A step-by-step procedure for setting up a new Montenegro company
This post is a further guide to our main article on setting up a Montenegro company and provides a complete checklist of tasks and procedure for registering a Montenegro company.
PROGRAMS FOR IMPROVING THE COMPETITIVENESS OF THE ECONOMY
In order to continuously improve activities and support the development of entrepreneurship and
business in Montenegro and the needs of the economy itself, the Ministry of Economy in 2019created a new program named – Program for Improving the Competitiveness of the Economy. The new program, which consolidates the existing efforts for the development of entrepreneurship and business sector, is aligned with the Economic Reform Program for the period 2019-2021 and the Development Directions of Montenegro 2018-2021. The total budget allocated for the implementation of the Program for 2019 is € 1,640 million, while the individual amounts, as well as the manner and dynamics of the allocation of support are defined by the individual program lines.
TAX SYSTEM AND INCENTIVES
Foreign companies in Montenegro are guaranteed equal legal treatment as local ones. Foreign investor can operate in Montenegro either as a legal entity or as a natural person. The term “foreign investor” applies to a company that has been set up in Montenegro by a foreigner, or foreign legal entity, whose share of investment capital is higher than 25% of total capital invested.
There is no limit on the amount of capital invested in Montenegro. Foreign investors are encouraged to invest freely within any industry and to transfer all assets, including profits and dividends. Foreign investors can acquire rights to real estate, such as commercial property, office space, residential space or land for construction. All major insurance companies around the globe insure investment projects in Montenegro.
WHY INVEST IN MONTENEGRO
• Politically and economically stable, democratic, multicultural multi-religious society
• Active promoter of good neighborly relations and participant in regional cooperation
• Member of NATO since June 2017
• Candidate for membership of the EU (prospective membership by 2025)
• Member of the World Trade Organization (WTO) since 2012 (party to the Trade Facilitation
Agreement – TFA)
• Member of the World Bank since 2007
• Member of the International Monetary Fund (IMF) since 2007
• Euro (€) is the official means of payment
• Enjoying access to a market of around 800 million consumers owing to the free trade agreements
with the EU (Stabilization and Association Agreement), CEFTA, EFTA, Russia, Turkey and Ukraine
• “The Gateway to the Balkans”, thanks to its favorable geographical location at the Adriatic /
Mediterranean Sea (convenient access for trade via Port of Bar, good railway and road connection
to Eastern and Central Europe) and stimulating business environment
MONTENEGRO AT A GLANCE
Position: 41°52’-43°42’ latitude, 18°26’-20°22’ longitude
Population: 622,373 (2017 midyear est.)
Life Expectancy at birth, years: (2017) 76.7
Capital City Podgorica
Administrative division: 24 municipalities
Old Royal Capital City Cetinje
Geographic area: 13,812 km2
Length of border: 614 km
Coastline: 293 km
Length of beaches: 73 km
Average number of sunny days: 240
Time Zone: GMT +1
Country code: +382
Country top-level domain: .me
.ME ccTLD of Montenegro https://domain.me/
National Parks: Durmitor (39,000 ha), Biogradska gora (5,650 ha), Lovćen
(6,220 ha), Skadar Lake (40,000 ha), Prokletije (16,630 ha)
UNESCO heritage sites: Bay of Kotor, Durmitor National Park, Stećci Medieval
Tombstone Graveyards, Venetian Works of Defence
between the 16th and 17th Centuries: Stato da Terra
– Western Stato da Mar
Setting Up a Branch Office in Montenegro
This article provides an overview of the registration requirements, taxation and compliance for Montenegro branch offices of foreign companies.
Foreign companies that wish to conduct business in Montenegro typically set up a Montenegro subsidiary company or open a branch office. Most small to medium-sized companies choose to register a subsidiary company in Montenegro in order to take advantage of the greater flexibility and liability protection that such a structure provides over a branch office. Therefore, before you decide to set up a branch office, you should carefully consider if it is the right structure for your needs. This guide provides information about the following topics related to a Montenegro branch office:
Legal Structure of a Monteengro Company
When deciding whether to incorporate a private limited liability company in Montengro, it is helpful to understand the structure and attributes of this corporate form. This guide explains what a Montengro company is and how it is organized. Some of the questions it will answer are: a) What is the legal status of a Montengro company? b) What can and can’t a company do? c) Who owns the company? d) Who operates a company? eWhat is the Constitution of the company?
If you already understand the basics of a Montengro private limited company’s corporate structure and simply want to know how to register one in Montengro, please see our Montengro Company Registration Guide which details the procedure and steps for registering a private limited company in Montengro. But if you want an introduction to this corporate structure, please continue reading.
Annual Filing Requirements for Montenegro Companies
All Montenegro companies must follow certain legal obligations every year regardless of their size or business structure. Compared to other countries, the obligations in Montenegro are quite simple and straightforward. Still, a busy entrepreneur may forget a deadline, which can result in fines and penalties.
Therefore, it is important to understand the compliance requirements and come up with a plan to stay on top of them. The following article explains the annual filing requirements you need to fulfill to comply with Montenegro company law.
Guide to Compliance Laws
For seven consecutive years, Montenegro has topped the World Bank’s list of the best countries to do business. Montenegro’s business-friendly and easy to follow regulations are one reason for this high ranking. Compliance rules for Montenegro based companies are generally straightforward, logical and devoid of unnecessary bureaucracy – especially for small to mid-size companies. Nonetheless, if you do not follow even these simple regulations, your company can be in trouble with the authorities and it can face fines or, in serious cases, even prosecution. Therefore, it is important to understand and follow the requirements related to tax, employees, data protection and licensing that all Montenegro companies are expected to comply with.
First Steps After Company Registration
This article is a complement to our guide on Montenegro company registration. It serves as a checklist of tasks that you would normally complete in the first few weeks after incorporating your company and before commencing your business operations.
What are the main requirements?
Following are the main requirements for setting up a Montenegro company.
Following are the main requirements for setting up a Montenegro company.
- A company needs to have at least one shareholder who can be a local or foreign individual or company.
- At least one of the directors must be a natural person, above the age of eighteen years old, and a resident of Montenegro shareholder who is a natural person can also be a director of the company.
- A qualified company secretary has to be appointed. The secretary must be a resident of Montenegro.
- Company must have a physical, local address in Montenegro.
- The company must have a paid up capital of at least $1.
Representative Office Registration
(This form is not available in Montenegro)
If your company is not yet ready to fully commit to Montenegro, Montenegro does not have the option of establishing a representative office in the country that will be used to conduct a marketing evaluation. This helps the company evaluate its business potential, overall business environment, regulatory requirements, etc., without creating a new company in Montenegro. But the office is allowed to perform a very limited range of activities and may not be worth the investment.
Subsidiary Company Registration in Montenegro
Easy access to european markets, low tax rates, an efficient legal system and business-friendly policies make Montengro one of the most sought after places for foreign companies to expand their business. Foreign companies have three options to register their business in Montenegro: a representative office, a branch office or a subsidiary company.
Foreign Company Registration in Montenegro
Once a foreign company has decided to open an office in Montenegro, the next step is to choose the appropriate business structure for their registration. The guide below provides an overview of the business structure options available to foreign companies. The following topics are covered.
How to register a Montenegro company
This article describes Montenegro company law on requirements and procedure to register a private limited company in Montenegro.
Incorporating a company in Montenegrois fast, easy, and free from unnecessary red-tape. Montenegro is consistently ranked as one of the best places in the world for doing business. This guide explains the requirements and procedure to register a private limited company in Montenegro. It covers the following topics:
Types of Business Structures in Montenegro
As you decide to incorporate your business in Montenegro, you will have to select the business structure that best suits your needs. This article provides an overview of the different business entity structures allowed in Montenegro and explains why a limited liability company is the best choice for most businesses.