Business

28 Jan 2019, 01:12 AM

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

28 Jan 2019, 00:43 AM

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.

27 Jan 2019, 21:32 PM

The Ministry of Economy has submitted a Proposal to the government for Amendments to the Internal Trade Law, introducing a non-working Sunday.

The Ministry said that in the trade sector, which employs 37 thousand people, the Sunday, through the proposed legal solution would be declared as a non-working day.

"With by-laws, solutions to the exceptions, and the basic needs of citizens will be adopted," the statement said.

By introducing a non-working Sunday, employers will be able to significantly increase productivity, lower maintenance costs, and regular service costs.

"About this, such a legal solution cannot affect the reduction of the number of workers, but jobs can even be deployed on working days, and employees in the trade would have a non-working Sunday as it is the case in other industries," the Ministry's representatives said.

They added that it would have a positive impact on the overall economic activity and the quality of life of an individual, family, and society.

"In any case, such a legal solution will not affect the supply of consumers, but solely to change the habits so far in terms getting the supplies on the other days of the week," the ministry said.

By the proposed amendments to the law, other novelties would be introduced that make the business easier for the traders.

The amendment of the law was launched at the initiative of employers and the Chamber of Commerce (PKCG) and was supported by trade unions and consumer associations.

Text by MINA Business, on January 25th, 2019, read more at Vijesti

27 Jan 2019, 00:35 AM

26 January 2019 - According to the latest data of the Central Bank of Montenegro (CBM), 77 people are registered in Montenegro with more than one million EUR in accounts in domestic banks. This data implies that in 2018 Montenegro registered 13 new millionaires.

The number of new millionaires and the total population of millionaires set records. The account with the largest sum of money is owned by the citizen of Montenegro whose account amounts to 50,3 million EUR, according to News Agency Pobjeda’s source from the Central Bank of Montenegro. The source revealed the information without naming the individual because doing so is prohibited by law.

"The account with the largest sum of money deposited by an individual amount to 50,281 million EUR and belongs to a single resident. 77 individuals have a deposit in a bank in the amount of more than 1 million EUR," the CBM source said.

The source also revealed that the richest millionaire has deposited 20 million EUR more than the largest deposit by a legal entity in Montenegro. In 2017, there were 64 millionaires in Montenegro, and in 2016, the number of millionaires in Montenegro amounted to 54.

According to the last census, Montenegro has 622,471 inhabitants.

26 Jan 2019, 23:48 PM

26 January 2019 - According to preliminary data collected by Statistical Office of Montenegro - MONSTAT, the total foreign trade of Montenegro for the period January-December 2018 amounted to 2.954,4 million EUR, indicating an increase of 10% in relation to the same period of the previous year.

The export of goods amounted to 400 million EUR, and the value of imports was estimated to be 2,554 million EUR. Compared to the same period of the previous year, exports increased by 7,7%, while imports increased by 10,9%.

The coverage of import by export was 15,7% and it was lower compared to the same period of the previous year (16,1%).

According to the Standard International Trade Classification (SITC), the most common export products, which amounted to 107,2 million EUR, including sector 6 products: non-ferrous metals - 74 million EUR and iron and steel – 18,9 million EUR and others.

According to the SITC, the most common import products are Machines and transport devices (sector 7) in the amount of 638.1 million EUR. Machines and transport devices include Road vehicles – 187,2 million EUR and Electrical machinery, apparatus and devices – 124,3 million EUR and others.

The largest foreign trade partners in exports were: Serbia (93 million EUR), Hungary (46 million EUR) and Bosnia and Herzegovina (31 million EUR).

The largest foreign trade partners in import were Serbia (492 million EUR), China (257 million EUR) and Germany (235 million EUR). The foreign trade of goods was mostly conducted with the signatories of CEFTA and with the member countries of the European Union.

25 Jan 2019, 14:07 PM

25 January 2019 - The implementation of the largest Turkish investment project in Montenegro, which is the construction of a hotel with two towers with 15 floors, is being prohibited by the Municipality of Budva, yet the Ministry of Sustainable Development and Tourism of Montenegro recently gave its consent to the preliminary design.

However, the question remains whether the investment will succeed, given the numerous problems, including property-legal relations for the land.

The Podgorica-based company "Mia Investments" of the Turkish founders intends to build a five-star hotel at the attractive land complex at the Adriatic Fair, only ten meters from the Slovenska plaža (beach), which would consist of two towers - 15-story solitaire.

Chairman of the board of directors of "Mia Investments" is Sener Ahmet Ozan, while members of the board are Kader Murat, Tito Orfea and Arikan Habip.

The land complex consists of about 8,500 square metres, which is still in the cadastral register registered with the company "Safiro Beach Resort", whose founder is the company "Expom Hotel Partners Limited" based in Cyprus.

The construction of the towers is being prevented by the Municipality of Budva, which opposes building a multi-story building on the coast itself.

In August 2018, the Turkish company submitted a request to the chief architect of the Municipality of Budva to give the consent to the preliminary design, but the procedure was terminated after the Property Protection Secretariat was recognized as a party within the proceedings.

The construction of the two towers in Budva would be the most significant investment of Turkish investors in the Montenegrin hotel business. However, it is known that with the new legal solutions, the builders of 5-star hotels have the opportunity to sell half of the units as apartments for the market. Although a detailed urban plan "Budva Centre" covering this site has been put off for two years, only hotels are allowed to be built within the municipality.

Source: Investitor

24 Jan 2019, 23:06 PM

23 January 2019 - Four halls of the former factory “Radoje Dakić” will be sold to companies Lojal and Voli Trade through the procedure of direct agreement, as decided by a trustee in bankruptcy, Mladen Marković, reports Pobjeda daily.

Marković opted for such a decision due to, as he said, previous unsuccessful sales through public competition as no one was interested in this part of the property.

Voli Trade submitted an offer for 10.000 EUR below the estimated price, for a hall of 1.497 square meters. The estimated value of the hall is 41.500 EUR.

The Lojal company from Nikšić offered 190.000 EUR for the property estimated at 625.100 EUR, that is, for three halls covering the total area of 15.000 square meters.

The Law Office Prelević, representing 339 different creditors, strongly disagrees with such Marković’s decision. This Office filed an objection to the judge in bankruptcy, Blažo Jovanić, noting that selling the factory’s property via public competition or public collection of offerings would be a much more convenient option.

The company Voli Trade recently also bought two parcels of the former factory "Radoje Dakić" for 5.65 million EUR, where they plan to build the most modern hypermarket in this part of Europe. The bankruptcy administration of the factory confirmed the purchase of 19,960 square meters of land.

24 Jan 2019, 15:29 PM

Tivat and Podgorica airports are eight and ninth in the list of ten busiest airports in the territory of the former Yugoslavia. At the top of the list published yesterday by ExYU aviation is the airport "Nikola Tesla" in Belgrade, which in 2018 had 5.64 million passengers. Tivat, with1.24 million passengers, is in the eighth place, ahead of Podgorica, which had about 40,000 passengers less. The last one on the list is Sarajevo with 1.04 million passengers.

Last year, Podgorica had a 14.5% increase, placing it third in the fastest growing airports in ex-Yu behind Pristina airport, which had an increase of 14.6% and Skopje with 15.5%.

This is the result of Podgorica's achievement due to the Business Strategy of the Airports of Montenegro to concentrate the traffic of most of the so-called legacy and low-cost airline, while Tivat airport is of a seasonal character and is oriented towards charter airlines. Last year, Tivat had a growth of 10.3%, which makes it fifth in the list.

Text by Sinisa Lukovic, on January 23rd 2019, read more at Vijesti

24 Jan 2019, 00:02 AM

23 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 limited liability company (LLC) is defined by the Law on Business Organizations (http://www.mipa.co.me/en/legislation/). When registering an LLC, it is necessary to download and submit the following to the Central Registry of Business Entities – CRBE (http://www.crps.me/):

  1. Develop Articles of Incorporation of the company, download an example of articles of incorporation for a single-member company (if one founder founds the company);
  2. Download an example of the Articles of Incorporation for a multi-member company (if several founders establish the company);
  3. Draw up a Decision on the establishment of the company (if one founder establishes the company), download an example of the Decision on the Establishment;
  4. Develop an incorporation agreement (if several founders establish the company), download an example of the incorporation agreement;
  5. Pay €10 into the account of the Tax Administration, account number: 832-3161-26, payment purpose: registration of LLC. Payment slip example on the website of CRBE;
  6. Step 4. Pay €12 into the account of the Official Gazette of MNE, account number: 520- 941100-57, payment purpose: registration of LLC. Payment slip example on the website of CRBE;
  7. Certify the decision/agreement in 2 copies at the court, or by a notary;
  8. Extract from the Central Depository Agency. When taking over the extract, it is needed to submit a copy of the identity card of the founder or a certified copy of the passport if the founder is a foreigner and a payment slip in the amount of €5.08 paid to the bank account of CDA: 510-8092-14, payment purpose: extract a fee. Payment slip example on the website of CRBE;
  9. A copy of the identity card (if the founder is a Montenegrin national) or a certified copy of passport (if the founder is a foreign national). Certify at the court or by a notary;
  10. Fill in the application of the company to start registration, download the registration form – PS 01; Tariff number – if the company wants to import and export products, when filling in the PS-01 form, it is necessary to mark the column numbered 15.4. Customs Register on the back page, for the company to be registered at the Customs Administration, on the occasion of which a tariff number is received;
  11. If the company wants to apply for registration of taxpayers for value-added tax (VAT), the PR VAT – 1 form will be filled in and submitted together with other documents required for setting up a business;
  12. If the company wants to apply for registration into the register of excise duty payers, the AKC – P form will be filled in and submitted together with other documents required for setting up a business;
  13. Submit the collected and certified documents (Articles of Incorporation, certified decisions/agreements in 2 copies, CDA’s decision, copy of the ID or certified passport in 2 copies, payment slips and the application for registration, form pr pdv-1/akc-p) to the Central Registry of Tax Administration, 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 together with an identification document 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:

  1. make a seal;
  2. open a bank account;
  3. register workers at the Tax Administration.

The incorporation agreement states the founding stake (which may be in cash, goods and rights), as well as the percentage ratio of the founders in the management and distribution of profits. The founding stake for the establishment of an LLC is at least €1.00.

Source: Ministry of Foreign Affairs of Montenegro

23 Jan 2019, 23:54 PM

23 January 2019 - Prime Minister Duško Marković held the regular meeting with the heads of the Tax Administration, Customs Administration and the Administration for Inspection Affairs of Montenegro. The total tax debt was reduced by around 140 million EUR. 

The meeting noted excellent results in the field of economic policy, consolidation of public finances and collection of revenues. Director of the Tax Administration Miomir M. Mugoša highlighted that 117 million EUR more were collected in 2018 than in 2017. Director of the Customs Administration Vladan Joković said that this body collected 80 million EUR more in 2018 than in 2017, while Director of Administration for Inspection Affairs of Montenegro Alija Košuta emphasised that they carried out over 57 thousand inspections last year and issued nearly 15 thousand misdemeanor orders worth 5.1 million EUR. 

PM Marković stressed that in the coming period, there should be a comprehensive and continuous activity of inspections, police, and prosecutors to prevent the grey economy more efficiently. 

Tax2301 2

"Fighting the grey economy is an important support for achieving our basic priority, which is the continuation of dynamic economic growth, development, job creation and an increase in living standards," the Prime Minister said. 

He added that a particular focus would be placed on the areas where the illegal activity is the greatest, such as tourism, construction, and the labour market. 

Activities on combating the grey economy will be supported by legislative interventions as well as by strengthening institutional capacities such as the establishment of the Tax Police in the Tax Administration and the budget inspection within the Ministry of Finance.

The meeting was attended by Deputy Prime Ministers Milutin Simović and Zoran Pažin, Ministers of Finance, Economy and Tourism Darko Radunović, Dragica Sekulić and Pavle Radulović, as well as Director of the Police Directorate Veselin Veljović and High State Prosecutor Miloš Šoškić.

23 Jan 2019, 23:48 PM

22 January 2019 - A more detailed list of priority infrastructure projects, which was completed at the end of last year, comprises 62 projects whose total worth amounts 5,68 billion EUR. After the National Investment Commission took into consideration the list, the Government adopted the new document on 26 December. The previous record contained 36 of them. A month later, the list was updated, and then, at the end of the year, the number of projects and their value doubled.

Nine projects out of 62 belong to the domain of energy, and for their purposes, 1.178,44 million EUR will be invested, while seven are from the area of the environment. Costs for 12 projects from the field of transport infrastructure amount 3.387,9 million EUR.

There are three new businesses from the domain of digital infrastructure and they are 32,945 million EUR worth, while fifteen are from the field of social activities and sixteen are from other infrastructure.

According to the Strategic Relevance of the project, two projects made it to the top. Also, reconstruction and modernization of the railway from Bar to Vrbnica were marked with 96% of relevance.

Development of the infrastructure for the broadband Internet access, necessary for spreading New Generation Network belongs to the same category. This way, broadband networks would be available even in those areas where there’s no commercial interest.

From the segment of transport, works on the motorway Bar-Boljare, as well as the fast lane along the Montenegrin coastline are marked with more than 90% of importance. As far as the sector of environment protection, such priority is given to the construction of plants for wastewater treatment in Podgorica.

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