Company Registration in Montenegro
Are you thinking about company formation in Montenegro (and why you should)?
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.
Additionally, over 16,000 foreign-owned companies have already registered in Montenegro, making it a popular destination for business and residence in the Mediterranean region.
In Montenegro, several types of companies can be registered. The most usual one is the limited liability company (D.O.O.), 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 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, please contact us.
Are there any limitations for foreigners registering a company in Montenegro?
There are no limitations or restrictions for foreigners or foreign companies for company formation in our country. Any company can be wholly owned by a foreign person or entity. And since Montenegro has national treatment of foreign investors, you have the same rights and obligations as Montenegrin citizens and companies. Company owners can be multiple persons with various shares. Additionally, the ownership structure can be a mix of companies and persons, without limitations. The company CEO and authorized representatives can also be foreigners, with no limitations. However, if the company CEO is a foreigner, they would need to obtain a residence permit based on employment for the company to be fully legal and operative. If this is your case, visit our residence permits page for more details.
How to set up a company in Montenegro?
The procedure for company formation in Montenegro is pretty simple. The whole registration process takes up to ten business days. And of course, you can register a company remotely, without having to visit the country.
Therefore, here are the basic steps for opening a company in Montenegro:
- Check if your desired company name is available (you can search the Montenegrin company register here);
- Prepare and certify your founding documents (they depend on the type of the company you want to register and the number of owners);
- Prepare the company registration forms;
- Pay the registration fees;
- Submit the documents for registration to the Central Registry of Business Entities;
- Obtain a company stamp;
- Open a company bank account and pay up the founding capital;
- Hire an accounting agency for monthly and yearly tax filing;
- Sign an employment contract and register the CEO with the tax authorities;
- Obtain a digital signature certificate for the CEO.
A valid passport is the only personal document you need for company registration, and there are no additional requirements. Still, the bank may ask for additional documentation about your income and assets as part of their KYC procedures.
Once the company is officially registered in the Central Registry of Business Entities and the CEO is registered as an employee, the company can start its operations. However, if the main company activity is subject to licensing, this will take additional steps and documentation.
How much does it cost to start a company in Montenegro?
Starting a company in Montenegro is inexpensive. You will only need to pay a few one-time registration fees, as well as the cost of a company stamp and digital signature certificate. The total cost will depend on how you structure your founding documents.
Here is a breakdown of the basic one-time costs for an LLC company formation in Montenegro:
- Founding capital: minimum €1.00;
- Tax administration fee: €5.00;
- Official business gazette: €3.00;
- Central Depository Agency Fee: €7.26;
- Company stamp: €25.00;
- Digital signature certificate: €30-110.00.
What are the minimum monthly costs for a company in Montenegro?
Clients often ask about the minimum monthly costs of owning a company in Montenegro. These costs will vary based on the company type, size, activity, number of employees, and other factors. However, every company will have some minimum monthly costs, even if it has no turnover. The good news is that these costs can be as low as €2,500.00 per year.
Breakdown of minimal monthly costs for a company:
- Licensed accountant – from €120.00 per month (may include registration address);
- Bank account and e-banking – €10-25.00 per month;
- One minimal salary taxes and social contributions – €75.00 per month;
- One minimal net salary – €600.00 per month (although if you are the owner and the CEO you pay this amount to yourself).
Corporate taxes in Montenegro
Compared to other countries, Montenegro has a favorable tax system. Depending on the profits, the corporate tax rates range between 9% and 15%. The capital gains and dividend tax are also limited to 15%. Salary taxes and contributions depend on the net salary amount, but they can be as low as €75.00 for the minimum salary.
So, here are the basic taxes you need to pay if you register a company in Montenegro today:
Corporate taxes:
- VAT for outgoing invoices – 21% (depending on the products you sell, it could be 15% or 0%);
- Salary taxes and social contributions – approx. 12.50% of minimal net salary (the percentage rises with the net salary amount);
- Corporate profit tax – 9-15% per year, depending on the profit amount.
Personal taxes:
- Dividend (capital gains tax) if you take your dividend out of the company – up to 15%.
Montenegro also offers various tax incentives, such as exemptions for certain types of income. In addition, favorable tax treatment for businesses operating in certain industries is also possible. The country also has tax treaties with many countries, so you can avoid double taxation for your capital gains or dividend tax.
Is it easy to close a company in Montenegro?
While we get many questions about company registration, we don’t receive as many about company closing. However, it’s important to know about exit options in advance. Closing a company in Montenegro is not as easy as registering one, but it doesn’t have to be overly complicated.
There are two basic ways to close a company: voluntary short liquidation and bankruptcy liquidation. The voluntary short liquidation process takes 7-30 days and has very low expenses. However, to use this option, your company must have paid all taxes and have no outstanding debts. If your company does have unpaid taxes or debts, the bankruptcy liquidation process would be the only option. This takes several months and requires higher fees.
Like a Bird offers full service for closing a company through either voluntary or bankruptcy liquidation.
How can we help you register a company in Montenegro?
At Like a Bird, we provide a full one-stop, one-fee service for company registration and management. Our services include drafting the founding documents, preparing documentation, registering the company, appointing a CEO, and assisting with the bank account opening. In addition, we provide the company registration address and virtual office service. and providing a company address. We also offer remote company registration, so you don’t have to travel to Montenegro. In addition, we offer consulting services for various licenses, such as finance, insurance, travel, and similar.
In cooperation with our partners, we are also offering accounting and tax advisory. You can rely on us for tax filing, employee registration, and communication with tax authorities. If you decide to close your company, we offer a one-stop liquidation service as well.
You can see our package offers below, contact us, or schedule a free consultation to find the right solution for your needs. If you want to know more about how we work, read our service standards.
Request an Offer
LLC Company Registration
for Single Owner- Package includes:
- Bilingual founding documents draft
- Central Company Registry application
- VAT registration
- Company stamp
- CEO digital signature certificate
- CEO employee registration
- All registration fees
- Bank account setup assistance
LLC Company Registration
for Two Owners- Package includes:
- Bilingual founding documents draft
- Central Company Registry application
- VAT registration
- Company stamp
- CEO digital signature certificate
- CEO employee registration
- All registration fees
- Bank account setup assistance
LLC Company Registration
for Multiple Owners- Package includes:
- Bilingual founding documents draft
- Central Company Registry application
- VAT registration
- Company stamp
- CEO digital signature certificate
- CEO employee registration
- All registration fees
- Bank account setup assistance
LLC Company Registration
and Residence Permit- Package includes:
- Bilingual founding documents draft
- Central Company Registry application
- VAT registration
- Company stamp
- CEO digital signature certificate
- CEO employee registration
- Residence permit for the owner/CEO
- All registration fees
- Bank account setup assistance
LLC Company Registration
and Residence Permit for the Owner and Family- Package includes:
- Bilingual founding documents draft
- Central Company Registry application
- VAT registration
- Company stamp
- CEO digital signature certificate
- CEO employee registration
- Residence permit for the owner/CEO and his/her family
- All registration fees
- Bank account setup assistance
Foreign Company
Branch Registration- Package includes:
- Documentation preparation and translation
- Central Company Registry application
- VAT registration
- Company stamp
- Authorized representative digital signature certificate
- Authorized representative employee registration
- All registration fees
- Bank account setup assistance
Can we help you?
Schedule a Free Consultation
Write to us with your questions, concerns and ideas and get a free online or personal consultation.
Do You Need Other Services?
Resident and Working Permits
We provide full service for your relocation to Montenegro:
- Resident and working permits
- Digital nomad residence
- Resident permits for property owners
- Permanent residence
Company Registration
We are your one-stop shop for company registration in Montenegro:
- LLC registration
- Preparation of founding documents
- Bank account opening
- Virtual office address and CEO registration
Accounting and Corporate Services
With our partners we provide a full set of accounting and corporate services:
- Accounting
- Mandatory monthly and yearly tax filing
- Workers’ registration
- Tax advisory
Remote Operations and Centers Set Up
Decrease your expenses by setting up remote operations in Montenegro:
- Customer support centers
- Dispatch centers
- Call centers
- IT development centers with skilful local worforce
Corporate Remote Work Retreats
Set up a corporate remote work retreat in Montenegro for your team:
- Choose a coastal or mountain retreat
- Customize your teams’ experience
- Work in beautiful surroundings
- Unique team-building experience
Long-Term Accommodation Rentals
Depending on your preference, we are offering short and long-term rentals:
- Apartments
- Houses with backyards
- Long-term hotel accommodation
- Select your property remotely via video service
Virtual and Real Office Rent
We are offering a vast choice of offices and co-working spaces:
- Virtual office address
- Co-working spaces
- Fully equipped office spaces of various sizes
- Conference and meeting venues
Montenegro Tours and Exploring
We are offering various tours to explore and get to know Montenegro:
- Sightseeing
- Active tours – hiking, biking, canyoning, sailing, etc.
- Wining and dining
- Travel companions
Long-Term Rent-a-Car
You can count on us to offer you long-term vehicle rent:
- Bikes
- Motorbikes and scooters
- Various cars, depending on your preferences
- Vans and minivans
