If you have a company in Montenegro, do not forget that the deadline for harmonization of business with the new Law on Companies of Montenegro is approaching. The new Law on Business Entities has been published on the 3, July 2020 in the “Official Gazette of Montenegro” No. 065/20 and it came into force on 11 July of the same year. This new law regulates the key issues concerning the business entities and now it is harmonized with EU “company directives”. An objective of the European Union to achieve uniformity in laws of member states and future members is to facilitate free trade and protect citizens.
Under the new Companies Act, all joint stock companies and limited liability companies are required to harmonize their organization with the law and register changes within nine months from the date of application of the law, while all other companies are required to do so within eighteen months. The first deadline is April 11, 2021. The second deadline is January 11, 2022.
If you do not make the adjustment within the legal deadline, the responsible person will be fined up to 2,000.00 Eur.
After that, the court will initiate the liquidation procedure of the company at your expense, and in the liquidation procedure, the director of the company is obliged to prove that there were no illegal actions.
The owner of the company has the obligation to make a decision on the harmonization of the company.
If the adjustment is not made within the legal deadline, the owner of the company will be fined up to 2,000.00 Eur.
Close the company yourself before the deadline. In that case, you will not pay the penalty due to the expiration of the term and you have no criminal liability.
If you want to avoid paying a fine, the only option left is to close the company yourself before the deadline.
You need to study the Companies Act well. It will be easier for an expert dealing with this matter to solve all this. For a joint stock company, the adjustment process is much more complex and expensive, so be sure to hire an expert. According to the information gathered, the cost of adjusting the registration of a limited liability company – LLC is about 150 euros, and for a joint stock company is 1,000.00 euros.
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The main changes introduced by the new law that we consider most important for the harmonization process:
The new law introduces a difference between share capital and net share capital, defining net share capital as the difference between the value of a company’s assets and the company’s liabilities. Non-monetary contributions may consist of objects or rights, however, work or services as non-monetary contributions may be possible only in legal entities established as partnerships or limited partnerships.
Companies of public interest are not a new form of company, but a type of LLC or AD that issues securities and other financial instruments on a regulated market in Montenegro or abroad.
A lot of changes have been introduced in AD, among which are:
One more important harmonization obligation is that all entrepreneurs and partnerships that weren’t previously registered are now obliged to register within the Central Register of Business Entities within nine months from the date of entry into the force of the Act, i.e., 11 April 2021.
If you need help in the process of harmonizing your business with the new Companies Act, feel free to contact us
mob / +38268355501