Any time you choose to grow your company, you face both challenges and opportunities. Learning how to set up a North Macedonia subsidiary can turn into more of a challenge and take up a significant portion of your time. Companies must comply with North Macedonia’s subsidiary laws, hire employees under local employment contracts, and spend months preparing a new company location for operation.
Globalization Partners offers a suite of global expansion services, including North Macedonia subsidiary outsourcing, to make your expansion easier. Our experts in North Macedonia subsidiary laws help manage risk, and you won’t have to set up your own North Macedonia subsidiary when you work with us.
How To Set Up a North Macedonia Subsidiary
Expansions feature many moving parts, and it can help to identify a few important areas before officially starting the expansion process. You can start by researching what location within North Macedonia is most friendly to foreign enterprise. North Macedonia subsidiary laws can differ by region or city, making it vital to research the area around a physical office space before buying or leasing.
You should also examine how you will operate in North Macedonia, as your business operations should impact the entity you choose for incorporation. Companies looking to work in North Macedonia like a local company can benefit from incorporating as an LLC, while others performing small-scale tasks may choose to incorporate as a branch. You can set up your North Macedonia subsidiary as a limited liability company (LLC), joint-stock company, limited liability partnership company, branch, or representative office.
Many companies utilize the LLC structure, and you might want to do so too, as it will protect both your subsidiary and your parent company. Setting up your North Macedonia subsidiary as an LLC will include the following steps:
- Registering your business address
- Submitting articles of association
- Opening an in-country bank account
- Registering for VAT and other taxes, including social contributions
- Applying for a company seal before starting any business activity
- Choosing a unique name for the business
- Submitting the names of all business owners
- Appointing a board of directors and a representative agent
- Drafting a document including the activities of the companies and details about the business
- Depositing your minimum share capital and providing details about each member’s capital contribution
North Macedonia Subsidiary Laws
Although LLCs have a relatively simple registration process, tax advantages, and more, you’ll still need to learn all of North Macedonia’s subsidiary laws related to LLCs before incorporating. For example, you need at least one director and one shareholder, who must be individuals but do not have to live in North Macedonia. Companies also have to deposit at least 5,000 EUR of paid-up capital in a North Macedonia bank account before beginning operations.
Your LLC’s shareholders are liable based on the amount of money they contribute. Shares can get transferred freely among members, but you should keep track of who contributes what. You do not have to undergo an annual audit unless you make over 170,000 EUR or operate a large business such as a bank or insurance company.
Benefits of Setting Up a North Macedonia Subsidiary
Some companies choose to set up a subsidiary to help them pursue their goals for global business growth. With this option, a business gains legal standing to engage with local professionals and the local economy.
For businesses that choose a subsidiary, a second key reason for their decision is that this entity can lower the parent company’s liability. Because a subsidiary has a separate legal standing in the country, it can reduce your business’s risk and guard its reputation.
Other Important Considerations
While having a subsidiary can offer several benefits, this option also requires significant time and costs and can be a disadvantage. Working in the Holy See is particularly complex, as its legal structure can involve multiple governments’ jurisdictions, varying tax requirements, and unique compliance needs depending on your business’s situation and location.
Consider Globalization Partners as an alternative option with trusted subsidiary outsourcing services. When you work with us, you have zero liability and extensive in-country expertise without the time and cost requirements of the subsidiary setup.
Let Globalization Partners Help With Your Expansion
Globalization Partners is here to make your expansion easier. Reach out to our representatives today.