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Company registration in Montenegro

Gateway Montenegro

Ease of Doing Business rank

#50 out of 190 countries around the globe

Index of economic freedom

#91out of 186 countries the globe

International Tax Competitiveness Index rank

#n/aout of 36 countries the globe

Why Montenegro

Montenegro is a country in eastern Europe with a status of candidate state in the EU. Nowadays the economy of Montenegro is regarded as promising and rapidly developing. The rapid development is carried out due to the growth of foreign investments which were attracted by a number of developed draft laws (including measures for the implementation of financial and non-financial support for potential and existing entrepreneurs, micro, small, medium and large enterprises). Due to favorable legislation and loyal migration policy, Montenegro is an attractive gateway to Europe for entrepreneurs from Russia, Ukraine and Belarus.

Item

Rate

Value Added Tax (VAT)

21%

VAT Reduced rate

Corporate income tax

Capital Duty

Land Tax

Tax on dividends for individuals (approx.)

Tax on dividends for legal person (parent company)

Individual income tax (tax on salary)

9-11%

Payroll tax

13-15%

Social Security Contribution (paid by employer)

9.8%

Minimum salary (per hour)

1.32 EUR

Minimum salary per month (brut)

331 EUR

Average rental price for class A office spaces/ per 1 sq. meter

16.8 EUR

Share capital requirement for LLC

1 EUR

Share capital requirements

he principal legal forms in Montenegro are Limited Liability Company (LLC), locally named as "Drutvo s Ogranienom Odgovornou" and Public Limited Company (PLC), locally named as "Akcionarsko Drutvo". Minimum share capital requirements are 1 EUR for LLC and 25,000 EUR for PLC, respectively.

Timeline to set up a company

Depending on the method is used to set up a company, the time required for the process may vary. If a private person establishing a company is a non-resident, the formation process might be done using a power of attorney or by physical presence:

By the PoA: about 4 days after we get all the documents
By physical presence: about 4 days

Business climate

The existing tax regime in Montenegro for foreign investors is an additional stimulus. It is rated as very favorable and one of the most competitive in Europe with a proportional corporate tax of 9% with various tax incentives. Thus, companies operating in Montenegro enjoy not only a favorable business environment but also a low tax burden.

In the past few years, Montenegro has shown a strong commitment to building a modern market economy and entering European markets. Significant reforms have been initiated, especially in terms of creating a business-friendly environment. This includes legal and economic reforms in all areas aimed at ensuring legal security and harmonization with EU legislation and economic policies. Montenegro became a member of the WTO in April 2012. The obligations arising from WTO membership had a beneficial effect not only on the trading system of Montenegro but also on the overall investment environment.

Customs duties

As Montenegro is a candidate member of the EU, custom duty rates are decided by TARIC - the common customs tariff in the European Union. Custom duty rates are based on the value of the goods and dependent on the type and the country of origin. Imports from EFTA countries, Switzerland and EU candidates are generally free of duty. Usually, duty rates stay between 0% and 10%.

2Free Trade Zones

3Labor force

4Business migration opportunities

Montenegro is a great spot for doing business in the southeastern part of the European Union. Due to its location and the fact of being a candidate state in the EU, Montenegro might be called a bridge between European Union and CIS countries. Montenegro could be beneficial jurisdiction from the financial point of view for any kind of business and an affordable labor force. Our team can help you to establish and maintain the business in Montenegro. We would be glad to become a one-stop-shop for your needs and assist with the entire company formation process including bank account opening and many other related services.

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What is included in the company formation service package

Company formation

Full turn-key assistance with setting up a company in EU by Power of Attorney (remotely) or by physical presence including such steps as verification of the company name; preparation of individual AoA, coordination of all necessary legal formalities and handling of the company entry into the commercial register.

Bank Account

The issue of opening a corporate account in the Bank for the company where non-EU residents are acting as directors and shareholders is still urgent. Our services for opening an account include an analysis of your business model, risk assessment and selection of the optimal Bank in the EU, collection and preparation documents package (in accordance with the requirements of the chosen Bank), representation of your interests in negotiations (if necessary).

Registered and Virtual Office

In order to set up a company in EU jurisdiction, the address of registration and virtual box services are required. In the frames of our solution, we provide an address in EU and assist with mail forwarding and other incoming physical correspondence from governmental authorities, Banks and third parties. Upon request, we could assist with EU phone number and receptionist answering on the calls.

Legal Templates

As soon as the company registration procedure is fully completed, the question of starting operating activities becomes relevant. In order to accelerate the process and save money on local advisors, we will provide all the necessary legal document templates drafted in accordance with EU law (NDA, employment agreement, service agreement, policies etc.)

Tax number obtainment

Registration of your entity within EU tax authorities and acquisition of VAT number and internal tax number (if applicable)

Dedicated consultant

Our aim is to make the moment of launching your business maximum simple, so it would be possible to concentrate on important matters and operate efficiently. Therefore, you will be provided with an individual consultant who will lead you through the entire process of the company formation and further will be assisting with other business-related issues and unique needs

Auxiliary services

Accounting and Taxation

Legal entity registered in EU obliged to conduct bookkeeping records and submit reports to the state authorities (Income tax and social security contribution report on employees, VAT reports on a monthly basis and annual reports). Jointly with our partners, we will be happy to assist your company on this matter and develop an optimal taxation model individually under your business.

Trademark registration

Registration of trademark within European Union Intellectual Property Office (EUIPO). Word mark, figurative mark, figurative mark containing word elements, shape mark, shape mark containing word elements, position mark, pattern mark, single color mark, sound mark, motion mark, multimedia mark, hologram mark.

Local Director

The need for local hired director often in demand across our Clients since it resolves issues with Bank compliance (if any arise) and makes it possible to conduct remotely operating activities more efficiently. We will carefully analyze your needs and weigh all the risks in order to conduct a search for a suitable candidate for the position.

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