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Law on Trade Companies

The status of an inactive entity as a basis for deletion from the trade register

Law on Trade Companies

The sole proprietors and the trade companies that had not performed any trade activity, in the previous year, are obliged to submit a written notification as well as an annual account report to the Central Register of North Macedonia, according to the Law on Trade Companies. The deadline for submission is the last day before the expiry of the legal deadline for submission of annual account reports.

The Central Register of North Macedonia allocates the entities that have not fulfilled their legal obligation and after entering them in its records, electronically notifies the Public Revenue Office (PRO). 

Based on the above, the PRO initiates a procedure for determining a status of inactive entity and determines whether during the period for which an annual account and financial report had not been submitted, the entity has effectuated transactions through the transaction account (including also cases of only cash flow) or otherwise disposed of its assets and property that the PRO has determined whereby the outflow of funds or transfer of property based on coercive collection, i.e., enforcement proceedings, it is not treated as a trade. 

If the entity has not met the above conditions, the PRO shall issue a decision for determining the status of inactive entity and immediately notify the Central Registry of the Republic of North Macedonia electronically, in order to record that the entity has been granted the status of inactive entity.

The legal consequence is deletion from the trade register, if the Central Register of the Republic of North Macedonia determines that the entity has been inactive three years in a row.