 Profit tax ..................................................................................................................................38 Value added tax (VAT) ..............................................................................................................42 Taxation of individuals .............................................................................................................49 Property transfer, gift and inheritance taxes ...........................................................................52 Excise duties ...........................................................................................................................53 Customs duties .......................................................................................................................53 Employment Regulations ............................................................................................... 55 Legislation ...............................................................................................................................55 Employment contracts ............................................................................................................55 Working hours .........................................................................................................................56 Holidays ...................................................................................................................................56 Medical check-ups ...................................................................................................................56 Healthy and safe working conditions ......................................................................................56 Termination of employment contracts ....................................................................................57 © 2017 KPMG Macedonia DOO, a Macedonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 6 | Investment in Macedonia 2017 Foreign Nationals ............................................................................................................ 58 Legislative framework and general rules ................................................................................58 Visas ........................................................................................................................................58 Visa exemption rules ...............................................................................................................59 Residence permits ..................................................................................................................59