Simplified Limited Liability Company
Simplified Limited Liability Company

Author(s): Marko Andonov, Ljubomir Radenkov, Dzena Anastasova
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Limited Liability Company (LLC); Simplified Limited Liability Company (SLLC); Basic capital
Summary/Abstract: Of all forms of trade companies, the limited liability company is the most common, both domestically and in the rest of the world. Such “popularity” stems from several factors, which are important for “young” entrepreneurs and individuals who lack the capital to establish another form of trade company. Those factors, or circumstances, are the relatively low minimum basic capital, the limited liability of the founders and shareholders in terms of the responsibilities and obligations the company has towards third parties, the relatively simple establishment process, as well as the simple organizational structure of the company. With the Amending Law of the Law on Trade Companies, published in the Official Gazette of North Macedonia no. 215/2021 of 16.09.2021, the legislator incorporates a so-called “subform” of the LLC – the Simplified Limited Liability Company (in continuation: SLLC). With this incorporation, the legislator intends to give additional relief to founders by minimizing the minimum basic capital from at least 5.000 EUR to at least 1 EUR expressed in denar counter value calculated according to the average exchange rate which is published by the National Bank of the Republic of North Macedonia.

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