• Information
  About Montenegro Why Montenegro Discover Montenegro
• Company Formation
  Montenegro Company Formation Why Formation in Montenegro Benefits Montenegro Comapny Accounting and Audit Tax System
• Registered Address
• Residency
  Domicile - Residency Visa Requirements

An essential guide to form a company in Montenegro with the important steps and fees involved.

 
If you want to register a company, Montenegro offers several advantages like low formation costs and taxes. In addition, you have the possibility to easily obtain a residence permit. Foreigners can set up any form of company they want and there are no restrictions. Corporate profit tax ranges from 9-15% depending on your profit amount. The lowest rate of 9% is for profits of up to €100,000. The dividend tax is an additional 15% or less, depending on your home country. However, if you reinvest your profit, you don’t have to pay the dividend tax.
 
In Montenegro, several types of companies can be registered. The most usual one is the limited liability company, for which the owners are liable only to the amount of the founding capital. Foreign companies can register subsidiaries, but can also register a branch in Montenegro, as a special company form. Furthermore, a joint stock company is also available as a form of registration. Single entrepreneur registration is also available.
 
The key requirements for foreigners to set up a business in Montenegro
 
- At least 1 shareholder
- One company director with or without Montenegrin residency
- Registered business address
- At least 1,00 Euro in capital
- One main commercial activity
 
The startup costs for forming a limited company in Montenegro can vary depending on several factors, including the type of company, its business activities, and specific requirements.
 
1. Company Registration Fees
- Registration with the Central Registry of Business Entities (CRBE): Approximately €50 - €150.
- Company Name Reservation: Around €20 - €50.
 
2. Notary Fees
- Notarization of Documents: Depending on the number of documents and complexity, notary fees can range from €30 to €100.
 
3. Legal and Consulting Fees
- Legal Assistance: If you hire a lawyer to help with drafting the Articles of Association or other legal documents, costs can range from €200 to €1,000 or more, depending on the complexity.
- Business Consultant: Consultants can charge between €100 and €500 for setting up the company and ensuring compliance.
 
4. Bank Account Opening
- Initial Deposit: The minimum share capital required for a d.o.o. is €1, though it’s common to deposit more. The deposit itself is not a cost but needs to be available in the account.
 
5. Tax Identification Number (TIN)
- Application Fees: Usually, there is no fee for obtaining a TIN, but you may incur costs if you use a service to help with the application.
 
6. VAT Registration
- Application Costs: Generally, there is no fee for VAT registration. However, if you use a consultant, it might add to your expenses.
 
7. Licenses and Permits
- Specific Licenses: Costs vary widely depending on the industry and specific permits required. They can range from €50 to several hundred euros.
 
8. Office Space
- Rent: Depending on location and size, office rent can vary greatly. Typical costs might range from €200 to €1,000 per month.
 
9. Insurance
- Business Insurance: Costs depend on the type of coverage and business risks. Basic policies might start from €100 to €500 annually.
 
10. Miscellaneous Costs
- Office Supplies and Equipment: Initial setup for office supplies, computers, and other equipment can vary from €200 to €1,000.
- Administrative Costs: These may include printing company stationery, acquiring a company seal, etc.
 
Summary of Estimated Costs
 
- Company Registration and Notary Fees: €100 - €300
- Legal and Consulting Fees: €200 - €1,500
- Bank Account and Share Capital: €1 (minimum share capital) + potential initial deposit
- Office Rent and Supplies: €200 - €1,500 (initial setup)
- Insurance and Licenses: Varies widely, often starting from €100
 
Total Estimated Startup Costs
 
- Minimum: Around €600
- Typical Range: €1,000 - €3,000
 
These figures are approximate and can vary based on specific circumstances and choices. Due to the change in law on attracting foreign investments, the formation of company in Montenegro takes place under a simplified procedure. The process of registration of the company usually takes about 2 weeks.
 
Corporate Tax
 
Montenegro levies corporate tax on the income of legal entities that are resident in Montenegro or earn income there.
1. Tax Rate: The corporate tax rate in Montenegro is 9%. This relatively low rate makes Montenegro an attractive location for companies.
2. Tax Base: Corporate tax is calculated on the taxable income, defined as profit after deducting all allowable expenses and costs.
3. Exemptions and Reliefs: Montenegro also offers various tax incentives and reliefs for certain sectors and investments, particularly for new investments and companies operating in specific geographic or economic zones.
4. Procedure: Companies must file their tax returns annually and make tax payments according to the prescribed schedule. It is important to comply with all tax obligations and deadlines to avoid penalties and interest.
5. International Tax Agreements: Montenegro has a number of double taxation agreements with other countries to avoid double taxation of income and promote tax transparency.

The type of company you register depends on your needs and goals. If you want to do business in Montenegro and own the company as a person, we recommend registering an LLC for its simplicity and low capital requirements. For companies looking to expand in Montenegro, subsidiary, or branch registration is highly recommended. In addition, LLCs are easier to liquidate than joint-stock companies and have lower operating costs since they don’t require a board of directors or supervisory committee. For more specific advice and a detailed offer for a company formation in Montenegro, please contact us.
 

back | top