ECONOMIC ACTIVITIES OF THE NGOS AND FOUNDATIONS 

Business Organizations for realization of the mission

At the seminar for creating a strategy for the environmental NGOs’ activities that was organized last month by Milieukontakt Oost-Europa in Mavrovo, several NGOs have asked the question: what kind of economic activities can the NGOs and the foundations registered in Macedonia take? Dr. Borce Jovanovski from the Faculty of Law in Skopje provided the answer to this question:
Civic associations and foundation, in accordance with the Republic of Macedonia positive law, have the characteristics of a legal entity. As a legal entity, in accordance with the act 7, paragraph 3 from the Law for civic associations and foundations, they can only establish limited liability companies or stock companies to realize their goals, interests, and activities and to finance their functions determined by the law. Also, in accordance with the act 24, paragraph 1 from the trade companies’ law, they are in position to establish trade companies.

However, what is specific for these associations is that they cannot perform activities with the exclusive target of creating products for the market, that is, for gaining profit.
Nevertheless, with the aim of realizing the goals and tasks of the certain NGO, which are determined by the status, the legislator allows that NGO to perform economic activities through which their basic activity will be alimented. The NGOs have to determine such activities in their Status. Although the legislator foresees a possibility that the NGOs establish limited liability companies or stock companies, I think that it is best for them to establish a limited liability company, established by a single person)

Namely, in this example the NGO appears as the unique founder, and in accordance with the Law for trade companies – establishing rights, it can decide at any time how and where it will distribute the Ltd.’s profit (for the precisely defined goals and tasks in the Status), and it can also decide at any time to extend or terminate it, that is to stop doing further Ltd. business activities.

Prof. Dr. Borce Davitkovski