If you are thinking about starting a business in Montenegro, the initial step – registering a company, is more than simple. It is important to note that foreigners have the right to establish a company in Montenegro under the same conditions as nationals.
Company establishment, operation and taxation system regulations are compliant with European standards with benefits for foreign investors.
Why would someone choose Montenegro for opening a business or a branch?
Located on the beautiful Adriatic coast and only up to 2 hours flight to the main European capitals, Montenegro offers unique beauty and great investment opportunities in a rising economy. The only circulating currency in Montenegro is Euro (€), and the state is a full time member of WTO and in the process of joining EU and NATO. Thus, Montenegro offers stability for investors, as well as access to Balkan and European markets. Besides the above mentioned, Montenegro has many other advantages and for the purpose of this article we will mention just a few major business related ones.
Here are some advantages:
- Corporate Tax Rate 9 %
- Business formation process fast with low costs
- 100 % Foreign Ownership
- Many Double Tax Treaties
- 1 € Startup Capital
- One Director / Shareholder
- Cheap Company renewal fees
Montenegro provides fast residence and work permits for the partners and family members of the foreign investors.
The Montenegrin tax system applies incentives for the development of the companies. Corporate and income tax rate are quite low compared to other countries.
Montenegro applies equal treatment principle to all companies, local and foreign.
Opening a company in Montenegro begins with choosing the type of structure. The entrepreneur willing to open a company in Montenegro must be familiarized first with the business types defined by the law. The most common forms are:
- limited liability companies (LLC)
- joint stock companies (JSC)
A foreign company may also open a branch in Montenegro.
Steps in registration process
Once you choose the type of company, following steps need to be followed in order to complete the registration process:
- Documents (incorporation acts) for company registration must be drafted and notarized – The Memorandum and Articles of Association, information about shareholders and directors
- Trade name – must be unique one and reserved by the Trade Register in Montenegro
- Company owner has to have a legal address of the company
- The incorporation documents must be submitted to the Registrar of Companies which will issue the Certificate of Registration
- The company has to register for taxation purposes and obtain VAT number, social security, insurance and pension registration with the tax authorities in Montenegro
- A corporate bank account must be opened with a local bank where shared capital is to be deposited
- Before starting any activity it is necessary to obtain business permits from ministries or agencies in specific industries
Incorporation documents in Montenegro
Company formation process in Montenegro begins with the company`s foundation documents certified by public notary. Incorporation documents are:
- Foundation act
- The articles of Association
- Company founders name list
- Board of directors members and managers names
- Executive director name (with necessary details)
- The name of the company
- Headquarter address and correspondence address
- Authorized persons for representing the company and written consent of the board members
The above documents are submitted to the Montenegro Registry notifying the Official Gazette who then publish a notice regarding the newly established company.
All business entities on the day of registration in the Central Register of Business Entities become members of the Chamber of Commerce of Montenegro.
AMR Global Advisors can help you in this process of company formation. Our advisors have an extensive experience and will take you through the process of incorporation as smooth as possible.