Company registration in Montenegro
This small state of southeastern Europe bordering pass with Balkanize countries such as Serbia, Croatia, and Albania gained freedom in 2006. Although Serbian is the official language, English is widely spoken in the business environment and communication. The government is doing everything possible to attract foreign capital, so the participation of foreign investors can be seen in almost all sectors of the economy. However, there are activities in which foreigners are not allowed to participate: the production, sale of weapons, and business in border areas or in national nature reserves.
Owning a business here has many benefits, including a sound investment policy and a favorable tax regime. In general, the whole family can be relocated here. The standard of living is much cheaper than in the US and Western Europe. For example, here you can get a good education relatively inexpensively.
The most popular types of entrepreneurship are the hotel business (occupancy in the summer period approaches 100%), the restaurant business, and the service sector (active recreation, excursions, transport, and yacht rental). Entrepreneurship is also one of the shortest ways to get a residence permit.
Thanks to the updated legislative framework, legal entities are formed by a simple algorithm. Establishing a business here can open up excellent trade prospects for the entrepreneur and allow him to enter the European market. This is an undeniable advantage for those who are thinking about company registration in Montenegro or buying a ready establishment in this jurisdiction.
The country is a member of the World Trade Organization, the United Nations, the Council of Europe, and other international and European organizations. Corporate statistics are quite appealing. By the beginning of 2020, almost 35,000 business entities were registered in the land. At the same time, about 35% of companies were incorporated by noncitizens. At the same time, their number has doubled in the last couple of years. Most firms with foreign participants are formed by individuals from Turkey, Russia, Serbia, and Ukraine.
What is a corporate establishment in Montenegro?
Because the country is close to the European Union and enjoys its benefits, there is greater economic freedom along with monetary stability. After achieving sovereignty in 2006, the government is attempting to become meaningful and attractive for capital owners who want to set up a European firm. Because of this, the authorities have invested heavily in the development of state and corporate services.
Particular attention is paid to stability and sustainable growth. The tax regime is quite soft, entrepreneurship in many sectors of the economy is strongly encouraged. In particular, today the country has over 40 international double-tax treaties, which allow foreign wealth owners to choose a place of paying taxes. The World Bank ranked the state 50th out of 190 in terms of ease of entrepreneurship. Company formation in Montenegro is rewarding for many grounds:
- corporate tax is only 9%;
- VAT – 21%, for several groups a reduced rate is applied – 7% (medicines, books, computers) or a zero rate (gasoline);
- the initial deposit for opening an LLC is minimal and amounts to only 1 euro;
- the staff is highly qualified and ready for employment;
- office rent is relatively cheap in comparison with Western Europe;
- international investors can participate in privatization and own land on the same terms as residents;
- favorable geographical position, good transport links with continent countries;
- the strong banking sector, free circulation of the European currency.
It is worth noting that legal entities incorporated in Montenegro can be fully foreign-owned. There are no restrictions on the right to private property and foreign control. With the support of our lawyers, it is possible to register an organization without visiting the state and open an international bank account remotely.
Why you should choose us for the business setup in Montenegro?
We provide a full range of assistance in the formation of a Montenegro company. Our team of lawyers will prepare all the necessary documentation for organizing your business in the country. You only need to issue a power of attorney and provide your passport. Also, our business advisors will provide comprehensive advice about the available investment options in the Republic, and all the details of registering a company and acquiring a residence permit.
How do we incorporate firms in Montenegro?
Our team of lawyers will help you open a company in Montenegro and support it professionally after enlisting in the state register. We provide bookkeeping, reporting, and legal advice. If an enterprise needs to purchase residential or commercial real estate, you will receive the necessary support at all stages of the acquisition, confirmation of ownership when documenting a transaction in court, and assistance in enrolling in the Cadastre. The company formation procedure itself is not complicated and normally takes several business days. It is crucial that the founder may not visit the country at all, a general power of attorney is sufficient.
The major phases of business organization set-up include the determination of the founder (either a local or a non-resident) and the appointment of a director (the owner and director can be the same person). It is required to come up with a company name and prepare constituent documents. If there is more than one founder, an incorporation agreement is concluded indicating the share of each participant. Then the company is registered in the Register of business entities. The decision to form a legal entity, the power of attorney, and the signatures of authorized persons must be certified by a notary.
After that, the Central Depository Agency issues a certificate of the absence of unfulfilled tax obligations. Next comes the preparation of the charter of the LLC and sending it to the Central Register of Business Entities. At this time, the founder can open a bank account domestically and make a seal (stamp) of the organization. An employment contract with the manager must be registered with the tax administration.
You can apply for VAT if you want (deregistration will be available after three years). VAT payer status applies only if the annual turnover exceeds 18,000 EUR. Manufacturing companies recently established in underdeveloped regions of the country are exempted from taxes for a period of eight years, with a maximum exemption amount not exceeding 200,000 EUR. Exemptions do not refer to steel corporations engaged in agriculture, transport, fishing, shipbuilding, trade, and catering.
I want to express my gratitude to the true professionals in their field! There were difficulties in acquiring a work permit and a residence pass. Your lawyers helped to collect the missing papers in a short time and solve all the problems. Montenegro company formation was quick and easy. I will recommend you to business partners.
I had difficulties at the stage of starting a business, there was also a lack of knowledge of the taxation system, trade rules, and foreign economic activity. I am very pleased with the cooperation with professionals in their field. He received legal assistance on all issues and was able to correctly register employees in his company. Now it is much easier when check inspectors.
The cost of entering into the Montenegro company register depends on the provision of such basic services as legal entity formation, lease of an address, the appointment of a corporate secretary, certification, and receipt of the entire package of documents. The price will start from 1580 EUR.
Before starting a business in Montenegro, it is important to decide on the class of the institution. The following options are available to non-residents:
- DOO – limited liability firm;
- AD – an analog of the joint-stock enterprise;
- OD – partnership with fixed liability;
- overseas representation;
entrepreneur – an analog of a Private Entrepreneur;
- KD – limited partnership.
First, it is significant to properly prepare the constituent documentation and certify it in court. After that, you need to check your organization’s name online. Further, the applicant must submit copies to the Economic Court. These are the Articles of Association and the Memorandum, personal data of all creators, members of the board, and the executive manager, written consent of all members of the board, the confirmed title of the establishment, and the contact office address, proof of payment of the government duty. The Montenegro company registration involves the submission of a title, business plan, and tax certificates to the Central Register of the court.
We will organize your business formation from A to Z in 4-8 working days. Sometimes additional time is required, but the whole period for setting up a company in Montenegro rarely exceeds 2 weeks. As a result, you will receive all documentary evidence – the certificate of incorporation, the articles of association, and the memorandum.
Any foreign-born person can set up any legal entity in this state (but in most cases limited liability companies are incorporated). An overseas individual can be either a founder or a director. Or you can buy a ready-made company with a full set of constituent documents. Contact us for more information.