Business entities in Montenegro in 2023

Choosing the right corporate structure and strategy for starting a business in a Montenegro is a pivotal determinant prior to company setup. Healy Consultants has the expertise and experience to advise our Clients on the optimum legal form of the new Montenegro business. There are several ways of doing business in Montenegro, most popular being through a limited company and a branch of a foreign entity.

Limited liability company (Drutvo s ogranienom odgovornou)

Limited liability company (LLC) is the most common type of company used by entrepreneurs and investors looking to do business in Montenegro. A Montenegro D.O.O can be setup by a single individual who can be the shareholder and director of the company. There are no restrictions as to the nationality and residency of the shareholder/director. The minimum paid up share capital for a Montenegro LLC is €1;
A Montenegro limited liability company must open a corporate bank account in Montenegro before registering for taxes with the Tax Authority.

Joint stock company (Akcionarsko drutvo)

A Montenegro joint stock company (JSC) is preferred by those investors and entrepreneurs seeking to establish larger corporations or business in the country. This entity can either be established as a private JSC or public JSC and in the case of the latter can list its shares into the Montenegro Stock Exchange. Like the LLC, a JSC can be established by one individual shareholder;
The minimum share capital required for a joint stock company is €25,000 and must be deposited into the company’s corporate account during incorporation. A JSC must also appoint a statutory auditor at incorporation.

Montenegro branch office

Foreign legal entities looking to do business in Montenegro without setting up local companies are permitted to establish a branch office in the country. A branch office can engage in profit making activities with Montenegro and its activities are only limited to the scope of the parent company’s business.

Montenegro representative office

Foreign companies are also permitted by Montenegro Law on Business Organizations to set up representative offices in the country strictly for the purposes of i) market research ii) promoting the business of the parent company and iii) research and development. This entity is not allowed to engage in profit making activities in Montenegro.

Table of comparison between different Montenegro business entities types

	LLC	JSC	Branch office	Rep office
Also known as	D.O.O	Akcionarsko drutvo	N/A	N/A
How long to set the company up?	2 weeks	5 weeks	4 weeks	4 weeks
How long to open company bank account?	4 weeks	4 weeks	4 weeks	4 weeks
Legal liability?	Limited	Limited	Unlimited	Unlimited
Wholly foreign owned?	Yes	Yes	Yes	Yes
Minimum share capital?	€1	€25,000	€1	€1
File annual tax return?	Yes	Yes	Yes	No
Tax registration certificate required?	Yes	Yes	Yes	No
Recommended corporate bank account?	Erste Bank	Universal Capital Bank	Prva Bank	Hipotekarna Bank
Does our Client need to travel?	No	No	No	No
Resident director required?	No	No	No	No
Resident shareholder required?	No	No	No	No
Minimum directors required?	1	1	Parent company	Parent company
Minimum shareholders?	1	1	Parent company	Parent company
Tax identification code (TIN) needed?	Yes	Yes	Yes	No
Montenegro resident company secretary required?	Yes	Yes	No	No
Corporate shareholders allowed?	Yes	Yes	Yes	Yes
Corporate director(s) allowed?	No	No	Yes	Yes
Montenegro corporate tax rate?	9%-15%	9%-15%	9%-15%	0%
Annual financial statements required?	No	No	No	No
Statutory audit required?	Yes	Yes	No	No
Regulated by?	Chamber of Economy	Chamber of Economy	Chamber of Economy	Chamber of Economy
Allowed to issue sales invoices?	Yes	Yes	Yes	No
Allowed to sign contracts?	Yes	Yes	Yes	No
Allowed to import and export goods?	Yes	Yes	Yes	No
Can rent an office space in Montenegro?	Yes	Yes	Yes	Yes
Can buy Montenegro property?	Yes	Yes	Yes	No
Can own equity in other Montenegro companies?	Yes	Yes	Yes	No
Total Montenegro business setup costs in Yr. 1	€11,020	€11,270	€11,020	€11,320
Subsequent annual costs (incl. accounting and tax fee)	€5,890	€5,890	€5,890	€5,890
Sample engagement invoice	View invoice PDF	View invoice PDF	View invoice PDF	View invoice PDF