Company formation in Montenegro is relatively easy. Foreigners wishing to set up a company should consider a limited liability company otherwise known as the Montenegrin D.O.O. It requires a minimum of one shareholder and one director of any nationality or residency. The single shareholder / director does need to reside in the country. Minimum paid up share capital is just EUR 1. There are minimum substance requirements with regards to registered office. A virtual office may be acquired to set up director / shareholder addresses.
Company creation in Montenegro is very advantageous. It has a stable and improving economy. What sets Montenegro apart in Europe vs. other low tax jurisdictions is its very low-income tax rate of 9%. It presently has 46 double tax treaties that include China and Switzerland. In addition, the government offers investors and entrepreneurs state aid. Some of the most interesting aids include an eight-year exemption of up to 200K euros. For tech start-ups, IT equipment may be bought at a lower tax rate of 7%.
Since 2006 the Government in Montenegro has increased the country’s infrastructure and communication for tourists and residents. The country is a Free Trade Zone ideal for-profit repatriation and residency rights.
Thinking of moving to Montenegro
Real estate is affordable and real estate laws are aimed at attracting foreign investment. Property laws do not differ if the buyer is national or an international private investor.
Montenegro is one of the top 20 holiday destinations in the world. Its climate is most pleasant between May and October. The country is the least densely populated country in southern Europe – just 48 people per KM2. The country offers nature and beach enthusiasts a great selection of locations. It has 117 magnificently clean beaches, some popular while others remain untouched.
Nature and extreme sports lovers adore what the country has a lot to offer. It has five national parks, 2,000m+ mountains and it is home to Europe’s deepest (Tara) canyon and due to its mountain ranges, un-exploited skiing.
Be aware that Montenegro has no international banks in the country. While the country uses the Euro but does not print or mint any Euros as currency. Compared to other countries Montenegro has a lower ease of doing business DB score of 50/190 vs. other countries within Europe.
MONTENEGRO’S BUSINESS ENTITY TYPES
Montenegrin law allows six company types: entrepreneur, limited liability company, joint stock company, general partnership, limited partnership, and part of a foreign company. The most common is the limited liability company. It takes and average of one working week to register a limited liability company.
Starting a Joint stock company in Montenegro (Akcionarsko drutvo)
Aimed at creation of larger business or corporate entities with the benefit of just having a single shareholder. This business entity may be a private or public joint stock company (JSC). When incorporated the company must have a sanctioned auditor. There is a minimum share capital of 25,000 Euro (cash). Shares can be listed on the country’s official stock exchange.
Establishing a Montenegro Limited Liability Company (Drutvo s ogranienom odgovornou’ – D.O.O)
Foreign entrepreneurs and investors opt for this company type for its quick, simple and fairly hassle free set up. With no restrictions on nationality and residency or who will be the company’s shareholder or director. The share capital for set up is €1 with a sole individual to be its single shareholder and director.
Commencing a General partnership in Montenegro (Ortako drutvo – DO)
A big benefit of a share capital minimum of zero. It may choose to register with the Central Register of the Commercial Court or not. As a part of the registration process non-mandatory documentation includes the name of the partnership plus its partner’s names and addresses.
Partners are liable for debts and it may be dissolved if the term stated in the Articles of Association has expired. Worth noting that bankruptcy and death of a partners dissolves the organisation.
HOW TO FORM A LLC/DOO COMPANY IN MONTENEGRO
The following steps are needed to set up a Montenegrin Limited Liability Company (Drutvo s ogranienom odgovornou’ – D.O.O). Different company types and costs may be viewed on the official eRegulations site.
