The legal form you choose determines your liability, your capital requirements, and your reporting obligations. North Macedonia recognizes several forms; most new businesses choose between the sole proprietor and one of the limited liability variants.
The main legal forms
DOO — Limited Liability Company. The most common choice for small and medium businesses. A DOO can have between 2 and 50 founders, who may be individuals or legal entities, domestic or foreign. Liability is limited to each member's capital contribution. The minimum share capital is EUR 5,000, which may be contributed in cash or in kind and may be paid within one year of registration.
DOOEL — Single-Member LLC. A DOO with exactly one founder. It carries the same EUR 5,000 minimum capital and the same limited-liability protection. This is the typical structure for a solo entrepreneur or a wholly-owned subsidiary.
TP — Sole Proprietor (Trgovec Poedinec). A business run by a single individual who is personally liable for all obligations of the business with their entire personal assets. There is no minimum capital. It is the simplest and cheapest form, commonly used by craftspeople, farmers, artists, carriers, and small service providers — but the unlimited personal liability is a significant trade-off.
PDOO — Simplified LLC (the “1-euro company”). A simplified limited liability company can be founded by up to three individuals, one of whom is the manager. The minimum share capital is just EUR 1 (in denar equivalent), with a minimum nominal share of 10 cents. In exchange for the low entry capital, a PDOO must build a mandatory reserve by setting aside one quarter of its annual profit until the reserve reaches the level of standard share capital. It is designed to lower the barrier for first-time founders.
AD — Joint-Stock Company. Suitable for larger businesses and those that may raise capital from many shareholders. Minimum capital is higher — broadly EUR 25,000 for a private AD and EUR 50,000 for a public AD — and governance requirements are more demanding.
Branch & Representative Office. A foreign company can register a branch (podružnica), which is not a separate legal entity but can conduct commercial activity, or a representative office (pretstavništvo), which is limited to market research and promotion and cannot trade.
Entity comparison
| Entity | Founders | Min. capital | Liability | Best for |
|---|---|---|---|---|
| Sole Proprietor (TP) | 1 individual | None | Unlimited (personal) | Craftspeople, freelancers, micro-business |
| Single-Member LLC (DOOEL) | 1 | EUR 5,000 (within 1 yr) | Limited to contribution | Solo entrepreneur, subsidiary |
| Limited Liability Company (DOO) | 2–50 | EUR 5,000 (within 1 yr) | Limited to contribution | SMEs, partnerships |
| Simplified LLC (PDOO) | Up to 3 individuals | EUR 1 | Limited (with mandatory reserve) | First-time founders, low capital |
| Joint-Stock Company (AD) | 1+ shareholders | EUR 25,000 private / 50,000 public | Limited to shares | Large/capital-raising businesses |
| Branch (Podružnica) | n/a (foreign parent) | n/a | Parent liable | Foreign company entering the market |
