Telephone Numbers
Telephone Numbers
Tax System in MontenegroTax System in Montenegro
For detailed information +90 542 381 3868 'Call.
The government is making every effort to attract foreign capital; you can see the participation of foreign investors in nearly every sector of the economy. However, there are activities in which foreign participation is not permitted: the production and sale of weapons, and trade within border zones or national nature reserves.
Owning a business comes with many benefits, including a robust investment policy and a favorable tax regime. Generally, you can relocate your entire family here. The standard of living is more affordable than in the US and Western Europe. For example, you can receive a quality education here that is not prohibitively expensive.
The most popular types of entrepreneurship are in the hotel industry (where occupancy rates approach 100% in the summer), restaurant management, and the service sector (active recreation, excursions, transportation, and yacht rentals). Entrepreneurship is also one of the fastest ways to obtain a residence permit.
Thanks to an updated legal framework, legal entities are established through a simple algorithm. Setting up a business in Montenegro can open up excellent commercial opportunities for an entrepreneur and allow them to enter the European market. This is an undeniable advantage for those considering company registration in Montenegro or purchasing an off-the-shelf company in this jurisdiction.
The country is a member of the World Trade Organization, the United Nations, the Council of Europe, and other international and European organizations. The corporate statistics are quite appealing. At the beginning of 2020, approximately 35,000 commercial enterprises were registered in the country. At the same time, about 35% of these companies were founded by non-citizens. Their number has doubled in the last few years. Individuals from Turkey, Russia, Serbia, and Ukraine are the foreign participants behind most of these firms.
As the country is in close proximity to the European Union and benefits from its advantages, there is greater economic freedom and monetary stability. After gaining sovereignty in 2006, the government has strived to be meaningful and attractive to capital owners looking to establish a European company. Consequently, the authorities have invested heavily in the development of state and corporate services.
People place special emphasis on stability and sustainable growth. The tax regime is quite lenient, and entrepreneurship is strongly encouraged in many sectors of the economy. Notably, the country currently has over 40 international double taxation treaties, allowing foreign wealth owners to choose where to pay taxes. The World Bank ranked the state 50th out of 190 countries for ease of doing business. Establishing a company in Montenegro is advantageous in many ways:
Furthermore, legal entities established in Montenegro can be fully owned by foreigners. There are no restrictions on the right to private property and foreign control. With the support of our lawyers, it is possible to register an entity and open an international bank account remotely, without visiting the country.
We provide comprehensive assistance with Montenegro company formation. Our team of lawyers will prepare all the necessary documents to organize your business in the country. You only need to provide a power of attorney and your passport. Additionally, our business consultants will provide extensive advice on the available investment options in the Republic and all the details regarding company registration and obtaining a residence permit.
Our team of lawyers at World Company Setup specializes in banking and financial technology. In addition to helping you open a company in Montenegro and providing ongoing support, we offer expertise in the complex legal aspects of the World Company Setup industry and banking regulations.
We help you open a company in Montenegro and provide professional support after its registration in the state register. We offer bookkeeping, reporting, and legal advice. Should a business need to purchase residential or commercial real estate, you will receive the necessary support at all stages of the purchase, confirmation of ownership when documenting a transaction in court, and assistance with registration in the Cadastre. The company formation procedure is not complex and normally takes a few business days. The founder does not need to visit the country at all; a general power of attorney is sufficient.
The key stages of establishing an entity include identifying the founder (local or non-resident) and appointing a director (the owner and director can be the same person). It is necessary to create a company name and prepare the founding documents. If there is more than one founder, an articles of association is drawn up, indicating the share of each participant. You then register the company in the Central Register of Commercial Entities. The decision to create a legal entity, the power of attorney, and the signatures of authorized persons must be notarized.
After this, the Central Depository Agency issues a certificate confirming the absence of unfulfilled tax obligations. Next comes the preparation of the LLC's charter and its submission to the Central Register of Commercial Entities. During this time, the founder can open a domestic bank account and have the organization's seal (stamp) made. An employment contract with the director must be registered with the tax office.
If you wish, you can apply for VAT (deregistration will be possible after three years). VAT payer status is only mandatory if the annual turnover exceeds €18,000. Newly established manufacturing companies in the country's underdeveloped regions are exempt from tax for eight years, provided the maximum exemption amount does not exceed €200,000. These exemptions do not cover steel companies or those engaged in agriculture, transport, fishing, shipbuilding, trade, and catering services.
Montenegro, a small country bordering Balkan countries such as Serbia, Croatia and Albania in Southeast Europe, gained its independence in 2006. Although the official language is Serbian, English is widely spoken in business and communication.
+90 542 381 3868
+971 58 5204103