Telephone Numbers
Telephone Numbers
Montenegro Company Formation
For detailed information +90 542 381 3868 'Call.
From the process of Montenegro Company formation to the corporate taxes you will pay in Montenegro, here is what you need to know about the rules and procedures for establishing a company in Montenegro.
Those who establish a company in Montenegro generally prefer a limited liability company.
In Montenegro, LLCs are known as Društvo s ograničenom odgovornošću (DOO). The key requirements to start one include:
Appointing yourself as the executive director of your company will fulfill the employment conditions required to obtain a temporary residence permit.
Besides LLCs, you can also operate your company as a:
Joint-stock company (Akcionarsko društvo): These require a minimum share capital of €25,000 (and sometimes much more for companies like stock exchanges and insurers) and have strict rules, including the appointment of a board of directors and an auditor.
General (Ortaklık društvo) and limited liability partnerships (Komanditno društvo): The former is less formal, and all partners are fully liable for the company's debts. For the latter, limited partners are only liable for the amount they have invested and do not have the same powers as general partners.
Sole proprietorships: These are small businesses with no capital requirement and no protection for the owner's personal assets.
The registration for any of the above companies can take 2-4 weeks, depending on the business type.
Montenegro's Incorporation Rules
In addition to the features of an LLC discussed earlier, Montenegro's company formation process requires you to:
Choose an original name for your company (one that is not already registered).
Have the essential documents (articles of incorporation, memorandum of association, etc.) certified by the court.
Select a primary activity for your company.
Depending on this activity (e.g., a travel agency), you may need to have a physical office in Montenegro.
Have a correspondence address in Montenegro and an account with a Montenegrin bank.
Have a stamp made with the company's unique seal on it.
The company must maintain accounting records, even if there is minimal or no income.
Montenegro's company registration process is easy and straightforward. The Central Register of Commercial Entities (CBRE) of the Tax Administration collects corporate documents and issues a tax identification number as well as a VAT tax number.
Montenegro has a one-stop-shop system for registering companies with the government. This is managed by the Central Register of Commercial Entities.
This "one-stop-shop" registration process (instead of filling out forms and registering with various government departments) is one of the strongest aspects of doing business in Montenegro.
The cost of setting up a company in Montenegro depends partly on the complexity of your operation and, therefore, how much external advice you need. In more detail:
The fees and charges for registering with the CBRE, having a stamp made, and having your company's registration published in the official gazette amount to at least €50.
The cost of a virtual office and registered address is between €25-75 per month, depending on location and usage.
For joint-stock companies, the fees can be double this amount.
Hiring a consultant to handle Montenegro's company registration process on your behalf will cost around €2,000 and will also save you time and headaches.
Most lawyers and accountants bill for their services on an hourly basis and are usually willing to provide a quote upfront.
In a general sense, for the purposes of this guide, offshore companies are companies that are registered under the laws of one country but do not conduct business with citizens of that country.
This arrangement often exempts them from paying taxes in the country where they are registered.
Montenegro is not an offshore jurisdiction. Unlike places like Panama or Anguilla, Montenegro's tax system is more similar to Andorra's. We do not appear on "tax haven" blacklists or lists of offshore jurisdictions, but we offer many of the same advantages, including:
Key Points Regarding Montenegro's Corporate Tax Rate
Montenegro has a fairly straightforward tax system. As part of its pro-business, growth-oriented tax system, a flat tax is applied to corporate earnings in Montenegro.
The corporate tax in Montenegro generally ranges from 9% to 15%. Some tax breaks are offered for companies operating in the country's underdeveloped regions.
What is VAT in Montenegro and Who Needs to Pay It?
As of January 1, 2018, the standard VAT on the sale of goods and services is 21%. Any company with annual net sales over €18,000 is required to register with the government and pay VAT on a monthly basis. For turnover below €18,000, VAT was 17%.
Goods imported into Montenegro are exempt from VAT if their value is less than €75.
If you are not a tax resident in Montenegro but set up and operate your company here, you will pay a withholding tax on the income you send home as dividends, interest, and royalties.
Generally, a standard rate of 15% is applied as a dividend tax for all three. The situation may be different if your home country has a double taxation avoidance agreement with Montenegro.
Montenegro is high on the list of countries that entrepreneurs choose to relocate to.
Registering your company in Montenegro is easy.
Your corporate tax rate in Montenegro will be lower than almost anywhere else in Europe.
The country uses the euro and is closely integrated with the modern global economy.
Although rarely seen as the ideal country to register a company online, it can be a very strategic place to do business.
Montenegro attracts entrepreneurs by making it as easy as possible to set up a company.
+90 542 381 3868
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