The ability to open a company without a personal visit, a good investment climate, no double taxation, and loyal KYC/AML rules are important conditions for the success of any commercial project. Registering a company in Montenegro gives you access to all these advantages. This European jurisdiction is a good alternative to classic offshore jurisdictions, with a good reputation in the business world and developed opportunities for doing business.
There are taxes in Montenegro for businesses and individuals, but they are low. You can open a company without a personal visit, which provides an additional level of comfort, especially if our specialists take care of all the legal formalities. Turnkey company registration in Montenegro is carried out quickly — in 1-2 weeks.
We can also open a bank account in Montenegro without any problems. Financial and credit institutions are willing to work with foreigners and non-residents, which distinguishes the jurisdiction from other European countries. There are KYC rules in Montenegro, which is a standard requirement, but the level of confidentiality is high, and information about the company’s personnel and its financial transactions is not publicly available.
Accounting and reporting in Montenegro are focused on stimulating business and attracting foreign investment. There is no strict, excessive control from regulatory and supervisory bodies, corporate rules are logical, and the authorities actively communicate with representatives of the corporate sector and listen to their wishes.
Foreigners can start and develop a business in Montenegro without significant risks associated with strict legal regulation, restrictions or a cautious and precautionary attitude on the part of local partners. The costs of implementing a commercial or investment project are relatively low.
Who is particularly suited to registering a company in Montenegro:
| Who will particularly appreciate starting a new business in Montenegro | Priority goals and objectives |
| Founders of start-ups, fintech projects and IT companies | Account in €, intellectual property protection |
| Investors who have chosen the real estate or tourism sectors | Tax breaks, business in Europe |
| Consulting agencies | Remote company registration, payment in €, simple reporting |
| Business people and investors interested in European residence permits (and eventually Montenegrin citizenship) | Combining business and permanent residence |
Advantages of the jurisdiction for investment and business
Montenegro is a viable alternative to Caribbean, Asian and Middle Eastern tax-free jurisdictions. Its main advantages are its European status and positive reputation in the global business community. Formally, the jurisdiction cannot be called offshore — there is corporate tax in Montenegro. The base rate is 15%, and personal income tax is also 15%. These are fairly low rates; taxes are higher in Singapore (17%) and Hong Kong (16.5%). Therefore, a company registered in Montenegro is an effective and affordable tool for investment and doing business.
The main advantages of the jurisdiction are:
- low taxation of companies in Montenegro, with tax breaks and reduced rates available;
- registration of a foreign company in Montenegro is possible remotely, in most cases it takes only a few working days;
- simplified (relative to the Eurozone and CEFTA) procedure for starting a new business with a minimum of formalities; the cost of doing business in Montenegro is lower than in other European countries;
- Companies in Montenegro for foreigners operate under the same rules as local businesses, and 100% foreign ownership is permitted.
- Montenegro is a candidate for EU membership, but the euro is used as the national currency, which greatly simplifies business.
- The minimum authorised capital of a company in Montenegro is €1 for a D.O.O., no visit to the jurisdiction is required, a small package of documents is required, there are no conditions regarding the residency status of the legal entity’s officers, etc.
When setting up a company and opening a corporate bank account in Montenegro, KYC and AML requirements must be taken into account. The country’s advantages lie not in weak control, but in transparent and predictable business conditions, well-structured corporate legislation, a welcoming approach to foreign investors, and a balanced tax policy.
Taxation features
Setting up a company in Montenegro is a simple and transparent procedure that does not involve any particular risks for clients. Imperial & Legal specialists will take care of all the legal formalities and help you prepare to launch your project.
The lack of formal offshore status does not make business here any less promising. Taxation of companies in Montenegro is simplified as much as possible in terms of calculating the liabilities of a legal entity. Rates are progressive, so a start-up business will be able to actively develop and grow.
Personal taxation
Business people and investors developing international business in Europe often choose Montenegro as a place to live and do business — even without obtaining citizenship.
Criteria for granting tax resident status:
- permanent residence or centre of personal/economic interests in Montenegro;
- permanent residence in Montenegro for at least 183 days during the tax reporting period;
- working abroad for a tax resident of Montenegro (natural/legal person or international organisation).
Taxation of income from gross wages at the national level:
- up to €700 — 0%;
- from €701 to €1,000 — 9%;
- over €1,000 — 15%.
Taxation of income from private business at the national level:
- from €8,400 to €12,000 — 9%;
- over €12,000 — 15%.
Any other income of individuals is taxed at a maximum rate of 15%.
Residents of Montenegro pay income tax on a progressive scale:
- income up to €7,000 gross is not taxed
- from €701 to €1,000, a rate of 9% applies
- over €1,001, a rate of 15% applies
Some municipalities may apply additional local surcharges, but there is no fixed “municipal rate of 13%” across the country.
There are no other personal taxes, except for mandatory social security contributions, which are deducted from the employee’s salary. Contributions include:
- pension and disability insurance
- health insurance
- unemployment insurance contribution
The total rate of contributions deducted from the employee is approximately 15.5%. The employer also pays their share of contributions separately.
Social security contributions are not paid directly by the resident – they are deducted by the employer from the employee’s salary.
Taxation of companies in Montenegro
The advantage of jurisdiction — tools for legal and transparent optimisation. International taxation can be reduced through DTT – double tax treaty agreements, which eliminate double taxation or significantly reduce its negative impact on business.
Corporate tax rates in Montenegro are progressive and depend on the profit earned:
- up to €100,000 — 9%;
- from €100,000 to €1.5 million — €9,000 + 12%;
- over €1.5 million — €177,000 + 15%.
Tax residents include all income in the tax base, while non-residents include only the part of income that was earned in the jurisdiction itself, including from the activities of a permanent establishment. It should be noted that there are no local taxes for businesses in Montenegro. Our specialists will calculate your tax burden and provide recommendations on how to legally optimise it.
Other corporate taxes in Montenegro:
- VAT — 21%, reduced rates are provided — 0%, 7% and 15%, registration as a taxpayer can be voluntary or mandatory, the VAT rate in Montenegro depends on the turnover of the legal entity, the threshold criterion is €30,000 for the last 12 months;
- property tax — from 0.25% to 1% of the market price;
- property transfer tax — from 3% to 6%, where the calculation base is formed on the basis of the market price at the time of purchase;
- unemployment insurance — 0.5%;
- withholding tax: dividends, interest, royalties — 15%, in general, at the maximum corporate tax rate in Montenegro;
It should be noted that customs duties apply only to imports, with the rate depending on the tariff number of the imported goods, their price and country of origin. There are no stamp duties or mandatory payments to state funds: insurance and pension, by employers in Montenegro, and environmental tax obligations are of limited applicability. The scope of excise duty is limited to certain imported goods, e.g. tobacco and alcohol products.
Organisational and legal forms of doing business
Registration of a Limited Company in Montenegro is a service provided by Imperial & Legal. The format of a limited liability company – D.O.O., is suitable for launching virtually any commercial project, allowing you to conduct business without difficulties or problems.
However, registering a D.O.O. in Montenegro is not the only incorporation option. The jurisdiction’s legislation provides for other legal forms. They do not overlap with the capabilities of a D.O.O., as they are focused on different goals and objectives. Therefore, the exact answer to the question of how to register a company in Montenegro requires a preliminary choice of organisational and legal form.
What options for doing business are provided for in corporate law:
| Legal form | Features |
| Limited liability company — D.O.O. – Društvo sa Ograničenom Odgovornošću, LLC | no more than 30 members, limited liability within the limits of the contribution to the business; minimum authorised capital of a company in Montenegro — from €1; simple and quick registration procedure. |
| Joint stock company — AD – Akcionarsko društvo, JSC / CJSC, OJSC | minimum authorised capital of a company in Montenegro — from €25,000; issuance of shares is permitted; business is controlled by the Securities Commission – Komisija za tržište kapitala. |
| Individual entrepreneur — SP, SZR – Samostalni preduzetnik, Samostalna zanatska radnja; sole proprietorship or private enterprise | low cost of registering a company in Montenegro, simple taxation; quick opening procedure; unlimited liability of the business founder. |
| Full partnership — OD – Ortacko društvo | minimum number of participants — 2 partners both partners bear full and unlimited liability for the obligations of the partnership There is no limited liability in an OD |
| Limited partnership — KD – Komanditno društvo | Similar to a general partnership. |
| Representative office — Predstavništvo | Focus on marketing and market research. A representative office cannot conduct business in Montenegro, making a profit is prohibited. suitable for preparing to enter the market |
| Branch — Filijala | managed and controlled by the parent company; can conduct business in Montenegro. |
Alternative options are worth considering if your goals and objectives go beyond the standard framework. Remote company registration is permitted, which makes the procedure simple and transparent for the client. We will help you obtain a legal address in Montenegro, provide project support and offer the candidacy of an experienced local director.
Banking services
It is easier for foreigners to register and conduct business in Montenegro than in other European jurisdictions. The main reasons are the quick procedure, minimal budget requirements, and the possibility of remote registration. But there is another factor that is often overlooked: the possibility of opening a corporate account in euros in Montenegro.
Trends towards financial transparency have made it significantly more difficult for non-resident companies to access financial services. Banks carefully check each company and its officials, and the risks of account blocking or freezing remain quite high. However, it is still possible to open a bank account in Montenegro, as the attitude towards foreign businessmen and investors here is friendly and cooperative. KYC/AML checks have not been abolished, but if the documents are in order and the company’s management and ownership structure is transparent, significant problems can be avoided.
The main advantages of opening a corporate account in euros in Montenegro:
- all financial services are available — cash management, SWIFT cross-border transfers, corporate cards, multi-currency accounts, investment products, etc.;
- relatively low bank fees, accounts in € with IBAN;
- you can open an account with a Montenegrin bank without being a permanent resident of the jurisdiction; some financial and credit institutions are willing to work with potential clients remotely;
- there is a state programme for the protection of personal and corporate deposits: Deposit protection Fpfund, DPF — Fond za zaštitu depozita, covering deposits up to €50,000;
- KYC in Montenegro is not as strict as in other European countries.
How to register a company in Montenegro
There are several ways to start an international business in Europe. Montenegro is a good starting point if you are interested in a remote format and minimal risks of rejection. This choice is not a forced compromise solution explained by loyal KYC requirements, but a justified and calculated commercial project by our specialists. However, in order for it to work, you need to carefully prepare for registering a company in Montenegro.
Open a company in Montenegro with Imperial Legal
Business in Montenegro is not just one of the options for launching a commercial project. In some cases, it is the only opportunity to quickly enter the markets of the eurozone and CEFTA find business partners in the European Union, or open a company without personally visiting the EU. But doing business in Europe through Montenegro is not a forced step, explained solely by the lack of alternatives. With the right approach, careful planning and precise implementation, the project can be quite successful.
Understanding this, we have structured our work with clients in such a way that you have answers to any questions regarding the launch of a commercial project. How to obtain a tax number in Montenegro? What documents are required to register a company? How can non-residents avoid double taxation? Is it possible to obtain legal support for a business? We strive to provide you with all the services you need in one place.
Basic and related services for company registration:
- expert advice;
- all-inclusive company registration;
- creation of favourable business conditions for the company — office, interaction with the tax service and state organisations, accounting services, nominee services, maintenance and independent verification of corporate documentation, etc.;
- opening of turnkey bank accounts;
- preparation of recommendations for the elimination of double taxation;
- Comprehensive support after registration of a legal entity;
- business redomiciliation;
- obtaining an investment residence permit/citizenship.
