All resident companies incorporated under FYR Macedonian legislation are required to select a main business activity code during the incorporation procedure. This business activity is what the company founders plan to be the main activity of the legal entity.
However, most companies nowadays, during the setup procedure, also include a so-called “general business clause” in their incorporation documents which enables them to perform other business activities (supply of products and services) unrelated to the declared main activity code.
In our practice we have often come across cases where this general business clause has somewhat complicated matters for new companies. This has been an issue mostly in procedures of obtaining various licenses which are required for certain activities (such as construction, chemical, pharmaceutical etc.). It is often the case that the Ministry/authority in charge of a specific license requires that the main business activity code of an applicant is a specific code which corresponds to the activity related to the license. However, if the company was registered with a different main activity code as well as with a general business clause, the Central Register will not add a new business code or change the existing business code. The reasoning for this is that the Central Register deems the existence of a general business clause as sufficient for any and all business activities. Nevertheless, this often causes companies to run into problems during the licensing process.
For this purpose, we advise all investors interested in incorporating a local entity to carefully consider any business code licensing requirements before the company setup in order to avoid future issues.
Elena Kostovska
T: +389 2 2400225
E: elena.kostovska@eurofast.eu