Montenegro Company Formation

Opening a company in Montenegro

Why start a company in Montenegro? What are the advantages in the country of Montenegro?
Montenegro, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Euro (EUR), and living is very cheap in the country.

Montenegro is a convenient gateway to the European market, with cheap maintenance costs and a local market that understands the English language very well.

Montenegro's strong tourism market, especially around the city of Kotor and the region, is one of the cheapest and most attractive. The country is on the Adriatic Sea, off the coast of Italy, and close to Croatia. And this is a very important strategic location for import/export operations in the Middle East and Europe. The favorable location of the country on the waters of the Adriatic Sea, which flows into the Mediterranean Sea, as well as southern Europe, where the main transportation routes intersect, allows goods to be exported to all European countries, thus reaching over millions of consumers.

Montenegro is a perfect place for investments and business expansion, especially in the field of real estate and tourism.

Investors see Montenegro as one of the attractive investment destinations in Europe. The tourists are fascinated by the Montenegrin hospitality and friendliness, by the cultural heritage of Montenegro and the natural wealth of the country.

The process of opening a company in Montenegro
Opening a company in Montenegro begins with the signing of a notarial power of attorney to open a company by a local agent. The document was then sent with a courier urgently to Montenegro to be processed by a local Montenegrin notary. After several processes in Montenegro, the customer is required to sign the application for registration in the commercial register, and again send the document to Montenegro. At this stage the company already exists legally and can start business activities.

In Montenegro there is no need for a local director or a local shareholder.

In Montenegro you also do not need any European citizenship to open a company. You can open a Montenegrin company even if you are a foreign citizen.

This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Opening a bank account in Montenegro - current account for the company
Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country.

Although there are alternatives to opening an account, for example through an Internet bank account, in the end, in order to register the company with the tax authority, it is necessary to open a local bank account for the company, and this will require the company manager to physically arrive in Montenegro. We will help with that.

Equity Capital
In order to open the company, a minimum equity deposit of only 1 euro is required. However, in Montenegro it is required to make an actual deposit of the aforementioned amount of equity. Therefore, as part of the process, it is required to open a bank account for the purpose of depositing the equity.

After opening the bank account and depositing the equity capital, the company is opened and a company charter is issued from the commercial register (this is the Montenegrin certificate of incorporation).

After opening the company, you can use the bank account that was opened for the purpose of depositing the equity capital. In other words, the equity account becomes an active current account for all intents and purposes.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company in VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.
However, all costs in Montenegro are low due to the relatively cheap cost of living.

Tax in Montenegro
The company tax in Montenegro is at a very low rate of only 9%!
For sales to the local Montenegrin market, the VAT is 21%.

Questions and answers
Question: Is it necessary to physically fly to Montenegro to open a company in Montenegro?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Montenegro. There is no need to fly to Montenegro to open the company, nor the company's bank account. The entire process of opening the company and in most cases also the company's bank account, are carried out remotely without setting foot on the soil of Montenegro.

Question: Who provides the local address for the company in New Montenegro?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of the company in our new Montenegro?
Answer: We will connect you with a local accountant.

Question: If I want to come to Montenegro to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for your new company in Montenegro.

Question: What type of company in Montenegro should I open?
Answer: In Montenegro there are two types of companies:
The first type is a limited liability company ("D.O.O"). This is the LLC.
LLCs are considered more flexible in terms of organizational structure and easier to operate on a daily basis. They are suitable for investments of different scopes.
The equity capital required for this type of company is only 1 euro.

The second type is a "joint stock company", that's how I imagine it can be translated into Hebrew. In English this type is called Joint Stock Company (JSC) and in Montenegrin S.A.
The capital required for this type of company is 25,000 euros.
JSC companies are generally designed for large-scale investments. As a result, they are less flexible from a legal point of view and much more formal in terms of organizational structure and day-to-day operations. On the other hand, they are great for raising capital, because their shares can be issued on the Stock Exchange of Montenegro, and they can issue securities of various types.

Foreign investors often choose LLC companies, i.e. companies of the first type, unless their business requires that the company be of the JSC type (for example, if it is planned to establish a new bank or insurance company).

Question: Do you need a European passport to open a company in Montenegro?
Answer: There is no need for a European passport. We can open a company in Montenegro for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Montenegro?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 3-4 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Montenegro for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Montenegro for a person with American citizenship or a person living in the USA.

On the face of it, it seems trivial that a person with ties to the USA could open a company in Montenegro, but we assure you that this is not the case. Today, all banks in Montenegro without exception refuse to open an account for a new Montenegrin company if its owner has any ties to the USA. Therefore, we are probably the only ones, and certainly one of the few in Montenegro, who know how to open a company in Montenegro for a person with American citizenship or who lives in the USA.

Question: Is it possible to define that any foreign company will be the subsidiary of a company in Montenegro?
Answer: Yes, absolutely, we know how to do such a process with the foreign Registrar of Companies without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Montenegro?
Answer: Click here and get in touch and get a current quote without obligation!