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3RD REFORMER IN THE WORLD


* World Bank’s Doing Business 2010 Report

The Republic of Macedonia has been reforming the construction permit process, shortening waiting times but raising fees.

Worker hiring was made more flexible by allowing greater use of fixed-term contracts, easing restrictions on working hours, and making redundancy dismissals more flexible.
The public credit bureau increased its coverage by introducing a better database that includes more information and by lowering the minimum loan threshold.
Social security payments were classified in five groups, and social security contribution rates reduced.
Investor protections were increased by regulating the approval of transactions between interested parties, increasing disclosure requirements in annual reports, and making it easier to sue directors in cases of prejudicial transactions between interested parties. Property registration was eased with the introduction of new time limits at the real estate cadastre—reducing the average time to register a title deed by eight days—and a non-encumbrance certificate can now be obtained from the real estate registry instead of through the court.
Business start-up was simplified by integrating procedures at a one-stop shop.

Areas of Reform: Starting a business, Dealing with construction permits, Employing workers, Registering property, Getting credit (information), Protecting investors, Paying taxes

Rank in Ease of Doing Business 2010: 32nd out of 183 economies

The Regulatory Guillotine project

The Regulatory Guillotine is a project of the Government of the Republic of Macedonia with the purpose of eliminating all unjustified requests in the legal acts and bylaws.

The objective of the project is to eliminate and simplify many regulations in a short period of time, at a low cost, while strengthening the government’s ability to focus on regulations needed to improve the conditions for doing business in the country. The costs and risks of doing business in the national economy will be visibly reduced, improving competitiveness, investment, and job creation.


One-Stop-Shop System for Company Registration

Macedonia has introduced a one-stop-shop system that enables investors to register their businesses within 4 hours. An individual can register a company in Macedonia by visiting one office, obtaining the information from a single place, and addressing one employee. This significantly reduces administrative barriers and start-up costs.

The one-stop-shop system operates within the Central Register via 32 electronically integrated offices located throughout Macedonia. With the development of e-government services, company registration will soon be available online.


A Cut In Social Contributions Makes Macedonia More Attractive For Investors

The Government has announced a reduction of the social contributions beginning January 2009, in one of the most pro-business moves in its mandate so far, and as a response to the needs of the Chambers of Commerce and the foreign investors in Macedonia.

The initial reductions will be as follows:
- pension insurance: 21.2% → 19%
- health insurance: 9.2% → 7.5%
- unemployment contribution: 1.6% → 1.4%

 By January 2011 the pension insurance contribution will drop to 15%, the health insurance contribution will drop to 6%, and the unemployment insurance contribution will drop to 1%.

This measure will contribute to creating more jobs, reducing the grey economy, and stimulating more domestic and foreign investment.


Modernized Electronic Real Estate Cadastre

State Authority for Geodetic Works (SAGW) introduced internet access to the cadastre data and internet application forms for registration.

24h internet access to data for the property certificate with an option to check the content of the encumbrance (mortgage, etc.). This service is also available free of charge but without information for encumbrance (mortgage, etc.). Additionally, there is an opportunity to review topographic maps and aerial photographs on the web page of the SAGW, where geospatial data can be searched, previewed and downloaded.

In order to meet the needs of companies and improve mutual cooperation, the SAGW has a telephone information line for foreign investors +389 2 317 17 33 which is open every working day from 9:00am - 12:00pm. This provides faster and easier service i.e. processing of requests for use of cadastre services and cadastre data submitted by the companies.

The above mentioned electronic services makes it possible to accelerate the processing of the requests made by companies, which is under the authority of SAGW.

Any additional information can be obtained from the State Authority for Geodetic Works web page (www.katastar.gov.mk).


“One-Stop-Shop” for Cross Border Trading

Customs has also implemented a one-stop-shop system.  Companies can submit one application by electronic means to acquire all necessary licences.  The goal of the web based one-stop-shop system is to ease customs procedures for companies and lower bureaucratic procedures.  The system will be used by import-export companies, transportation companies, and government institutions.

The e-Gov Project has undertaken to develop and introduce web based one-stop-shop system for submission of applications for and issuance of licenses for import, export and transit of goods in/from/through the territory of the Republic of Macedonia. The system will be used by all state bodies that issue such licenses and private entities who import, export or transit goods which are under regime of licensing. In addition, the system shall also cover the application for and distribution of quotas for specific imported goods and submission of ECD, both administered by the Customs Office.

Commercial subjects will no longer have to wait in line to apply for licences.  Licences will be obtained by electronic means.  All necessary information will be available on the newly created website.

Most companies are currently uninformed of the requirements they must meet in order to benefit from this newly created system. In order to become a user of the web based one-stop-shop system, companies must have a digital signature in accordance with the law.

The Customs administration will familiarize the commercial community with how to use the web based one-stop-shop system by promoting it. Until now, customs procedures were long and complicated. Businessmen complained that it was precisely this obstacle that stood in the way of developing trade.

Electronic Payment of Taxes

Companies can pay all taxes on the internet. The Public Revenue Office website contains a link by which companies can pay their taxes without having to visit Public Revenue Office personally. This saves both time and money.


Liberalization of  Visa Regime

The visa regime has been completely liberalized with all countries that are on the white list of the European Union. All foreign citizens may enter the Republic of Macedonia without obtaining a visa, as long as the foreign citizen has a valid visa from one of the member countries of the Schengen Agreement. Citizens of the EU may enter the Republic of Macedonia with an identification card.
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Central Register of Republic of Macedonia

Government of the Republic of Macedonia

Ministry of Foreign Affairs