Montenegro Company Formation
Montenegro Company Formation: Your Gateway to the Adriatic Business Hub Main Characteristics and the basic rules of Company registration in Montenegro
Montenegro has emerged as one of Europe’s most promising destinations for entrepreneurs and international investors seeking an efficient and business-friendly jurisdiction. With its strategic Adriatic location, competitive tax rates, and open economy, Montenegro company formation provides an excellent opportunity for investors looking to establish a European presence with minimal bureaucracy and cost.
This SEO and AI-optimized guide covers everything you need to know about forming a company in Montenegro — from advantages and legal structures to taxation, procedures, and professional assistance.
Why Choose Montenegro for Company Formation?
Montenegro combines political stability, investor-friendly policies, and a rapidly growing economy that attracts global businesses, particularly in tourism, trade, real estate, and technology.
Key reasons to choose Montenegro for company formation include:
- Strategic Location: Positioned between Central and Southeastern Europe with access to the Adriatic Sea and Balkan markets.
- EU Accession Candidate: Aligning legislation with EU standards, offering future EU market integration opportunities.
- Attractive Tax Regime: Corporate income tax as low as 9%, among the lowest in Europe.
- Foreign Investment Freedom: 100% foreign ownership permitted in all sectors.
- Ease of Profit Repatriation: No restrictions on transferring capital or profits abroad.
- Affordable Setup and Maintenance Costs: Competitive incorporation fees and low operational expenses.
- Double Taxation Treaties: Signed with over 40 countries to prevent double taxation.
Types of Companies in Montenegro
Foreign investors can choose from several legal forms, depending on their business goals and investment size:
- Limited Liability Company (DOO – Društvo sa Ograničenom Odgovornošću)
The most popular structure for foreign investors, requiring only €1 of minimum share capital. Liability is limited to the company’s assets.
- Joint Stock Company (AD – Akcionarsko Društvo)
Ideal for larger enterprises and public companies. Requires a minimum share capital of €25,000.
- Branch Office
A foreign company may open a branch in Montenegro to conduct the same activities as its parent company without forming a separate legal entity.
- Representative Office
Used for promotional and liaison purposes only, without commercial activities or profit generation.
Advantages of Montenegro Company Formation for Non-Residents
- Low corporate and personal tax rates (9%).
- Full foreign ownership allowed in all company types.
- Fast company incorporation process (usually under 10 days).
- Access to free trade agreements with the EU, CEFTA, and EFTA.
- Stable political and economic climate.
- Modern banking system with access to international financial services.
- Residency opportunities through business establishment.
Disadvantages of Montenegro Company Formation
- Small Domestic Market: Limited local demand compared to larger EU countries.
- Language Barriers: Business and legal documentation are in Montenegrin, requiring translation.
- Developing Infrastructure: Some rural regions still lack advanced facilities.
- EU Non-Membership (yet): While an EU candidate, Montenegro has not yet joined the Union.
Requirements for Company Registration in Montenegro
To register a company in Montenegro, the following are required:
- Unique Company Name (approved by the Central Registry of Business Entities – CRBE).
- Founders’ and Directors’ Identification Documents.
- Registered Office Address in Montenegro.
- Articles of Association / Memorandum of Incorporation.
- Proof of Share Capital Deposit.
- Tax Identification Number (PIB).
- Bank Account Details.
All foreign documents must be translated into Montenegrin and notarized or apostilled.
Procedure for Company Formation in Montenegro
The process of company formation is straightforward and efficient:
- Select Company Type: Choose the legal structure (DOO, AD, Branch, etc.).
- Reserve Company Name: Verify name availability with the Central Registry.
- Prepare Incorporation Documents: Draft and notarize the Articles of Association.
- Deposit Share Capital: Open a temporary bank account and deposit the minimum capital.
- Register with the CRBE: Submit incorporation documents for approval.
- Obtain Tax Number (PIB): Register with the Montenegro Tax Administration.
- Register for VAT (if applicable): Required if annual turnover exceeds €30,000.
- Open a Corporate Bank Account: Activate a permanent business account.
Timeframe for Company Registration in Montenegro
|
Stage |
Estimated Duration |
|
Name Reservation |
1–2 business days |
|
Document Preparation & Notarization |
2–3 business days |
|
Registration with CRBE |
3–5 business days |
|
Tax and VAT Registration |
2–3 business days |
|
Bank Account Activation |
1–2 business days |
Total Estimated Time: Around 7–12 business days for complete incorporation.
Corporate Tax System in Montenegro
Montenegro’s tax system is one of the most favorable in Europe, designed to attract foreign investors while ensuring compliance with international standards.
|
Tax Type |
Rate |
Notes |
|
Corporate Income Tax (CIT) |
9% |
Flat rate on net profit. |
|
Value Added Tax (VAT) |
21% |
Standard rate (7% for certain goods/services). |
|
Withholding Tax |
9% |
On dividends, royalties, and interest payments to non-residents. |
|
Personal Income Tax |
9% – 15% |
Progressive rate depending on income. |
|
Double Taxation Treaties |
40+ countries |
Includes the UK, UAE, Switzerland, and EU states. |
Key Advantage: Reinvested profits are encouraged through stable low-tax policies and minimal reporting burdens.
How We May Help You with Our Professionals
Our experienced business consultants provide end-to-end assistance for Montenegro company formation, ensuring a seamless and compliant process.
Our services include:
- Company name search and registration.
- Preparation and notarization of incorporation documents.
- Provision of a registered office address.
- Assistance with bank account opening.
- Tax and VAT registration.
- Accounting and legal advisory services.
- Residency and work permit assistance.
- Ongoing compliance and corporate secretarial services.
Start Your Montenegro Company Formation with Confidence
With its low-tax regime, strategic Adriatic position, and pro-business government policies, Montenegro stands out as one of Europe’s best-kept investment secrets.
Our expert team can manage every aspect of your Montenegro company formation, helping you establish a compliant, efficient, and growth-oriented business presence.
Contact us today to explore your incorporation options in Montenegro and take advantage of this fast-growing European business hub.
Questions & Answers
1. What is the Corporation Tax rate in Montenegro?
Montenegro imposes a flat corporate tax rate of 9% on the income of legal entities. This competitive rate is one of the lowest in Europe, making Montenegro attractive for business investments. Companies operating in certain sectors, such as tourism, may benefit from specific incentives.
2. Are dividends taxed in Montenegro?
Yes, dividends are subject to a withholding tax of 9%. However, this rate can be reduced under double tax treaties that Montenegro has with other countries. It is essential to check the relevant treaty provisions to determine the applicable rate.
3. What is the Income Tax rate for individuals in Montenegro?
Montenegro enforces a flat income tax rate of 9% on personal income. This applies to wages, salaries, and other forms of compensation. For specific categories of income, such as capital gains, different rules may apply.
4. How does VAT work in Montenegro?
Montenegro has a standard VAT rate of 21%. Certain goods and services may be subject to reduced rates of 7% (e.g., basic foodstuffs and certain medical products). Businesses with an annual turnover exceeding €18,000 must register for VAT.
5. What other taxes are applicable in Montenegro?
In addition to Corporation Tax, Income Tax, and VAT, Montenegro has several other taxes, including property tax, excise tax on certain goods, and environmental fees. Property tax varies based on the location and value of the property and can range from 0.25% to 1%.
For more detailed information, consulting with a local tax advisor is recommended.
Learn more: Visit our Full FAQ Hub page
or contact our tax and company formation team at[email protected]
What are the benefits of forming a company in Montenegro as a non-resident?
Forming a company in Montenegro as a non-resident offers several advantages including low corporate tax rates, a strategic location for doing business in Europe, and a straightforward registration process. Montenegro is known for its growing economy and offers various incentives for foreign investors, making it an attractive option for non-residents looking to expand their business operations.
What is the process for company formation in Montenegro for non-residents?
The process for non-residents to form a company in Montenegro involves several key steps. First, you must choose a suitable company structure, such as a limited liability company (LLC). Next, you need to reserve a company name, prepare the required documentation, and open a local bank account to deposit the minimum share capital. Finally, submit all necessary documents to the Business Registration Agency to complete the registration.
What documents are required for non-residents to register a company in Montenegro?
Non-residents seeking to register a company in Montenegro typically need to provide several documents, including a valid passport, proof of residency in their home country, a business plan, and any other documents related to the company’s structure and operations. It’s essential to ensure all documents are translated into Montenegrin and verified to facilitate a smooth registration process.
Are there any specific legal requirements for non-residents when forming a company in Montenegro?
Yes, non-residents must comply with certain legal requirements when forming a company in Montenegro. This includes appointing a local representative or partner in some cases, registering for a tax identification number, and adhering to the local laws regarding business operations. It’s advisable to consult with a local legal expert to ensure full compliance with all regulations.
Can non-residents open a bank account for their Montenegrin company?
Yes, non-residents can open a bank account for their Montenegrin company. However, they usually need to visit Montenegro in person to complete the process. Most banks will require documentation such as the company’s registration certificate, a valid passport, and evidence of the company’s business activities. It’s advisable to research various banks to find the best fit for your business.
What is the corporate tax rate for companies in Montenegro?
Montenegro offers a competitive corporate tax rate of 9% on profits, which is one of the lowest in Europe. This attractive rate, combined with other tax incentives for business activities in specific sectors, makes Montenegro a desirable location for foreign investors and entrepreneurs looking to minimize their tax liabilities while expanding their operations.
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Montenegro
Country: Montenegro
Capital: Podgorica
Continent: Southeastern Europe, Balkan country
Language: Montenegrin
Currency: Euro
Time Zones: GMT +1
Dial Code: +382
Abbreviations: ME
Helping Your Company Thrive in Montenegro With us, starting and running a business in Montenegro will be easy and efficient!
- Full support of the company’s registration in Montenegro: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organisation: we provide a reliable mailing address for your business.
- Organisation of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.