Company formation and management guide

Montenegro Company Law is based on the principle of equal treatment, allowing international investors to have the same rights and liabilities as local investors.

To become investor in Montenegro like company owner you need to:

  1. Open company in Montenegro
  2. Open a bank account
  3. Apply for residence and work permit (for executive director)*
  4. Choose accounting agency
  5. Understand tax system

*only if executive director is foreigner

Company registration can be done without your presence to Montenegro, through power of attorney you can send us but for opening bank account and applying for residence and work permit, presence is mandatory.

1. Company registration - Limited liability company(D.O.O.)

A Limited liability company (D.O.O.) is a most common form of business registration in Montenegro. Its main characteristics include:

  • Can be founded by real or legal persons, foreign or domestic (from 1 up to 30);
  • Founders are responsible for company’s obligations up to the amount of their deposits;
  • Every company (d.o.o.) should have at least one employee (executive director);
  • Same person can be owner and executive director of the company;
  • For every employee company should have to pay employee contributions (social care, health care, pension care..) on monthly base;
  • The minimum amount of initial capital is 1.00 Euro;
  • Simple management procedures;
  • Large range of business activities company can do at the same time;
  • Being an employee of the company (executive director or other employee) give a right to obtain a residence and work permit for owner and his family;
  • It has to contain “LLC or LTD” (D.O.O.) designation in its name;
  • Owners of the LLC (D.O.O.) have shares which represent percentage of capital in the ownership.

For company formation You need to:

  1. Choose the company name
  2. Choose who will be executive director (owner also can be executive director)
  3. Choose the main business activity. Please check the List of Business activities
  4. Choose company address (it can be provided by Umbrella)
  5. Choose the minimum founding capital (it can be 1 €)
  6. Send us a copy of passport of owner and executive director

Registration of the company finishes for 5 working days. With this services we provide:

- Official headquarter address,
- The memorandum and articles of association,
- Company registration documents
- TAX identification number (PIB),
- Company stamp/seal,
- Export-Import number,
- Bank account,
- Tax registration for executive director ( Social care, Pension and Health insurance registration, Chamber of commerce),
- VAT registration (on client demand)

Company registration can be done without your coming to Montenegro, through power of attorney you can send us.

2. Residence and work permit

Every company should have at least one employee (executive director). In case when the executive director is a foreigner it is mandatory to apply for residence and work permit. After we finish company registration, you can apply for a Residence and Work permit. You need to bring a criminal record file, any diploma you have (elementary, high school or university + list of passed exams) and valid passport (all documents should be notarized and apostilled). Then when you come to Montenegro you need to provide apartment agreement signed at notary office (minimum one year validation) or to present ownership list for apartment (in case you are the apartment owner). Rest, (medical exam, insurance, money report...etc.) we provide.

You will get residence and work permit two weeks after you apply. For picking it up presence is not mandatory (we can pick it up instead of you).

Also, after you pick your residence and work permit, your family ( marriage partner and underage kids - 18 yrs and younger) can apply for residence based on family connection. For a marriage partner you need to bring a criminal record, marriage certificate and valid passport, for the kid's birth certificate and valid passport. Rest we provide.

Important note: Residence and work permit is related to the employee not with ownership status.

Some countries do not need visas for Montenegro but some of them do. In case you need a visa to travel to Montenegro and you wish to open a company, you will need visa D for residence and work permit or you can apply for residence and work permit using just a passport. Please check Montenegro Visa regimes .

3. Bank account

After we finalize company registration you can open a bank account in any bank in Montenegro you choose. You can open a company account and personal account as well. Montenegro banks give you options to have domestic and foreign accounts. Also Montenegro banks let you to apply for debit/credit card and e-banking as well.

Please check which banks operate in Montenegro. Montenegro Bank system

4. Accounting and Bookkeeping

We provide full accounting and bookkeeping service, based on the best legal and accounting practice for 12 yrs. experience. We also provide tax advising, legal consulting, and project planning.

Please check prices for Accounting and Bookkeeping

In Montenegro we also use electronic bills, but you need to have a hard copy as well.

5.Tax system in Montenegro

The tax system in Montenegro is the most beneficial tax system in Europe. Montenegro's tax system does not make a difference between both residents and non-residents. Some tax rates are:

  • Corporate income tax - 9/ 12/ 15%*
  • Personal income tax - 15%
  • Transfer Real estate tax - 3%
  • Ownership real estate tax - 0,25-1%
  • Transfer used cars/boat tax - 5%
  • VAT - 21%, 7%, 0%

*Corporate tax has progressive rates and depends on amounts of profit. Tax rates on the amount of taxable profit are: up to EUR 100,000.00 – 9%; from EUR 100,000.01 to EUR 1,500,000.00: EUR 9,000.00€ + 12% on the amount over EUR 100,000.01; over EUR 1,500,000.01: EUR 177,000.00€ + 15% on the amount over EUR 1,500,000.01.

More you can find out on Montenegro tax system

About costs

You need to make a difference between one time, monthly and yearly cost.

One Time costs (1. Opening Company + 2. Residence and work permit + 3. Bank account opening cost + 4. Diploma nostrification = 1750/1850 €)

  1. Company formation – 1200 € (all taxes included - there is no hidden costs)
  2. Residence and work permit - 300 € (all taxes included - there is no hidden costs)
  3. Opening bank account cost - 100+ € (price can varied from bank to bank )
  4. Diploma nostrification - 150 / 250 € (high school diploma / university diploma + transcript)

Monthly costs (1. Employee contributions + 2. Accounting and Bookkeeping + 3. Bank fees = 165€ / 225€)

  1. Employee contribution - 60 € (half working time) or 120 € (full working time) monthly
  2. Accounting and Bookkeeping service - 100 € or 150 € monthly (this price is without VAT - 21%)
  3. Bank fess - 5-8 €, depending which bank you choose.

Yearly costs (1. residence and work permit renewal + 2. final financial report = 300 €)

  1. Residence and work permit renewal – 200 € (all taxes included - there is no hidden costs)
  2. Final financial report - 100 € (all taxes included - there is no hidden costs)

Here you can find out more about, Cost of doing business in Montenegro