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Business Reforms in Macedonia, FYR

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

DB2017

Getting Credit: The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions.

Protecting Minority Investors: FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures.

Enforcing Contracts: The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings.

Resolving Insolvency: FYR Macedonia made resolving insolvency easier by changing voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings.

DB2016

Starting a Business: The former Yugoslav Republic of Macedonia made starting a business simpler by introducing compulsory online registration carried out by certified agents.

Protecting Minority Investors: FYR Macedonia strengthened minority investor protections by providing for both fines and imprisonment of interested directors in prejudicial related-party transactions.

Labor Market Regulation: 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. 2) The Former Yugoslav Republic of Macedonia increased the minimum wage.

DB2015

Starting a Business: The former Yugoslav Republic of Macedonia made starting a business easier by making online registration free of charge.

Protecting Minority Investors: The former Yugoslav Republic of Macedonia strengthened minority investor protections by requiring prior review of related-party transactions by an external auditor.

Resolving Insolvency: The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings.

DB2014

Dealing with Construction Permits: FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new building and by authorizing the municipality to register the building on behalf of the owner.

Getting Electricity: FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW.

Registering Property: FYR Macedonia made property registration faster and less costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate.

Getting Credit: FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a collateral agreement and on the types of debts and obligations that can be secured.

Protecting Minority Investors: FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities.

Paying Taxes: FYR Macedonia made paying taxes easier for companies by encouraging the use of electronic filing and payment systems for corporate income and value added taxes.

DB2013

Starting a Business: FYR Macedonia made starting a business easier by simplifying the process for obtaining a company seal.

DB2012

Dealing with Construction Permits: FYR Macedonia made dealing with construction permits easier by transferring oversight processes to the private sector and streamlining procedures.

Registering Property: FYR Macedonia made registering property easier by reducing notary fees and enforcing time limits.

Getting Credit: FYR Macedonia improved its credit information system by establishing a private credit bureau.

Resolving Insolvency: FYR Macedonia increased the transparency of bankruptcy proceedings through amendments to its company and bankruptcy laws.

DB2011

Starting a Business: FYR Macedonia made it easier to start a business by further improving its one-stop shop.

Paying Taxes: FYR Macedonia lowered tax costs for businesses by requiring that corporate income tax be paid only on distributed profits.

DB2010

Starting a Business: FYR Macedonia made starting a business easier by integrating procedures at a one-stop shop.

Dealing with Construction Permits: FYR Macedonia reduced the time required for dealing with construction permits through changes in the permitting process.

Registering Property: FYR Macedonia made registering property easier by setting new time limits for registering a title deed at the real estate cadastre and by making it possible to obtain a nonencumbrance certificate from the real estate registry rather than through the court.

Getting Credit: FYR Macedonia’s public credit bureau improved its database and expanded its coverage by including more information and lowering the minimum threshold for loans reported.

Protecting Minority Investors: FYR Macedonia strengthened investor protections by introducing regulations on the approval of related-party transactions, increasing disclosure requirements in the annual report and making it easier to sue directors in cases where related-party transactions harm the company.

Paying Taxes: FYR Macedonia made paying taxes easier and less costly for companies by clarifying social security payments and reducing employers’ social security contribution rates.

Labor Market Regulation: FYR Macedonia allowed the use of fixed-term contracts for permanent tasks and reduced mandatory paid annual leave. In addition, it repealed the retraining or reassignment obligations and priority rules for reemployment that apply in cases of redundancy dismissals.

DB2009

Starting a Business: FYR Macedonia reduced the time and number of procedures to start a business by updating the one-stop shop system to carry out the full range of business start-up processes.

Registering Property: FYR Macedonia reduced the time needed to register property by increasing the staff in the cadastre office.

Getting Credit: FYR Macedonia improved access to credit information by guaranteeing by law borrowers’ right to inspect their own data in the public credit registry.

Paying Taxes: FYR Macedonia made paying taxes less costly for companies by reducing the corporate income tax rate.

Trading across Borders: FYR Macedonia reduced the time for exporting and importing by rationalizing the customs fee schedule and permit structure, improving the risk-based inspection system, simplifying customs procedures and eliminating a document previously required.

Enforcing Contracts: FYR Macedonia made enforcing contracts easier by continuing to systematically equip courts with electronic case management systems.

DB2008

Starting a Business: FYR Macedonia made starting a business easier by eliminating the paid-in minimum capital requirement.

Dealing with Construction Permits: FYR Macedonia reduced the time required for dealing with construction permits by speeding up the issuance of certificates of landownership.

Paying Taxes: FYR Macedonia made paying taxes easier and less costly for companies by introducing electronic filing and payment systems and by reducing the corporate income tax rate.