The reform, free of charge registration of the companies will increase the employment

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With the abolition of the fee for establishing the company by electronically form in the Central Registry of the Republic of Macedonia for only three months are registered over 220 companies. The number of registered companies is increased by 10 times compared with the period before the introduction of free registration (from March 2011 to August 2013), when only twenty entrepreneurs applied for registration of a company.

In the last three months, each day is free registered one or two companies through the online system, said in an interview for Kurir, the Director of the Central Registry, Vancho Kostadinovski.

What the adopted amendments mean, which abolished the costs for establishing the company, i.e. what is the purpose of this reform measure?

The abolition of fee for establishing the company by electronically means as overall reform is composed of a set of measures, including the measure to establish a company for free of charge. In the context of this reform, there are two measures, i.e. the introduction of registration agent and abolishing mandatory obligation in the legal turnover to use the company seal. These are the three measures that the Central Registry of the Republic of Macedonia, together with the Ministry of Finance and the Government has transformed in the proposed amendments to the Company Law and the Law for one-stop stand, which were adopted at the end of May. They have created the obligation for Central register within 30 days to prepare act that would regulate the procedure for obtaining authorization or license for activity registration agent. The registration agents are accountants who have obtained the Certificate from the Ministry of Finance to perform the activity. Regarding the establishment of new company, we provided the authorized accountants to prepare articles and documents, to compile the application and without any compensation to submit to the Central Registry of the Republic of Macedonia, using the online registration system established in March 2011.

Benefit from the introduction of this reform measure is that those 40 euro or more, with notarization and costs for preparation of the press, to cease. Now, there is only one procedure i.e. the entrepreneur chooses one of simple forms and refers them to the trained registration agents. It means making only one-step with no cost at all and receiving digitally signed decision by Central Registry. That decision is legally relevant and can be used in any procedure.

This reform is introduced in order to bring this decisions to potential entrepreneurs. This decision presumed entering in the territory of Macedonia where the Central Registry never had its regional registration office. We have 27 municipalities, including the City of Skopje, our offices, but only ten of them perform these registrations of companies and other changes related to the Trade Register. Thanks to these reform measures inside the country and in the smallest municipality, where there are registration agents, it can be checked on the website of the Central Registry, i.e. this service is accessible for citizens and potential entrepreneurs.

According to statistical data, which we analyze on a daily basis, I can conclude that the introduction of such reforms for now, gives positive results, i.e. according to our expectations every day are recorded one or two companies through this system. Since the first issue of authorization for agent registration, around 10th or 11th of August 2013 up to today, we have registered over 220 trade companies by the hundreds of agents who have obtained authorization for agent registration. In average each registration agent has established two companies. The tendency of persons wishing to obtain authorization for agent registration increases every day, because we have over 50 requests in the process, and the first phase of completed training for certified accountants who are certified by the Ministry of Finance was passed by 290 persons trained by the experts from the Central Registry of the Republic of Macedonia. There is enormous interest by this professional community to obtain authorization and we have created another group, composed of 280 people waiting to be informed about dates for training for obtaining license registration agent.

If we continue with this pace, by the end of the year together with the Government and the Ministry of Finance we will be able to abolish the procedure in writing and move to complete the online registration of a company, i.e. opportunity to register a company exclusively in electronically.

We also intend to expand this category of registration agent to the other professional communities, such as the lawyers. They are also people who are dealing with legal issues, not only regarding the establishment but also to the changes, and if we find a common language with this professional community, the changes made ​​in the Trade Register and deletions will be transferred to this category of persons.

You have mentioned that the number of registered companies is considerably increased. What was the number before and whether there is increased number of registered companies inside Macedonia?

– Based on the relevant data recorded in the Trade Register and according to statistics date we have I can tell you that for a period March 2011 to 10 August 2013, via Trade Register we had registered only 20 applications submitted to the Central Registry through the online system. With the introduction of this reform, for a period of about three months we have established 220 companies, which means that the registering is 10 times greater in several times shorter  period. So, we made available the online system including the measures that are more accessible for the users and the whole procedure is simplified, there is no cost and we introduced registration agent as a category for professional community that will deal with this activity. The success of the introduction of the reform is evident and what further impresses me is the fact that there is great interest by public accountants and accountants for training in the Central Registry. I think that not only entrepreneurs will benefit this is reform, but also accountants. It will reduce costs to the Central Registry for spending paper, toner, and other material costs, and hiring and other resources that cost funds. It will improve the image of the Republic of Macedonia in the area of ​​starting a business.

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Whether the large number of registered companies will decrease the unemployment in Macedonia due to this reform?

– We are all focused on the final goal, to the preferred number of employees, measures that will reduce the unemployment in the country. Usually, with each open company opens an opportunity for potential new hires.

Which other countries have this module for free registration of company?

Similar example have the European countries and in Slovenia. We discussed the system there, but the Central Registry of the Republic of Macedonia and reform from 2006 the procedure for deciding the registering of the company has been transferred from court to administrative procedure, which is faster way to register a company, i.e. faster decision making. Many procedures are reduced with the introduction of the regulatory guillotine by the government, numerous documents are abolished. Everything is reduced to one procedure and legal decision that lasts 4 hours, in practice less than 4 hours for establishing company. It is our advantage over Slovenia case, which has implemented this model for agent registration or registration point. We have re-worked the model and customized it to our needs, our business climate, and our environment. With the speed, efficiency, and expertise in adjudicating the submitted applications, I think that the Republic of Macedonia in the next year would get the deserved place at the top in Europe and worldwide.

Recently the Central Registry of the Republic of Macedonia has introduced electronic receipts. What means the application of this e- certificate and whether it is meant to be relief for companies?

– We as Central Registry would not be a service institution, effective and prompt in providing services, if we do not propose new measures, and we do not listen to the business community. In order to meet the requirements and acceptance of its ideas, the one of most encounters we have with them, we accepted in the regulatory guillotine project of the Government to introduce specific measures that will operationalize the Central Registry of the Republic of Macedonia that is related to the improvement of the procedure for issuing such certificates of registry.

Central Registry at the request of the business community for introducing one counter where would be submitted a summarized request, along with the team from the sector registers, the information technology sector, the Registrar and the Department of Legal Affairs, and from my personal assistants, proposed to develop the system to a higher information and digital level and to be made ​​available not only for this category of business, to the trade associations, which need these documents for tender procedures, but also to the other users. We have established that and in the first phase, we attach all documents required to compete in a tender. Furthermore, we attach all documents that are part of the tariff rate of the Central Registry to this system and made integration of existing online distribution system with the e – verification. I can say that so far we have about 120,000 orders through the system, out of which some are ordered by the parties to be delivered in paper, and some of them are applied in digital form and are send them by the e- procurement system, which later are used for appropriate procedure.

According to some analyzes, it was concluded that electronic service reduces 60-70 % of the total cost in the procedure carried out on a stand. I think that with all the measures that we propose, including this one, e – verification, we are moving towards the creation of electronic office, which will be available to any place on Earth. We as Central Registry, we experience this as personal satisfaction the utilization systems. However, it is not all completed. We will further combine these systems, introducing new services, simultaneously promote, optimize, and introduce the new ones. It is imperative to work and I think the system for electronic certificates and registration agent have confirmed what I stated and presented as a commitment of the Central Registry of the Republic of Macedonia.

What projects and reforms are envisaged in the Central Register of Macedonia for the next period?

– Central Registry would not be if the institution does not introduce new solutions. According to this my statement, I can say that currently in Shtip takes place presentation to update the online system, the electronic system for submitting the annual accounts by accountants. We will intensively work until the last accountant is familiar straight from the experts from the Central Registry of the benefits of introducing and upgrading already existing electronic system for online submitting the annual accounts. In relation to the previous, this system is on a higher level and in a simpler way by simply clicking and uploading several annual accounts and payment by credit card, and for a short time submits the account to the Central Registry of the Republic of Macedonia.

The system is already presented and can be practically used and tried by all accountants, which will be involved as participants in the system. I think that in the period that is coming, usually from 1st of January 2014 to the legally established 28th of February i.e. the new measure we introduced, which is added value to this system, i.e. prolongation of the deadline for submitting the annual accounts only in electronic form until 19th of March, will allow accountants without burden to wait until this period, i.e. to avoid fuss before the Central registry and missing deadlines.

In addition, most important, will reduce costs in the process. The system is smart made ​​and designed to be easy with a few clicks to submit to the Central Registry document, which under the law is required to be submitted to the Central Registry.

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