Setting up a company in Montenegro - What do I need to know?

Founders - Can be individuals or corporations, but must be individuals over 18 years of age or legal entities.

Executive Director - The company must have at least one executive director.

Start-up capital - Start-up capital can be as little as one euro.

Registered address - When setting up a company, it is important to have a registered business address.

For the process of setting up a company in Montenegro, you will need the following documents:

- A valid ID card or passport for individuals.

- Extract from the Commercial Register for legal entities, which is not older than three months.

Procedure for registering a company in Montenegro:

In order to make the process of company registration simple, it is important to prepare and submit all documentation to the Central Register of Entrepreneurs on time in the following order:

1. Decision on company incorporation - It is important to note that there are two types of incorporation agreements - for one founder and for multiple, choose the one that is relevant for your future company.

2. Articles of Incorporation - Depending on the number of founders, download a sample articles of incorporation for a single-member or multi-member company. Use the list of activities provided in the classification of activities to select the main activity and other activities. Have four-digit codes that you will use. Download the classification of activities.

3. Pay the registration fees - Pay €5.00 to the Tax Administration account with the purpose of payment "registration of Ltd." and 3,00 € to the account of the Official Gazette of Montenegro with the payment purpose "registration of s.r.o."

4. Verify the decision/contract - At the court or notary.

5. Obtain a statement from the Central Clearing and Depository Company (CKD) - When collecting the statement, you need to present a copy of the founder's ID card and a receipt in the amount of 6.05 €, which you pay to one of the CKD accounts with the purpose of payment "statement fee".

6. Attach a copy of the ID card or passport - if the founder is a citizen of Montenegro, or a passport if the founder is a foreign national.

7. Consent of the Executive Director to the appointment - A template of the consent can be found online, as well as other necessary documents.

8. Complete the Business Registration Form - This is form PS 01.

9. Submit the collected and certified documentation (articles of association, certified resolution/agreement, CKD resolution, copy of ID card or passport, receipts, registration form and PR form PDV-1/akc-p) to the Central Registry of the Tax Department and submit them.

Transmit the documents to the Central Registry of the Tax Department.

Creation of seal: Once you have completed the incorporation and registration of your company, you will need a seal, which you can usually only obtain with a valid ID card or passport and a copy of the incorporation resolution.

Opening a bank account: after successfully registering your company in Montenegro, you can open an account for your company in any of the banks in Montenegro. Keep in mind that every bank in Montenegro requires the personal presence of the company director during the account opening process.

Finding an accountant: You will need to find an accountant for your company and you may also need a business license depending on the type of business. Licenses are needed for educational institutions, restaurants, travel agencies, banks, insurance companies, financial services, import or export related industries, etc.

Employee registration with the tax authorities: Once you have completed the establishment of a company in Montenegro, you need to register your employees with the tax administration. When registering, the owner is required to submit the following:

- Employment contract

- A photocopy of the employee's ID card

- A completed JPR form

- Photocopy of the employee's work book (first page and the page on which the professional qualifications are indicated)

Setting up a company in Montenegro for foreigners: foreigners setting up a company in Montenegro must have a residence permit and must apply for and obtain a permit to stay and work in Montenegro. This process takes about 20 days.

Foreigners' ID cards cannot be presented in institutions in Montenegro, you must have a valid passport, and if you cannot visit Montenegro, there is the possibility of appointing a local company director.

In recent years, more and more foreigners are choosing to relocate their business to Montenegro or start a new business here. Last year alone, more than 7,000 companies were founded in the country by foreigners, and the most common ones are software and consulting firms.

Foreigners also appreciate that they can start a company with capital from one euro up to a maximum of 1,500 euros in costs! With a wide choice of properties in Montenegro, suitable for both rental and hosting activities, it is no wonder that many of them choose to take this step! Take a look at the property listings on the Montenegro Prospects website and choose an apartment in Montenegro or another type of property that fits the needs of your new business.