Montenegro, a gem on the Adriatic coast, has steadily become one of Europe’s most attractive destinations for entrepreneurs and investors seeking a stable, low-tax jurisdiction with easy company formation procedures. Whether you’re a local entrepreneur or a foreign investor, setting up a company in Montenegro is refreshingly straightforward—especially compared to neighboring jurisdictions.
This guide provides a complete walkthrough of the company formation process, costs, legal structures, taxes, and remote options to help you establish your business successfully in Montenegro in 2025.
Why Choose Montenegro for Your Business?
Montenegro combines EU-aligned regulatory standards with business-friendly tax rates, minimal red tape, and full foreign ownership rights. Its strategic location, euro-based economy, and progressive corporate income tax system make it an excellent springboard for regional and international business.
Choose the Right Legal Form
Your first step is to choose a suitable legal structure. Here are the main options:
| Legal Form | Montenegrin Name | Minimum Capital | Suitable For |
|---|---|---|---|
| Limited Liability Company (LLC) | Društvo s ograničenom odgovornošću (DOO) | €1 | Startups, SMEs, foreign-owned firms |
| Joint Stock Company | Akcionarsko društvo (AD) | €25,000 | Large or publicly traded companies |
| Sole Proprietor | Preduzetnik | None | Freelancers and small traders |
| Branch Office | — | — | Extension of a foreign parent company |
✅ Foreigners may own 100% of any Montenegrin company type without local partnership requirements.
Step-by-Step Guide to Registering a DOO (LLC)
The most common form for foreign-owned companies is the DOO. Here’s how to incorporate one:
Step 1: Reserve Your Business Name
Use the Central Registry of Business Entities (CRBE) website to check name availability and reserve it free of charge.
Step 2: Draft Founding Documents
Prepare and notarize the founding decision or Articles of Association. If you’re not fluent in Montenegrin, a bilingual version with a sworn translation is accepted. Notary costs range from €50 to €300.
Step 3: Pay State Registration Fees
Total mandatory government fees:
- Registration: €10
- Gazette publication: €12
Payable via local e-banking systems.
Step 4: Fill Out Form PS-01
This consolidated form registers the company with the CRBE, tax office, statistics bureau, and customs authorities.
Step 5: Deposit Share Capital
Open a temporary account at a local bank and deposit your share capital (minimum €1). Get a confirmation slip from the bank.
Step 6: Submit Your Application
File the complete set of documents with the CRBE either:
- In person at the regional business registry office, or
- Online using the government’s eFirma platform with a qualified electronic certificate.
Step 7: Receive Company Certificate & Tax ID
If approved, you will receive a business registration certificate and tax number (PIB) within 2–5 working days.
Step 8: Open a Permanent Bank Account
Provide your business certificate and signatory specimen to open your active account.
Step 9: VAT Registration (if required)
Mandatory only if your annual turnover exceeds €35,000. Standard VAT rate is 21%, reduced to 7% for select services.
Step 10: Register Employees (if applicable)
All employees must be registered with pension, health, and unemployment insurance funds. This is handled through the same one-stop portal.
Taxes and Accounting in Montenegro
Montenegro offers one of Europe’s most competitive tax regimes:
Corporate Income Tax (CIT) – Progressive
- 9% on profits up to €100,000
- 12% on €100,000.01 – €1.5 million
- 15% on anything above €1.5 million
Other Taxes
- VAT: 21% standard / 7% reduced
- Withholding tax: 15% on dividends, interest, and royalties (treaty relief may apply)
- Social security contributions: ≈30% of gross salary paid by employer
Annual Filing Requirements
- Financial Statements & CIT return due by March 31 each year
- VAT returns: monthly (turnover > €60,000) or quarterly
- Audit required if you exceed two of:
- Revenue > €4 million
- Assets > €2 million
- 50 employees
Costs of Starting and Running a Company
| Item | Estimated Cost |
|---|---|
| Government fees (incorporation) | ~€22 |
| Notary & translations | €100–€500 |
| Virtual office address | €100–€500/year |
| Accounting & payroll | €100–€300/month |
| Annual filings (outsourced) | €200–€1,000 |
| Business licenses (if needed) | €50–€500 |
💡 Most founders report all-inclusive start-up costs between €1,000 and €3,000.
Remote Setup and Digital Incorporation
Montenegro allows full remote incorporation, either via:
- A Power of Attorney to a local agent, or
- The eFirma portal using a qualified cloud-based digital signature.
This means you can form and register your company entirely online—no physical presence required.
Additional Tips for Foreign Founders
- Language: Official filings must be in Montenegrin; hire a certified translator for foreign documents.
- Banking: Local banks are known to work well with foreign-owned companies. Revolut Business now also supports Montenegrin DOOs.
- Residence permits: While owning a company doesn’t grant residency automatically, it is a valid and commonly accepted basis for a temporary residence permit, renewable annually.
- Sector-specific licensing: Tourism, energy, fintech, and education sectors may require special regulatory approval—apply early.
Montenegro’s EU Trajectory: Plan for the Future
Montenegro is an EU candidate country with full alignment to EU directives in progress. Businesses operating here today are likely to benefit from smoother access to the European market in the coming years.
Starting a company in Montenegro is a practical, affordable, and strategic move—especially for founders targeting Europe, the Balkans, or international markets. With only €1 in minimum capital, low incorporation fees, a progressive yet moderate tax regime, and remote setup options, Montenegro stands out as one of the most business-friendly countries in Southeast Europe.
Whether you’re a solo founder, a remote-first tech startup, or a global investor seeking an EU-adjacent base, Montenegro offers a seamless path to getting started.