Open Company Branch or Subsidiary in Macedonia

There are plenty of ways to invest in Macedonia including setting up companies or opening branches of already incorporated companies in foreign countries. Macedonia offers encouragement in many business areas. Some foreign entrepreneurs prefer setting up Macedonian branches which are as easy to incorporate as regular domestic companies. A Macedonian branch is not a separate legal entity from its parent company which is fully responsible for the branch's debts and obligations.

Preliminary activities prior to registering a company branch in Macedonia
Before a Macedonian branch can apply for registration it must complete few procedures. Establishing the branch's name is an important procedure as it must contain the original company's name and the word "branch". Also the documents required for registration should be prepared and notarized as well as a list of managers' names, addresses and specimen signatures. The parent company must appoint an individual or legal entity to represent the branch. This should be done through power of attorney which should also be prepared prior to registration. The branch must have a bank account and obtain a bank deed certifying the working capital has been deposited.

Registering a company branch in Macedonia with the Central Registry
In order for the macedonian branch to become legally operational it must obtain a certificate of registration which will become the proof of incorporation of the business entity. The certificate is obtained after submitting an application that contains the articles of association of the company, the company charter and the list of names, addresses and specimen signatures of the managers. Also a decision of the foreign parent company to open a branch must be attached to the application. One other request consists of the yearly financial and auditor reports of the mother company to determine solvency. After all the required documents are presented to the Central Registry of Macedonia the registration certificate is issued in a matter of days.

After the Macedonian company branch is registered it must apply for registration with the tax authorities. This includes VAT registration, if required and other taxes. Employees must be registered for Social Security before their first day of work, and this means sending their information to the relevant institutions.

Setting up a Macedonian branch from abroad
There are few restrictions for foreign investors who wish to set up business in Macedonia, therefore a branch can be established from abroad through a representative authorized with power of attorney. The representative can be a legal entity or an individual assigned to carry out the incorporation procedures. Also a permanent address in Macedonia is required in order to set up a Macedonian branch.

How long does it take to set up a branch in Macedonia
Usually the whole registration process for branch incorporation is similar to setting up a domestic company. Preparing the articles of association and all the required documents is a procedure completed in one day. Due to the new electronic system the process of registration is completed in one day, same as submitting the required information for tax purposes. Usually setting up a branch in Macedonia is completed in approximately one week.