Invest in Macedonia

For foreign investors Macedonia offers what is probably the most interesting environment. Low tax rates, the
prospect of EU accession, low wages and a functioning legal certainty to make the country attractive. Below
are some investment-related issues are addressed.

Duty free trade

Three multilateral and two bilateral FTAs give Macedonia duty-free access to more than 650 million
consumers of the EU Member States, EFTA and CEFTA countries, Turkey and Ukraine. Macedonia is a
member of the World Trade Organization since of 2003.

workforce

Macedonia has a high number of trained, highly skilled labor and professionals who represents foreign
investors. The average gross monthly wage is 430. educational standards at technical universities in
Macedonia are similar to those of Western countries. Workers welcome developments and are open to the
theme of lifelong learning. The government supports investors in the process of training and in the provision
of such programs. Linguistically speaking most employees Macedonian, among the younger English is also
very common, partly also German. Especially the very flexible labor environment is welcomed by foreign
companies. The reforms undertaken have eased employment protection. Thus settings layoffs of workers
have become more simple.

Excellent location and infrastructure

Strategic location

Macedonia is centrally located in South-Eastern Europe. This makes it an ideal transit and distribution center
for products for the European market, esp. East Europe. The developed road and railway infrastructure
makes it possible to reach any place in Macedonia in less than 3 hours. The road infrastructure is 13,736 km
long, while the railway network is 900 km long.
The two major pan-European highway corridors - Corridor 8 (East-West) and Corridor 10 (north-south) are
currently being renewed. This will also strengthen the capacity of the Macedonian transport. There are two
international airports, in Skopje and Ohrid. There are frequent direct connections with a variety of large,
European transport centers.

telecommunications

The Republic of Macedonia has a modern digital telecommunications network. With a new interconnection
agreement of the entire telecommunications market has been liberalized and the entry of new suppliers have
already begun. The presence of three mobile operators guaranteed quality and availability of services. DSL
connections are standard and thus give their positive contribution to a positive business climate. Macedonia
followed international trends in the development of its Internet communication and allows easy and fast
Internet access via numerous Internet providers made.

In particular, the expansion of a nationwide wireless network across the entire country away speaks for the
innovation performance of the country and their technical standard.

energy sector

In the energy sector is currently probably the sector where most is invested. The energy supply is largely
secured. In 2006, the Austrian EVN undertook to take over the supply of the domestic market with electricity.
The development of the energy sector is a priority in Macedonia, especially considering the fact that 70% of
the technically available hydropower potential for current and future investments to open.

Registration of companies

"One-stop shop system"

Macedonia has a process introduced, which allows investors to start a business register within 4 hours. This
has been achieved by all the relevant administrative procedures eliminated because
all functions and information at a single point can be reached. This reduces administrative barriers and start-
up costs. Experience shows, however, that can be optimized this system even further.

Access to information on potential partners and suppliers

For the Government and the Ministry of Economy, the principles of transparency and availability are very
important. Against this background, a database has been created, in which all companies to find potential
partners and suppliers. Also, the system is linked to the European Business Register.

jurisdictions

Market freedom, the freedom of business activity and property rights are fundamental values which are fixed
in the Constitution of the Republic of Macedonia.

Right to private property and means

The Constitution of the Republic of Macedonia guarantees an investor the right to property. Basically No
person deprived of (their property or the rights thereof), unless the use relates to the general welfare of the
public. Foreign investors can ownership of real estate, as well as full ownership of land through a locally
registered company. If the property is expropriated or restricted, a compensation corresponding to the market
value is guaranteed. If the foreign company has a local company registered under Macedonian law, it may
acquire land and obtains full ownership similar to a domestic company.

Company law

Company law is the main law regulating the activities in Macedonia. It defines company types, and the
procedures and rules governing their constitution and operation. Foreign investors receive the same treatment
as Macedonian companies and therefore do not need special permits.
According to company law are trading company separate legal entities. The law defines five types of
companies: public trade (general partnership), limited partnership, limited liability company, corporation and
partnership limited by shares.

The legal framework includes the one-stop shop system, which eliminates some of the administrative burdens
for business start-up. According to the law of the one-stop shop system, all types of businesses within 4
hours will be registered after filing. Another important feature of the one-stop shop is the electronic distribution
service that provides all potential investors and other companies with information on the activities of
companies in Macedonia available.

Law on Investment Funds

The Law on Investment Funds regulates the conditions for the opening of investment funds and investment
companies. It also regulates the way the company's activities and the supervisory regulations (choosing the
Custodian, etc.). The law does not discriminate against foreign investors prior to the establishment of open or
closed investment funds.

price controls

Price liberalization in Macedonia has been essentially completed. Price controls exist for only a few products.
Prices in the energy sector (oil derivatives, electricity) are controlled by an independent regulator.

competition

The Macedonian Competition Act ensures that unfair competition is prohibited. No company may carry out
practices or activities that give one company an unfair advantage and thus jeopardize free competition
between companies.
Monopolies and cartels

The Law Against Unfair Competition (LAUC), elaborated on the basis of the German Act against Restraints
on Competition, which entered into force on 1 April 2000th Thus the Monopoly Authority (MA) was established
as an institution under the Ministry of Economy. This law guarantees the protection of competition in cases
where competition is distorted by agreements, abuse of dominant position on the market, or merger or
agreements between undertakings that would lead to the emergence of a dominant position or strengthening
of the existing dominant position ,

Accounting and Audit Committee

accounting rules

Lt. Company law, all legal persons required to prepare financial statements at the end of each calendar year.
Annual accounts shall be made in accordance with local accounting standards.

Corporate audits

The Law on State Audit since 2004 and the new audit law since 2005 valid. The Law on State Audit and the
Audit Law is coordinated similar as in other Western countries an audit committee.

work permissions

Visas and permits

Foreign citizens can be easily placed in a job, if they have a valid work visa and a work permit. These are
issued by the Foreign Ministry or the respective embassies. The Macedonian embassy in Germany has its
headquarters in Berlin.

Citizens of EU member states, as well as nationals of countries that have joined the Schengen Agreement
may submit on presentation of a valid identity card to Macedonia.
Visa types

entry visa

Business visa

Employment visa

Visa requirements and procedures:

1. Visa will be issued only at the Macedonian embassies or consulates,

2. The validity of the passport or other travel document of the applicant must be valid for at least 3 (three)
months,

3. The application may be submitted by mail or fax. However, the visa must be collected in person by the
respective applicant.

Source: Pelagon