How to Register a Sole Proprietorship (трговец поединец) in North Macedonia

Becoming an independent contractor in North Macedonia is an appealing choice for many individuals. The process is relatively straightforward, thanks to the country’s accessible online registration system and welcoming environment for self-employed professionals.

The main challenges include unlimited personal liability and the need for permanent residence, but the benefits are compelling—a low 10 % flat tax rate, efficient procedures, and the flexibility of solo entrepreneurship.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in North Macedonia?

In North Macedonia, a sole proprietorship is known as трговец поединец. It describes a legally capable natural person who performs commercial activities under the Law on Trade Companies. It is essentially the same as terms like sole trader, self-employed worker, or independent contractor. A sole proprietor is personally and unlimitedly liable for business obligations.

How does a sole proprietorship (трговец поединец) work in North Macedonia?

Sole proprietorship vs Limited Liability Company in North Macedonia

When comparing business models, the main alternative is the Limited Liability Company (LLC or D.O.O.).

Step-by-step guide: how to register a sole proprietorship in North Macedonia

Step 1: Check if you are eligible to become a трговец поединец in North Macedonia

You must have permanent residence in North Macedonia. If you're a foreign national, this means you must obtain permanent residency before you can register in this business form. One legal workaround is to first establish another type of legal entity—such as a Limited Liability Company (LLC or D.O.O.)—then apply for a temporary residence permit based on that entity.

Step 2: Choose your business name

Choose a unique trade name. You can verify availability online through the Central Register’s electronic registration system.

Step 3: Gather required documents

You will typically need:

• Application form for entry into the Trade Register (available via the Central Registry’s portal)

• Notarized signature of the sole proprietor

• Declaration stating you are not prohibited from business activities

• Declaration confirming you have paid applicable taxes and contributions (pension, health, etc.)

• Proof of permanent residence (e.g., ID or residency certificate)

Step 4: Register with the Central Registry

You can submit your application online via the Central Registry’s one-stop-shop electronic system. This includes registration with the Trade Register and automatic taxpayer registration with the Public Revenue Office.

Step 5: Pay registration fees and contributions

Fees are set according to the Central Registry tariff and are generally modest. These include registration fees and potentially administrative charges..

Step 6: Complete post-registration obligations

Once registered, you must:

• Maintain trade books and accounting records in accordance with local rules (e.g., in denar, preserved for 10 years)

• Submit annual accounts and any required financial statements by designated deadlines

• Register for VAT if your annual turnover exceeds the threshold (usually €50,000) via Public Revenue Office

Financial and tax obligations for sole proprietors in North Macedonia

• Income tax: Flat 10% rate on taxable income (total income minus expenses)

• Social security contributions: Mandatory for residents (pension, health insurance) — ensure you’re registered appropriately

• VAT: Standard VAT rate is 18 %, with exemptions for necessities; registration required if turnover exceeds the threshold

• Record-keeping: Maintain trade books and financial documents in compliance with Macedonian regulations, usually in local currency, and stored for years as required

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a трговец поединец in North Macedonia?
There is no minimum capital requirement for sole proprietors.

Do трговец поединец need to register for VAT?
Yes, if your annual turnover exceeds the VAT threshold (typically €50,000), you must register for VAT at 18%.

How much are the standard registration fees?
Fees are modest and vary by registry tariff. They include registration and administrative charges.

Can a трговец поединец hire employees?
Yes, as long as you comply with employment, tax, and social security obligations for employees.

How long does it take to register as a трговец поединец?
The one-stop-shop system through the Central Registry allows registration to be completed within hours or a few business days.

Can foreign nationals register as трговец поединец?
No. You must have permanent residence in North Macedonia at the time of registration.

Do трговец поединец need a separate business bank account?
While not mandatory, opening a dedicated account is strongly recommended for clean accounting and financial transparency.

What happens if I stop working as a трговец поединец?
You would need to deregister via the Central Registry, settle final tax filings, close your business registration, and comply with any final obligations.

Are there government incentives or reduced rates for new трговец поединец?
Some incentives exist for businesses in underdeveloped regions or specific sectors. These include tax relief or simplified registration for startups.

Can I use Deel as a трговец поединец to get paid by international clients?
Yes. Deel enables sole proprietors to receive payments from clients worldwide, in multiple currencies, with low fees and transparent exchange rates.

Does Deel generate compliant invoices for трговец поединец?
Absolutely. Deel automatically generates invoices that meet legal and tax requirements for North Macedonia and beyond.

Can Deel help me with taxes as a sole proprietor in North Macedonia?
Yes. Deel provides downloadable tax reports and payment records that simplify your record-keeping. While not a substitute for an accountant, it helps with compliance.

Does Deel offer contracts for freelancers and трговец поединец?
Yes. Deel includes contract templates that are compliant with local laws, helping you work safely and professionally.

Can I access benefits through Deel as a трговец поединец?
Yes. Deel offers optional benefits like health insurance, retirement plans, and more—bringing added security to self-employed professionals.