22 September 2025
newsletter
north macedonia
Proposed business angels law: a step forward for start-ups in North Macedonia
The North Macedonian start-up sector is finally beginning to receive the recognition it deserves. The proposed law on the promotion of business angel investors represents an important milestone in creating a supportive environment for new businesses. By acknowledging the role of private individuals who are ready not only to invest capital but also to contribute expertise and mentorship, this draft law seeks to stimulate entrepreneurship, innovation and sustainable growth.
The draft introduces a structured framework for individuals, commonly referred to as business angels, to channel their resources into promising enterprises.
Eligible companies
Business angels will be able to invest only in micro, small or medium-sized limited liability companies. Investments are not permitted in sensitive sectors such as banking, insurance, real estate, gambling, arms, steel, coal, alcohol or tobacco. In this way, resources are directed toward enterprises that truly contribute to innovation and development.
Investment thresholds
The proposal sets a minimum investment of EUR 5,000 and a maximum of EUR 250,000. These thresholds encourage meaningful commitments while preventing an excessive concentration of ownership in a single investor.
Ownership restrictions
An individual investor, or a group of investors acting jointly, may acquire up to 25 % of a company's ownership. Business angels are also prohibited from taking managerial roles, ensuring their involvement remains that of investors and advisors rather than executives.
Tax incentives
The proposal provides attractive financial incentives. Investors will benefit from a 50 % tax relief on dividend income for a period of five years. In addition, capital gains from the sale of their ownership stake will be exempt from tax up to EUR 100,000, with partial relief above that amount, provided the shares are held for at least three years.
Contract, registration and compliance
To access these incentives, investments must be formally registered. This requires documentation confirming the investment, the absence of conflicts of interest, and a valid agreement with the company. A well-prepared contract between the investor and the company is essential, as it safeguards both parties' interests and provides a solid foundation for the business to grow. A centralised register, maintained by the authorities, will oversee these investments and secure transparency.
Business angel networks
The law encourages the formation of non-profit networks of business angels. Such networks would facilitate cooperation, exchange of information and joint investment, while also opening access to public funds and donor support.
Opportunities ahead
The timely adoption of this law is eagerly anticipated, as it could mark a turning point for the Macedonian start-up ecosystem. By providing a legal and fiscal framework for angel investing, it acknowledges the importance of innovation and entrepreneurship in the country's economic future. For entrepreneurs, it opens new possibilities for growth. For investors, it offers both opportunities and safeguards within a structured environment.
That said, businesses and investors can best benefit from the opportunities of this law through expert guidance.
authors: Filip Srbinoski, Andrea Radonjanin
