Montenegro is a picturesque Balkan country in Southern Europe. It is famous for its cleanest reservoirs, steep mountains, and untouched nature. After gaining independence in 2006, the country took a Euro-Atlantic course and already in 2010 received the status of a candidate member of the EU, and in 2017 became a member of NATO.
Although the country is small, it is quite promising: it has a low inflation rate, high economic growth rates, and almost the smallest public debt in Europe.The national currency is the euro, while Montenegro is not part of the Eurozone.
The jurisdiction attracts not only with its natural beauty but also with the ease of starting a business. Legislation is predisposed to foreign investors and has created all conditions for their attraction. The hotel, restaurant, and tourism businesses are widespread.
ADVANTAGES OF OPENING A COMPANY IN MONTENEGRO:
- One of the lowest taxes in Europe
- Affordable prices for opening a company and low registration fees
- Opportunity to legally obtain a residence permit in the country through the opening of a company
- Registration of a company can take place remotely without a personal visit to Montenegro
- Possibility for a non-resident to be a director of the company or a shareholder
- A non-resident can purchase land in Montenegro through his company
- Favorable transport and market location for trading in Europe
- Montenegro is not offshore and is not included in the black lists of countries
The establishment and further activities of companies in Montenegro are regulated by the Companies Law.
This Law gives local residents and non-residents equal rights to establish a business in the country.
In Montenegro, non-residents have the opportunity to register a company in the following organizational and legal forms:
- partnership with unlimited liability,
- partnership with limited liability, joint stock company (AD),
- limited liability company,
- representative office of a foreign company.
The most profitable business option for a foreign citizen is a limited liability company (DOO).
REGISTRATION OF A COMPANY IN MONTENEGRO: requirements
LIMITED LIABILITY COMPANY (DOO):
- Minimum authorized capital – 1 EUR.
- Director - at least one individual, no residency requirements. A non-resident director must issue a residence permit for the country and obtain a work permit after the appointment. To obtain a residence permit, you will need a personal visit to Montenegro. It is possible to use a nominal service.
- Shareholder - at least one person, a company can also act, there are no residency requirements.
- Secretary - not required.
- Open information - about the director, shareholder, legal address, and beneficiaries of the company is contained in the open register.
- Reporting - there are requirements for filing an annual financial report, whether the company has been in business or not. It is also necessary to make and submit a VAT report every month.
- The legal address must be in the territory of Montenegro.
- The company cannot engage in banking and insurance activities.
Montenegro's taxation is attractive due to its relatively low taxes in Europe.
Income tax - 9%.
Tax on dividends - 9%.
Capital gains tax – 0%
VAT - 21%.
Local companies must pay payroll tax (13-15%) for each employee. The company must have at least one hired employee, mostly the director. A hired employee must be registered for compulsory social insurance with the Tax Administration.
DOUBLE TAX TREATIES
Montenegro has signed more than 40 agreements on the avoidance of double taxation, including with Ukraine.
If you need to register a company in Montenegro, please contact our lawyers for advice:
+38 (098) 737-88-88
We will help you buy ready-made or register a company in Montenegro or in any other jurisdiction of your choice.
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