Montenegro company registration


Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Montenegro. Our services include i) Montenegro company incorporation ii) government license registration iii) corporate bank account opening services in Montenegro iv) employee recruitment v) visa strategies and vi) office rental solutions.

Summary table of Montenegro company registration

SummaryLimited Liability CompanyAgribusiness companyTourism companyJoint stock companyRepresentative officeEnergy company
Also known asD.O.OAgribusiness companiesTuristička kompanijaAkcionarsko drutvoPredstavništvoEnergetska kompanija
Best use of company?All products and servicesAgriculture, dairy processing and related activitiesConstruction and furnishing of hospitality businessTo secure public fundingMarketing and research activitiesConstruction of energy generation facilities
How soon can you invoice Clients/sign sales contracts?2 weeks2 weeks2 weeks5 weeksCan not invoice4 weeks
How soon can you hire staff?2 weeks2 weeks2 weeks5 weeks4 weeks4 weeks
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week1 week
How soon can you sign a lease agreement?4 weeks4 weeks4 weeks4 weeks4 weeks4 weeks
How long to supply company registration / tax numbers?2 weeks2 weeks2 weeks5 weeks4 weeks5 weeks
Corporate tax rate on annual net profits?9%9%9%9%0%9%
Limited liability entity?YesYesYesYesNoYes
Government grants/incentives available?YesYesYesYesNoYes
Government approval required for foreign owners?NoNoNoNoNoNo
Resident director/partner/manager/ legal representative required?NoNoNoNoNoNo
Minimum paid up share capital?€ 1€ 1€ 1€ 25,000€ 1€ 1
Minimum paid up share capital?YesYesYesYesNoYes
Corporate bank account location?Erste BankUniversal Capital BankPrva BankHipotekarna BankLovćen BankNLB Bank
Can secure trade finance?YesYesYesYesYesYes
VAT payable on sales to local customers?21%0%0% for hotels with 5 or more stars21%0%0% if capital investment is done
Average total business set up engagement costs?€ 11,020Request a proposalRequest a proposal€ 11,270€ 11,320Request a proposal
Average total engagement period?2 months2 months2 months3 months2 months3 months

Montenegro business setup summary

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  • Advantages and disadvantages

    Advantages of Montenegro company registration

    Montenegro's business advantages

    1. Incorporating a Montenegro LLC can be fast and uncomplicated because it only requires:
      • One shareholder of any nationality and residency who can be an individual or a body corporate;
      • One individual director of any nationality and residency;
      • A paid-up share capital of EUR1;
      • Our Client does not need to travel to Montenegro to complete company formation.
    2. Our Clients will find Montenegro an attractive jurisdiction for doing business because:
      • 100% foreign ownership of legal entities is permitted;
      • The country offers the lowest income tax rates in Europe at a flat rate of 9%;
      • Montenegro has concluded more than 40 double tax treaties that may help reduce or eliminate withholding taxes with global jurisdictions including China, Malaysia, France, Germany, Switzerland among others;
      • Montenegro presents very competitive tax rates with respect to other countries in Europe.
    3. Investors and entrepreneurs in Montenegro will enjoy government incentives including:
      • VAT exemptions on construction of i) high-end hotels ii) food production and iii) energy-production facilities;
      • An 8-year tax exemption of up to €200,000 for companies newly incorporated in underdeveloped municipalities;
      • Reduced VAT levied at the rates of i) 7% on purchase of IT equipment and ii) 0% on other selected basic products;
      • Resident entities are entitled to a foreign tax credit on taxes levied on income realized abroad; but not exceeding the amount that would have been paid locally.
    4. Montenegro is an attractive jurisdiction for tourism companies due to the below reasons:
      • According to World Travel & Tourism Council’s 2017 report, travel and tourism had contributed to 11% of Montenegro’s GDP. The country is predicted to become one of the fastest and emerging tourist destinations of the world over the next few years;
      • The country has a range of attractive tourist locations including i) 5 national parks; ii) mountain ranges; iii) ski resorts; and iv) lakes and deep river canyons. This further highlights Montenegro’s potential for adventure sports industry;
      • Through the Tourism Development Strategy 2020, Montenegro aims to improve all its infrastructural facilities in order to make the country an all-year destination for tourists;
      • Golf tourism is increasingly promoted, with one of the finest courses of Europe.

    Disadvantages of Montenegro company registration

    1. Entrepreneurs looking to incorporate a public limited company will have to present a minimum share capital of €25,000 at incorporation;
    2. Our Clients may find Montenegro unattractive for investment because:
      • Corruption is endemic in Montenegro; with the country being ranked amongst the most corrupt in Europe by Transparency Intentional;
      • Money laundering and organized criminal groups are prevalent in Montenegro and have significant influence in both the private and public sectors;
      • Montenegro has a very weak judicial system that continues to discourage foreign investments;
      • Montenegro has a small market size, with a population of just about 600,000 inhabitants with very little purchasing power.
    3. Other challenges of doing business in Montenegro include:
      • The country lacks proper infrastructure due to absence of investments and/or maintenance in the past decade;
      • Our Clients who prefer services of globally recognized banking institutions may be skeptical about banking in Montenegro as the country has no presence of international banks;
      • The country does not offer tax incentives to investments in sectors including i) agriculture ii) shipbuilding iii) transport and iv) steel, among other sectors;
      • Montenegro was hit hard by the global downturn and has experienced a significant contraction in its service and industry sectors. Recovery has been steady but slower than in other nations in Eastern Europe;
      • One of the major impediments to a free trading system in Montenegro is its poor infrastructural facilities along with the red tape. As a result, the country has been poorly ranked in the 70th position (out of 137 countries) for its infrastructure in the Global Competitiveness Index 2017-2018 edition.
  • Best uses for a Montenegro company

    • Business registration in Montenegro is ideal for those entrepreneurs looking to establish their businesses to exploit the country’s competitive tax regime that offers some of the lowest income tax rates in Europe.

Company registration

  • Time to incorporate: Two weeks
  • Cost to set up: €11,020
  • Minimum capital: €1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 9%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: DOO Limited

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Contact us

For additional information on our company registration services in Montenegro, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!
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