#

Ease of Doing Business in

Macedonia, FYR

Macedonia, FYR Download Profile (1749.8KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 2,078,453
GNI Per Capita (US$) 5,140
City covered Skopje

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 10 16 up
6
81.74 79.19 down
2.55
Starting a Business 4 3 down
1
98.14 98.14
-
Dealing with Construction Permits 11 12 up
1
81.71 81.34 up
0.37
Getting Electricity 29 44 up
15
84.51 81.33 up
3.18
Registering Property 48 48
-
74.05 74.02 up
0.03
Getting Credit 16 42 up
26
80.00 65.00 up
15.00
Protecting Minority Investors 13 22 up
9
73.33 68.33 up
5.00
Paying Taxes 9 8 down
1
91.67 91.67
-
Trading across Borders 27 27
-
93.87 93.87
-
Enforcing Contracts 36 27 down
9
67.79 70.46 down
2.67
Resolving Insolvency 32 39 up
7
72.38 67.73 up
4.65

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

11

DB 2016 Rank:

12

Change in Rank:

up1

DB 2017 DTF (% points):

81.71

DB 2016 DTF (% points):

81.34

Change in DTF (% points):

up0.37

STANDARDIZED WAREHOUSE
Estimated value of warehouse MKD 13,157,529
City Skopje
Indicator Macedonia, FYR Europe & Central Asia OECD high income
Procedures (number) info_outline 9 15.1 12.1
Time (days) info_outline 89 160.7 152.1
Cost (% of warehouse value) info_outline 5.1 4.2 1.6
Building quality control index (0-15) info_outline 13 11.3 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain proof of land ownership from the Real Estate Cadastre

    Agency: Real Estate Cadastre

    BuildCo must obtain proof of ownership of the land where construction will take place. This document must be obtained at least 6 months before the beginning of the process. The Municipalities of Skopje update their tariff for fees associated with surveying and geodetic data for real estate on an annual basis. Obtaining proof of land ownership cost can vary from municipality to municipality. BuildCo pays an administrative fee of MKD 50 and a fee of MKD 125 for one parcel. If the land includes more than one parcel, the cost would be MKD 125 for the first parcel and MKD 25 for additional parcels.

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

    1 day MKD 175
    2

    Obtain the hydro-technical conditions

    Agency: JP "Vodovod I Kanalizacija"

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

    7 days MKD 6,000
    * 3

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

    Agency: Municipality, Urban Planning Department

    The requested extract of the detailed urban plan is issued by the respective office of the Municipality. This detailed urban plan identifies the location/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 a cadastre plan obtained by the Real Estate Cadastre. The extract of the detailed urban plan can be obtained within 5 working days after submission of the request.

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

    5 days MKD 1,050
    4

    Hire a private cadastre office and obtain account of numerical data study (elaborate za numerichki podatoci)

    Agency: Private Company

    The account of numerical data study is necessary to identify the measures of the plot of land on which the warehouse will be built. The cost of this study is approximately MKD 6,000.00 -- MKD 10,000.00. In Skopje there are a number of private cadastre offices that can be hired by BuildCo. The private cadastre office shall then obtain approval and certification of the Real Estate Cadastre. Documents required are proof of ownership, detailed urban plan and the hydro-technical conditions approval.

    1 day MKD 6,000
    5

    Hire a third-party supervisor for the construction work

    Agency: Private Agency

    Before construction starts, BuildCo must hire a private company or an engineer licensed to perform construction supervision. The supervisory party would oversee construction from beginning to end, perform the technical inspection after construction, and prepare the final report. A company would usually charge between 1% and 2% of the value of construction.

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

    1 day MKD 197,363
    6

    Request and obtain approval for construction (building permit) from the Municipality and pay communal fee for infrastructure

    Agency: Municipality

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

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

    45 days MKD 420,943
    7

    Request and obtain water and sewage installation

    Agency: JP "Vodovod i Kanalizacija"

    To obtain water and sewage installation, an application must be submitted along with the Hydro-technical conditions issued by JP "Vodovod i Kanalizacija".

    15 days MKD 43,219
    8

    Receive on-site technical inspection of the completed building and the final 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 fifth category can be occupied after a report on the finished technical inspection is prepared by a licensed supervisory engineer or a company. An occupancy permit for these buildings is no longer required. It takes one day to perform the technical inspection and 3 days to draft and submit the final report.

    4 days no charge
    9

    Submit the final report to the Municipality and await for building registration

    Agency: Municipality / Real Estate Cadastre

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

    15 days MKD 400

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    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 specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 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 in compliance with existing building regulations? (0-1) Licensed architect; Private firm. 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 during construction? (0-2) Inspections by external engineer or firm; Unscheduled inspections; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection; Yes, external engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company; Owner or investor. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0