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Economy ProfileMacedonia, FYR

Economy Pro le of Macedonia, FYR

Doing Business 2018 Indicators(in order of appearance in the document)

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with constructionpermits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control andsafety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply andthe transparency of tariffs

Registering property Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders rights in related-party transactions and in corporate governance

Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes

Trading across borders Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal frameworkfor insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality

About Doing BusinessThe Doing Business project provides objective measures of business regulations and their enforcement across 190 economies andselected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulationsapplying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It providesquantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registeringproperty, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolvinginsolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankingsof economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking onthe ease of doing business, it does present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies andover time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks forreform; and serves as a resource for academics, journalists, private sector researchers and others interested in the businessclimate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erentcities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommendreforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with othercities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, exceptfor 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the secondlargest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. Theproject has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to providean objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the bestperformance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economysdistance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents thefrontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting theaggregate distance to frontier scores, rounded to two decimals.

More about Doing Business (PDF, 5MB)

Ease of Doing Business inMacedonia, FYR

Region Europe & Central Asia

Income Category Upper middle income

Population 2,081,206

GNI Per Capita (US$) 4,980

City Covered Skopje

DB2018Rank190 1

11

DB2018DistancetoFrontier(DTF)0 100

81.18

0 100

81.18:Macedonia,FYR(Rank:11)

76.27:CzechRepublic(Rank:30)

73.18:Montenegro(Rank:42)

71.91:Bulgaria(Rank:50)

71.33:RegionalAverage(Europe&CentralAsia)

68.02:Greece(Rank:67)

DB 2018 Distance to Frontier (DTF)

Note: The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best performance observed on each ofthe indicators across all economies in the Doing Business sample since 2005. An economys distance to frontier is re ected on a scale from 0 to 100, where 0represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Macedonia, FYR

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit

ProtectingMinorityInvestors

PayingTaxes

TradingacrossBorders

EnforcingContracts

ResolvingInsolvency

1

28

55

82

109

136

163

190

Rank

22 26

53 48

124

29 2735 30

Distance to Frontier (DTF) on Doing Business topics - Macedonia, FYR

Startinga

BusinessChange:0.00

Dealingwith

ConstructionPermits

Change:+0.35

GettingElectricity

Change:-3.09

RegisteringProperty

Change:+0.44

GettingCredit

Change:0.00


Change:0.00

PayingTaxes

Change:0.00


Change:0.00

EnforcingContractsChange:0.00

ResolvingInsolvencyChange:+0.16

0

20

40

60

80

100

DTF

93.94

78.0181.42

74.49

85.0080.00

84.72

93.87

67.7972.54

Starting a BusinessThis topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sizedlimited liability company to start up and formally operate in economys largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domesticallyowned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities andemploys between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Startinga Business considers two types of local limited liability companies that are identical in all aspects, except that one company is ownedby 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scoresobtained for each of the component indicators.The latest round of data collection for the project was completed in June 2017. See the methodology for more information.

What the indicators measure

Procedures to legal ly start and operate acompany (number)

Pre-registration (for example, name verificationor reservation, notarization)

Registration in economys largest business city

Post-registration (for example, social securityregistration, company seal)

Obtaining approval from spouse to start businessor leave home to register company

Obtaining any gender-specific permission thatcan impact company registration, companyoperations and process of getting nationalidentity card

Time required to complete each procedure(calendar days)

Does not include time spent gatheringinformation

Each procedure starts on a separate day (2procedures cannot start on the same day)

Procedures fully completed online are recordedas day

Procedure is considered completed once finaldocument is received

No prior contact with officials

Cost required to complete each procedure (% ofincome per capita)

Official costs only, no bribes

No professional fees unless services required bylaw or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third partybefore registration or up to 3 months afterincorporation

Case study assumptions

To make the data comparable across economies, several assumptionsabout the business and the procedures are used. It is assumed that anyrequired information is readily available and that the entrepreneur will payno bribes.

The business:- Is a limited liability company (or its legal equivalent). If there is more thanone type of limited liability company in the economy, the most commonamong domestic rms is chosen. Information on the most common form isobtained from incorporation lawyers or the statistical o ce. - Operates in the economys largest business city and the entire o cespace is approximately 929 square meters (10,000 square feet). For 11economies the data are also collected for the second largest business city.- Is 100% domestically owned and has ve owners, none of whom is a legalentity; and has a start-up capital of 10 times income per capita and has aturnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as theproduction or sale of goods or services to the public. The business doesnot perform foreign trade activities and does not handle products subjectto a special tax regime, for example, liquor or tobacco. It does not useheavily polluting production processes. - Leases the commercial plant or o ces and is not a proprietor of realestate and the amount of the annual lease for the o ce space is equivalentto 1 times income per capita.- Does not qualify for investment incentives or any special bene ts. - Has at least 10 and up to 50 employees one month af ter thecommencement of operations, all of whom are domestic nationals. - Has a company deed 10 pages long.

The owners: - Have reached the legal age of majority. If there is no legal age of majority,they are assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. - Are married and the marriage is monogamous and registered with theauthorities. - Where the answer di ers according to the legal system applicable to thewoman or man in question (as may be the case in economies where thereis legal plurality), the answer used will be the one that applies to themajority of the population.

Standardized Company

Legal form Drustvo so ogranicena Odgovornost (DOO) - Limited Liability Company

Paid-in minimum capital requirement EUR 0

City Covered Skopje

Indicator Macedonia, FYREurope &Central Asia

OECD highincome Overall Best Performer

Procedure Men (number) 4 5.2 4.9 1.00 (New Zealand)

Time Men (days) 7 10.1 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 0.1 4.4 3.1 0.00 (United Kingdom)

Procedure Women (number) 4 5.2 4.9 1.00 (New Zealand)

Time Women (days) 7 10.1 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 0.1 4.4 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies)

FigureStartingaBusinessinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100

93.94: Macedonia, FYR (Rank: 22)

92.30: Greece (Rank: 37)

90.62: Regional Average (Europe & Central Asia)

90.07: Montenegro (Rank: 60)

87.44: Czech Republic (Rank: 81)

85.37: Bulgaria (Rank: 95)

Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores forstarting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 3 * 40

1

2

3

4

5

6

7

Time (days)

0

0.02

0.04

0.06

0.08

0.1

Cost (%

of incom

e per capita)

Time(days) Cost(%ofincomepercapita)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list formen and women, the graph shows the time for women. For more information on methodology, see the Doing Business website(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

DetailsStartingaBusinessinMacedonia,FYRProcedure,TimeandCost

Applies to women only.

Takes place simultaneously with previous procedure.

No. Procedures Time to Complete Associated Costs

1 Registration with the Central Registry and obtaining a company seal

Agency : Central Register

Company founders can prepare registration documents themselves. A one-stop shop system was implemented on January 1, 2006. The Central Registerof Republic of Macedonia is the single institution for registering LLCs andother forms of trade companies, foreign representative o ces, and otherentities. This registration process includes registering the company with theTrade Register, providing the LLC statistic number, opening the LLC bankaccount, registering the company in the Public Revenue O ceTax O ce,and publishing the LLC formation notice on the Central Registers Web site(www.crm.com.mk).

According to the amendment of the Law on trade companies, Published inthe O cial Gazette of the Republic of Macedonia nr. 38 from 24.02.2014,registration of LLCs must be conducted in electronic form with theassistance of authorized registration agents who are the only authorizedentities to submit applications for registration. The electronic registration isfree.

With the amendments on the Law on One Stop Shop (O cial Gazette150/2007 from 12.12.2007) connection is now established between theCentral Registry and the Employment Agency which allows registering of rstemployment of directors through CRM and registering employees with thesocial fund.

Registration agents have public authorization to prepare the application andthe accompanying company deeds, and also to convert paper documentsissued by other institutions needed for establishing the company intoelectronic form, to digitally sign and submit them through the existingsystem for e-registration of the Central Register, in the name and on behalfof di erent parties. The registration agents have public authorization todetermine the identity of the participants, such that the need fornotarization of documents is now completely eliminated. The entirecompany registration procedure is completed at the site of the registrationagent.

The founders shall transfer the amount of the principal capital on atemporary account in a commercial bank of their choosing. After theregistration is completed the bank account of the newly founded companyshall be opened.

1 day MKD 250 for astandard seal orMKD 2,200 for anautomatic seal

2 Open bank account

Agency : Commercial Bank

The opening of the bank account of the Company is mandatory for all typesof VAT registration (mandatory or voluntary). The details regarding thenumber of the bank account and bank are provided in the Application Formfor VAT registration (DDV-01 Form).

1 day no charge

3 Registration for VAT

Agency : Public Revenue O ce

Companies beginning with carrying out of a commercial activity whichpredict to achieve turnover over 1,000,000 denars are obliged to beregistered for VAT purposes. The VAT registration is carried out bysubmitting of an application for registration for the value added tax (FormDDV-01). The application for VAT registration is submitted to the PublicRevenue O ce.

Taxpayers who began carrying out commercial the activity during thecalendar year must submit VAT registration application within 15 days of thestart of the activity.

1 day no charge

4 Publishing of an Advert on the need of an employee and Registration ofemployees with the Agency for employment

Agency : Agency for employment

Before registering of an employee, an Advert on the need of an employee(PPR Form) needs to be submitted at the Employment Agency. The followinginformation is provided in the PPR Form:- company's name and address; - company's registration number and tax number;- number of workers required (with work position, salary, duration ofemployment, educational and work requirements).

An employee can be registered after expiration of 5 days since thesubmitting of the advert. For employee registration, it is required therequired to submit the registration form together with a copy of the advert(PPR Form) which is previously signed and stamped by the EmploymentAgency. The registration form contains information on the:- name, address and registration number of the Company;- name, surname and ID number of the employee;- number and date of the employment agreement.

The registration can be done either online or in person. The onlineregistration is done via the website (e-rabota.avrm.gov.mk), while the inperson registration is done at the o ces of the Employment Agency. Theregistration process takes up to one hour to be completed.

The employee is registered from the following day since the submitting ofthe necessary documents. Upon registration of an employee, the Agency foremployment issues form M1M2, which con rms the date of employment andcontains data regarding the company`s name, address and registrationnumber, as well as employee`s name, surname, ID number. The M1M2 formis signed and stamped by the Employment Agency which proves theregistration of the employee.

The Agency for employment registers the employees in the Pension fund,while the employees (or authorized persons) are responsible for verifyingthe working booklet in the Health fund.

5 days no charge

Dealing with Construction PermitsThis topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for moreinformation


Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtainingall necessary clearances, licenses, permits andcertificates

Submitting all required notifications andreceiving all necessary inspections

Obtaining utility connections for water andsewerage

Registering and selling the warehouse after itscompletion



Each procedure starts on a separate daythough procedures that can be fully completedonline are an exception to this rule



Cost required to complete each procedure (% ofwarehouse value)


Building quality control index (0-15)

Sum of the scores of six component indices:

Quality of building regulations (0-2)

Quality control before construction (0-1)

Quality control during construction (0-3)

Quality control after construction (0-3)

Liability and insurance regimes (0-2)

Professional certifications (0-4)


To make the data comparable across economies, several assumptionsabout the construction company, the warehouse project and the utilityconnections are used.

The construction company (BuildCo):- Is a limited liability company (or its legal equivalent) and operates in theeconomys largest business city. For 11 economies the data are alsocollected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whomis a legal entity. Has a licensed architect and a licensed engineer, bothregistered with the local association of architects or engineers. BuildCo isnot assumed to have any other employees who are technical or licensedexperts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell thewarehouse upon its completion.

The warehouse: - Will be used for general storage activities, such as storage of books orstationery. - Will have two stories, both above ground, with a total constructed area ofapproximately 1,300.6 square meters (14,000 square feet). Each oor willbe 3 meters (9 feet, 10 inches) high and will be located on a land plot ofapproximately 929 square meters (10,000 square feet) that is 100% ownedby BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by alicensed architect. If preparation of the plans requires such steps asobtaining further documentation or getting prior approvals from externalagencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrativeand regulatory requirements).

The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewertap. If there is no water delivery infrastructure in the economy, a boreholewill be dug. If there is no sewerage infrastructure, a septic tank in thesmallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and anaverage wastewater ow of 568 liters (150 gallons) a day. Will have a peakwater use of 1,325 liters (350 gallons) a day and a peak wastewater ow of1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater owthroughout the year; will be 1 inch in diameter for the water connectionand 4 inches in diameter for the sewerage connection.

Standardized Warehouse

Estimated value of warehouse MKD 13,961,379.40

City Covered Skopje



Procedures (number) 11 16.0 12.5 7.00 (Denmark)

Time (days) 96 168.3 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 6.1 4.0 1.6 0.10 (5 Economies)

Building quality control index (0-15) 13.0 11.4 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.

FigureDealingwithConstructionPermitsinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 * 3 * 4 * 5 6 7 8 9 10 110

20

40

60

80

Time (days)

0

0.5

1

1.5

2

2.5

3

3.5

Cost (%

of w

arehouse value)

Time(days) Cost(%ofwarehousevalue)



FigureDealingwithConstructionPermitsinMacedonia,FYRandcomparatoreconomiesMeasureofQuality

Macedonia, FYR Bulgaria Czech Republic Greece Montenegro Europe & Central Asia

10.5

11

11.5

12

12.5

13

13.5

Index score

13.0 13.0

12.0 12.0 12.0

11.4

DetailsDealingwithConstructionPermitsinMacedonia,FYRProcedure,TimeandCost



1 Request and obtain proof of land ownership from the Real EstateCadastre

Agency : Real Estate Cadastre

BuildCo must obtain proof of ownership of the land where construction willtake place. This document must be obtained at least 6 months before thebeginning of the process. The Municipalities of Skopje update their tari forfees associated with surveying and geodetic data for real estate on anannual basis. Obtaining proof of land ownership cost can vary frommunicipality to municipality. BuildCo pays an administrative fee of MKD 50and a fee of MKD 125 for one parcel. If the land includes more than oneparcel, the cost would be MKD 125 for the rst parcel and MKD 25 foradditional parcels.

Property list can be obtained within the municipality as well and from thenearest notary public o ce. In this case the applicant would have to pay alsothe notary fee, which is additional MKD 300.

1 day MKD 175

2 Obtain geo-technical study of the land

Agency : Private licensed company

A soil test is a necessary step for development of the project. The soilinvestigation helps to determine the bearing capacity of the land, whichhelps to determine the load capability, the type and depth of foundation, inorder to make sure to select a suitable construction technique.

14 days MKD 123,101

3 Obtain topographic survey of the land plot

Agency : Private licensed company

A topographic survey of the land plot must be obtained prior to developingthe architectural plans of the warehouse.

7 days MKD 40,008

4 Obtain the hydro-technical conditions

Agency : JP "Vodovod I Kanalizacija"

The hydro-technical conditions are needed to obtain the account ofnumerical data study. In theory, the Municipality is supposed to obtain thehydro-technical conditions for the applicant. But in practice, the applicantmust still visit the water company (JP "Vodovod i Kanalizacija") in person.

7 days MKD 6,000

5 Request and obtain the extract of the detailed urban plan from theUrban Planning Department

Agency : Municipality, Urban Planning Department

The requested extract of the detailed urban plan is issued by the respectiveo ce of the Municipality. This detailed urban plan identi es thelocation/positioning of the plot of land where the warehouse will be built.

Together with the request for obtaining an extract of a detailed urban plan,BuildCo must submit the proof of land ownership and an extract from acadastre plan obtained by the Real Estate Cadastre. The extract of thedetailed urban plan can be obtained within 5 working days after submissionof the request.

The extract can be requested online since December 4, 2013, atwww.gradezna-dozvola.mk.

5 days MKD 1,050

6 Hire a private cadastre o ce and obtain account of numerical datastudy (elaborate za numerichki podatoci)

Agency : Private Company

The account of numerical data study is necessary to identify the measures ofthe plot of land on which the warehouse will be built. The cost of this study isapproximately MKD 6,000.00 -- MKD 10,000.00. In Skopje there are a numberof private cadastre o ces that can be hired by BuildCo. The private cadastreo ce shall then obtain approval and certi cation of the Real EstateCadastre. Documents required are proof of ownership, detailed urban planand the hydro-technical conditions approval.

1 day MKD 6,000

7 Hire a third-party supervisor for the construction work

Agency : Private Agency

Before construction starts, BuildCo must hire a private company or anengineer licensed to perform construction supervision. The supervisoryparty would oversee construction from beginning to end, perform thetechnical inspection after construction, and prepare the nal report. Acompany would usually charge between 1% and 2% of the value ofconstruction.

According to article 10 of the Law on Amending the Construction Law (O cialGazette of the Republic of Macedonia br.144/12), supervisor of constructionworks for facilities intended for storehouses and warehouses cannot de nea price higher than 0.5% of the value of the facility. However, in practice,supervisory rms still charge 1-2% of the construction value, because it is afree market interaction and the building companies prefer paying the marketprice in order to obtain a high quality service.

1 day MKD 209,421

8 Request and obtain approval for construction (building permit) from theMunicipality and pay communal fee for infrastructure

Agency : Municipality

The Construction law (Article 59) regulates the procedure for submitting anapplication to obtain a building permit. Starting from 1st of June 2013, theapplication for a building permit can be submitted online at www.gradezna-dozvola.mk.

According to the Construction Law (Article 66), investor to start constructionwork within 2 years from the issuance date. In practice it takes on average 45days to obtain the building permit.

45 days MKD 420,943

9 Request and obtain water and sewage installation

Agency : JP "Vodovod i Kanalizacija"

To obtain water and sewage installation, an application must be submittedalong with the Hydro-technical conditions issued by JP "Vodovod iKanalizacija".

15 days MKD 43,219

10 Receive on-site technical inspection of the completed building and the nal report by a supervisory body

Agency : Republican Inspectorate for Construction and Urban Works

According to the amendment to the Construction Law dated September 20,2010, buildings that belong to the third, fourth and fth category can beoccupied after a report on the nished technical inspection is prepared by alicensed supervisory engineer or a company. An occupancy permit for thesebuildings is no longer required. It takes one day to perform the technicalinspection and 3 days to draft and submit the nal report.

4 days no charge

11 Submit the nal report to the Municipality and await for buildingregistration

Agency : Municipality / Real Estate Cadastre

Once the private supervision expert completes the nal inspection and the nal report, BuildCo must submit the nal report to the Municipality. As ofSeptember 2012, the Municipality is responsible for registering the propertyon behalf of the investor. It takes 2 weeks from the day of submitting the nalreport to the Municipality until the registration of the building is complete.

15 days MKD 400

DetailsDealingwithConstructionPermitsinMacedonia,FYRMeasureofQuality

Answer Score

Building quality control index (0-15) 13.0

Quality of building regulations index (0-2) 2.0

How accessible are building laws and regulations in your economy? (0-1) Available online;Free of charge.

1.0

Which requirements for obtaining a building permit are clearly speci ed in the buildingregulations or on any accessible website, brochure or pamphlet? (0-1)

List of requireddocuments; Feesto be paid;Requiredpreapprovals.

1.0

Quality control before construction index (0-1) 1.0

Which third-party entities are required by law to verify that the building plans are incompliance with existing building regulations? (0-1)

Licensedarchitect; Private rm.

1.0

Quality control during construction index (0-3) 2.0

What types of inspections (if any) are required by law to be carried out duringconstruction? (0-2)

Inspections byexternalengineer or rm;Unscheduledinspections;Inspections atvarious phases.

1.0

Do legally mandated inspections occur in practice during construction? (0-1) Mandatoryinspections arealways done inpractice.

1.0

Quality control after construction index (0-3) 3.0

Is there a nal inspection required by law to verify that the building was built inaccordance with the approved plans and regulations? (0-2)

Yes, nalinspection isdone bygovernmentagency; Yes, in-house engineersubmits reportfor nalinspection; Yes,externalengineersubmits reportfor nalinspection.

2.0

Do legally mandated nal inspections occur in practice? (0-1) Final inspectionalways occurs inpractice.

1.0

Liability and insurance regimes index (0-2) 1.0

Which parties (if any) are held liable by law for structural aws or problems in thebuilding once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)

Architect orengineer;Professional incharge of thesupervision;Constructioncompany; Owneror investor.

1.0

Which parties (if any) are required by law to obtain an insurance policy to coverpossible structural aws or problems in the building once it is in use (Latent DefectLiability Insurance or Decennial Insurance)? (0-1)

No party isrequired by lawto obtaininsurance .

0.0

Professional certi cations index (0-4) 4.0

What are the quali cation requirements for the professional responsible for verifyingthat the architectural plans or drawings are in compliance with existing buildingregulations? (0-2)

Minimumnumber of yearsof experience;Universitydegree inarchitecture orengineering;Being aregisteredarchitect orengineer.

2.0

What are the quali cation requirements for the professional who supervises theconstruction on the ground? (0-2)

Minimumnumber of yearsof experience;Universitydegree inengineering,construction orconstructionmanagement;Being aregisteredarchitect orengineer.

2.0

Getting ElectricityThis topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newlyconstructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June2017. See the methodology for more information.


Procedures to obtain an electricity connection(number)

Submitting all relevant documents and obtainingall necessary clearances and permits

Completing all required notifications andreceiving all necessary inspections

Obtaining external installation works and possiblypurchasing material for these works

Concluding any necessary supply contract andobtaining final supply


Is at least 1 calendar day

Each procedure starts on a separate day


Reflects the time spent in practice, with littlefollow-up and no prior contact with officials



Value added tax excluded

The reliability of supply and transparency oftari s index (0-8)

Duration and frequency of power outages (03)

Tools to monitor power outages (01)

Tools to restore power supply (01)

Regulatory monitoring of utilities performance(01)

Financial deterrents limiting outages (01)

Transparency and accessibility of tariffs (01)

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercialwarehouse in case study

*Note: Doing Business measures the pr ice ofelectricity, but it is not included in the distance tofrontier score nor the ranking on the ease of gettingelectricity.


To make the data comparable across economies, several assumptions areused.

The warehouse: - Is owned by a local entrepreneur and is used for storage of goods.- Is located in the economys largest business city. For 11 economies thedata are also collected for the second largest business city. - Is located in an area where similar warehouses are typically located and isin an area with no physical constraints. For example, the property is notnear a railway. - Is a new construction and is being connected to electricity for the rsttime. - Has two stories with a total surface area of approximately 1,300.6 squaremeters (14,000 square feet). The plot of land on which it is built is 929square meters (10,000 square feet).

The electricity connection:- Is a permanent one with a three-phase, four-wire Y connection with asubscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1,when 1 kVA = 1 kilowatt (kW). - Has a length of 150 meters. The connection is to either the low- ormedium-voltage distr ibution network and is either overhead orunderground, whichever is more common in the area where thewarehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried outon public land. There is no crossing of other owners private propertybecause the warehouse has access to a road. - Does not require work to install the internal wiring of the warehouse. Thishas already been completed up to and including the customers servicepanel or switchboard and the meter base.

The monthly consumption:- It is assumed that the warehouse operates 30 days a month from 9:00a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacityon average and that there are no electricity cuts (assumed for simplicityreasons) and the monthly energy consumption is 26,880 kilowatt-hours(kWh); hourly consumption is 112 kWh. - If multiple electricity suppliers exist, the warehouse is served by thecheapest supplier. - Tari s e ective in March of the current year are used for calculation ofthe price of electricity for the warehouse. Although March has 31 days, forcalculation purposes only 30 days are used.

Standardized Connection

Price of electricity (US cents per kWh) 13.4

Name of utility EVN Macedonia

City Covered Skopje



Procedures (number) 3 5.4 4.7 2 (United ArabEmirates)

Time (days) 97 113.7 79.1 10 (United ArabEmirates)

Cost (% of income per capita) 200.1 344.3 63.0 0.00 (Japan)

Reliability of supply and transparency of tariffindex (0-8)

5 5.3 7.4 8.00 (28 Economies)

FigureGettingElectricityinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores forgetting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureGettingElectricityinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 30

20

40

60

80

Time (days)

0

50

100

150

200

250

Cost (%

of incom

e per capita)




FigureGettingElectricityinMacedonia,FYRandcomparatoreconomiesMeasureofQuality


0

1

2

3

4

5

6

7

8

9

Index score

56

87

5 5.3

DetailsGettingElectricityinMacedonia,FYRProcedure,TimeandCost



1 Submit application to EVN and await energy consent

Agency : EVN

The energy consent is a three page document which contains approval forthe connection and a sketch with the connection point. Documents to besubmitted by the warehouse owner are as follows: property paper,construction permit (or decision for legalization of the warehouse if notlegally built), urban plan documentation of the warehouse, electric single linediagram of the warehouse, company's (customer's) documentation, andcerti cation of licensed electric company for internal electric wiringcompliance of the warehouse.

11 calendar days MKD 0

2 Pay estimate and await completion of external works by EVN

Agency : EVN

After the customer receives the energy consent, he/she signs the connectioncontract and pays the rst installment featured on the estimate. EVN thenhires a subcontractor to do the works and gathers the necessary paperwork- after which the second installment is due. The EVN subcontractor does thedesign, purchases and installs the transformer, cables and meter. Thesubcontractor cannot start the external connection works without priorwritten consent of the project from EVN. Moreover, the subcontractor isobliged to inform EVN of the nishing of di erent works phases. When theworks are done, the subcontractor informs EVN, and a technical commissionwith relevant experts is formed. The commission comes to the site to checkthe external connection works, after which the technical acceptance for thepower connection is granted. The owner does not need to be present duringthe inspection because the ownership of the equipment belongs to EVN.

80 calendar days MKD 558,600

3 Request for energizing of warehouse, and await opening of meter andelectricity ow

Agency : EVN

EVN informs the customer when the connection is completed. The customerthen needs to pay the third installment of the estimate, request theelectricity ow and sign a purchase-sale agreement with EVN. EVN technicalcommission will then proceed to open the meter and energize thewarehouse within a week from the day of the submission of the request.

6 calendar days MKD 0

DetailsGettingElectricityinMacedonia,FYRMeasureofQuality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparencyof tari index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Answer

Reliability of supply and transparency of tari index (0-8) 5

Total duration and frequency of outages per customer a year (0-3) 0

System average interruption duration index (SAIDI) 5.6

System average interruption frequency index (SAIFI) 12.5

What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0

Mechanisms for monitoring outages (0-1) 1

Does the distribution utility use automated tools to monitor outages? Yes

Mechanisms for restoring service (0-1) 1

Does the distribution utility use automated tools to restore service? Yes

Regulatory monitoring (0-1) 1

Does a regulatorthat is, an entity separate from the utilitymonitor the utilitys performance onreliability of supply?

Yes

Financial deterrents aimed at limiting outages (0-1) 1

Does the utility either pay compensation to customers or face nes by the regulator (or both) if outagesexceed a certain cap?

Yes

Communication of tari s and tari changes (0-1) 1

Are e ective tari s available online? Yes

Link to the website, if available online http://www.erc.org.mk/odluki/6.%20EVN%20%20SNABDUVANJE%20%202016.pdf

Are customers noti ed of a change in tari ahead of the billing cycle? Yes

Registering PropertyThis topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur whowants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures thequality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability ofinfrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. Themost recent round of data collection for the project was completed in June 2017. See the methodology for more information.


Procedures to legally transfer title on immovableproperty (number)

Preregistration procedures (for example,checking for liens, notarizing sales agreement,paying property transfer taxes)

Registration procedures in the economy's largestbusiness citya.

Postregistration procedures (for example, fillingtitle with municipality)



Each procedure starts on a separate day - thoughprocedures that can be fully completed onlineare an exception to this rule



Cost required to complete each procedure (% ofproperty value)

Official costs only (such as administrative fees,duties and taxes).

Value Added Tax, Capital Gains Tax and illicitpayments are excluded

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)

Transparency of information index (06)

Geographic coverage index (08)

Land dispute resolution index (08)

Equal access to property rights index (-20)


To make the data comparable across economies, several assumptionsabout the parties to the transaction, the property and the procedures areused.

The parties (buyer and seller):- Are limited liability companies (or the legal equivalent).- Are located in the periurban area of the economys largest business city.For 11 economies the data are also collected for the second largestbusiness city.- Are 100% domestically and privately owned.- Have 50 employees each, all of whom are nationals.- Perform general commercial activities.

The property (fully owned by the seller):- Has a value of 50 times income per capita, which equals the sale price.- Is fully owned by the seller.- Has no mortgages attached and has been under the same ownership forthe past 10 years.- Is registered in the land registry or cadastre, or both, and is free of titledisputes.- Is located in a periurban commercial zone, and no rezoning is required.- Consists of land and a building. The land area is 557.4 square meters(6,000 square feet). A two-story warehouse of 929 square meters (10,000square feet) is located on the land. The warehouse is 10 years old, is ingood condition, has no heating system and complies with all safetystandards, building codes and legal requirements. The property,consisting of land and building, will be transferred in its entirety. - Will not be subject to renovations or additional construction following thepurchase.- Has no trees, natural water sources, natural reserves or historicalmonuments of any kind.- Will not be used for special purposes, and no special permits, such as forresidential use, industrial plants, waste storage or certain types ofagricultural activities, are required.- Has no occupants, and no other party holds a legal interest in it.

Standard Property Transfer

Property value MKD 13,961,379.40

City Covered Skopje



Procedures (number) 7 5.3 4.6 1.00 (4 Economies)

Time (days) 30 20.4 22.3 1.00 (3 Economies)

Cost (% of property value) 3.2 2.5 4.2 0.00 (5 Economies)

Quality of the land administration index (0-30) 25.0 19.8 22.7 29.00 (Singapore)

FigureRegisteringPropertyinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores forregistering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureRegisteringPropertyinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 3 4 5 6 70

5

10

15

20

25

30

Time (days)

0

0.5

1

1.5

2

2.5

3

3.5

Cost (%

of property value)

Time(days) Cost(%ofpropertyvalue)



FigureRegisteringPropertyinMacedonia,FYRandcomparatoreconomiesMeasureofQuality


0

5

10

15

20

25

30

Index score

25.0

19.0

25.0

4.5

17.519.8

DetailsRegisteringPropertyinMacedonia,FYRProcedure,TimeandCost



1 Obtain a non-encumbrance certi cate on the property

Agency : Agency for Real Estate Cadastre, Notary

With the Law on Amendments and Addenda to the Law on Real EstateCadastre (O cial Gazette of RM No. 74/12 - 13.06.2012) all the informationon encumbrances and property are included in the Title Deed. Thus, partiesneed to obtain only a copy of the Title deed in order to check forencumbrances. The Title deed except from the Cadastre Agency, also can beobtained at the notary o ces, municipalities and geodetic companies.

With an upgrade of the electronic services provided by the Agency for RealEstate Cadastre (e-counter), apart from the availability to obtain a title deedfrom the Department of Cadastre and registration of real estate, the titledeed can be obtained from the closest municipality, notary o ce or in theo ces of private geodetic rms.

Less than a day(online procedure)

MKD 180 (Title deed)+ MKD 50(administrative tax)

2 Lawyer drafts the sale-purchase agreement

Agency : Lawyer

As of January 1, 2017, Macedonia requires an agreement to be prepared by alawyer for transfer of a property in which the legal matter is valued at morethan 10,000 Euros. There are some exceptions. There is no obligation forpreparation of the agreement by a lawyer (including lawyers seal andsignature): 1) when one of the contracting parties is the Republic ofMacedonia, and 2) for transactions where the legal matter (subject of theagreement for transfer of the property) is under 10.000 Euros in MKD andone of the contracting parties is bank, saving bank, nancial company,provider of nancial leasing or insurance company, there is no obligation forpreparation of the agreement by a lawyer (including lawyers seal andsignature)

1 day Statute of the BarAssociation of theRepublic ofMacedonia set thefees in a decisiondated January 31,2017. The fee isdeterminedaccording to thevalue of the subjectof sale and in thefollowing manner:

-For value of3.000.000,00 MKDthe fee forpreparation is3.900,00 MKD-For value from3.000.001,00 MKD to5.000.000,00 MKDthe fee is 5.000,00MKD-For value from5.000.001,00 MKD to9.000.000,00 the feeis 6.000,00 MKD-For value from9.000.001,00 MKD to20.000.000,00 the feeis 10.000,00 MKD -For value from20.000.001,00 MKDto 60.000.000,00 thefee is 15.000,00 MKD -For value of60.000.001,00 MKDthe fee forpreparation is30.000,00 MKD

3 Obtain Certi cates for current condition, Certi cates of bankruptcy andCerti cates of liquidation from the Central Registry

Agency : Central Registry

Prior to referring to a public notary for veri cation and notarization partiesare required to obtain three certi cates from the Central Registry. TheseCerti cates are required by the Notary in order to compile the Notary act.Pursuant to article 47 of the Notary Law the notary public shall determinethe identity of the parties (seller and buyer) - legal entities based on acerti cate issued by a competent authority (Certi cate for current standing).Further, pursuant to article 44 of the same Law "while compiling a notary act,the notary public must examine whether the parties are capable andauthorized for undertaking such activities (transfer of a property)......"(Certi cate of bankruptcy and Certi cate of liquidation).

Less than a day(online procedure)

MKD 256 (Certificatefor currentconditions) + MKD257 (Certificate ofbankruptcy) + MKD257 (Certificate ofliquidation)

4 Submit application for assessment of sale property tax and obtain thetax decision

Agency : Municipality

Tax liability incurs on the date of conclusion of the agreement for transfer ofownership. The base of tax on sales of real estate is the market value of thereal estate at the moment of the tax liability. Previously paid to the PublicRevenue Authority, the payment of this tax moved from the RevenueAuthority to the Municipalities in 2005. According to the Law on PropertyTaxes (O cial Gazette of the Republic of Macedonia, No. 61, datedSeptember 13th 2004), the tax rates are determined by each Municipality,and the Municipality administration is authorized to determine and collectthe property taxes as per the location of the real property. The Mayor shouldpass and deliver the decision for the amount of property tax within 10 daysfrom the day when the taxpayer submitted the application. The rate of tax onsale of real estate is proportional and equals 2-4% of the determined marketvalue of the property. If the two parties are companies registered for VAT,the seller will pay 18% VAT on the determined purchase price.

3 weeks MKD 300(administration fee)

5 Pay property sales tax and obtain a stamped payment order at the bank

Agency : Commercial bank and Municipality

Seller makes a wire transfer or pays in person at the bank. To con rm the taxpayment seller obtains stamped payment order from the bank and submitsthis document to the Municipality. Given that Municipalities cannot verifywhether money have reached their account, stamped payment order mustbe submitted to get Municipality's seal on the draft sales-purchaseagreement.

1 day 2-4% from themarket value of thereal estate at themoment theobligation ocurred

6 Notary solemnizes draft sales-purchase agreement or prepares a Notaryact

Agency : Public Notary

The notary prepares and notarizes the sale contract agreement.

The following documents are required by the notary:

Title Deed from AREC;

Current condition of the legal entities (where the names and data of thelegal representative(s) of the Companies authorized to sign the agreementare stipulated)-obtained by the notary online

Decision for sale of the warehouse adopted by the owner(s) of theCompany - Seller;

Decision for buying of the warehouse adopted by the owner(s) of theCompany - Buyer;

Certi cates that both Companies are not under bankruptcy and liquidationProcedure;

Certi cate for non-encumbrance for the warehouse. According to the Lawon Notary Public, a notary public is obliged to submit these documents tothe Cadastre in order to inform the Cadastre about the change in ownership;

Seller: must produce a certi cate showing that the Company has notinitiated the bankruptcy Procedure;

Purchaser: must issue a Decision for buying the warehouse, signed by theCompanys Manager.

3 days Sale/purchaseagreementaccording to Article11 of Notary Tariff:

-if the property valueis from MKD 300,001up to MKD 3,000,000the fee is MKD 2,000; -from 3.000.001 MKDto 5.000.000,00 MKD,the fee is 10.000,00MKD; -from 5.000.001,00MKD to 9.000.000,00MKD, the fee is12.000,00 MKD; -from 9.000.001,00MKD to20.000.000,00 MKD,the fee is 20.000,00MKD; -from 20.000.001,00MKD to60.000.000,00 MKD,the fee is 30.000,00MKD; -up to 60.000.000,00MKD, the fee is60.000,00 MKD.

Pursuant to theNotary Act of 2017,50% of the awardand the costsprescribed by theNotary Tariff, arepaid to the attorneyat law as hisparticipation isobligatory.

7 Registration in the Cadastral O ce

Agency : The Agency for Real Estate Cadastar

Parties submit a request for changing the title to the Cadastral O ce.

A lawyer or the buyer obtains from the Cadastre a new Title Deed in whichthe new owner will be registered. Ownership right over real estate isestablished at the moment of registration of that right in the Public Book atthe Cadastre, though in practice documentation would be required to resellor use the property to obtain a loan.

According to the Article 186 from the Law on Real Estate Cadastre (O cialGazette of RM 55/2013), the time limit for Real Estate Cadastre to registerrequired application is set at 15 working days. The documentation shallinclude: the sale contract approved by public notary.

E-lodging is now being introduced in Macedonia: the E-Counter applicationfor professional users (available at www.katastar.gov.mk ), enablessubmission of applications for data and changes electronically, usingelectronic signature. The fee for the service and the administrative tax canbe paid by credit card via the virtual POS terminal. In order to use thisservice, the professional users must sign a contract with the AREC and musthave internet access, scanner, digital signature issued by an authorizedbody, and payment card. With the E-Counter, the citizen via the Notaries canconduct purchase or sale of the property and can quickly record a mortgage,without coming to the AREC front desk in person.

3 days MKD 300 (for changeof ownership) + MKD50 (administrativetax)

DetailsRegisteringPropertyinMacedonia,FYRMeasureofQuality

Answer Score

Quality of the land administration index (0-30) 25.0

Reliability of infrastructure index (0-8) 8.0

What is the institution in charge of immovable property registration? Agency for RealEstateCadastre

In what format are the majority of title or deed records kept in the largest business cityin a paper format or in a computerized format (scanned or fully digital)?

Computer/Fullydigital

2.0

Is there an electronic database for checking for encumbrances (liens, mortgages,restrictions and the like)?

Yes 1.0

Institution in charge of the plans showing legal boundaries in the largest business city: Agency for RealEstate Cadastre

In what format are the majority of maps of land plots kept in the largest business cityin a paper format or in a computerized format (scanned or fully digital)?

Computer/Fullydigital

2.0

Is there an electronic database for recording boundaries, checking plans and providingcadastral information (geographic information system)?

Yes 1.0

Is the information recorded by the immovable property registration agency and thecadastral or mapping agency kept in a single database, in di erent but linked databasesor in separate databases?

Single database 1.0

Do the immovable property registration agency and cadastral or mapping agency usethe same identi cation number for properties?

Yes 1.0

Transparency of information index (06) 4.0

http://dbuat.financeandprivatesector.org/~/media/WBG/DoingBusiness/Documents/Profiles/Country/MKD.pdfhttp://dbuat.financeandprivatesector.org/data/exploreeconomies/profile/~/media/AF824138BBBF4853B9C8C237C3D99FF9.ashxhttp://dbuat.financeandprivatesector.org/reforms/overview/economy/%7BcountryUrlName%7Dhttp://dbuat.financeandprivatesector.org/data/exploreeconomies/profile/~/media/WBG/DoingBusiness/Documents/Methodology/LMR/LMR-2018DB-service-sector-data-points-and-details.xlsxhttp://dbuat.financeandprivatesector.org/methodology/LMR-why-it-mattershttp://dbuat.financeandprivatesector.org/About-Us/FAQ#EWI

Economy ProfileMacedonia, FYR

Economy Pro le of Macedonia, FYR

Doing Business 2018 Indicators(in order of appearance in the document)

Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with constructionpermits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control andsafety mechanisms in the construction permitting system

Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply andthe transparency of tariffs

Registering property Procedures, time and cost to transfer a property and the quality of the land administration system

Getting credit Movable collateral laws and credit information systems

Protecting minority investors Minority shareholders rights in related-party transactions and in corporate governance

Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes

Trading across borders Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal frameworkfor insolvency

Labor market regulation Flexibility in employment regulation and aspects of job quality

About Doing BusinessThe Doing Business project provides objective measures of business regulations and their enforcement across 190 economies andselected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulationsapplying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It providesquantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registeringproperty, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolvinginsolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankingsof economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking onthe ease of doing business, it does present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies andover time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks forreform; and serves as a resource for academics, journalists, private sector researchers and others interested in the businessclimate of each economy.

In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erentcities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommendreforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with othercities in the economy or region and with the 190 economies that Doing Business has ranked.

The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This years report covers 11indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, exceptfor 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the secondlargest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. Theproject has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to providean objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the bestperformance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economysdistance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents thefrontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting theaggregate distance to frontier scores, rounded to two decimals.

More about Doing Business (PDF, 5MB)

Ease of Doing Business inMacedonia, FYR

Region Europe & Central Asia

Income Category Upper middle income

Population 2,081,206

GNI Per Capita (US$) 4,980

City Covered Skopje

DB2018Rank190 1

11

DB2018DistancetoFrontier(DTF)0 100

81.18

0 100

81.18:Macedonia,FYR(Rank:11)

76.27:CzechRepublic(Rank:30)

73.18:Montenegro(Rank:42)

71.91:Bulgaria(Rank:50)

71.33:RegionalAverage(Europe&CentralAsia)

68.02:Greece(Rank:67)


Note: The distance to frontier (DTF) measure shows the distance of each economy to the frontier, which represents the best performance observed on each ofthe indicators across all economies in the Doing Business sample since 2005. An economys distance to frontier is re ected on a scale from 0 to 100, where 0represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Macedonia, FYR

Startinga

Business

Dealingwith

ConstructionPermits

GettingElectricity

RegisteringProperty

GettingCredit


PayingTaxes


EnforcingContracts

ResolvingInsolvency

1

28

55

82

109

136

163

190

Rank

22 26

53 48

124

29 2735 30

Distance to Frontier (DTF) on Doing Business topics - Macedonia, FYR

Startinga

BusinessChange:0.00

Dealingwith

ConstructionPermits

Change:+0.35

GettingElectricity

Change:-3.09

RegisteringProperty

Change:+0.44

GettingCredit

Change:0.00


Change:0.00

PayingTaxes

Change:0.00


Change:0.00

EnforcingContractsChange:0.00

ResolvingInsolvencyChange:+0.16

0

20

40

60

80

100

DTF

93.94

78.0181.42

74.49

85.0080.00

84.72

93.87

67.7972.54

Starting a BusinessThis topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sizedlimited liability company to start up and formally operate in economys largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domesticallyowned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities andemploys between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Startinga Business considers two types of local limited liability companies that are identical in all aspects, except that one company is ownedby 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scoresobtained for each of the component indicators.The latest round of data collection for the project was completed in June 2017. See the methodology for more information.


Procedures to legal ly start and operate acompany (number)

Pre-registration (for example, name verificationor reservation, notarization)

Registration in economys largest business city

Post-registration (for example, social securityregistration, company seal)

Obtaining approval from spouse to start businessor leave home to register company

Obtaining any gender-specific permission thatcan impact company registration, companyoperations and process of getting nationalidentity card



Each procedure starts on a separate day (2procedures cannot start on the same day)

Procedures fully completed online are recordedas day





No professional fees unless services required bylaw or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third partybefore registration or up to 3 months afterincorporation


To make the data comparable across economies, several assumptionsabout the business and the procedures are used. It is assumed that anyrequired information is readily available and that the entrepreneur will payno bribes.

The business:- Is a limited liability company (or its legal equivalent). If there is more thanone type of limited liability company in the economy, the most commonamong domestic rms is chosen. Information on the most common form isobtained from incorporation lawyers or the statistical o ce. - Operates in the economys largest business city and the entire o cespace is approximately 929 square meters (10,000 square feet). For 11economies the data are also collected for the second largest business city.- Is 100% domestically owned and has ve owners, none of whom is a legalentity; and has a start-up capital of 10 times income per capita and has aturnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as theproduction or sale of goods or services to the public. The business doesnot perform foreign trade activities and does not handle products subjectto a special tax regime, for example, liquor or tobacco. It does not useheavily polluting production processes. - Leases the commercial plant or o ces and is not a proprietor of realestate and the amount of the annual lease for the o ce space is equivalentto 1 times income per capita.- Does not qualify for investment incentives or any special bene ts. - Has at least 10 and up to 50 employees one month af ter thecommencement of operations, all of whom are domestic nationals. - Has a company deed 10 pages long.

The owners: - Have reached the legal age of majority. If there is no legal age of majority,they are assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. - Are married and the marriage is monogamous and registered with theauthorities. - Where the answer di ers according to the legal system applicable to thewoman or man in question (as may be the case in economies where thereis legal plurality), the answer used will be the one that applies to themajority of the population.

Standardized Company

Legal form Drustvo so ogranicena Odgovornost (DOO) - Limited Liability Company

Paid-in minimum capital requirement EUR 0

City Covered Skopje



Procedure Men (number) 4 5.2 4.9 1.00 (New Zealand)

Time Men (days) 7 10.1 8.5 0.50 (New Zealand)

Cost Men (% of income per capita) 0.1 4.4 3.1 0.00 (United Kingdom)

Procedure Women (number) 4 5.2 4.9 1.00 (New Zealand)

Time Women (days) 7 10.1 8.5 0.50 (New Zealand)

Cost Women (% of income per capita) 0.1 4.4 3.1 0.00 (United Kingdom)

Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies)

FigureStartingaBusinessinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores forstarting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.

FigureStartingaBusinessinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 3 * 40

1

2

3

4

5

6

7

Time (days)

0

0.02

0.04

0.06

0.08

0.1

Cost (%

of incom

e per capita)




DetailsStartingaBusinessinMacedonia,FYRProcedure,TimeandCost

Applies to women only.



1 Registration with the Central Registry and obtaining a company seal

Agency : Central Register

Company founders can prepare registration documents themselves. A one-stop shop system was implemented on January 1, 2006. The Central Registerof Republic of Macedonia is the single institution for registering LLCs andother forms of trade companies, foreign representative o ces, and otherentities. This registration process includes registering the company with theTrade Register, providing the LLC statistic number, opening the LLC bankaccount, registering the company in the Public Revenue O ceTax O ce,and publishing the LLC formation notice on the Central Registers Web site(www.crm.com.mk).

According to the amendment of the Law on trade companies, Published inthe O cial Gazette of the Republic of Macedonia nr. 38 from 24.02.2014,registration of LLCs must be conducted in electronic form with theassistance of authorized registration agents who are the only authorizedentities to submit applications for registration. The electronic registration isfree.

With the amendments on the Law on One Stop Shop (O cial Gazette150/2007 from 12.12.2007) connection is now established between theCentral Registry and the Employment Agency which allows registering of rstemployment of directors through CRM and registering employees with thesocial fund.

Registration agents have public authorization to prepare the application andthe accompanying company deeds, and also to convert paper documentsissued by other institutions needed for establishing the company intoelectronic form, to digitally sign and submit them through the existingsystem for e-registration of the Central Register, in the name and on behalfof di erent parties. The registration agents have public authorization todetermine the identity of the participants, such that the need fornotarization of documents is now completely eliminated. The entirecompany registration procedure is completed at the site of the registrationagent.

The founders shall transfer the amount of the principal capital on atemporary account in a commercial bank of their choosing. After theregistration is completed the bank account of the newly founded companyshall be opened.

1 day MKD 250 for astandard seal orMKD 2,200 for anautomatic seal

2 Open bank account

Agency : Commercial Bank

The opening of the bank account of the Company is mandatory for all typesof VAT registration (mandatory or voluntary). The details regarding thenumber of the bank account and bank are provided in the Application Formfor VAT registration (DDV-01 Form).

1 day no charge

3 Registration for VAT

Agency : Public Revenue O ce

Companies beginning with carrying out of a commercial activity whichpredict to achieve turnover over 1,000,000 denars are obliged to beregistered for VAT purposes. The VAT registration is carried out bysubmitting of an application for registration for the value added tax (FormDDV-01). The application for VAT registration is submitted to the PublicRevenue O ce.

Taxpayers who began carrying out commercial the activity during thecalendar year must submit VAT registration application within 15 days of thestart of the activity.

1 day no charge

4 Publishing of an Advert on the need of an employee and Registration ofemployees with the Agency for employment

Agency : Agency for employment

Before registering of an employee, an Advert on the need of an employee(PPR Form) needs to be submitted at the Employment Agency. The followinginformation is provided in the PPR Form:- company's name and address; - company's registration number and tax number;- number of workers required (with work position, salary, duration ofemployment, educational and work requirements).

An employee can be registered after expiration of 5 days since thesubmitting of the advert. For employee registration, it is required therequired to submit the registration form together with a copy of the advert(PPR Form) which is previously signed and stamped by the EmploymentAgency. The registration form contains information on the:- name, address and registration number of the Company;- name, surname and ID number of the employee;- number and date of the employment agreement.

The registration can be done either online or in person. The onlineregistration is done via the website (e-rabota.avrm.gov.mk), while the inperson registration is done at the o ces of the Employment Agency. Theregistration process takes up to one hour to be completed.

The employee is registered from the following day since the submitting ofthe necessary documents. Upon registration of an employee, the Agency foremployment issues form M1M2, which con rms the date of employment andcontains data regarding the company`s name, address and registrationnumber, as well as employee`s name, surname, ID number. The M1M2 formis signed and stamped by the Employment Agency which proves theregistration of the employee.

The Agency for employment registers the employees in the Pension fund,while the employees (or authorized persons) are responsible for verifyingthe working booklet in the Health fund.

5 days no charge

Dealing with Construction PermitsThis topic tracks the procedures, time and cost to build a warehouseincluding obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for moreinformation


Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtainingall necessary clearances, licenses, permits andcertificates

Submitting all required notifications andreceiving all necessary inspections

Obtaining utility connections for water andsewerage

Registering and selling the warehouse after itscompletion



Each procedure starts on a separate daythough procedures that can be fully completedonline are an exception to this rule



Cost required to complete each procedure (% ofwarehouse value)


Building quality control index (0-15)

Sum of the scores of six component indices:

Quality of building regulations (0-2)

Quality control before construction (0-1)

Quality control during construction (0-3)

Quality control after construction (0-3)

Liability and insurance regimes (0-2)

Professional certifications (0-4)


To make the data comparable across economies, several assumptionsabout the construction company, the warehouse project and the utilityconnections are used.

The construction company (BuildCo):- Is a limited liability company (or its legal equivalent) and operates in theeconomys largest business city. For 11 economies the data are alsocollected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whomis a legal entity. Has a licensed architect and a licensed engineer, bothregistered with the local association of architects or engineers. BuildCo isnot assumed to have any other employees who are technical or licensedexperts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell thewarehouse upon its completion.

The warehouse: - Will be used for general storage activities, such as storage of books orstationery. - Will have two stories, both above ground, with a total constructed area ofapproximately 1,300.6 square meters (14,000 square feet). Each oor willbe 3 meters (9 feet, 10 inches) high and will be located on a land plot ofapproximately 929 square meters (10,000 square feet) that is 100% ownedby BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by alicensed architect. If preparation of the plans requires such steps asobtaining further documentation or getting prior approvals from externalagencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrativeand regulatory requirements).

The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewertap. If there is no water delivery infrastructure in the economy, a boreholewill be dug. If there is no sewerage infrastructure, a septic tank in thesmallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and anaverage wastewater ow of 568 liters (150 gallons) a day. Will have a peakwater use of 1,325 liters (350 gallons) a day and a peak wastewater ow of1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater owthroughout the year; will be 1 inch in diameter for the water connectionand 4 inches in diameter for the sewerage connection.

Standardized Warehouse

Estimated value of warehouse MKD 13,961,379.40

City Covered Skopje



Procedures (number) 11 16.0 12.5 7.00 (Denmark)

Time (days) 96 168.3 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 6.1 4.0 1.6 0.10 (5 Economies)

Building quality control index (0-15) 13.0 11.4 11.4 15.00 (3 Economies)

FigureDealingwithConstructionPermitsinMacedonia,FYRandcomparatoreconomiesRankingandDTF


0 100







Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.

FigureDealingwithConstructionPermitsinMacedonia,FYRProcedure,TimeandCost

Procedures (number)

1 2 * 3 * 4 * 5 6 7 8 9 10 110

20

40

60

80

Time (days)

0

0.5

1

1.5

2

2.5

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Cost (%

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arehouse value)

Time(days) Cost(%ofwarehousevalue)



FigureDealingwithConstructionPermitsinMacedonia,FYRandcomparatoreconomiesMeasureofQuality


10.5

11

11.5

12

12.5

13

13.5

Index score

13.0 13.0

12.0 12.0 12.0

11.4

DetailsDealingwithConstructionPermitsinMacedonia,FYRProcedure,TimeandCost



1 Request and obtain proof of land ownership from the Real EstateCadastre

Agency : Real Estate Cadastre

BuildCo must obtain proof of ownership of the land where construction willtake place. This document must be obtained at least 6 months before thebeginning of