Corporate Law at Montenegro
Montenegro offers a favorable environment for business incorporation, characterized by low corporate taxes, streamlined registration processes, and equal treatment for foreign and local investors. Here's an overview of corporate law and company formation in Montenegro:
🏢 Common Business Entities
Limited Liability Company (DOO)
Minimum Share Capital: €1
Shareholders: At least one; can be individuals or legal entities, with no residency requirements
Liability: Limited to the company's assets
Taxation:
Corporate Income Tax: 9% flat rate; increased to 12% for profits between €100,000 and €1.5 million, and 15% for profits exceeding €1.5 million
Dividend Tax: 15% withholding tax; exemptions may apply under double tax treaties
Capital Gains Tax: 15%
Value Added Tax (VAT): 21% standard rate; reduced rates of 7% and 0% apply to specific goods and services (Maira Consult, Adria Com, montewealth.me)
Joint Stock Company (AD)
Minimum Share Capital: €25,000
Shareholders: At least one; can be publicly traded
Governance: Requires a board of directors and supervisory board
Taxation: Similar to DOO(Incluence)
📝 Incorporation Process
Choose Company Type: Decide between DOO or AD based on business needs
Prepare Documentation: Draft Articles of Association and other required documents
Open Bank Account: Deposit the minimum share capital
Register Company: Submit documents to the Commercial Court; registration is typically completed within 4 days
Obtain Licenses: Apply for necessary business licenses and VAT registration(invest.podgorica.me)
💰 Taxation Overview
Corporate Income Tax: 9% flat rate; increased to 12% for profits between €100,000 and €1.5 million, and 15% for profits exceeding €1.5 million
Value Added Tax (VAT): 21% standard rate; reduced rates of 7% and 0% apply to specific goods and services
Dividend Tax: 15% withholding tax; exemptions may apply under double tax treaties
Capital Gains Tax: 15%
Social Security Contributions: Employer contributes approximately 10.3%; employee contributes approximately 24%(Adria Com, companyformationmontenegro.me, mhrpartner.com)
📌 Regulatory Authorities
Commercial Court: Responsible for company registration and maintenance of public records
Tax Administration: Oversees tax compliance and administration
Central Bank of Montenegro: Regulates financial institutions and markets
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