In this article, you will find the required information prior company registration in Montenegro. Montenegro is a small state in the south-east of Europe being the Adriatic coast on the Balkan Peninsula. The country borders with a number of countries – it is Croatia – on the western part, Bosnia and Herzegovina – on the northwest and Serbia – on the northeast. In the east the country borders with Kosovo and Albania to the south-east.
The country gained its independence in 2006. The capital of the republic and its administrative center is Podgorica. Serbian is the official language although the local population understands Russian and English, either. The currency used in the country is Euro.
Company Registration in Montenegro – Advantages
Among all advantages offered to founders when opening a company, the following are worth noting:
- Low crime rate;
- Investment policy provisions satisfactory to everyone. Among activities not available for foreign founders, the weapon sale and its manufacture, doing business near the boundaries, and also within the territory of national natural protected areas should be highlighted;
- Excellent prospects of the country to develop and promote at the international level.
The following should be emphasized among the most demanded business trends in Montenegro:
Hotel industry – the rate of occupancy reaches 95-100% during summer;
Restaurant Industry – the number of holidaymakers increases every year opening up wider perspective in this direction;
Servicing business – this may include the boat and yacht rental, sightseeing trips and travels, and a lot more.
A company registration in this country is attractive not only from the business point. Among other things, it is more than actual and advantageous opportunity to get the residence permit. Due to the effect of legislation on investments from abroad, the procedure of a company establishment is far simplified in there:
Pursuant to the current legislation in Montenegro, incorporation of such companies is available for foreigners:
- Private entrepreneurship;
- Ordinary partnership or partnership with unlimited liability;
- Limited partnership or partnership for which the limited liability is characteristic;
- Standard joint-stock company;
- A limited liability company;
The limited liability company largely prevails and demanded therein. In most respects, the relevance of LLC today is associated with the fact that since recently the land plot owner at the territory of Montenegro can be only a legal entity.
Legal framework and aspects of company registration in Montenegro.
- The legislative framework that specifies aspects of company incorporation in Montenegro is represented by the Law on economic societies. In the part of incorporation procedure peculiarities, they are as follows:
- The length of procedure does not normally exceed 14 days;
- The lowest volume of the authorized capital, according to statutory regulations, can be only 1 Euro. However, the amount may be increased at your preference. The joint-stock company should dispose of the authorized capital of 25,000 Euro or more;
- Only the foreign passport is required among the documents of the founder;
- Pursuant to the law, the number of LLC founders in this country should not exceed 30 persons. The members should be published at all times. A foreigner may alternate functions of the director and a founder at a time;
- It is also binding to submit several versions of the company name for subsequent inspection by the state registry employees;
- It is necessary to declare the legal address of the company and the business direction of priority for it;
- The Executive Director should be appointed;
- The documentation shall be submitted with the Central Registry of the Trading Court in Podgorica. The procedure shall be completed personally by the founder or the founder’s representative – in the second case, a power of attorney is required;
- Provided that a foreigner acts as the manager, a work permit may be filed at the date of incorporation.
Accounting and taxes in the country
A company should keep records in Montenegro even in absence of profit. The registration fee shall be 10 Euro for LLC and 50 Euro for JSC. The company spends most of its profits on wages and taxes – about 67% of official rates. The value of VAT shall be 17%, provided that the annual turnover exceeds the amount of 18,000 Euro. The income tax shall be 9% for both natural persons and legal entities.
There is no difference in tax payment and receipt of warranty obligations between local and foreign businessmen. This ensures equality for all market players and makes them competitive at the international level. If there is no tax payment, the company is liquidated by authorities.
We will render the comprehensive assistance to you and help you register a company in Montenegro. Supported by us, you can buy a company in this country at no trouble and effort. A company registration in Montenegro is the best and affordable option to start doing international business.
Company incorporation is one of priority areas of our activity. You can get introduced to all aspects of this procedure and get adequate recommendations from our lawyers – both by phone and during personal conversations.