Opening a Business in Montenegro: 2025 Guide

Opening a Business in Montenegro: 2025 Guide

Montenegro remains one of the most accessible jurisdictions in Europe for business registration. The procedure takes from 5 to 14 days, and the minimum share capital for the most popular form of ownership (DOO) is only 1 euro. In 2025, foreigners open companies here mainly for two purposes: entering the European market with low tax rates (corporate tax from 9%) and obtaining a residence permit (boravak) based on employment in their own company.

Forms of Ownership: DOO or Preduzetnik

For foreigners, two types of legal entities are relevant. The choice depends on planned turnover and the level of liability.

• DOO (Društvo sa ograničenom odgovornošću) — equivalent of an LLC. The most popular option. The founder is liable only within the share capital. Suitable for obtaining a residence permit, allows hiring employees and conducting any activity (IT, tourism, trade).
• Preduzetnik — equivalent of a sole proprietor. Suitable for small businesses and freelancers. Simplified registration, but the entrepreneur bears full personal liability with their property. Optimal for turnover up to 18,000 euros per year.

Step-by-Step DOO Registration

The DOO registration process can be started remotely via power of attorney, but the final stages require personal presence.

1. Preparation and name verification. The name must be unique. Verification is carried out through the Central Registry (CRPS) database.
2. Document collection. You will need:
   • Copies of passports of founders and director (notarized).
   • Founding act (Osnivacki akt) and Articles of Association (Statut).
   • Decision on appointment of the director.
   • Proof of legal address (notarized lease agreement).
3. Share capital contribution. Minimum amount — 1 euro. Deposited into a temporary bank account.
4. Submission to CRPS. Payment of state fee (10 euros) and submission of the document package. Review period — 5–10 business days.
5. Post-registration actions. Obtaining the registration certificate, seal production (20–30 euros), registration with the tax authority (within 15 days), and obtaining the tax identification number (PIB).

Step-by-Step Preduzetnik Registration

The procedure for sole proprietors is simpler and cheaper. No share capital is required. Preparation: Selection of activities and tax system (fixed or based on actual income). Document submission: Application, copy of passport, and proof of registration address are submitted to CRPS. The fee is 5–10 euros. Registration: Takes up to 5 days. Fiscalization: If the activity is active, connection to the tax system for issuing invoices is required.

Costs of Opening and Maintenance

Actual expenses are not formed by state fees, but by services of lawyers, translators, and accountants.

One-time startup costs:

• State fees: 10–50 euros.
• Notary and translations: 50–200 euros (depending on the number of documents).
• Seal production: 20–30 euros.
• Consultant services (turnkey):
  • Basic package (registration only): 1,200–2,600 euros.
  • Premium (with residence permit and account opening): up to 4,000 euros.
  • For Preduzetnik: 300–1,000 euros.

Monthly expenses:

• Accounting services: 50–75 euros for “dormant” companies, 100–150 euros + VAT for active companies.
• Legal address rental: often included in accounting services or paid separately.

Taxes and Accounting

Accounting in Montenegro is mandatory for all companies, including “zero-activity” ones (if opened for residence permit purposes). Reporting is conducted according to local standards.

Main tax rates (2025):

• Corporate income tax: progressive scale.
  • 9% — profit up to 100,000 euros.
  • 12% — from 100,000 to 1.5 million euros.
  • 15% — over 1.5 million euros.
• VAT (PDV): 21% (standard rate). Mandatory VAT registration when turnover exceeds 30,000 euros per year.
• Dividend tax: 15% + municipal tax (about 10–15%).
• Payroll taxes: Contributions amount to approximately 75–125 euros at the minimum salary (600–800 euros).

Mandatory Requirements

• Beneficial owners register: Owner data must be entered into the register and confirmed annually by March 31.
• Fiscalization: Since 2021, all active companies must use electronic fiscalization for issuing invoices. A digital signature and token are required.
• Economic substance: For residence permit renewal and normal banking operations, a real office or lease agreement is required, as well as employment of the director.