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Getting Started - Benefits to Register a Comapny in Montenegro

Montenegro is generally a good place for doing business, with several benefits, but of course, it’s not perfect. For example, starting a business is easy and there are no entry barriers for foreign individuals or companies. In addition, Montenegro has a national treatment of foreign corporate owners, which means they have the same rights as domestic citizens. Besides fully owning a company, foreigners have indefinite property ownership in Montenegro. As a result of the open economic policy, there are over 13,000 foreign-owned companies in Montenegro, with owners from more than 100 different countries.

Montenegro is a parliamentary democracy and it is a safe and stable society. The Government is business-oriented, with an accent on economic development and improving quality of life. The county is a NATO member since 2017 and the most prominent European Union candidate. In addition, Montenegro is also a member of WTO as well as the CEFTA trade agreement.

Although increased from January 2022, Montenegro has low corporate tax rates. In addition, foreign-owned companies can use several business and tax incentives. However, the banking system is a bit tight. Montenegrin economy heavily relies on tourism, so there are low and high liquidity periods. When it comes to administration, Montenegro is not the best, but not the worst also. You’ll find some procedures very easy, but some will be long and will require a bunch of unnecessary documentation. Although Montenegrin law has the same principles as EU regulations, occasionally you’ll find some inconsistencies in regulations.

In economically underdeveloped municipalities, the Law on Corporate Income Tax provides that a newly established legal entity does not pay corporate income tax for the first eight years of operation. Moreover, the Law on Personal Income Tax stipulates that the tax calculated on the taxpayers' personal income for the first eight years of operation is reduced by 100%. Some sectors are excluded from these exemptions, including the sector of primary production of agricultural products, transport, fisheries and steel production. It is also worth noting that the tax relief is applicable only if the total amount of taxes does not exceed the amount of €200,000 for the first eight years of operation.

Montenegro is connected by direct flights with almost all European business centres (London, Rome, Moscow, Vienna, Istanbul, Paris, Berlin, Brussels, Dubai, Munich, etc.). In addition to its two international airports, four seaports, as well as developed road and railway infrastructure, the implementation of the Bar-Boljare highway construction project has begun, which will place Montenegro among the top investment destinations in the region.

When starting a business, foreign investors have the same rights and obligations as Montenegrin citizens. Furthermore, in addition to owning a business, they have the right to own real estate, as well as to obtain economic citizenship. The state guarantees full protection of foreign investors. Within a single process, you can obtain a certificate of incorporation, PIB number, VAT number and customs number, while, after this registration, a bank account can be opened in just 30 minutes. Montenegro’s company registration process is easy and straightforward. The Central Registry of Business Entities (CBRE) of the Tax Administration collects corporate documentation and issues a tax-identification number as well as a VAT tax number.

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