Montenegro is a promising country in the south-eastern part of Europe, promising also in terms of doing business. The government creates conditions for the inflow of foreign capital. Foreign entrepreneurs choose this jurisdiction to establish businesses in areas such as IT, international trade and logistics. In general, establishing a new company in Podgorica or any other city in this country is potentially beneficial due to the following characteristics.
Why register a business in Montenegro
The decision to create or buy a company in Montenegro comes with a list of such potential benefits:
Territorial proximity to the EU and the availability of a large number of benefits from interaction with the EU, access to the sea;
High level of economic stability and freedom;
Low start-up and maintenance costs for new businesses;
Qualified workforce, whose participation is not associated with large financial costs;
100% foreign ownership is allowed and there are various sectoral business support programs;
Lack of restrictions on repatriation of dividends;
Simple and transparent procedures for establishing legal entities.
Organizational and legal forms in Montenegro
You can register a company in Montenegro or establish your legal presence alternatively in one of several ways:
The
Limited Liability Company (DOO, the equivalent of an LLC) is the most common type of company, popular for its ease of incorporation as well as the limited liability of participants. The shareholders will not be liable for any losses of the company on the invested funds. This company can be founded even by one participant with any domicile. The legislation does not provide for minimum requirements for the initial capital of this legal entity. Small businesses choose this form.
Public company (JSC) is a legal entity intended to enter the financial market or raise external capital. Shareholders are limited to the value of their shares. Two shareholders with any domicile can be registered. The registration of this legal entity requires an initial capital of 25,000 Euro. This legal form is suitable for businesses that are developing as well as for large companies.
The
Branch is an option suitable for a foreign company to enter the local market at a minimal cost. In the case of a branch, a simplified procedure is applied, as a result of which the branch does not acquire the status of a legal entity, but receives the right to carry out activities in Montenegro. This option is acceptable for establishing cooperation with local counterparties and customers. The parent company is fully 100% responsible for the results of the branch.
Representation is an alternative option for a foreign company that provides the opportunity to conduct market research and marketing work on the territory of Montenegro, but without the right to conduct business. In this case, a simplified registration procedure also applies without granting the status of a legal entity. The parent company bears 100% responsibility for the results of the representation.
How to open a business in Montenegro
To register a business in Montenegro, you must go through the following steps:
Formulate a list of activities that the future legal entity will be engaged in.
Choose the most appropriate legal form.
Collect all details of the directors and shareholders of the company (will be compiled in the form of resumes). You will also need to gather information about the ultimate beneficiaries and the parent company (if any).
Employment and registration of the official legal physical address.
Request, prepare and certify all necessary incorporation and other documents, including application forms.
Sending registration documents, including bank statement for payment of registration fees, for review. Creating an entry for the new legal entity in the Central Register of the Commercial Court in Podgorica and issuing a certificate of registration (in case of a positive decision).
Registration of the new company for tax and social payments.
Opening corporate bank accounts.
Taxation in Montenegro
The decision to open a company in Montenegro should take into account the following nuances of taxation in the country:
Total income tax (for legal entities) - 15%
Total income tax (for individuals) - 15%
VAT - 21%
Withholding tax (for non-residents) - (1) dividends - 15% (2) interest - 15% (3) royalty - 15%
Capital gains tax - (1) for legal entities - see corporate tax (2) for individuals - 15%.
Legislation and Regulatory Environment
The legislation of Montenegro is stable and adapted to European standards. Therefore, the jurisdiction creates favorable conditions for the inflow of foreign capital. Among other things, this is manifested in the simplification of registration procedures, a detailed explanation to investors of their rights, a simplified procedure for obtaining a residence permit and the provision of various advantages. However, obtaining a license or permit from the relevant competent authority is necessary to carry out certain regulated activities.
CREATE A COMPANY
Check and save a company name
Company registration, including state fees
Legal address for 1 year
Company stamp
Opening a corporate bank account in the local bank Erste Bank AD Podgorica, Universal Capital Bank AD Podgorica
Assistance in obtaining residence in Montenegro
Apostilled and translated company documents
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Annual renewal (payable from the second year)
*Within 30 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit a request for company registration using the request form.
2. We check if the registration company name is free and eligible for registration.
3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.
4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.
5. You receive all necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. In the specified period (for Montenegro it is 30 days), you receive all the services included in the package.
8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.
All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!
