Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Montenegro
Montenegro is a small state in the south-east of Europe. Montenegro also offers one of the most dynamic economies in the Balkans. The country is being the Adriatic coast on the Balkan Peninsula. The country borders a few countries which are Croatia (on the western part), Bosnia and Herzegovina (on the northwest) and Serbia (on the northeast). After the strife of the 1990s, the country gained its independence from Serbia in 2006.
Thus, the Montenegro government has been singularly focused on creating prosperity. They are attracting entrepreneurs for setting up a company in Montenegro as easy as possible. Podgorica is the capital of the republic and its administrative centre. While the official language is Serbian although the local population also understands Russian and English. Euro is the currency used in Montenegro.
Reasons to Choose Montenegro
The advantages of company registration in this country are having a fast and easy when incorporating a Montenegro LLC. It’s because it only requires one shareholder of any nationality and residency either as an individual or a body corporate. Besides, this country also has an attractive jurisdiction for doing business and tourism companies. Registration of a business in Montenegro offers the lowest income tax rates in Europe and all foreign ownership of legal entities is permitted. Montenegro has included numerous double tax treaties that can help reduce or eliminate withholding taxes with global jurisdictions.
Moreover, this country also became one of the fastest and emerging tourist destinations of the world according to the World Travel and Tourism Council’s 2019 report. This is because Montenegro has a range of attractive tourist locations. Therefore, this further highlights Montenegro’s potential for the adventure sports industry.
Lastly, investors and entrepreneurs in Montenegro will enjoy government incentives such as VAT exemptions on constructions of hotels, food production and energy-production facilities. Also, an 8-year tax exemption for companies which are newly incorporated in underdeveloped municipalities. Further, the resident entities that are entitled to a foreign tax credit on taxes levied on income realized abroad.
Essentials You Need
Registration of the company takes place in Montenegro in accordance with the Law of the ‘Company Act’. The entrepreneur that wants to open a company in Montenegro must be familiarized first with the types of business defined by the law. These are the limited liability companies (LLC), the public limited liability companies, the general partnerships and the limited liability partnerships. Montenegro’s company registration process is uncomplicated and straightforward.
When registering an LLC, it is necessary to download an example of articles of incorporation for a single-member company or multi-member company. Next, draw up a decision on the establishment of the company. If the company is established by one founder or develop an incorporation agreement if the company is established by several founders.
After that, pay into the account of the Tax Administration and the Official Gazette of MNE for registration of LLC. Then, certify the agreement in 2 copies at the court and extract it from the Central Depository Agency. Remember to fill in the application of the company to start registration. If the company wants to apply for registration of taxpayers for VAT, then they need to fill in a form and submit together with other documents required for setting up a business. Last but not least, submit the certified documents to the Central Registry of Tax Administration. After obtaining the company registration certificate, it is necessary to make a seal, open a bank account and register workers at the Tax Administration.
Conclusion
Company registration in Montenegro is one of the best and affordable options to start doing international business. The process to register a company in Montenegro is quite simple. But, it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy of Montenegro. Contact us for more information.
