Meaning Black Mountain, Montenegro is an independent country in southeastern Europe, bordered by the Adriatic Sea, Croatia, Bosnia and Herzegovina, Serbia and Albania. With a population of 620 000, Montenegro gained independence in May 2006 by referendum and has since been developing it’s economic climate which is stable and continuously growing.
Classified by the World Bank as an upper middle-income country, Montenegro is a member of the UN, the World Trade Organization, the Organization for Security and Co-operation in Europe, the Council of Europe, the Central European Free Trade Agreement and a founding member of the Union for the Mediterranean. Montenegro also is a candidate for joining the NATO. The capital of Montenegro is Podgorica.
Corporate Tax Rates
The Montenegro Government has invested sharply in infrastructure, making the country more accessible for tourists but also for international investors.
The fiscal system is very favorable for tax planning and investor purposes; a Montenegro LLC is liable for a corporate tax rate of only 9%,the VAT can vary from 17% to 7% and in some cases the capital gain tax is 0%. Montenegro has adopted Euro as its currency to facilitate tourism, trade and international investors.
- Montenegro’s economic growth has been strong in recent years, fuelled by a growth in new investment. Since obtaining independence from Serbia in 2006, Montenegro has received more foreign investment per capita than any other country in Europe;
- Montenegro was positively ranked as the 70th freest economy in The Heritage Foundation’s 2013 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Montenegro was rated just above the world average due to low tax rates and relatively free trade;
- Montenegro is positively ranked as the 67th most competitive economy in the world in the Global Competitiveness Report 2013 – 2014;
- Opening international corporate bank accounts for Montenegro companies is straightforward with many advantages to the investor. Callamus works with internationally recognized banks to provide corporate bank account services in Montenegro.
- A Montenegro Limited Liability Company (LLC) is the most common type of company.
A Montenegro LLC can be entirely foreign owned with no restrictions, requires only a single shareholder and has a minimum capital requirement of only €1.
The Limited Liability Company (Drutvo s ogranienom odgovornou) in Montenegro can be formed by at least one shareholder but the total number cannot exceed 30. The liability of the members of a D.O.O is limited by the contribution to the capital. Even though it doesn’t require a minimum share capital, the entity must open a bank account, which will be used for various transactions. This capital of D.O.O is divided into non-transferable shares. The general meeting of the shareholders is the highest instance in the company and the directors appointed by it are taking all the necessary decisions in order to continue the business every day.
A Joint Stock Company (Akcionarsko drutvo) is designed especially for large businesses due to the fact that it requires a high amount of capital (25.000 EUR) and the shares of it can transferable to the public. The major decisions are also taken by the General Meeting of the shareholders but the daily decisions are taken by the Board of Directors appointed by it. An auditor is also appointed in order to check the company’s finances.
For foreign investors that own a company in another country can open a Montenegro branch if are providing the minimum share capital and if is taking the whole responsibility for its actions.
Other forms of business opened by the foreign companies are subsidiaries and branches and for marketing and research purposes, the representative offices.
The cost of incorporating a limited liability company in Montenegro is 3,500 EUR, inclusive of all government fees.