Residency / Bank accounts / Companies in Montenegro
Montenegro Company Formation
Choosing the right company formation agent in Montenegro is vitally important to the future success of your business. We are your integral partner for handling your complete company registration process from start to finish. Our agents are there to guide you through each step with complete ease and transparency. Registering your corporation, processing your tax and VAT number, and setting up your corporate bank account is one easy process with Adriacom.
Why choose Adriacom for your company formation?
We are making sure that your business will meet all of the Regulatory and Legal requirements from the very beginning. Adriacom will act as a legal representative for your company in Montenegro. We liaise directly with Montenegro’s Companies House so you don’t have to.
Swift Startup Procedure
Jumpstart your company registration procedure by hiring a professional who understands all legal obligations of your new company.
Support from Real Experts
We offer support throughout the incorporation phase via chat, e-mail, and phone. Hit us up if anything is unclear or if a problem needs to be addressed.
Setup Corporate Banking
Skip over lenghty account verification and due dilligence procedures by letting us introduce you to our banking partners you can count on.
After Company Registration
We are your fully-flegded backoffice that will help you with all the boring stuff in the background so that you can focus on running your company.
Things you need to know about company registration in Montenegro
Do I have to fly to Montenegro to open a company?
Fortunately, company registration is possible from abroad with the help of a notarized power of attorney. Still, opening the bank account will require your physical presence of the executive director. The same goes for applying for your residency in Montenegro. So, yes, you will need to fly to Montenegro once we have your company established.
The company registration takes roughly one week.
What documents do I need to prepare?
While for the registration of your company in Montenegro, you do only need to sign a PoA, there are additional documents you will need later down the line. Thus we would recommend having them prepared before you go ahead with your company formation.
(1) Criminal Record Certificate (apostilled and not older than 6 months)
(2) School diploma/certificate with transcript of grades and subjects
How we incorporate your business in Montenegro in 5 easy steps
Step 1
We register your official company name
The first step in the process is to check if your desired company name is still available for use in Montenegro. It’s advisable to explore different options and make your company name as unique as possible, so your name registration will be approved by the corporate registry quickly.
Things to consider when choosing a name for your company in Montenegro:
- Unique: The name cannot be identical or substantially similar to the name of an existing business in Montenegro.
- Trademarks: The name must not infringe on a trademark or copyright of any kind that is not owned by you.
- Not obscene: The company name shall not contain any obscene or vulgar words.
- Regulated Business: The company must not contain words hinting at strongly-regulated business activities such as ‘bank’, ‘law’, ‘trust’.
Your limited liability company (L.T.D.) will have the ‘D.O.O’ suffix in Montenegro as in ‘My Company’ D.O.O.
As soon as you appoint us form your company in Montenegro, we will apply for the approval of your desired company name. In case your first choice name is not available, our team will apply for your other similar choices. It would be preferential if you could provide at least one alternative name for your company prior to incorporation.
Step 2
We set up your company (5-10 days)
Before we can set up the company in your name, you would need to either send us a certfied power of attorney for company formation from abroad ,or give the PoA locally in Montenegro in front of a notary. If you certify it abroad, it will require an Apostille in most cases. Please send the PoA by international courier such as DHL or Fedex.
During the company formation process we will also send you a short questionnaire asking you to provide some mandatory personal information such as your e-mail address, phone number and your residential address. We will also ask you about the planned business activity of your future company in Montenegro. Every limited liability company needs to be categorized under one specific business activity code.
Here are the key documents we prepare during the company formation procedure:
- the Articles of Association
- the Memorandum
- Consent to act as the director
- Incorporation application
It will take 5-10 working days until your company in Montenegro is fully registered, and we will receive the Original Business Certificate, Tax-ID and VAT certificate on your behalf.
Step 3
We help you to obtain your residency (14 days)
As the executive director of your company in Montenegro, you are legally required to also obtain residency in Montenegro. The permit comes in the form of a temporary work and residence permit that is valid for one year and needs to be renewed annually. It is not considered a travel document and gives you just the right to work and reside in Montenegro.
At this stage we are only able to assist citizens of all countries that do not require a visa to enter Montenegro. If that is the case for you, then once your company is successfully established, we can go straight to the residency application procedure.
Here are the key document requirements for residency in Montenegro:
- Your passport is valid for 15 months or longer
- Original Criminal Record Certificate (apostilled and not older than 6 months)
- Educational Diploma showing you completed 8 years of elementary schooling or more with transcript of all grades and subjects
- Original Birth Certificate for each child under 18 years of age (apostilled and not older than 6 months)
- Original Marriage Certificate for spousal residency (apostilled and not older than 6 months)
You need to be personally present in Montenegro at the day of your residency application and then again roughly 14 days later to pick up the ID from the immigration office.
Your spouse and children can apply for their residencies once yours has been issued and it takes 4-5 weeks for theirs to be approved.
Step 4
Setting up your business banking
You are legally obliged to have a bank account in Montenegro to receive money, pay your invoices and your taxes. Once you have obtained residency in Montenegro, we will be able to introduce you to one of our local partner banks for a quick and hassle-free account opening process.
Banks we work with usually do not ask for a minimum deposit into your business bank account. Since you will also need an individual bank account in order to receive your monthly salary, we recommend you to open a private bank account with the same bank at this stage.
Documents the bank will ask for:
- Business Registration Certificate
- Memorandum and Articles of Association
- Notarized signatures of authorized persons (OP form)
- Company stamp
- Passport copy of the director
- Copy of residence permit of the director
Setting up the bank accounts requires your physical presence. You will also be able to apply for a debit card and online banking.
Step 5
We set up your accounting systems
From the moment you receive your temporary residence permit, you need to start taking care of your tax and accounting obligations in Montenegro. The good news is that we as a are able to handle all your Day-to-Day Bookkeeping, tax filing & Payroll for your company.
At this stage we will help you install your invoicing and accounting software, draft employee work contracts and register yourself (and other employees) with the tax and social security offices. Further, we will assist you obtaining your Government Health ID.
Throughout the year, we help you stay compliant by filing these reports for you:
- Unaudited Financial Statements
- Monthly payroll and social security Reports
- Monthly VAT Returns
- Corporate Tax Returns
- Individual Tax Returns
Company Formation Documents
Memorandum & Articles of Association
The Memorandum & the Articles of Association are documents that we draft for your business entity prior to company registration. They provide an overview of your company structure, an overview of the shareholders, and provisions on how the limited liability company will be governed in line with the Corporate Code of Montenegro.
The Memorandum must be notarized and submitted along with the Articles of Association to Montenegro’s Corporate Registry and does outline:
- Business activities and operations and who will be responsible for carrying them out
- Total value and number of share capital
- Liabilities of the shareholder(s) and director(s)
- Rules and regulations on corporate governance
Certificate of Incorporation
The Certificate of Incorporation serves as your official proof of company registration in Montenegro. It contains your company’s Unique Registration Number (Registarski broj), your company’s Unique Tax identifyer (PIB) and details on all shareholders and company directors of your company.
You’ll need your Certificate of Incorporation to:
- Show your company’s legal status
- Obtain a corporate stamp and seal
- Open a business bank account
- Apply for your work and temporary residence permit
- Register employees
- Sell the company to third parties
Company Formation Packages
Take advantage of our complete Montenegro formation package which includes:
- Preliminary search, registration and approval of your desired company name
- Translation and certification of the Power of Attorney
- Drafting and certifying the Articles of Association & Memorandum
- File the documents with the Central Registrar of Companies in Podgorica
- Appoint company directors and list all shareholders
- Pay the Registration fee payable on incorporation
- Receive and scan the Certificate of Incorporation
- Assignment of a Montenegrin Tax Identification Number
- Obtain a VAT number from the tax authorities
- Corporate Stamp
- Storing of all documents and certificates in a professional folder
As soon as the company registration process is complete -usually within 4-5 business days – the Central Registry will provide us with the Certificate of Registration, the Tax Identification Number and VAT confirmation.
Company documents are in Montenegrin language. We will translate them into English or another language upon your instructions.
- We can deliver your corporate documents by an international courier like DHL or FedEx
Company Formation FAQs
Can foreigners start a business in Montenegro?
Yes! Foreign entrepreneurs can start a limited liability company in Montenegro with a starting capital of just 1,00 Euro. The company needs to have at least one business owner and one director – who can also be the same person. Before you can be appointed as a director in your company, you would need to apply for a work and residence permit in Montenegro. This work permit allows foreign entrepreneurs, professionals, managers and executives to work in Montenegro. You will need to complete your company registration before applying for the work permit. Your application is subject to approval by authorities.
To avoid any hassle or uncertainty, as a foreigner you are advised to hire a corporate secretary and accounting firm like Adriacom, who can help you with the whole incorporation and application process.
Do you accept citizens from all countries?
At this stage we are able to process applications for all citizens that do not require a visa to enter Montenegro.
What are the key requirements for foreign investors to set up business entities in Montenegro?
The company formation process for foreign investors to set up limited liability companies is:
- At least 1 shareholder (owner)
- One company director with Montenegrin residency
- Registered business address
- At least 1,00 Euro in capital
- One main commercial activity.
If you want your Montenegro company to be a Joint Stock Company, take into consideration that the minimum share capital for the company incorporation is 25,000 Euros.
Is there any minimum stay requirement in Montenegro?
Generally speaking, if you obtain your residence permit on the basis of company formation as the director of your company, you will not be summoned to any stay requirements in Montenegro. However, if you want to become a tax resident, you will need to spend 183 days in the country.
At what stages of the process do i need to be present in Montenegro?
You need to be visiting Montenegro on the day of your residency application and roughly two weeks later in order to pick up your ID card and to open your bank accounts.
What are the tax rates in Montenegro?
Since 2022, Montenegro has started enforcing a progressive system for corporate income taxes. Companies are taxed as follows:
- tax rate of 9% for profits of < EUR 100,000
- tax rate of 12% for profits of EUR 100,001 – 1,500,000
- income tax rate of 15% for profits over EUR 1,500,001
The general withholding tax rate, which is applied on dividends and income from interest, royalties, capital gains, consulting services, and rent of movable or immovable property is 15%.
What are the monthly running costs for the company?
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