Foreign Company Registration in Montenegro

When a foreign company decides to open a business in Montenegro, it should select the appropriate business structure for their registration.

Below you can see all the possibilities of the business structure available to foreign companies. The following topics are covered:

  • What are the key differences
  • Subsidiary
  • Subsidiary
  • Representation
  • What to choose?

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Key Differences

A foreign company can register in Montenegro as a subsidiary company, a branch office or a representative office. Below are the key differences of these structures:

A Subsidiary Company  is a newly registered company in Montenegro. It is taxed according to local Montenegrin tax rates. Importantly, his obligations do not extend to the parent company.

A Branch Office  is part of a foreign society in Montenegro. It is not a separate legal entity. The branch pays taxes according to the regulations of Montenegro. The parent company is fully responsible for the obligations of the subsidiary.

A Representative Office (RO) provides access to Montenegro for foreign companies who wish to conduct market research.- (This business form is not known in Montenegro)


A Subsidiary Company is the most commonly used corporate structure by foreign companies in Montenegro

Subsidiary Company

Most foreign companies establish their offices in Montenegro as subsidiaries for the following reasons:

  • A subsidiary is a separate legal entity from the parent company. Thus, it may have a different name and may perform different activities from the activities of the parents.
  • Special legal status protects the parent company from any debts and liabilities assumed by the subsidiary. These debts and obligations do not flow to the parent.
  • The subsidiary operates like any other local Montenegrin company and thus enjoys the rights and privileges to be a true Montenegrin company.
  • The subsidiary is taxed as its own person at a low Montenegrin income tax rate.
  • The branch meets the requirements for business incentives offered by the Montenegrin government.
  • A subsidiary may have a name that is different from the parent company.
  • Here are the key requirements to keep in mind when registering a Singapore branch:
  • The company must have one or more directors, who can be a Montenegrin citizen or a foreigner. The foreigner must have a residence permit.
  • This requirement can be met in the following ways:
  • o If a foreign company hires a local executive director,
  • o A foreigner should register and obtain a residence permit
  • o Alternatively, a foreign company may seek a nominated director
  • The company does not have to appoint a local company secretary

To learn more, see requirements and procedure for setting up a subsidiary company in Montenegro.

Incorporate Your Montenegro Company

Foreigner Package

Montenegro Company Registration for
Foreign Individuals or Foreign Companies

Local Package

Montenegro Company Registration for
Montenegro Citizens and Residents

Transfer Package

For Existing Montenegro Companies

Branch Office

As an alternative to a subsidiary company, a foreign business can set up a branch office in Montenegro. A branch office is an extension of the parent company and lacks the liability protection, local tax rate and government incentives that are available to subsidiary companies.

Below are the key facts you need to consider before setting up a branch office:

  • The branch’s corporate structure and activities must conform to the foreign parent company’s Constitution. Thus, it is restricted in the business activities it can undertake.
  • The branch must use the same name as the parent company.
  • All debts and liabilities accrued by the branch office are passed to the parent company.
  • A claimant can file suit against the parent in a Montenegro court and the case will be heard in Singapore.

To learn more, see requirements and procedure for setting up a branch office in Montenegro .

Representative Office

This form is not known in Montenegro.

What to choose

Montenegro’s representative office provides a simple structure,
but it is not known structure in Montenegro.
A branch office has several limiting factors that make it an unattractive option for foreign entrepreneurs. A subsidiary company remains the best option for a foreign company in Montenegro .

Planning to register your foreign company in Montenegro? Contact us for a FREE consultation today.

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