Planning to Open a Company in North Macedonia – Which Option Is Best for You?
Nov 5, 2025
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Starting your own business is an exciting but complex process, and one of the most important decisions you’ll make is choosing the legal form of your company. This choice affects not only the registration process but also your liability for debts, the required initial capital, tax treatment, management structure, and administrative obligations.
In North Macedonia, there are several legal forms of business entities, each tailored to different types and scales of business activity.
Type of company: Sole Trader (TP)
A sole trader is the simplest form of business. It refers to a natural person who independently performs a commercial activity with the aim of making a profit and gains the status of a sole trader upon registration in the Trade Register. The main feature of this form is unlimited personal liability, meaning your personal assets can be used to cover business debts. This option is suitable for small, simple, low-risk activities that seek a quick and low-cost start, and no initial capital is required.
Key Characteristics:
A natural person independently carries out business activity for profit.
Unlimited personal liability – personal assets may be used to cover business debts.
No initial capital required.
When It’s a Reasonable Option:
For small businesses with a simple structure.
When you want a quick and inexpensive start.
For individual, low-risk activities.
Type of company: Limited Liability Company (LLC / Single-Member LLC)
For those who want to limit their personal liability and establish a structure that enables growth and stability, the Limited Liability Company (DOO/DOOEL) is the most commonly chosen form. Members of an LLC are not personally liable for the company’s obligations. The company is established with a minimum cash or non-cash contribution of 5,000 EUR. Registration can be completed through a one-stop system, allowing for a quick and efficient business launch. Management is formalized through a company agreement and the powers of the managing director.
Key Characteristics:
Members are not personally liable for company debts.
Minimum capital: 5,000 EUR (cash or non-cash).
Managed by the appointed director.
When It’s a Reasonable Option:
For protection of personal assets.
When planning company growth and stability.
For companies seeking a clear organizational structure.
Type of company: Simplified Limited Liability Company (PDOO)
The Simplified LLC (PDOO) is a newer form of limited liability company, designed for startups. Its main advantage is the low initial capital – only 1 EUR, and it can have up to three founders, one of whom acts as the manager. The company must maintain a mandatory reserve equal to one quarter of the profit, used to cover losses or increase the share capital.
Key Characteristics:
Up to three founders, one of whom is the manager.
Contributions can only be made in cash.
Mandatory reserve: one-quarter of profit for losses or capital increase.
When capital exceeds 5,000 EUR, the PLLC can convert into a regular LLC while retaining its company name.
When It’s a Reasonable Option:
For startup companies with minimal funds.
For entrepreneurs starting a low-risk business.
For new businesses seeking a flexible and simple structure.
Why It’s Ideal for Startups: This form allows entrepreneurs to start a business with minimal resources, without requiring significant initial capital, making it ideal for those with innovative ideas.
Type of company: Joint Stock Company (AD)
If you plan larger investments and have multiple shareholders, the Joint Stock Company (AD) provides an appropriate framework. A JSC is a business entity in which shareholders participate with contributions to the share capital, divided into shares.Shareholders are not personally liable for the company’s debts.
The minimum share capital is:
25,000 EUR (without public offering of shares), or
50,000 EUR (if formed through a public share offering).
Management is carried out through statutory corporate bodies, as provided in the company’s statute. This form is most suitable for companies seeking larger capital and sophisticated corporate structures.
Key Characteristics:
Shareholders are not personally liable for company debts.
Minimum capital: 25,000 EUR.
Managed through statutory corporate bodies.
When It’s a Reasonable Option:
When planning for larger capital.
For companies with multiple investors.
For companies requiring a more complex corporate structure.
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Conclusion
Before submitting your application, check whether your business activity requires special approval or licensing. Consult a registered agent, such as Isaevski Law, and carefully assess your goals, resources, and risk tolerance.
Your decision should be guided by your business plan, expected growth, and management strategy — in order to establish a solid foundation for a successful and sustainable business.
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