It is worth mentioning that the government is actively seeking entry into the EU, as this would
give a large number of preferences to the state. In this context, all municipal and governmental
structures are being actively reformed, making it easier to do business.
In recent years, the Republic of Montenegro has pursued an active foreign policy aimed at improving its terms of trade. As an example, a free trade agreement with important international markets such as CEFTA countries (Bosnia, Macedonia, Albania, Montenegro, Moldova, Kosovo). In addition, Montenegro became a candidate for accession to the European Union in 2010.
choosing a country
choosing a bank
payment (by any method)
bank account opening
From all the advantages that open up to the founders when registering a company, it is worth noting in particular:
According to Montenegrin legislation in force, it is possible to register your business in the following legal forms:
Suitable for small businesses. Generally, it does not cost much to register and set up a business. Characterised by a simplified form of reporting. Minus: The businessman is liable for debts not only to the extent of his contribution, but also to his own property, because the sole proprietor is an individual.
A special feature of this legal form is that the partners (individual or legal entity) are jointly and severally liable for the partnership's obligations.
A special feature of this legal form is that general partners (individual or legal entity) are fully jointly and severally liable for the obligations of the partnership, while limited partners are liable for the obligations of the partnership within the amounts of their contributions. The limited partners' deposits may be in money, goods or value rights.
The liability of the founders of an organisation is limited to the size of their shares. There should be more than one participant and up to 50-100 people. The company's legislative body is the shareholders' meeting, which decides the most important issues, such as amendments to the articles of association, reorganisation, bankruptcy, distribution of profits, etc. The Executive body is the Director (Manager). The minimum share capital is 25 thousand euros.
The registration procedure is relatively short, taking around 10 days, depending on the number of members (one or more) and the individual conditions described in the Articles of Association. The minimum share capital is 1€. This form of ownership is the most common. It involves submitting reports to the tax service both quarterly and annually.
The legal framework governing the incorporation of companies in Montenegro is represented by the Law on Business Organisations The specifics of the incorporation procedure are as follows:
It is compulsory for a company to keep accounts in Montenegro even if it has no income. VAT is as high as 19% - provided that the turnover for the year exceeds the amount of 18,000 euros. A reduced rate of 7% applies to the production of basic consumer products, medical products and instruments, teaching aids, books and monographs, public transport services, and other supplies. The VAT rate on exports is 0%. Income tax is 9% - for both individuals and legal entities.
There is no difference in the payment of taxes and the receipt of guarantees between local and foreign businessmen. This ensures equality for all market players and makes them competitive on the international stage. If there are no tax payments, the company is closed by the authorities. It is also worth noting that taxes in Montenegro are significantly lower than in Europe as a whole.