Do I Need a Local Entity to Hire in North Macedonia?

In North Macedonia, a "local entity" typically refers to a subsidiary or branch office that allows a foreign company to act as an employer and meet local payroll and employment obligations. This setup is essential for managing employee contracts, payroll, and compliance with local labor laws.

Without a local entity, you generally can't perform key employer functions such as registering for taxes, managing social security contributions, or issuing compliant employment contracts. However, using an Employer of Record (EOR) can simplify this process by allowing you to hire employees without the need for a local entity.

What is Required to Employ Someone in North Macedonia?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (must register with the Public Revenue Office)
• Withholding/tax remittance required? Yes (employers must withhold income tax and social contributions)
• Social contributions required? Yes (mandatory contributions to the Pension and Health Insurance Funds)
• Local employment agreement required? Yes (written agreements are mandatory under the Labor Law)
• Mandatory benefits to budget? Yes (statutory leave, health insurance, and pension contributions)
• Works council/collective agreements considerations? Often (many sectors have collective agreements affecting employment terms)

Best Options If You're Hiring in North Macedonia

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should proceed with caution. Hiring contractors in North Macedonia can be a viable option, but it comes with risks if the contractor's role resembles that of an employee.

While contractors don’t require a local entity, misclassification can lead to legal issues. Authorities may scrutinize the relationship, especially if:

• the contractor works exclusively for you
• you control their work hours or methods
• the contractor is integrated into your team

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in North Macedonia, depending on registration requirements.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 20,000–50,000 MKD per month ($360–$900)
• Payroll provider: Estimated 1,500–4,500 MKD per employee per month ($27–$81)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 100,000–300,000 MKD per year ($1,800–$5,400)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in North Macedonia

Hiring in North Macedonia can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in North Macedonia quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.