What are the Advantages of Being a ‘Foreign Investor’ by Starting a Company in Montenegro?
1. Equal Rights: Any citizen in the world can gain foreign investor status by establishing a company in Montenegro. The biggest advantage of this status is that foreign and local companies are treated equally in Montenegro. In other words, as a foreigner, you can have the rights of all local companies with the company you have established in Montenegro. You can gain foreign investor status both as a legal and as a natural person.
2. Starting with Low Capital: Foreign investor status can be obtained by the fact that 25% of the capital of a company in Montenegro belongs to a foreign legal or natural person. Since there is no minimum capital rule for foreign investors, a company can be established with a minimum capital of 1 Euro in legal entity organizations such as limited liability companies, which facilitates business on the way to becoming an investor, including entrepreneurs.
3. Company Setup Procedures in Short Periods: Compared to many countries around the world, Montenegro gives benefits with its fast company-building procedures. In Montenegro, company formation is provided in 2-15 days, according to official data and our experience. In addition, the documents requested for the establishment of companies of real or legal entities, whether domestic or foreign, are so simple and easy to obtain.
4. Possibility to Trade in Euro Currency: Montenegro uses euro as its official currency. Thanks to euro is a measure of value in international markets, a means of saving and a valid means of change; it provides convertibility, wide use, credibility and reliability for those who want to start a company in Montenegro. Foreign investors want to start their business at eurozone countries which make up a significant portion of the world trade volume.
What Types of Companies Can I Start in Montenegro?
The most preferred type of company in Montenegro is Limited Company, and a company to be established in Montenegro can be of the following structures:
- Limited Liability Company
- Joint Stock Company
- Sole Proprietorship
- General Partnership
- Limited Liability Partnership Company
- Foreign Company Branch and Subsidiary
Limited Liability Company:
In Montenegro, Limited Companies have at least 1 to 30 shareholders. Its founders can be real or legal entities. The minimum capital amount is 1 Euro and shareholders are responsible as much as their respective capital participation. The number of mandatory personnel in the company is 1 and this person is the authorized manager. The company doesn’t have to have a board of directors.
Joint Stock Company:
There is no maximum in terms of the number of shareholders for the establishment of a Joint Stock Company in Montenegro. Shareholders consist of either real or legal, and domestic or foreign founders. The minimum enterprise capital is 25,000 Euros and the responsibility of the shareholders is the amount they invest. The Company must have a Director, Secretary and Board of Directors.
It is a one-man company and its founder must be the real person. There is no minimum enterprise capital. Its founder is personally and fully responsible for the company.
General Partnership: Neither a joint stock, nor a limited company, this is a partnership of at least 2 real or legal entities which is established for profit sharing purposes. Partnerships are usually created for a specific project and period.
Foreign Company Branch and Subsidiary: Companies based outside Montenegro can engage in commercial activity in Montenegro through the branch. It is considered a separate legal entity but carries out the business activities of the parent company.
What are the required documents for the Limited Company Setup in Montenegro?
There is a simple procedure for the Establishment of a Limited Company in Montenegro. Documents that should be ready during company setup:
Signed criminal record and apostille (where applicable)
Primary, Secondary, High School or University Diploma
These documents must be prepared before coming from home country (where the passport is issued). It is recommended that the passport expires in more than one year. Signed criminal record and apostille can be obtained from judicial registry offices or governorship according to the country. As a diploma, primary school, secondary school or high school diploma should be preferred (diplomas obtained trill the age 18). University diploma equivalence requires a long and costly process, and therefore not preferred. What the Montenegrin authorities want to see here is whether the company’s founders are literate. Offering a university degree does not add a plus to the company in value.
What are the Company Formation Stages in Montenegro? How long does the process take?