Company registration in Montenegro

Name of service	Bronze	Silver	Gold
Check and reserve of the company name Obtaining approval from the registrar for the company name
Company registration, including state fees Preparation of a full package of documents, depending on the chosen form of ownership, cooperation with the relevant authorities prior to obtaining information on company registration
Legal address for 1 year Provision of legal address for your company in a given jurisdiction, eliminating the need to purchase or rent real estate
Assistance in opening an account Collection, preparation and submission of the necessary documents for opening a corporate account
Assistance in obtaining a residence permit Collection and preparation of documents required for obtaining a residence permit
Total cost	1640 EUR	1640 EUR	2100 EUR
Accounting services	2850 EUR	3650 EUR	3950 EUR
Annual renewal (paid from the second year)	1490 EUR	1490 EUR	1490 EUR

The advantages of opening a company in Montenegro:

Stable economic growth (in 2019 – 3%);

Low inflation (in 2019 – 0.4%);

Low foreign public debt (in 2019 – 3.14 €billion – below average in Europe);

Cheap skilled labor.

The economic rights and obligations of residents of Montenegro are described in Part 4 of the Constitution. Foreigners should get to know the “Law on Foreigners” before entering the country. Since 2016, the country has a law on the mandatory registration of foreigners with the police. At the same time, if you’re planning to do business in the country, you need to get a short-term C visa with a total period of <90 days, or a long-term D visa for <6 months.

A huge advantage of opening a company in Montenegro is automatically received a residence permit: for < 90 days, temporary or permanent. It does not matter how much the entrepreneur pays taxes and invests, does the company have an office. When obtaining a residence permit, a foreigner simultaneously has the right to receive tax benefits and access to membership in organizations, protecting the interests of employees or employers, as well as free medical care for all family members.

Montenegrin legislation allows registration of the following forms of business:

Limited Liability Company – DOO (the most common);

General partnership – OD;

Limited partnership – KD;

Joint Stock Company – AD;

Sole proprietorship;

Part of a foreign company.

DOO

Partnership, Entrepreneur and a branch

Executive Director

>=1;
only natural person;

number of founders

1-30;
natural/legal person;

minimum share capital

€1

€25.000

€0

management

General Meeting of Shareholders

Prifinance’s attorneys can give you more details about these legal structures.

Taxes in Montenegro are lower than in other European countries:

Corporate income tax – 9% (one of the lowest rates in Europe!)

Tax benefits are provided for companies in the northern regions of the country;

For income from dividends – 15%;

VAT – 21%;

goods of social value (medicines, food, textbooks) – 7%;
travel agencies, mediators, dealers of antique, art and second-hand goods – a simplified payment scheme;
companies with turnover < €18,000 / 6 month – 0%;
agricultural producers – 0% + 5% supplement on the amount of their sales.

The real estate tax – 0.1-1% (for citizens – about €0.2 / sq.m., for foreigners – €0.5 / sq.m.) It also depends on the type of accommodation, the quality of housing, distance from the sea;

Tax on real estate turnover – 3% of the cadastral value (one of the lowest rates in Europe!);

Utilities – real costs, not average:

garbage removal – €8-12 / month;
telephone services – €5;
light – about €0.06 / kWh at night, 8 cents the rest of the time;
water – €0.54 / cm.

Tourist tax on real estate – set by local authorities. For owners of a second property, located in a tourist area;

Transport tax – depends on the engine size:

car – €25-1500 / year;
motorcycle – €10-300 / year;
boat or yacht – €500-3000 / year;
plane – €1000-1500 / year.

Additional tax on the purchase of used transport – 5% of its value on the market;

Excise taxes on tobacco, alcohol, alcohol-containing products, fuel – depending on the type of product;

Customs duties – 0-30% (average – 6.17%);

Personal income tax – a progressive scale, depending on the amount of income:

< 785 €/ month – 0%;
785 – 2.600 €/ month – 15%;
2.600 – 4.500 €/ month – 19% + €274 (fixed payment);
> 4.500 €/ month – 23% + €647;

City tax – set by local authorities; It is distributed as an additional tax on the company, its name, lottery, gambling and so on;

Capital gains tax – 9%;

Montenegro has agreements on avoidance of double taxation with most of the EU countries, as well as with England, Russia, China and Switzerland.

An estimated amount of expenditures will include:

Translation and certification of documents;

Fee for a residence permit;

Medical insurance;

Certification of the constituent company instrument;

Creation the company’s stamp;

Additional payment for the recognition of the graduation certificates;

Please, contact our online support or by phone, mentioned on the website on all matters. Our consultants work 24 hours a day and provide legal, accounting, documentation and many other types of assistance. We’ll be glad to be of use to you!