Montenegro is not only a unique resort region, but also an attractive jurisdiction for business development. In the amazing country, there are serious relaxations for commercial activities. Registering a company in Montenegro will open up a lot of opportunities for growth for an entrepreneur.

 

 

Advantages of opening a company in Montenegro

Although this country is not a member of the EU, it uses the euro as its national currency. This greatly simplifies matters by eliminating the need to open “foreign currency” accounts and pass currency checks.

Also, registering a company in Montenegro has other advantages:

  • minimal taxation;
  • access to the world market;
  • climate (if you also plan to live in the country);
  • loyalty to the resident status of directors and shareholders (they can be any persons);
  • low inflation, which contributes to obtaining the maximum benefit from business;
  • the absence of Montenegro in the lists of offshore and states that have signed the MCAA agreement;
  • the opportunity to open a company in Montenegro for non-residents without any restrictions in the field of activity (the exception is the production and sale of weapons);
  • a large selection of banks and credit lines;
  • encouragement of foreign investment activity by the state.

 

Thus, registering a company in Montenegro really opens up great opportunities for growth and profit for both small businesses and large organizations. Contact Lawrange – we will organize all the necessary procedures in a short time.

 

 

Weaknesses of Montenegro

There are virtually no downsides to doing business in this jurisdiction, except that:

  • there is practically no raw material base;
  • very small sales market;
  • high level of corruption, although much lower than in the CIS countries.

 

It is also worth noting the excessive leisure – life in Montenegro flows slowly, the locals are in no hurry. If you were officially promised in 1-2 days, be prepared to wait a week. And regardless of the level of the meeting, that is, even at the official level, the participants may be very late or not come at all. A similar phenomenon is the norm for Montenegro.

In general, it is easy to do business in Montenegro, the main thing is to adapt to the new conditions of the economic environment and peculiarities of the local mentality. However, when closing a company, some complications may appear in the form of mandatory payment of taxes and various additional duties. In addition, this process takes a lot of time.

 

 

How the state regulates commercial activity

Conducting business is regulated by the Law on Companies – this is the main legislative act that determines the conditions of entrepreneurship. According to him, the opportunity to open a business in Montenegro is equally available to both local and foreign citizens. The main thing is to comply with all registration requirements.

There is also a law on attracting foreign investments. It describes in detail the rights and obligations of foreign investors. It is noteworthy that due to the mentioned legislative acts, Montenegro is currently one of the few countries in Europe in which foreigners can take advantage of special conditions for opening a company.

 

 

Types of profitable business in Montenegro

In this jurisdiction, you can open any business, from tourism to IT technologies. But at the same time, it will be necessary to obtain licenses for companies that are going to work in the field of:

  • energy;
  • construction;
  • transport;
  • financial;
  • educational;
  • Health Care.

 

At the same time, it is no secret that the main industry for the country is, of course, tourism. That is why most entrepreneurs want to open a company in Montenegro related to tourism or related fields. High profitability is characteristic of:

  • Car rental is the most popular business in Montenegro.
  • Rental of watercraft – in the case of maximum loading, payback occurs in 5-7 months.
  • Rental of sports equipment – such a business can be opened without large capital investments, and in case of heavy loading, such a business brings significant profit in a short period of time.
  • Hotel business – the cost of commercial real estate in Montenegro is lower than in the rest of Europe. The opening of small hotels is considered the most profitable.
  • General food – high profitability of cafes, bars, restaurants is noted in the tourist season, while do not forget that the local population is not particularly interested in foreign cuisine.
  • Beauty spheres – registration of an enterprise in Montenegro that provides services in this sector is quite a promising solution, since here, as in the whole EU, there is a lack of qualified craftsmen.
  • Kindergartens – in this jurisdiction, the demand for high-quality preschool education is quite high.

 

Also, the decision to open a company representative office, office or buy a ready-made business in Montenegro can be quite profitable.

Importantly! The main disadvantage of tourism business activity in this jurisdiction is seasonality. The season lasts approximately 6 months, from May to October. Therefore, before opening a company in Montenegro, you should prepare for the lack of permanent income.

 

 

Features of opening a company in Montenegro

First of all, it is worth remembering that Montenegro is a tourist country, in which a serious emphasis is placed on resort centers. Registration of a company in this region will be a good decision for those who plan to move to Europe for permanent residence.

The most profitable organizational and legal form of conducting commercial activities in the country is DOO (an analogue of LLC). The maximum number of founders of the society can reach 25 people.

If you want to open a company in Montenegro in the form of a joint-stock company, you should take a closer look at it. The minimum amount of authorized capital is 1 euro, which guarantees extreme accessibility for any type of entrepreneur.

With direct registration, you will also need to open a current account at a local bank. Lawrange cooperates with Erste bank, BNP, Zapad and Atlas. You will be able to issue details at any of the mentioned credit institutions.

The requirements for accounting in the Montenegrin state are pan-European – every organization must keep reporting documentation and compile it on time. The obligation applies even if the firm does not make any profit.

 

 

How to successfully open a company in Montenegro?

A competent approach to the choice can ensure successful company registration:

  • Type of activity – it is recommended to weigh all the pros and cons before starting a business activity.
  • Forms of business – in this jurisdiction, there are several forms of business for non-residents, each of which has its own characteristics.
  • Structures of the company – more precisely for its formation. It is important to ensure the presence of a director, accountant and other participants who will be able to conduct activities in full compliance with the laws of the country.
  • Status of management, shareholders.

Our experts will help you register a company in Montenegro quickly and easily. They are familiar with all the nuances of this issue, so they know how to organize a successful opening of the company.

 

 

Available business forms

One of the important steps on the way to opening a business in this country is the choice of an organizational and legal form of activity. Each of them has differences in working conditions, cost of service, taxation, number of participants, level of responsibility and liquidation procedures.

 

 

Choose a limited liability company (DOO)

This form is the most popular. It is an analogue of a regular LLC. Upon its registration, the right to own a plot of land in this country becomes available. The size of the minimum authorized capital is equal to 1 euro. The duration of registration is about 10 days. Both a natural person and a legal entity can establish this form of company. It is possible to submit tax reports quarterly or annually.

 

 

Features of opening a public company (AD)

The minimum initial capital is 25,000 euros. Moreover, it must be paid before registration. Such a company must consist of at least two shareholders, who can be individuals or legal entities. They respond according to the size of the deposit. This form is more often preferred by owners of large businesses, for example, in the field of industry.

 

 

What you should know about partnerships

There is no need to contribute authorized capital to establish an OD. You can register it in the Trade Register if you wish. At the same time, the name of the company and contact details of the members are indicated. For the normal functioning of a partnership, it is important to have a signed partnership agreement.

As for the limited liability partnership (KD), here it is also necessary to have two partners, one of whom holds the position of general, the other – silent (responsibility depends on the size of the contribution). Limited partners are not allowed to make any decisions regarding the management of the partnership.

 

 

Choice of individual entrepreneurship (Entrepreneur)

A private enterprise is created by one participant, who will be able to receive all the profit, but bear all the responsibility for the company’s activities. Entrepreneurs often prefer running a small business, not least because of simplified taxation. Completing this form is a little easier than some of the rest – no confirmation from the labor exchange is required.

 

 

Features of accounting

According to Montenegrin legislation, accounting must be carried out even in the absence of profit. Only a specialist who is licensed in the country may be hired for the position of accountant. In the case of minor business activity, you can use its services within the scope of external accounting support (outsourcing).

The accountant is responsible for reporting related to:

  • payment of salary to the director;
  • payment of monthly taxes;
  • submission of quarterly and annual reports.

In the absence of an accountant, it is not possible to obtain a certificate on the absence of tax debt for the continuation of the GNP. This specialist controls the financial discipline for the enterprise, conducts an inventory of funds, goods and material values, carries out the instructions of the management.

 

 

Taxes in Montenegro

Montenegro has one of the most loyal taxation systems in Europe. The basic income tax rate is 9%. Depending on the size of the company’s income, the rate can be increased to a maximum of 15%. At the same time, if you reinvest the income in the company, you are exempt from tax liability.

In addition to corporate tax, you have the option of becoming a VAT taxpayer. In some cases, value added tax becomes mandatory (if your company has an annual turnover of more than 18,000 euros). The basic VAT rate is 21%.

 

 

Stages of business formation in Montenegro

 

  1. Company registration.
  2. Obtaining a residence permit.
  3. Opening a bank account.

 

To open a company in Montenegro, you will need to issue a power of attorney to a Lawrange representative, provide 3 options for the name of the future organization and copies of the passports of the founders and managers.

Importantly! If the director is a foreigner, obtaining a residence/work permit is mandatory. That is why it will be necessary for the director to come in person to submit an application to the residence permit. 

The appointed director must also visit the tax authority and the local bank.

We prepare all the rest of the documentation ourselves.

 

 

Documentation required

Company registration in Montenegro takes place only if all the necessary documents are notarized. Yes, preparation is important:

  • Memorandum and Articles of Association.
  • Personal data of founders together with CV.
  • Data of board members and executive director.
  • Registered name of the enterprise.
  • Legal addresses.
  • Written consent of council members.
  • Confirmation of payment of the registration fee.

Importantly! At the time of registration, beneficiaries may need to confirm the origin of the funds they used to set up the company.

 

 

Learn more about cost and terms

The cost of opening a company in Montenegro from Lawrange is 2899 euros. The price includes a package of services, which includes:

  • execution of registration processes;
  • renting a legal address;
  • obtaining registration documents;
  • one residence permit for the founder;
  • payment for translation of documents;
  • state and notary fees.

Company registration takes 7-10 days. Obtaining a residence permit takes 14-21 days.

The cost of assistance in opening a personal and corporate account is 1000 euros. Opening corporate/individual bank accounts – takes about two weeks on average.

 

 

What are the costs involved in owning a company

It is much cheaper to open a company in Montenegro and to maintain it in the future compared to other European jurisdictions. It is noteworthy that this country is almost halfway to joining the EU, so investments of any size in your own enterprise will pay off handsomely.

The costs of owning a company consist of paying:

  • taxes;
  • salaries of employees and accountants;
  • renting a legal address;
  • work of a lawyer, business assistant (if necessary).

Lawrange specialists provide professional remote business support. For more detailed information, contact us at the numbers indicated on the website.

 

 

Peculiarities of obtaining a residence permit

You can get a residence permit in Montenegro in various ways, but most often preference is given to buying real estate or obtaining a work permit. Here, as in the rest of Europe, in Montenegro there is an opportunity to arrange temporary and permanent residence. In the first case, the validity period is 12 months, after which it is extended (and so every year). The basis for obtaining a Montenegrin permanent residence permit is legal residence in this jurisdiction for more than 5 years or receipt of a Montenegrin inheritance.

The package of documents for obtaining a residence permit is standard and consists of:

  • copy of passport;
  • a document confirming the qualification level and education;
  • a certificate of no criminal record (no more than 6 months should pass from the moment of its issuance);
  • evidence of solvency;
  • a document confirming the place of residence;
  • certificate issued by the employer;
  • confirmation of medical insurance.

Documents must be submitted together with their translation. For this, it is necessary to contact a translator licensed in Montenegro.

Importantly! You can also get a residence permit if you have a yacht or in case of large investments being poured into the country. 

 

 

What is needed to open a bank account

Unlike most European countries, opening an account in Montenegro is quite simple. A non-resident can use almost any bank, regardless of the company’s activities. At the same time, banking institutions provide simplified schemes for opening an account for their own and foreign citizens.

The opening of a local or international account by a natural person is carried out by providing personal data (officially translated passport, including a foreign one, diploma and certificate of education).

When opening an account for the company, you must have:

  • Statutory documents of the company.
  • Residence permit cards.
  • PIB – taxpayer number.
  • PDW – tax number of the company.

It will also be necessary to confirm sources of income and prepare a certificate from the bank of the country where the foreigner came from. For a natural person, an account is opened on the day of application, for a corporate client, this process takes from 1 to 2 weeks.

 

 

Why you should choose Lawrange for opening a company in Montenegro

Our company offers a wide range of services that will be useful for a successful business in Montenegro. Over the years, Lawrange lawyers have managed to accumulate invaluable experience in working with this jurisdiction. Thanks to this, as well as extensive knowledge of Montenegrin legislation and mentality, our specialists will help to register a company in Montenegro, open a bank account for it and receive a residence permit in a short period of time. Contact us today if you are interested in a quick, simple business opening and want to receive detailed advice on all issues.

 

 

Conclusions

Montenegro attracts not only tourists, but also entrepreneurs from all over the world. This small European country offers the most convenient conditions for commercial activities for both residents and foreigners. The company in Montenegro can be opened within 1-2 weeks, and it is not necessary to be present in person. Lawrange specialists will help to register a company in Montenegro and provide, if necessary, full business support in the future.

 

FAQ

Is it possible to open a company in Montenegro for a non-resident?

According to Montenegrin legislation, foreigners have the right to register a company in Montenegro on the same grounds as residents.

 

Is it possible to open a company in Montenegro online?

Registration of the company itself is possible remotely by agreement with our company’s specialists. However, there are moments that require a director’s direct visit to the country: submitting an application to a residence permit, opening a bank account with a Lawrange lawyer and obtaining a tax number from the relevant government body.

 

What mandatory taxes should be paid immediately after registering a company in Montenegro?

Only the registration fee is paid immediately. Depending on the chosen form of business, its size can range from 20 to 100 euros.

 

 

 

 

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