Direct investment is a type of capital transaction in the form of:
• Investments of residents (legal or natural person) abroad
• Investments of non-residents (legal or natural person) in North Macedonia
Direct investments are investments with which the investor intends to establish a permanent economic connection and/or exercise the right to manage the trading company or other legal entity in which he invests.
The type of occurrence and the method of realization of direct investment can be in:
- Money, rights, objects, such as:
- Establishment of a trading company fully owned by the investor;
- Increase of the capital of the company in full ownership;
- Acquisition of a trading company in full ownership;
- Participation in a permanent company or acquisition of more than 10% of the basic capital of the company, that is, with more than 10% of the decision-making right.
- Loans
- Long-term loan with a period of five (5) years or more, when it is a loan from the investor and which is intended for a trading company in his full ownership;
- Long-term loan with a period of five (5) years or more, when it is a loan intended for the establishment of a permanent economic connection between economically related entities.
- Subsidiaries, i.e. establishment of a subsidiary by a non-resident entity in North Macedonia
Direct investments of residents abroad are free.
Residents are obliged within 60 days from the day of the conclusion of the capital transaction, which is the legal basis for the acquisition of direct investment abroad, to report the investment and all further changes to the investment in the Central Registry.
The Central Registry registers investments of residents abroad and all further changes to investments that are considered direct investments of residents abroad in the Register of Direct Investments of residents abroad.
The Central Registry maintains a Register of Direct Investments of residents abroad, for which it issues to the residents a certificate of execution of registration and of any further modification of the direct investment abroad.
The Minister of Economy prescribes the method of registration, registration as well as the form, content and method of keeping the register of direct investments of residents abroad.
Direct investments of non-residents in the Republic of North Macedonia are free, unless otherwise regulated by another law, except the Law on Foreign Exchange Operations.
Residents in which a non-resident has an investment that is considered a direct investment are obliged, within 60 days from the day of the conclusion of the capital transaction, which is the legal basis of acquisition for direct investment in the Republic of North Macedonia, to report the investment and all further changes to the investment in the Central Registry.
The Central Registry registers investments of residents abroad and all further changes to investments that are considered direct investments of residents abroad in the register for direct investments of residents abroad.
The Central Registry maintains a Register of Direct Investments of Residents Abroad, for which it issues to the residents a certificate of execution of registration and of any further modification of the direct investment abroad.
The Minister of Economy prescribes the method of registration, registration as well as the form, content and method of keeping the register of direct investments of residents abroad.
The non-reporting of the direct investment in the register for direct investments in accordance with article 56 of the Law on foreign exchange operations is a violation. Misdemeanor proceedings are conducted and misdemeanor sanctions are imposed by the Ministry of Finance – State Foreign Exchange Inspectorate.