selecta.me@gmail.com

+382 69 590 433

Archive октобар 2015

Company Liquidation in Montenegro

How can a company be liquidated in Montenegro?

There are two way of liquidate a company, through non judicial procedure or by bankruptcy procedure with the approval from the Bankruptcy tribunal.

"Abbreviated" process of voluntary liquidation of the company

Company Liquidation is a procedure that is carried out when the company has sufficient assets to cover its liabilities.

In a case if the company did not do anything, or had transactions on the account, the best is that the owners run „abbreviated“ process of voluntary liquidation of the company . This is the simplest procedure, when the owner signs a statement that the company has no debts and that will for any debts match the personal assets, for a period of three years.. Also, the „abbreviated“ procedure voluntary liquidation can be initiated in the case when the company operated and the owners are convinced that no outstanding claims. So, the risk is that someone submit a claim within a period of three years, which may be charged from the personal assets of the founder.

You must obtain confirmation from the Tax Administration of Montenegro that the tax has been paid.

 

Start bankruptcy proceedings

Corporate Bankruptcy is a procedure that can be carried out as a bankruptcy or reorganization of the debtor (entrepreneur or legal entity) that is unable to pay debts owed.

In a case, if the company had a turnover through the account and there are no funds to pay debts to creditors, can to start bankruptcy proceedings . The court orders the Trustee, notices debtors (and the IRS), and after verifying that the company has no assets from which the creditors can not collect debts, finish bankruptcy and liquidate the company.

The procedure is conducted at the Commercial Court of Montenegro.

In the process of bankruptcy and liquidation of the company,the owner of the company does not respondwith his property for the debts of society.

How long does it take to liquidate a company in Montenegro?

It takes 7 days for a „shortened“ liquidation of the company.

It takes 60 days for liquidation of the company through „bankruptcy“.

In more complex cases it takes 1.2 years, if the claims are challenged or other issues arise.

Liquidation costs

The costs of the „shortened“ liquidation process amount to a total of 350E.

Liquidation costs through bankruptcy are 1,050EUR.

The fee to the Commercial Court is 560 Euros. Our service is 500E.

The Commercial Court may order a larger feem in more complicated cases.

Contact

Bankruptcy or liquidation procedure of enterprises always requires you to obtain a lot of documents and incurs additional costs for the company. 

If you need assistance in the liquidation of your company in Montenegro, please do not hesitate to contact us.

Send email to

selecta.me@gmail.com

 

How to get residence permit in Montenegro?

How can you draw-up a residence permit in Montenegro?

Read This To Find Out Why

Keeping in mind that Montenegro is on its way to the EU, it certainly is an attractive place for doing business. Montenegro, which will soon become a member of the EU, offers very loyal conditions to the foreigners for obtaining residence permits and registration of permanent residence in this country is possible after five years of permanent residence. Citizenship can be obtained after another five years (or three, provided the marriage with a citizen of the country).

 

That is why those who want to reside in the EU in the long term, choose Montenegro to start.

Montenegro offers you distinctive advantages compared to many other European states:

– Liberal visa regime – Montenegro is a candidate member to EU

– Foreigners and citizens are subject to same rights with regards to investments

– Dynamic economic growth and development,

– Euro – € as official and reliable currency

– Fast and easy business start-up

– Authorized capital under the laws of Montenegro may be just 1 €

– Low fees for business registration process

– Low taxation: 9% income / corporate tax, 21% – VAT

– Residence permit is provided to all business owner applicants

– Unique and close location – Just 1,5 hours away from Europe and Asia

The immigration process in other countries is much more difficult.

For example, in Germany for receiving of residence permit it is necessary to invest no less 250 000 Euros and to create no less than five workplaces.

 

In Hungary there are requirements to quantity of the created workplaces, and also the estimation of businFortunately, in Montenegro everything is much simpler at the moment.ess planned to creation is carried out.

 

In the Czech Republic since 2009 – the massive failures of the business visas, in addition, there is a requirement of minimum paid taxes. Etc.

 

 In addition, immigration to other countries takes much longer than in Montenegro.

If you register a company in Montenegro, you are eligible for a residence permit.

Authorized capital under the laws of Montenegro may be just 1 euro (except for certain activities, such as banks, insurance companies, etc.).

 

You and your family can get a residence permit on the ground of registration of legal entities in Montenegro.

 

Residence permit , in contrast to the tourist visa – it’s not only the right to enter and stay in the country. This is – the status of a temporary resident who is allowed to live and work in the country all year round, and after several years to obtain permanent status (permanent residence and then citizenship).

Obtaining a residence permit allows foreigners to also become tax residents of Montenegro with the condition that they spend 183 days in a calendar year in Montenegro, and to enjoy one of the most favorable tax regimes in Europe with 9% personal income tax rate and 9% corporate tax rate.

If you open a firm …

 

We suggest you obtain a residence permit based on the registration of a legal entity in Montenegro

The application for a residence permit in Montenegro has to contain the following documents:

– Proof of property ownership (buying/selling contract)

– A bank receipt attesting a bank deposit of 3,650 EUR into a Montenegrin bank – this amount is considered sufficient funds to remain in Montenegro

– Valid medical insurance covering a 30 days period;

– Copies of each page of your passport;

– Certificate of no criminal record in your country of origin;

– Proof of registration with the local police in Montenegro – this is compulsory within the first 24 hours after your arrival in Montenegro;

– Proof of paying the residence permit fee of 25 EUR.

See: How to open a company in Montenegro

If you buy a real estate …

The application for a residence permit in Montenegro has to contain the following documents:

– Proof of property ownership (buying/selling contract);

– A bank receipt attesting a bank deposit of 3,650 EUR into a Montenegrin bank

– Valid medical insurance covering a 30 days period; – Copies of each page of your passport;

– Certificate of no criminal record in your country of origin;

– Proof of registration with the local police in Montenegro – this is compulsory within the first 24 hours after your arrival in Montenegro;

– Proof of paying the residence permit fee of 25 EUR.

 

This temporary residence permit can be extended annually and can be obtained only by the following categories of owners: of houses, apartments, Montenegrin companies, hotels, restaurants and holiday homes, regardless of the value of the property or business.

 

Property in Montenegro gives the owner the right to apply for temporary residence. However, it is not grounds for permanent residence.

Residence permit to a foreigner for seasonal employment…

In case of granting a residence permit to a foreigner for seasonal employment, proof of secured means of subsistence, provided accommodation and provided health insurance is considered confirmation of a company or entrepreneur in which a foreigner intends to work.

Upon request for temporary stay, the Ministry of Internal Affairs shall decide within 20 days of the filing of a proper application.

 

According to the request for a residence permit for seasonal employment, the Ministry of Internal Affairs shall decide within seven days of filing of a proper application.

 

The residence permit of a foreigner to find employment and work, performing economic or entrepreneurial activity shall be issued for a period specified in the work permit. The residence permit of a foreigner for seasonal employment may be granted for a period of up to eight months in a calendar year.

Family reunification

A residence permit may get those who: Is registered as an individual entrepreneur or opens his own company in Montenegro (with registration of a legal entity). In this case a permanent residence is immediately available to the applicant and his family can join him.

 

Come to Montenegro for a family reunification (it’s real in case of the marriage with a citizen of Montenegro, or the spouse who is a foreigner too, arrived in the country earlier and has already received a permanent residence). Under this program, only the next of kin can come, the law spouses and children (including illegitimate) as such. At the same time adopted  children are equated with native

How many times do I have to come to Montenegro?

Company incorporation can be done within 5 days upon submission of required documentation, while temporary residence permit can be obtained within one month.

 

The applicant has to be present in Montenegro two times within a month: for the submission of a temporary residence request and for the receiving of the Statement of Granted Temporary Residency.

Check the visa regime ...

Montenegro’s visa policy is similar to that of the Schengen area. Citizens of Schengen countries are allowed to spend 90 days visa-free in the country while citizens of other nations need Type C visas for short-term visits and Type D visas for long-term stays.

There is a special visa regime for citizens of certain countries including Israel, Russia and the UAE. More information on visas and visa requirements for different nationalities...Send inquiry.

 

Carefully review our site if you have questions, please contact us via the contacts listed on our site. We ask you to proceed to subsequent steps only if you have already cleared out all questions with our help, and resolve to proceed with the registration of a company in Montenegro.

 

It is appropriate to clarify the visa issue: at the entrance to Montenegro you, depending on nationality, have the right to stay in the country from 30 to 90 days. For those, who may be just 30 days (for example, citizens of Russia), the term of the visa will expire before they receive a residence permit, as the registration of the company and the subsequent receipt of residence permit takes longer than 30 days. But it’s not terrible, because when receiving documents for residence permit you will get the mark, allowing you to stay in the country over those 30 days, which is very convenient, since you’ll be able to come to the registration of a company already with the whole family, and with things for permanent residence.

Permanent place of residence in Montenegro

If you want to obtain permanent residence (permanent place of residence in Montenegro), you must live in the country in the status of residence permit for at least 5 years, but during this time you should not be outside the country for more than 10 months in total, or 6 consecutive months.

 

What is a permanent residence? In fact, it is almost citizenship. The permanent residence makes absolutely all the rights of a citizen of Montenegro, except for the suffrage.

 

You can apply for reception of citizenship, having lived in Montenegro for five years in the status of permanent residence.

Citizenshipin Montenegro

Naturalization procedure:

– Has reached 18 years of age;

– Has a release from foreign citizenship;

– Has been legally and without interruption staying in Montenegro for the period of 10 years, prior to the petition for admission into Montenegrin citizenship;

– Has a guaranteed residence and guaranteed permanent source of income in Montenegro of an amount that enables material and social welfare; – Has not been irrevocably sentenced in Montenegro  or a foreign state to a prison term longer than one year and for a criminal offence prosecuted “ex officio” or legal consequences of such sentence are ceased;

– Possess active command of the Montenegrin language to the level which allows basic communication;

– Poses no threat to the security and defense of Montenegro;

– Discharged his/her tax obligations.

Procedure imply that foreigner must prove Montenegrin language proficiency as well as have 10 years of legal residence in Montenegro. Moreover, the applicant must renounce his previous citizenship to felicitate oneself with Montenegrin passport. 

Over 18 years of age may exceptionally obtain Montenegrin citizenship through naturalization if this is to the benefit of the state for scientific, economic, cultural, economic, sports national or similar reasons. On admission into Montenegrin citizenship under paragraph 1 of this Article, shall decide the Government on proposal of the competent State Administration Authority, with the opinion of the State Administration Authority competent for the affairs of citizenship.

 

Birth on the territory of Montenegro does not automatically lead to citizenship.

Citizenship by Investment in Montenegro

We expect the Law on Economic Citizenship of Montenegro!

The government of Montenegro decided to launch its Citizenship by Investment Program, on October 1, 2018. For a limited period of three years, up to 2,000 applicants from non-EU countries will thus be able to obtain citizenship in this beautiful European country. This initiative will go a long way in assisting Montenegro to attract greater foreign direct investment and stimulate the country’s econom.

 

The country is a member of the United Nations, NATO and the World Trade Organization and offers one of the most attractive tax regimes in all of Europe. Furthermore, joining the European Union is on Montenegro’s current strategic agenda and it is working in conjunction with the EU on a path towards joining within the next years.

 

Economic passport in other countries:

 

The expenses for Bulgaria, if you choose a full investment option, will be around 1,024,000 EUR (512,000 EUR must be invested into government bonds to get permanent residency and another 512,000 EUR must be invested in Bulgarian business after 1 year to fast track citizenship application). Under loan option (donation or contribution) you irrevocably invest 305,000 EUR and get Bulgarian (EU) citizenship. Dominica is not really good because its passport is not visa free for Europe (with exception of the UK). Saint-Kitts is a good option especially for those clients who will be OK with visa-free access to EU-country. But if you wish to settle permanently in Europe in the future the only fast citizenship option (which is relatively cheap in comparison with Austria or Cyprus) is Bulgaria. Cyprus will require at least 2,000,000 EUR for an applicant to become eligible for fast track citizenship application; Austria will require 10,000,000 EUR.

HAVE A QUESTION?

Let us know if you need more information about Citizenship by Investment Programs or other investment options and our specialists will get back to you within 24 hours.

Contact:

selecta.me@gmail.com

Starting a Business in Montenegro

Ready to Launch Your Startup?

Incorporate in MONTENEGRO.

Learn why Montenegro is the best place to set up your new company.

Incorporate in Montenegro

Understand the benefits, requirements and procedure for incorporating and operating a company in Montenegro.

Taxes in Montenegro

Learn how Montenegro’s low personal and corporate taxes can benefit you and help you grow your company faster.

  • An overview of Montenegro’s tax system
  • Montenegro corporate tax guide
  • Montenegro double tax treaties guide
  • Tax on foreign-source income in Montenegro
  • Guide to personal taxes in Montenegro
  • Goods and services tax in Montenegro
  • Withholding tax in Montenegro
  • Taxation of non-resident directors in Montenegro
  • Double Tax Avoidance (DTA) agreement

Montenegro Company Law

Learn about the legal obligations of a Montenegro company, including the duties of its directors and shareholders.

  • Overview of the legal structure of a Montenegro Company
  • Choosing a name for your company
  • Recommended format for constitution of a Montenegro  company
  • Advantages of a limited liability company structure
  • Audit exemption for small Montenegro companies
  • Compliance requirements for foreign company branch in Montenegro
  • Duties of Montenegro company directors
  • Duties of a Montenegro company secretary
  • Registers that a Montenegro company must maintain
  • Rules for conducting company meetings
  • Record-keeping requirements for company meetings

Relocating to Montenegro

Learn about various immigration visa options for relocating to Singapore and the quality of life in the country.

 
  • Montenegro relocation visa options
  • Quality of life in Montenegro
  • Montenegro Employment Pass – visa for executives and professionals
  • Personalised Employment Pass – visa for highly qualified professionals
  • Entrepreneur Pass in Montenegro – visa for government approved startups
  • Options for gaining Permanent Residence in Montenegro
  • Global Investor Program (GIP) – visa for wealthy investors

Montenegro Business Laws

Become familiar with laws that will impact the day-to-day operation of your business in Montenegro.

  • Introduction to Montenegro’s legal system
  • Contract Law in Montenegro
  • Employment Law in Montenegro
  • Intellectual Property Law in Montenegro
  • Competition Law in Montenegro
  • Personal Data Protection Act of Montenegro
  • Montenegro’s Defamation Law
  • The Electronic Transactions Act in Montenegro

Incentives and Grants

Incentives and Grants
Explore the tax incentives and government grants available to Singapore-registered companies.

  • Tax Incentives available to all Montenegro companies
  • Sector-specific incentives for  Montenegro companies
  • Market Readiness Assistance (MRA) – grant for overseas expansion
  • Incentives available to promote mergers and acquisition
  • Global Trader Programme – incentive for large trading firms
  • Finance and Treasury Centre incentiv
  • Government and private funding sources for startups in Montenegro

How to register a new company in 10 simple steps

It’s now really easy to register a company – long gone are the days when you had to file paper forms, wait weeks for approval and pay a princely sum for the privilege.

In this guide, we look at the step by step process of how to register a company. So if you have a new business in mind and want to join over 15,000 people a year turning their ideas and enthusiasm into a new Montenegro  limited company registered with Companies House, read on and learn how easy it can be.

Who Can Set up a Business in Montenegro

Any foreigner or foreign company can start a business in Montenegro; in general there are no restrictions.

Register a new company

Check the information needed

Few things to know before starting a business in Montenegro

1. Decide if it’s really a limited company that you need

One of the most prevalent forms of companies in Montenegro is the limited liability company (DOO). Nowadays, the LLC is particularly relevant for the reason that the foreigners can become land owners in Montenegro only being in the status of a legal entity for some time now.

But before going any further, give a little thought to whether a limited company is the best form for your business to take.

A private limited company does have a number of important advantages – possessing most of the legal rights of an individual and offering substantial protection to shareholders from the liabilities of the business. But there’s also a need to maitain company records and file accounts and other documents with.

f you want more information, check out our article about why so many people form limited companies for their business.

2. Choose a good company name

Choosing a name for your business is a crucial step. You want to make sure it is understandable and conveys what you do, while also being catchy enough for people to remember. It can take time to find just the right name.

Once you decide on a name, you need to register it so that your company’s identity is protected.

Registering your business name is an important step and one that offers a variety of protections. Taking this step formalizes your business and helps ensure no one else can use your name.

Choosing a name for your business is a crucial step. You want to make sure it is understandable and conveys what you do, while also being catchy enough for people to remember. It can take time to find just the right name.

Once you decide on a name, you need to register it so that your company’s identity is protected.

To avoid confusion, state laws prohibit two companies from having similar names, so think of a few options you are willing to use in case your top choice is unavailable.

Registering your business name is an important step and one that offers a variety of protections. Taking this step formalizes your business and helps ensure no one else can use your name.

3. Assemble the details needed to register the company

There’s several pieces of information that you’ll need to have available in order to register a new company. You can refer to our new company registration checklist for the full list, but the information needed mostly relates to the following:

  • A Monteengro registered office address– to which Companies House will direct official mail and which appears on the publically available company record
  • What the company plans to do – at least one SIC codedescribing the anticipated activities of the business must be provided
  • Details of the share capital to be created – for a private company limited by shares, at least one euro.
  • Company director and – there must be at least one human director aged at least 16 for a new private limited company
  • Initial shareholderdetails – there must be at least one initial shareholder, who can be the same person as a company director

For each shareholder, as well as basic details you’ll need a few pieces of identifying information for security purposes – any of the person’s National Insurance number, eye colour, telephone number, mother’s maiden name, father’s first name and passport number.

Details of people with significant control over the company must also be provided. These may include anyone with more than 25% of the shares in the company or other individuals or relevant legal entities.

4. Prepare Memorandum and Articles of Association

The memorandum and articles of association collectively make up the constitution of the company.

By completing the memorandum of association, which is a short document which tends to include a number of standard clauses, the subscribers to the initial shares confirm their agreement to start a company. The memorandum of association must be filed with Companies Selecta as part of registering a company.

The articles of association are the “rule book” of the company, defining how the company is to be run by the directors on behalf of the shareholders. A great number of companies adopt the private company Model Articles which cover most circumstances. If there are unusual requirements the company can instead adopt bespoke articles – in those cases, it’s worth seeking legal advice.

The memorandum and, in the case of bespoke variants, the articles of association must be filed with Companies House when registering the company. This can be done electronically rather than sending paper copies and a system like Inform Direct will create, fill in and send these documents automatically.

For those bravest souls who want to read more about these documents, in another article we look in detail at the memorandum and articles of association.

 

6. Wait for the company formation to be approved

You can’t start to operate the business as a limited company until you receive approval from Companies House, who will undertake some checks of the information you’ve submitted.
If you register a new company using online , the process of approval will take longer.

7. Set up company registers (and then maintain them)

The law requires each company to set up and then maintain company books, which include:

You can buy template paper registers to fill in by hand. Better still, straightforward online products like Inform Direct will automatically update electronic statutory registers whenever you made changes to the company, its officers and shareholders.

8. Other tasks to do once the company has been registered

There’s a number of other important tasks you’ll want to consider once the company has been successfully registered, which might include:

  • Setting up a bank account
  • Registering with HMRC, which may include registering for VAT
  • Registering and setting up PAYE for employees
  • Setting up a website, particularly if you want customers to find you online
  • If it’s important to your particularly business, registering a trade mark

If you’re looking to register a new company, we hope you find it a rewarding experience. Whether you’re starting your first company or are a company registration veteran, we’d love to hear any ideas and tips: contact us with details and we’ll look to share them with other readers.

Find out about the various business structures available in Montenegro and how to get a venture started…

Who Can Set up a Business in Montenegro

plakataAny foreigner or foreign company can start a business in Montenegro; in general there are no restrictions.

Types of Business Structure

There are four ways for foreign individuals and entities to set up a business in Montenegro:
  1. Limited liability companies
  2. Joint stock companies (two types: closed and open)
  3. Branch or representative offices of foreign companies (the former can be engaged in commercial activities, while the latter cannot)
  4. Individual entrepreneurs (a foreign citizen can register with this status only if they have a temporary or permanent residence permit)

The Legal Process

Below is information about the legal process and procedures for setting up a business in Montenegro.

Authorities involved

  • Notary (certifies the application for registration)
  • Tax authority (where the application and other documentation are submitted for registration of a company)
  • Statistics committee (this committee assigns codes based upon its determination of the company’s activities)
    Now Is The Time To Invest In Montenegro

    Now Is The Time To Invest In Montenegro

     
  • Social funds (pension and social insurance)
  • Federal service on financial markets (in the case of a joint stock company because it registers the issuance of shares)
  • State registration chamber for registration of branches and representative offices
 

Required documents

For limited liability companies and joint stock companies:
  • Resolution of the founders to incorporate
  • Charter of the company to be founded
  • Application for state registration
  • Extract from the trade register or certificate of incorporation and charter (by-laws, articles of association) of the founding company (in case the founder is a legal entity)
  • Copy of the passport (in case the founder is a natural person)

For representative offices or branches:

  • Extract from the trade register or certificate of incorporation and charter of the foreign company
  • Resolution on the opening of the representative office or branch in Montenegro
  • Regulations on the representative office or branch
  • Power of attorney for the head of the representative or branch office

More information:

To learn more about starting or buying a business  http://www.companyformationmontenegro.me/

If you need some more info, e-mail us selecta.me@gmail.com 

Mob: 00382 69 590 433

   

If you believe a company in Montenegro can help you in your business, please ask for details. We will be happy to advise.

[wpforms id=“868″ title=“false“ description=“false“]