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HOW TO START A COMPANY IN MONTENEGRO: Company Formation in Montenegro – Montenegro is a small Balkan country located on the Adriatic coast, with a population of around 622,000 people. Over the last decade, Montenegro has become an increasingly popular destination for foreign investors looking to start a business. This is due to its favorable business climate, strategic location, and numerous other advantages. In this article, we will explore some of the advantages of starting a company in Montenegro and provide guidance on how to go about starting a business in the country.
Advantages of Starting a Company in Montenegro
- Strategic Location
Montenegro is strategically located on the Adriatic coast, which makes it an ideal location for businesses that require access to the Mediterranean markets. It also provides easy access to other European countries, as well as the Middle East and North Africa.
- Favourable Business Climate
Montenegro has implemented numerous reforms in recent years to improve its business environment, including simplifying the process of starting a business, reducing taxes, and improving access to finance. The country has also made significant progress in fighting corruption, which has increased investor confidence.
- Low Taxes
Montenegro has one of the lowest corporate tax rates in Europe, with a flat rate of 9%. This makes it an attractive location for businesses looking to minimize their tax burden.
- Skilled Workforce
Montenegro has a well-educated workforce, with a literacy rate of 98%. The country also has a strong tradition of engineering and technical expertise, particularly in the fields of energy, construction, and transportation.
- Competitive Labor Costs
The cost of labor in Montenegro is lower than in many other European countries, which makes it an attractive location for businesses looking to reduce their labor costs.
How to Start a Company in Montenegro
Full information is available on your website and you can read more about it should you wish to. In my professional and personal opinion you should use a reputable accountant to assist you with this, or an attorney. We can recommend either to you as the language barrier may be difficult.
You will also need to give power of attorney to either one you select should you not be present in montenegro to signe all necessary incorporation documents on your behalf. The good news is you do not need to be present for this nor do you need to be a citizen.
- Choose a Business Type
The first step in starting a business in Montenegro is to choose a business type. The most common types of businesses are sole proprietorships, limited liability companies (LLCs), and joint-stock companies.
- Register Your Business
To register your business, you will need to provide a number of documents, including a notarized copy of your passport, proof of address, and a business plan. You will also need to obtain a tax identification number (TIN) from the Tax Administration. Don’t forget to get a company seal or stamp, this is GOLD!!
- Open a Bank Account
Once your business is registered, you will need to open a bank account. Most banks in Montenegro offer online banking services, which makes it easy to manage your finances remotely. This may be a bit tricky at the moment as strict regulations have come in, but not important or necessary in forming your new company and can be done later.
The banks have been overwhelmed and an increase in money laundering protection seems to be the biggest issue causing delays. Certain banks may have certain reuirements so you will need to check. Some business activities may also be too vague and require further information or even not permitted (such as “consulting”).
- Obtain Licenses and Permits
Depending on the type of business you are starting, you may need to obtain licenses and permits from the relevant authorities. This may include a business license, a construction permit, or a food safety certificate.
- Hire Employees
If you plan to hire employees, only if, as you can hire yourself and be the sole employee, you will need to register with the National Employment Service and obtain a work permit for any foreign workers. You will also need to comply with labor laws and regulations, including minimum wage requirements and working hours.If you employ yourself, you can also qualify for temporary residency in Montenegro.
In closing, Montenegro offers numerous advantages to businesses looking to start or expand their operations. Its strategic location, favorable business climate, low taxes, skilled workforce, and competitive labor costs make it an attractive location for foreign investors. By following the steps outlined above, you can easily start a business in Montenegro and take advantage of the many opportunities the country has to offer.
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