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.
- 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.
Every company in MNE is obliged to have a stamp
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.
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.
LLC registration takes 5-7 days.
- 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)
- 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%