Introduction to Montenegro Company Formation
Montenegro has worked hard to become a place where investors can go to for a new business venture. Their efforts have paid off and they are now one of the most investor-friendly countries in the world. The government of Montenegro has removed trade and business impediments in a successful manner and implemented transparency to open the economy to international investors. They now have over 100 investors from different countries, and the tax system is competitive and it is strategically located between Italy and Croatia. Therefore, Montenegro company formation is a dream that you can pursue here. This country offers stability and safety, which is very important to investors.
Montenegro Company Formation
The most popular choice for a domestic and international investor is to open a Limited Liability Company. It is a great choice for small companies because they have a low starting requirement, which is only €1. Even if you are just one person, you can open a business in Montenegro, and you can be the main shareholder and director of the company. In addition, you need an executive director who lives in Montenegro and being paid a salary, which should be at least a minimum.
- You only need a minimum founding capital of €1
- Obtain a residency on an employment basis by making yourself an employee/director of the company
- Your health insurance is covered if you pay yourself a monthly salary of at least €130
A company must keep its records in Montenegro, even when they do not have profit. The registration fee is only €10 for an LLC company. Most of the company’s profit goes to wages and taxes, which is about 67%. The VAT is 17% if the annual turnover is at least €18,000. They charge a 9% income tax for natural persons and legal entities.
Tax payment and receipt of warranty obligations do not differentiate between foreign and local businessmen. This way, quality is for market players and they become competitive at an international level. If the company is not paying taxes, the authorities will liquidate the company.
Requirements to Open a Bank Account
- You need a waiver to open a bank account for your company
- Certificate of registration issued by the CRCC
- Company’s Founding Act certified copy
- A specimen signature card personally signed by the company director
- Form OP (authorize the person’s signature). The verification happens at the notary
- Photocopy of the company authorizes persons’ identity cards
- Filled out PIB registration form
The bank accounts can open after the Montenegro company formation. It does not allow to open a bank account with a Power of Attorney based on the Montenegrin law. The founder or executive director must be done in person.
The Company Seal and Stamp
Today, using a seal is no longer needed for companies that conduct businesses in Montenegro. But banks are still asking for it when you open a bank account for your Montenegro company formation. Normally, the seal is round that bears company details.
Why Open a Company in Montenegro?
- Montenegro citizens can travel across European countries without needing a visa. The same kind of flexibility is also available to foreign residents in Montenegro by issuing them a temporary residency card.
- Montenegro is part of the European Union.
- Compared to other countries, an investor will not have a hard time bringing in any kind of labour. That is because they do not have a rigid labour policy like other countries.
- Montenegro does not have to spend a lot of money to gain the advantages and benefits of local residency.
- Montenegro has a good geographical location because the neighbouring countries are Albania, Croatia, Kosovo, and Serbia.
You can talk to 3E Accounting for assistance on how you can successfully start a business in Montenegro. If you want to have a Montenegro company formation anytime soon, contact us!