ABOUT NORTH MACEDONIA

Amongst all the countries in Europe, North Macedonia, officially the Republic of North Macedonia, is a landlocked country located in the central Balkan Peninsula in Southeast Europe. It is known for its mountainous terrain, ancient history, rich cultural heritage, and efforts towards Euro-Atlantic integration. The capital of North Macedonia is Skopje, which is its largest and most populous city, serving as the country’s primary economic, cultural, and political hub. According to the World Bank, North Macedonia is classified as an Upper Middle-Income Economy. It has made significant strides in economic reform and political stability, with a strong aspiration for full European Union membership. The currency of North Macedonia is the Macedonian Denar (MKD). As of today’s exchange rates (June 2025), 1 Indian Rupee is approximately 0.627 Macedonian Denar (or 1 MKD is approximately 1.595 INR). The population of North Macedonia is estimated to be around 1.83 million in 2024. Its neighbouring countries are Serbia to the north, Bulgaria to the east, Greece to the south, and Albania and Kosovo to the west. The official language of the country is Macedonian, with Albanian also having official status in areas where it is spoken by a significant minority. English is increasingly spoken, especially among younger generations and in business circles. The majority of the North Macedonian population practices Orthodox Christianity, with a significant Muslim minority and smaller communities of other faiths. Currently, North Macedonia has two international airports: Skopje International Airport (SKP) and Ohrid “St. Paul the Apostle” Airport (OHD), with Skopje being the primary international gateway. As a landlocked country, North Macedonia relies on the seaports of neighbouring countries, particularly the Greek port of Thessaloniki and the Albanian port of Durrës, for its international maritime trade, with goods transported mostly by road and rail.

The corporate income tax rate in North Macedonia is a flat 10%. Additionally, a 0% corporate income tax rate applies to retained and reinvested profits, allowing businesses to defer taxation as long as profits are reinvested in business development, technological upgrades, and job creation. This incentive aims to encourage long-term investment. North Macedonia offers highly attractive incentives for foreign investors, particularly within its Technological Industrial Development Zones (TIDZs). Companies operating in TIDZs can benefit from a 10-year exemption from corporate tax, personal income tax, VAT, and customs duties on imported equipment, as well as subsidies for construction costs and job creation. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in North Macedonia is considered straightforward, with a streamlined registration process facilitated by its “one-stop-shop” system through the Central Register. The Agency for Foreign Investments and Export Promotion of the Republic of North Macedonia (Invest North Macedonia) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in North Macedonia can form various company types, with the most common being a Limited Liability Company (LLC – Društvo so Ograničena Odgovornost or DOO) or a Joint Stock Company (JSC – Akcionersko Društvo or AD). A Limited Liability Company (LLC) is the most popular choice for foreign investors due to its simplicity and limited liability, allowing 100% foreign ownership. The minimum share capital for an LLC is EUR 5,000, which must be fully paid up.

In case an investor is planning to establish an LLC in North Macedonia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in North Macedonia and we will also guide you about how to follow the procedure while formulating your company in North Macedonia.

Types of Business which can be started in North Macedonia:

• Automotive Components Manufacturing: This is a rapidly growing sector, with numerous foreign direct investments. Opportunities exist in producing wire harnesses, electronics, rubber and plastic parts, and other components for the European automotive industry, leveraging competitive labor costs and incentives in TIDZs.
• Agriculture & Food Processing: With fertile land and favorable climate, opportunities are abundant in modernizing agricultural practices, organic farming, and especially in processing fruits, vegetables, wine, and dairy products for export, focusing on value-added products.
• Information Technology (IT) & Outsourcing: The IT sector is dynamic, with a young, skilled, and multilingual workforce. Opportunities include software development, IT services, BPO (Business Process Outsourcing), and call centers, often targeting European clients due to competitive costs.
• Renewable Energy: North Macedonia aims to increase its renewable energy share. Opportunities exist in developing solar, wind, and hydropower projects, as well as solutions for energy efficiency, supported by government initiatives to reduce energy imports.
• Tourism & Hospitality: The country offers diverse tourism potential, including cultural, historical, eco-tourism, and lake tourism (Lake Ohrid). Opportunities are in developing hotels, resorts, specialized tour operations, and related services to cater to a growing number of visitors.
• Light Manufacturing (Textiles, Footwear): Traditional sectors that are undergoing modernization. Opportunities can be found in high-value textile production, technical textiles, and footwear manufacturing, often for export to EU markets.
• Mining & Metal Processing: North Macedonia has deposits of lead, zinc, copper, and ferro-nickel. Opportunities exist in exploration, extraction, and processing of these metals, as well as in the manufacturing of metal products.

Advantages of Starting Business in North Macedonia:

• Competitive Tax System: A low 10% corporate income tax rate, with a 0% rate on reinvested profits, is highly attractive for investors.
• Strategic Location: Positioned as a crossroads in the Balkans, offering access to both EU and regional markets, with well-developed transport corridors.
• Free Economic Zones (TIDZs): Offer significant tax and customs benefits, making them highly attractive for export-oriented manufacturing.
• Competitive Operating Costs: Lower labor costs and operational expenses compared to Western European countries.
• EU Candidate Status: Ongoing reforms and alignment with EU standards provide a stable and predictable business environment and a clear path to market integration.
• Skilled & Multilingual Workforce: A relatively young, educated, and adaptable workforce, with good English and German language skills in addition to local languages.
• Free Trade Agreements: Access to preferential trade regimes with the EU, CEFTA, and other countries.

Business Opportunities for Indians in North Macedonia:

There are excellent business opportunities in North Macedonia for new investors who are planning to start their business abroad. North Macedonia’s strategic location, competitive investment incentives, and ongoing economic reforms make it an emerging destination for Indian companies. Indian investors with strengths in automotive components manufacturing, IT and BPO services, pharmaceuticals (distribution or niche manufacturing), agro-processing, and potentially in renewable energy or infrastructure projects, can find significant avenues for investment and market entry into the European supply chains.

Imports & Exports:

Many goods are imported and exported from North Macedonia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from North Macedonia to India:

• Ships, boats, and floating structures (often related to ship breaking/recycling)
• Mineral fuels and mineral oils
• Iron and steel
• Machinery and mechanical appliances
• Electrical machinery and equipment

Major items which are imported in North Macedonia from India:

• Organic chemicals
• Pharmaceutical products
• Textiles and apparel
• Vehicles and parts
• Oil seeds
• Ceramic products
• Cement
• Iron and steel
• Electrical machinery

Manufacturing:

Manufacturing is a key driver of North Macedonia’s economy, particularly in the automotive components sector where several multinational companies have established production facilities. Opportunities are strong in light manufacturing, metal processing, electronics, and precision engineering, often for export, leveraging the benefits offered in the TIDZs.

Mining:

The mining sector in North Macedonia plays a significant role in its economy, with substantial reserves of lead, zinc, copper, and ferro-nickel. Opportunities exist in the exploration, extraction, and processing of these metallic ores. There is also production of coal (lignite) for domestic power generation, as well as industrial minerals and construction materials.

Major Indian companies which are currently working in North Macedonia:

While large-scale greenfield investments by major Indian conglomerates might be limited compared to Western Europe, there is a notable presence and investment interest from Indian firms.

• ArcelorMittal: A global steel giant (with Indian roots) acquired a 90% stake in Balkan Steel, showcasing significant investment in the metal sector.

• Bang & Scott DOO (North Macedonia): A wholly-owned subsidiary of Mumbai-based fabric trader and garment manufacturer Bang Overseas Limited, established in 2011.

• BRG Group: An Indian metal products manufacturer signed an agreement to invest in a steel kitchenware factory, employing a significant local workforce.

• Malhotra Cables: An Indian cable manufacturer for the automotive industry announced investment for a manufacturing plant in Skopje.

• Pharmaceutical Companies: Indian pharmaceutical products are widely distributed in the North Macedonian market through local partnerships.

• GDP = $16.7 billion (nominal, 2024 est.)

• GDP Growth = 2.8% (2024 est.), 2.1% (2023 actual)

• Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but known for having a favorable business environment and high rankings in specific categories (e.g., 17th globally in Starting a Business in the 2020 WB DB report). It ranked 58th in the Global Innovation Index 2024.

• GDP per Capita = $8,876 (nominal, 2024 est.)

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