News: Registration of company in Montenegro

Registration of a company in Montenegro

The state of Montenegro is situated in southeastern Europe. This is the Adriatic coast of the Balkan Peninsula. Montenegro shares land borders  with Croatia (in the west), Bosnia and Herzegovina (in the northwest), Serbia (in the northeast), the Republic of Kosovo (in the east) and Albania (in the southeast).

Montenegro became independent in 2006.

The administrative center of the republic and its capital is Podgorica.

The Serbian language has the status of the state language. Local residents also understand English and Russian.

The national currency is the euro.

Why is it cost-effective to register or buy company in Montenegro? Main reasons.

• Low crime rate.
• Favorable investment policy. The only types of activities in which the foreigners can not participate are the manufacture and sale of weapons, as well as the business in border areas or in national nature reserves.
• Perspectives for the country's development, and extension of international relations.

The most popular types of business in Montenegro are the following:
- hotel business (occupancy rate reaches 95-100% in summer);
- restaurant business (large number of vacationers makes this sphere extremely promising);
- business in the sphere of providing services (excursions, outdoor activities, hire of vehicles, yachts and others).

Registration of business in Montenegro is interesting not only from the point of doing business. It is also the optimal way to legally obtain a residence permit in the country.

Due to the Law on attracting foreign investments, the formation of company in Montenegro takes place under a simplified procedure now.

Forms of doing business

According to the laws of Montenegro, the foreigners can register:

- Private Entrepreneurship (Entrepreneur);
- Partnership with unlimited liability or simple partnership (OD);
- Limited Liability Partnership or Limited Partnership (KD);
- Regular Joint Stock Company (AD);
- Limited Liability Company (DOO);
- Representative office of a foreign company.

One of the most prevalent forms of companies in Montenegro is the limited liability company (DOO). Nowadays, the LLC is particularly relevant for the reason that the foreigners can become land owners in Montenegro only being in the status of a legal entity for some time now.

The legislative framework.

The Law "On Business Entities".

Formation of Limited Liability Company in Montenegro. Features

• The process of registration of the company usually takes about 2 weeks;
• Minimum charter capital provided by the country's legislation is 1 euro, but this amount can be greater, if you wish (for the joint-stock company the authorized capital is 25,000 euros);
• Document required from the founder is only the international passport.
• The number of founders of the LLC in Montenegro provided by the law equals up to 30 people. The composition of the founders shall be announced. The foreigner can be both the founder and the director of the company.
• It is also necessary to provide several variants of the name of the company for consideration of the specialists of the state register.
• It is necessary to indicate the legal address of the company and the type of its main activity.
• The executive director of the company shall be appointed.
• Documents are submitted to the Central Register of the Commercial Court in Podgorica personally by the founder or his authorized representative (according to notarized power of attorney).
• If the director of the company is the foreign citizen, the fact of registering the company is the reason for issuing the work permit.

Bookkeeping in Montenegro

The registered company in Montenegro should maintain accounting records, even in case of lack of income.

Taxes in Montenegro

The registration fee equals to € 10 for the LLC and € 50 for the joint-stock company.
The main expenses of the company are related to taxes and deductions for wages (67% of the official rate).
VAT equals to 17% (if the annual turnover of the company is more than 18 000 euros).
The income tax (for legal entities) is 9%.
The income tax (for natural persons) is 9%.

Foreign investors pay the same taxes and obtain the same tax guarantees as local businessmen. Such conditions allow all entrepreneurs to be competitive in the international market.
The company which does not pay taxes will soon be stricken off by the authorities.

We will register ready made company in Montenegro for you within the shortest time possible. It has never been easier to buy company in Montenegro. Registration of company in Montenegro is one of the simplest and cheapest ways to start a legitimate international business. Registration of businesses in Montenegro is one of the main directions of our work. You can specify all the information concerning the issue of offshore companies, and regarding probable offshore zones of Montenegro during personal conversation with our lawyer or by phone.