For those evaluating sole proprietorship status in North Macedonia, this article delivers up-to-date coverage of its availability, registration procedures, and applicable tax obligations for 2025. We focus on the country’s regulated approach, without commentary on regional tax systems.
Availability of Sole Proprietorship Status in North Macedonia
Sole proprietorship is fully available in North Macedonia. The official term in Macedonian is Самостоен вршител на дејност, which translates as Sole Proprietor or Sole Trader. This status is accessible to individuals wishing to conduct business activities without establishing a separate legal entity, making it suitable for a wide range of independent professionals and small business operators. Citizens can register as a sole proprietor and engage in both offering services and selling goods to clients within and outside the country.
Conditions and Registration Process
Registration as a sole proprietor is handled by the Central Registry of North Macedonia. The process is designed to be straightforward and can be completed online or in person. Registration grants the individual the right to operate a business, invoice clients, and fulfill all regulatory obligations without the need to form an LLC or similar corporate entity.
Key Conditions for Sole Proprietor Status
| Requirement | Description |
|---|---|
| Eligibility | Any citizen of North Macedonia |
| Legal Entity | No separate legal entity required |
| Registry | Central Registry of North Macedonia |
| Business Scope | Allowed to invoice and contract clients domestically and overseas |
| Social Security | Mandatory contributions |
| Taxation | Subject to Personal Income Tax |
Taxation of Sole Proprietors in 2025
Sole proprietors in North Macedonia are subject to personal income tax on their business earnings, as regulated by national authorities. For the current year, 2025, the standard personal income tax rate is 10% on net income. There is also an option for lump-sum taxation, which can be utilized for certain approved activities and subject to turnover thresholds.
2025 Tax Rates and Payment Structure
| Type | Rate (%) | Applies To |
|---|---|---|
| Personal Income Tax | 10% | Net income of sole proprietors |
| Lump-Sum Scheme (Activity & turnover thresholds apply) |
Varies | Certain activities and qualifying turnover |
| Social Security Contributions | Mandatory | All registered sole proprietors |
For more details on the current tax obligations, individuals can refer to the official website of the Public Revenue Office (PRO) of North Macedonia. Social security contributions (mandatory for all sole proprietors) are determined based on national standards, alongside the income tax obligations.
Practical Considerations for Sole Proprietors
The sole proprietor scheme is one of the most utilized business structures in North Macedonia. It is particularly valued for its accessibility and ease of compliance, while still placing clear obligations on the individual for tax payment and social contributions. Registration and subsequent compliance can largely be managed online or by visiting official offices.
Pro Tips: Streamlining Your Sole Proprietor Setup
- Register online for efficiency: The Central Registry’s website offers a digital registration option, which typically accelerates the approval process.
- Evaluate the lump-sum taxation scheme: For those with eligible activities and turnover within thresholds, the lump-sum option may reduce administrative burden and facilitate predictable tax liabilities.
- Plan for social contributions: Social security is mandatory, so ensure these obligations are budgeted alongside tax payments to avoid unexpected compliance issues.
- Keep all official receipts and invoices: Recordkeeping is critical for both regular and lump-sum taxpayers to ensure compliance and facilitate any required future reviews or audits.
Additional Resources
For reference and deeper guidance, visit the official websites:
In summary, North Macedonia’s sole proprietorship structure offers clear advantages for local entrepreneurs and professionals. The registration process is accessible, the tax rate is competitive at 10% for 2025, and the ability to opt for a lump-sum taxation scheme adds flexibility for qualifying activities. Social security requirements and formal registration are essential factors to include in any planning. Overall, a structured yet accessible individual business status is available to those seeking to operate independently within the country.