About Montenegro
Montenegro is a country renowned for its rich history, diverse culture, and breathtaking landscapes. In just a few hours’ drive, you can transition from the mountains to the seashore.
Geographical position:
Montenegro is a sovereign country in Southeastern Europe that lies on the eastern coast of the Adriatic Sea. It borders Bosnia and Herzegovina to the north, Serbia to the east, Albania to the south and Croatia to the west. The capital and largest city is Podgorica, while Cetinje has the status of the capital.
Size and population:
Montenegro’s territory covers approximately 13,812 km 2 , boasting a coastline spanning 293.5 km. The country is home to around 620 thousand inhabitants.
Legal system:
Montenegro operates under a legal system of civil law, founded on the Constitution adopted in 2007. The nation has taken significant steps to enhance its legal framework and combat corruption, aiming to attract foreign investment and provide a robust and stable business environment.
Banking system:
Montenegro has developed a modern and efficient banking system that has played a pivotal role in the country’s economic growth. The banking sector is recognized for its stability and innovation, attracting foreign banks and investors. The nation has also been proactive in adopting financial technologies, making services such as online banking and digital payments widely accessible.
International taxes:
Montenegro has embraced a favorable tax regime designed to attract foreign investment and stimulate economic development.
Corporate tax rate – Corporate tax rate ranges from 9-15%:
1) up to EUR 100,000.00 9%;
2) from EUR 100,000.01 to EUR 1,500,000.00: EUR 9,000.00 + 12% on the amount over EUR 100,000.01;
3) over 1,500,000.01 euros: 177,000.00 euros + 15% on the amount over 1,500,000.01 euros.
Value added tax (VAT) is 7% (reduced rate) and 21% (standard rate).
Free Trade Agreements:
Montenegro signed the Agreement on Amendment and Accession to the Central European Free Trade Agreement (CEFTA 2006) in Bucharest on December 19, 2006. This agreement has been in full force since November 22, 2007.
Between 2018 and 2020, Montenegro’s foreign trade in goods was predominantly with the CEFTA Parties and the European Union (EU). In 2008, the share of trade with CEFTA countries averaged around 30%, while trade with EU member states stood at an average of 46%. Regarding foreign trade in services with the CEFTA Parties during the same period, the participation rate averaged at 29%.
Company formation in Montenegro
Montenegro offers an enticing combination of a favorable tax system, a business-friendly environment, pleasant climate, and welcoming locals, making it an ideal destination for entrepreneurs. Registering a business in Montenegro is straightforward and offers numerous advantages.
Why should you register a company in Montenegro?
Quick and easy registration process – Registering your business in Montenegro is a hassle-free procedure, typically taking up to 7 days. The same applies to companies registered by proxy.
Low corporate tax rate – Montenegro's corporate tax rate is highly competitive, ranging from 9% to 15%. The structure is as follows:
1) up to EUR 100,000.00: 9%;
2) From EUR 100,000.01 to EUR 1,500,000.00: EUR 9,000.00 + 12% on the amount over EUR 100,000.01;
3) Over EUR 1,500,000.01: EUR 177,000.00 + 15% on the amount over EUR 1,500,000.01.
No Restrictions on Foreign Ownership – Montenegro welcomes both Montenegrin and foreign citizens as owners of companies. Ownership can be solely Montenegrin, solely foreign, or a combination of both. Moreover, a Montenegrin company can have a foreign legal entity as its owner. Additionally, a foreign owner in a Montenegrin company can also serve as its director. Each company can have only one director.
Minimum Capital Requirement– The minimum founding capital required to establish a company in Montenegro is just EUR 1.00.
Forming a Company Remotely – In Montenegro, you have the option to register a company without the need to physically visit the country. This can be done by utilizing a Special Power of Attorney, which you can authenticate through the relevant authority in your own country.
Steps for establishing a company in Montenegro:
1) Consultation and Document Collection
To initiate the process, you simply need to complete an information sheet providing essential details:
1) The form of legal entity that best suits your business
2) Company name
3) Information on founder(s) and director
4) Address of the company
5) The main activity of the company, etc…
Required documents:
1) Passport(s) of the founder(s)/director(s)
2) Power of attorney
2) Company registration and bank account.
Company registration is typically completed within 7-10 days from the receipt of all required documents.
Opening a bank account can be done in just two working days.
3) Management – You have the flexibility to manage your company from anywhere in the world. Additionally, we offer a range of services, including accounting, legal, and other business support services, to assist you further.