How to Open a Limited Liability Company (D.O.O.) in Montenegro

By , 03 Mar 2018, 08:12 AM How to Montenegro
How to Open a Limited Liability Company (D.O.O.) in Montenegro Pixabay

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 Limited liability company (in the local language called Društvo s ograničenom odgovornošću (DOO)) is the most straightforward way to start your business in Montenegro. Here you can find the most important information about setting up an LLC.

General information

1. Founders

- Any foreigner or foreign company can be a founder of an LLC in Montenegro. The maximum number of founders is 30 people.

2. Legal address for an LLC

- For the LLC, an authorized address can be used from a residential property or business property address

3. Authorised capital

- Starts at 1 euro

4. LLC Remote registration

- LLC can be registered remotely, only a Letter of Attorney is needed

5. Executive director

- LLC can have only one executive director. He might be a foreigner or local person. The LLC executive director is obliged to be hired. It means that he needs a working contract and to live in MNE. If the executive director is a foreigner, in addition to a working contract, he has to apply for the temporary residence permit in MNE.

6. Stamp

Every company in MNE is obliged to have a stamp

Documents

To set up an LLC in Montenegro you need the following documents:

1. Valid passports of founders, executive director

2. Power of attorney for the LLC registration – must be notarized

LLC bank accounts

LLC bank accounts are opened after the company is registered. The attorney can't open bank accounts, so the founder or executive director should do it.

Type of businesses

You can choose only one primary type of business for your company registration papers. All others can be kept in LLC foundation documents. It is necessary to check what kind of additional licenses or authorizations are needed for your business.

Office

Obligations to have a physical office depend on the type of business. For instance, an office is needed for a touristic agency or rental car company.

Terms

LLC registration takes 5-7 days.

Process

-        Consultations with your legal adviser

-        Collecting papers

-        Signing and notarizing the foundation documents

-        Putting the authorized capital in a temporary Montenegrin bank account

-        LLC registration in the Register of economic entities of the Economic Court

-        Making of the stamp

-        Opening the LLC banking accounts in a Montenegrin bank

Monthly costs and taxes

 

Monthly costs (for a non-active company)

 

-        Salary of the employee (executive director) – up to the law, the minimum salary for a full-time working day is 193 euro per month

-        All contributions are 67% of the official salary – 130 euro for the minimum salary

-        Accounting services - from 50 euro (price depends on company activities)

 

Taxes

 

-        VAT is 21% (from 2018) – the company is obliged to pay VAT if its turnover is more than 18.000 euro per year

-        legal entities income tax is 9%

-        individual income tax is 9%

-        dividend tax is 15%

For more information about setting up a company and your business and immigration needs, you can contact Julie at This email address is being protected from spambots. You need JavaScript enabled to view it. 

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