Establishing a company in Montenegro 

Although popular for its breathtaking beauty, Montenegro offers a favorable business climate which gives to all the foreigners equal treatment as domestic when it comes to establishing and investing in companies.

The following forms of business organizing are possible based on the Law on Business Organizations.

  1. Entrepreneur
  2. General Partnership GP
  3. Limited Partnership LP
  4. Joint Stock Company JSC
  5. Limited Liability Company LLC or LTD
  6. Part of a foreign Company
The limited liability company is the most common form of registration in Montenegro as it is very suitable for small companies that can be established by one or more persons. It requires only 1 € as a minimum share capital and the company may be formed by at least one shareholder. The total number of the shareholders cannot exceed 30.

The registration of a company is a simple and straightforward process in Montenegro, and it takes only 5-7 days to register a company. The process of registration can be completed from outside the country with the power of attorney.

We will explain in detail the registration process of LLC. (DOO)

  • Begin with choosing an original name for your company that is not already registered in CRBE.
  • Select one primary activity for your company.

The documents and information you need to submit to the Central Register of Business Entities of the Tax Administration

  • Act on Founding (decision or contract of establishing) verified by the court in accordance with the law.  (7-10 €)
  • In the case of a single member LLC, a typical form of a decision on establishing
  • In the case of a multi-member LLC, a typical form of a contract on establishing
  • Statement from the Central Depository Agency (6 €)
  • The written consent of the members of the Board of Directors for their appointment, if they are appointed
  • Payments for the following administrative fees: 10 €, and 12 €
  • The completed registration form PSO1
  • If the company wants to apply for the registration of the value-added taxpayers (if the company’s annual net sales exceeds € 18 000) a form PR PDV-1 is to be filled in
  • If the company wants to apply for registration in the registry od axis payers, AKC-P form is to be filled in
  • If the director is a foreigner a verification of passport is needed (5 €)
  • Made the stamp with the company seal on it (25-30 €)


Total costs:65-75 €

The company acquires legal person status as od the date of registration. A certificate on registration is issued by the Tax Administration.

*Good to know:

If you make yourself the executive director of the company, you will satisfy the employment requirements for obtaining a temporary residence permit.

Opening of a Bank Account

Opening an account in a commercial bank depends on the form of a company. There is no limit to the number of banks within which the company can open an account and in Montenegro there are several well-known international banks.

The process of opening a bank account is simple and the following documents are needed:

  • A request to open a bank account which is obtained from the bank  
  • Certificate on registration from the Central Register of the Commercial Court.
  • Copy of the Founding Act (contract or a decision on establishing the company)
  • Contract on depositing funds in a bank (concluded in the bank)
  • Specimen signature card and application form (obtained in the bank)
  • OP form (verified signature of the authorized person to represent). Verification is performed by a notary. The verification fee amounts to 3 € per signature on a copy of the document.
  • Photocopy of identity cards of authorized persons in the company
  • Decision on the completed tax registration (TIN)

Once you open a company and a bank account you will need an accountant services that will cost you 75-200 € monthly depending on the company size and volume of the work.

The documentation and costs for registering other types of business entities in Montenegro are quite similar to the one explained above. 

 * One of the pros of opening a company and doing business in Montenegro is a favorable tax regime that is same for everyone, whether you are a resident or not. Compared to the rest of Europe Montenegro has a fair tax system with a low rate.

 * Montenegro has a flat tax rate of 9 % applied for monthly personal gross incomes below 751 € and tax rate of 11 % for income above 751 €. Any additional income reported in the annual tax return is only subject to 9% tax rate.

 * Companies in Montenegro also pay 9% in Company income tax (CIT)

Other taxes include
  • real estate tax (ranging from 0.25 % to 1 %)
  • transfer tax (payable on the acquisition of the ownership rights over immovable property at a rate of 3%)
  • social security contributions (10.3%, pension 5.5%, health 4.3%, unemployment 0.5 %)
  • payroll tax

 * VAT in Montenegro on goods and services is 21 % but this rate is reduced to 7% for necessities like milk, bread, medications, books and computers  and even 0%  for services  offered in the maritime and air international traffic, goods used for consular and diplomatic needs and services and goods used in petroleum extractions in the sea.

If you are thinking of opening a company and moving to Montenegro read our residence and citizenship & passport guide or contact us  and we will refer you to our reliable partners who will help you set up a company and obtain a residence permit in order to provide you a stress-free experience.

Opening the company Accounting agency
*average costs
70 – 80 EUR 100 – 200 EUR monthly

RE/MAX Montenegro can refer you to our reliable partners who will help you set up a company and provide a stress-free experience.