Business
30 January 2019 - Foreign legal and natural persons have the right to establish a company in Montenegro under the same conditions as nationals. The most common forms of companies are limited liability company (LLC) and joint stock company (JSC).
All regulations regarding the establishment, operation and taxation system are compliant with European standards with benefits for foreign investors. The deadline for registration with the Commercial Court is a maximum of 4 days, while other duties (statistics – company registration number, entry into the tax records, opening a current account, registration in customs records) are completed within a maximum of 3 days.
The process of establishing a joint-stock company (JSC) is defined in the Law on Business Organizations (http://www.mipa.co.me/en/legislation/). When registering a joint-stock company, it is necessary to download and submit the following to the Central Registry of Business Entities (http://www.crps.me/):
- Develop Articles of Incorporation of the company, download articles of incorporation for a joint-stock company;
- Develop a founding act of the joint stock company and certify it at the court, or by a notary. Download an example on the incorporation agreement of the joint-stock company;
- Develop a decision on the appointment of the Board of Directors, auditors, secretary and executive director;
- Take out a decision of the Securities Commission (a minimum founding stake is 25,000.00 EUR);
- Pay to the account of the Tax Administration 50.00 EUR, bank account: 832-3161-26;
- Step 6. Pay to the account of the Official Gazette of MNE 12.00 EUR, bank account: 520-941100-57;
- Fill in the registration form PS01;
- Submit the collected and certified documents (Articles of Incorporation, certified decisions/agreements in 2 copies, certified copies of the ID or passport, application for registration in 2 copies, decision of the Securities Commission, founding act, payment slips) to the Central Registry of the Commercial Court, Marka Miljanova 54, 81000 Podgorica, Tel: +382 (0) 20 230 858, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it., working hours 08:30 – 12:00; When submitting documents, a certificate will be issued including the number of the decision, to be presented upon the collecting the certificate of registration, seven days from the date of filing the application.
After obtaining the company registration certificate, it is necessary to do the following:
- make a seal;
- open a bank account;
- register workers at the Tax Administration.
If the company wants to apply for registration as a payer of value added tax (VAT), the PR PDV-1 form will be filled in, and then submitted together with other documents required for registration. If the company wants to apply for entry into the register of excise duty payers, the AKC-P form will be filled in, and then submitted together with other documents required for registration.
The founding stake for the establishment of a JSC is at least 25,000.00 EUR and these funds are deposited by the founders with a commercial bank until the establishment of the company. After the establishment of the company, the funds are used for the company’s operations.
Source: Ministry of Foreign Affairs of Montenegro
29 January 2019 - A modern series of parking ticket payment machines will start functioning next week in the capital. Director of the Parking Service, Nusret Canović, said that the test period was being finished and that everything was ready for the work.
“We are expecting the delivery of stickers with the instructions of the use of parking ticket dispenser machines, that is, instructions for paying the parking lot,” says Canović.
He points out that the series of ticket payment machines are new and provide many options for the citizens. Unlike the machines used so far, these new ones will cover all zones, and they will be able to receive paper money, not only coins.
Parking ticket payment machines are located at the crossroad of Sloboda and Hercegovačka Street, at the corner of Bokeška and Njegoševa Street, at the Balšića Square. The machines near the Culture Information Center, Clinical Center and the machine in Balšića Street existed earlier.
Last year was a record year for Parking Service company. Last year “smart parking” started functioning downtown and three parking lot areas were reconstructed entirely. This year, they are planning sensor networks on parking lots. These sensors are installed below the asphalt via which the information about the number of free parking places is being sent.
Canović says that the most important project is the introduction of “Parking Service Podgorica,” an application which will officially start functioning next week.
“That will be the very first official application for paying the parking. It has already been designed for Android, and now we’re waiting for it to be designed for iOS software. The application enables the users to pay the zone parking, and it shows them what zone they are in. In addition, thanks to the application “digital kiosk”, it will be possible that the citizens pay the parking lot using their payment cards,” said Canović.
“This year, we will also focus on the modernization of garage and parking with barriers. We’ll work on digitalization and enable citizens to get online insight into the number of free places on our parking spaces. They will also have navigation to free places,” explains Canović.
One of the ideas is making a flexible price list.
“We’ll examine every location individually and make logical prices for every part of the town. Locations that are not located in the center of the town will have lower parking prices. It will be a price list adapted to the real needs and demands of citizens,” points out Canović.
Source: Cafe del Montenegro
The Greek Development Fund (HRADF) Board of Directors has authorized eligible bidders to purchase a 50.1 percent stake in oil companies Helenik Petroleum, Glenkor and Vitol to form a consortium with other companies in the privatization process of the Greek company, as “Vijesti” finds out from sources close to the Greek company. Helenik is the majority owner of the Montenegrin oil company Jugopetrol, which, for decades, has continued to dominate the domestic oil refinery market with the cheapest gas supply chain.
In the second phase of the sale of Greek Helenik shares, a consortium was established between the British company Glenkor Energy UK ltd and CIEP Participations S.a. R. L. SICAR - a member of the American Carlyle group, a public investment fund.
Glenkor has long been known to the Montenegrin public for purchasing contracts of aluminum from KAP, which were resumed even after the privatization of the aluminum company from Podgorica, until the bankruptcy was introduced in July 2013. Glenkor is a multinational company that, besides metals, also trades in derivatives, cereals and other stock goods exchange.
To the Dutch Vitol (Vitol Holding BV) is allowed to form a consortium with the company from Algeria Societe Nationale.
Carlyle Group was officially established in 1987 and manages the capital of approximately $212 billion. In the media, it is often referred to as the "striking hand" of the former Republican leaders, from former CIA Frank Carlucci to former US President George Bush.
CIEP was formed in 2013 and looks for opportunities to invest in oil and gas outside North America, especially in Europe, Africa, Latin America and Asia. It is registered in Luxembourg. Societe Nationale is a state-owned Algerian company formed for the exploitation of hydrocarbons. The Algerian Government launched a major investigation into this company in June, due to suspected corruption. To acquire 50.1 percent majority of the shares in Helenik, which owns Jugopetrol, five companies were interested, but only Glenkor and Vitol passed to the second round. The shares are sold jointly by the Greek state, 20 percent, i.e. by the state HRADF and the pan- European oil and industrial holding, 30.1 percent. They signed a Memorandum of Understanding in April last year and offered a total share of at least 50.1 percent in the largest oil refinery in Greece.
Text by Milorad Milosevic, on January 29th 2019, read more at Vijesti
US Ambassador in Montenegro, Judy Rising Reinke and President of the American Chamber of Commerce in Montenegro, Katarina Bulatovic, delivered certificates to the eighth generation of the American Chamber of Commerce's Training Program, at a ceremony held at Hotel Podgorica.
"The eighth generation has 18 members. Since 2011, when the AmCham program began to be implemented, approximately 200 students successfully completed the practice in Comorian companies, and a number of students continued their career in mentoring companies, which added value to the Program and is a tremendous stimulus for future potential candidates," the US Chamber of Commerce stated.
AmCham Chairman, Katarina Bulatović, expressed gratitude to the members of the Chamber of Commerce for supporting the implementation of the Program. She said that education is the key to all changes in society, especially in the time of the digital revolution we all live in. Capacity development has never been such a dynamic process as it is today, which is why all of us, not just our interns, should constantly work on acquiring new skills and experiences, as stressed by the president.
"The internship program is a precious opportunity for interns to get acquainted with the changing labor market requirements, demanding methods of constant work and new knowledge that they need to adopt, and this is a way of getting valuable contacts and practices that will be a good starting point for further developmental and a professional path," said Bulatovic.
The US Ambassador in Montenegro also spoke to the audience, who said that the community should help future business leaders in exploiting the opportunities and realize their full potential.
"AmCham's internship program does that. Thanks to all the sponsors that gathered here, we support new economic opportunities that strengthen the connections between the US and Montenegro," the ambassador said.
"AmCham Montenegro also provided a place for internships and enabled the acquisition of valuable practices, as well as getting acquainted with the work and values of the Chamber," they said.
The program was attended by Anđela Miličković, Anja Petrović, Desanka Kotlaja, Dražen Jovanović, Eva Medigović, Jelena Milikić, Maja Rolevski, Marija Milikić, Milica Bulatović, Milica Miletić, Milena Komnenović, Nina Stanić, Savica Vujičić, Vanja Pejović, Ivana Đurašković, Lejla Ćorović, Nađa Kljajević and Anđela Lučic.
Text by Vijesti online, on January 29th 2019, read more at Vijesti
28 January 2019 - A platform for cooperation of border services in the Western Balkans represents one of the initiatives that will enable stronger cross-border cooperation and establishing frameworks for more efficient sharing of information among the customs administrations. It will contribute to greater security of a society and protection of the countries’ financial interests. These were the outcomes of the meeting of the heads of customs services in the region, hosted by the Customs Administration of Montenegro.
“The meeting represented the continuation of agreements reached at the London Summit in July 2018,” the Administration stated.
The United Kingdom Ambassador to Montenegro, Alison Kemp, and head of the Customs Administration, Vladan Joković, delivered their welcome speeches at the opening of the meeting.
The latest debate on chapter 29 - Customs Union discussed that in the area of customs policy, Montenegro has largely harmonised its legislation with the European one, and the modernization of the customs service will remain a priority this year, so that, with a higher volume of international trade and raising the standard of living, Montenegrin society would be safe.
Chief Negotiator Aleksandar Drljević reminded that Montenegro opened negotiations at the end of 2014 on Chapter 29 and that three final criteria for closing this chapter were defined. They are related to further harmonisation with European legislation and its application, as well as the progress achieved in the development of interconnected IT systems, which is a significant challenge.
"When it comes to Montenegrin business people and entrepreneurs, removing customs barriers will give an opportunity for unhindered product placement, which will facilitate the export of domestic goods to the market of about 500 million consumers. Networking of business entities and an increase in exports will positively affect the trade balance and the overall business environment in Montenegro. On the other hand, our citizens will have access to better quality products from EU countries at significantly lower prices due to increased competitiveness," Drljević concluded.
January 29, 2019 - The Real Estate Agency Fresh has announced an advert on the sale of the Austro-Hungarian fort Arza with the surrounding area on the Luštica peninsula.
27 January 2019 - Citizens who have high electricity debts could have problems with applying for loans in future since the Electric Power Company of Montenegro will deliver to the Central Bank data about the debts of the loan users.
Delivering of the data about the debts has been enabled on the basis of the opinion of the Agency for Personal Data Protection and Free Access to Information that assessed that, according to Article 37 of the Central Bank of Montenegro Law, there is a legal basis by means of which the Electric Power Company of Montenegro can deliver such data to the Central Bank.
On the other side, it has been concluded that delivering of personal data of loan users to Electric Power Company of Montenegro is in contravention of the Law on the Protection of Personal Data.
In the request for an opinion, the Central Bank said that they had decided to use the lawful authorizations granted to them and fulfill the Credit Register with data about the debts of specific persons to the Electric Power Company of Montenegro. It is a well-known fact that Electric Power Company of Montenegro provides to its users the possibility to settle their debts in monthly instalments, through the conclusion of specific agreements.
“With the conclusion of the agreements on repayment of debt, individuals burden their profit and additional indebtedness could endanger their finances and, finally, it would, as a domino effect, expose to risk the banking system and the entire economy. It is essential to estimate the credit standing of every person who is planning to take out a loan to minimize the credit risk which is dominant in the banking system of the Central Bank of Montenegro.”
Council of the Agency stated in the opinion signed by the president, Muhamed Đokaj, that the Central Bank had the legal basis for the processing of personal data, but they shall be clearly defined through explicit legal norm, in accordance with the principles and standards contained in the confirmed international agreements on human rights and basic freedoms of processing of personal data.
“Council of the Agency holds that the existing legal framework, stipulated in the Article 37 of the Central Bank of Montenegro Law, grants the authorization for processing of personal data to the Central Bank in a very general and discretionary manner. The manner of processing is defined by the bylaw that can lead to insecurity and abuse."
The Council states that the Electric Power Company of Montenegro has no legal basis to grant Electric Power Company of Montenegro right to use ID data of the persons from the register since it has not been established for such purposes.
Source: Cafe del Montenegro
27 January 2018 - Since the beginning of works in 2015, until the end of last year, Montenegro has paid a total of 511,68 million EUR to the Chinese Company China Road and Bridge Corporation for the construction of the priority section of the Bar-Boljare highway.
As the representatives of the Ministry of Finance explained, 431.328.916,10 EUR was paid from the funds of Chinese Exim Bank and around 80.355.895,03 EUR was provided from the budget funds.
China Road and Bridge Corporation was paid 164,16 million EUR for the construction of the priority section Smokovac-Uvac-Meteševo. Chinese got most paid in December.
It was planned that works be completed by the middle of May of 2019.
“It is evident that the construction works on the priority section of the highway will be prolonged and, therefore, the dynamics of the realization will be changed. We expect the works to be finished by the end of 2020,” said the representatives of the Ministry of Finance.
Also, road infrastructure has never seen more investments in the history of Montenegro. Last year, around 47 million EUR was spent on roads.
“When I started serving this function, the greatest challenges for me were the motorway and the Montenegro Airlines. We have zero tolerance for the quality of works on the motorway. This is the most difficult section in Europe. The complete loop will not be constructed, only the access road. We will complete the water supply along the entire route of the motorway. Permanent electricity supply is another important segment of this project. Apart from the motorway, we are working on the remaining road network. From the north to the south,” said the Minister of Transport, Osman Nurković.
28 January 2019 - The unique mountain massif of Prokletije is recognized as a region of exceptional landscape features with rich biodiversity. Because of its beauty, inaccessibility and untouched nature, Prokletije became a favourite destination for an increasing number of tourists, especially mountaineers and alpinists. On the other hand, residents who inhabit this area are struggling to improve the quality of life. These residents often migrate towards urban centres or even go outside the country in search of a better life, while the strong potential of this region's development remains untapped. As in Montenegro, a similar problem is evident in the area of Prokletije on the other side of the border, on the territory of Kosovo.
In order to achieve sustainable development of the cross-border region through joint tourism potentials based on natural and cultural heritage, the implementation of the cross-border project "Development of Ecotourism in the Balkan Alps" has started. During the next two years, which mark the duration of the project, the activities that will contribute to the quality and diversity of services, the establishment and promotion of a joint tourist offer have been planned, as well as activities that will enable increased safety of the visitors of the National Park Prokletije in Montenegro and the National Park Bjeshkët e Nemuna in Kosovo.
Due to the inaccessibility and the unique nature of the area, apart from creating a new tourist offer, the focus of the project is the safety of tourists. Many interventions in rescuing lost or injured tourists show the need for the reconstruction of the tourist infrastructure so that during this year, a total of 50 kilometres of hiking trails will be assessed from the safety aspect and reconstructed if necessary.
In the forthcoming period, intensive work will be done to build professional facilities for tourist service providers, to strengthen the capacities of local communities and the private sector with the aim of developing a unique tourist offer and increasing the safety of tourists. The lack of trained planner guides is evident, which is also evidenced by the already mentioned frequency of accidents in the mountains. Therefore, this project will offer training to specialized guides and implement a joint mountain rescue training to enhance cross-border cooperation in helping lost or injured tourists.
Considering that National park Prokletije represents a destination that is perfect for nature lovers, rich in local endemic and endangered species of plants, birds and mammals, the project will include intensive work in order to promote nature-based tourism. The project will include training for guides in the field of biodiversity, and the individuals will be trained to observe birds, collect medicinal herbs, mushrooms.
The project "Development of Ecotourism in the Balkan Alps" is implemented by the Centre for the Protection and Study of Birds in cooperation with the Mountain Rescue Service of Montenegro as well as the partners from Kosovo - Kosovo Advocacy and Development Centre (KADC) and Mountaineering and alpinists association "Pashtriku". It is financed by the European Union through the IPA II program Montenegro - Kosovo 2014-2020 and the Ministry of Public Administration of Montenegro.
Source: Boka News
27 January 2019 - Construction of the second phase of the new MR1 access road to the tourist complex Luštica Bay in Krtoli near Tivat will be completed at least two months before the deadline.
The significant progress on the construction of the access road was announced during the tour of this section by the Mayor of Tivat Siniša Kusovac and the executive director of the construction company Bemax Veselin Kovačević. The construction works value was estimated to be 2.968.722 EUR. The route of the second phase of the MR1 access road, located from Đuraševići to Solila is 2,2 kilometres long. In addition to the two traffic lanes with green safety islands, infrastructure, and lighting, the construction works will include a bicycle and walking trail as well.
"We can only express satisfaction with the pace, quality and the progress in relations to the construction works performed. The contract stipulates a deadline of nine months, which end by the beginning of October. Still, with the present dynamics, I am sure that the works will be completed by June or July, at least two months before the deadline. The Municipality of Tivat is very satisfied with this business relationship and the responsibility the Company Bemax has shown in this project. I only want the contractor to continue the work with this degree of determination and to finish the works before the deadline," said Mayor Kusovac after visiting the construction site.
He underlined that the Municipality, as an investor, has excellent cooperation with the contractor and supervisor on this project and that Bemax has proved to be one of the best and most serious contractors of construction works they have done so far.
By completing the second phase of the MR1 road and connecting it with the first phase that was completed in June last year, Tivat gets a modern roadway with a total value of 5,7 million EUR. The merging of the second and the first phase, which will lead to the completion of the MR1 access road, will significantly address the issue of traffic connections throughout the Luštica peninsula.
Source: Boka News
26 January 2019 - Montenegrin Ministry of Defense and Armed Forces of Montenegro have initiated the procurement procedure for 67 armored all-terrain vehicles to be used by the Army of Montenegro. The Ministry plans to borrow 30 million EUR for the purchase of 67 armored all-terrain vehicles, as envisaged by the 2019 Budget Law. The government’s documents state budget allocations for 2019 will go up by 2.98% compared to last year, due to vehicle purchases and payment of installments for helicopters, writes Pobjeda daily.
“After all tactical and technical characteristics had been determined, the Ministry of Defense consulted some of the world’s top vehicle producers from different countries. So far, we have had consultations with the following companies: Iveco Defence Vehicles – the Republic of Italy, Urovesa – Spain, Nurol Makina, and BMC – the Republic of Turkey, Elbit Systems – Israel, Lockheed Martin, and Oshkosh Defence LLC –the United States of America,” the Ministry of Defense told Pobjeda daily.
When asked about the fundamental characteristics of the armored all-terrain vehicles that are to be purchased, the Ministry said special attention would be paid to meeting the international standards. In addition, the Ministry will also strive for meeting the existing international standards in the area of protection and security of the crew belonging to defense.
The Government’s documents state that finds for defense will make 2,98% of GDP in 2019, more than predicted by NATO standards and caused by the provision of armored vehicles and payment of installments for helicopters.
“Profit that the Ministry of Defense makes by selling armament, selling and renting former military property (immovable) and provision of services, as well as the funds on the basis of refunding costs by NATO, will amount up to 5.000.000 EUR and will be used for the achievement of partnership objectives and equipment of the Army, inclusive of uniforms,” said representatives of Ministry of Defence of Montenegro.
During September 2018, Armed Forces of Montenegro bought two new Bell 412 EPI multi-purpose helicopters. Bell 412 EP/EPI multi-purpose four-wheeled helicopters are designed for the transport of passengers, injured and sick people, search and rescue, cargo transfer, fire extinguishing, and border control. The capacity of the delivered version is 13 seats.
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