In addition to the nature that includes beautiful mountains, the shores of the Adriatic Sea and rich forests, and the historical charm woven into every stone of its old cities, it also offers a favorable business environment, which has evolved over the centuries, under the influence of neighboring countries and global economic trends. In this blog post, we delve into the heart of Montenegrin business culture, providing you with valuable insights for navigating this exciting market.

Starting a business
Montenegro is constantly ranked as one of the best places to do business, because establishing a company is quick, easy and without major bureaucratic restrictions.

What do you need to start a company?

• Founders – Natural or legal persons who are at least 18 years old. Full domestic or foreign ownership is allowed;
• At least one executive director (Montenegrin citizen or foreigner)
• Share capital – initial share capital is at least 1 euro;
• Registered address;

Required documents:

• For citizens of Montenegro – identity card or passport;
• For foreigners – a passport is required (a foreign identity card cannot be used);
• For legal entities, an extract from the register is required, if it is not older than three months;

How to register a company?
Regardless of whether it is a domestic or international company, each step must be followed before the company can be fully registered.

1. Choose a company name: First, before starting the procedure for establishing a company in Montenegro, check whether your desired company name is available. You can do this for free at www.crps.me.
2. Notarize the contracts: After that, you will have to notarize the company foundation contracts with one of the Montenegrin notaries.
3. Submit a request: Along with the registration request, obtain a certificate of registration, PIB (PIB), Tax number (VAT) and customs authorization in the Central Register of Business Entities of the Tax Administration (CRPS).
4. Get a seal: To carry out legal and other types of company transactions, you will need a seal that will bear the symbol of your company. You can order a stamp in one of the special shops in Montenegro.
5. Open a bank account: The procedure for opening a bank account within the Montenegrin banking system for company needs is simple, and you will need to submit a valid passport and some other documents.
6. Register your company with the Employment Office of Montenegro: After you open a bank account, you will need to submit a bank account confirmation in addition to the unique registration form (JPR) to register your employees with the Tax Administration. After that, the PIO Fund will automatically recognize your company in its system.
7. Inform the authorities about your business: The last step is to inform the local authorities about your activities and pay the administrative fee at the municipal building where your business is located.

Why establish a company in Montenegro?
Did you know that Montenegro is designated as a “tax haven” in Southeast Europe? The corporate income tax rate is the lowest in the region, while tax benefits in areas with a development index are below 75%. In addition, according to the World Bank’s “Doing Business Report 2020”, the Montenegrin economy took 50th place out of 190, in terms of ease of doing business, but also in terms of running a business. This fact in itself speaks of favorable opportunities and real chances.

Furthermore, the location of Montenegro itself is ideal for business. The diverse natural beauty of the country and the way of life are attractive features for those who are thinking about registering a company in Montenegro. As it is located in the Balkans, between the Adriatic Sea and the mountains, it is ideal for companies dealing with tourism, trade or transport. This geographical advantage allows easy access to European markets, but also the possibility of developing tourism and hospitality. In addition, the increasing popularity of Montenegro as a tourist destination presents various business opportunities. They provide different income streams and the potential for sustainable growth.

And you can read how to successfully invest in Montenegrin tourism, as well as what the opportunities and challenges are for investors.

Cultural aspects play a significant role in the business environment of any country, including in Montenegro. This country is known for its hospitality and relaxed way of life, which often reflects its business culture. In the Montenegrin business world, relationships and personal connections often play an important role, and business negotiations can be more focused on building trust and friendships than on quick transactions. Respect for elders and authority is also an important aspect of culture, and business people often show a deep respect for tradition and customs. In addition, Montenegro has a rich historical and cultural heritage. Understanding and respecting these aspects of Montenegrin culture can facilitate communication and cooperation with local partners and clients.

It is also important to know that in 2018, the Government of Montenegro presented the “Citizenship by Investment” program with the aim of facilitating and encouraging direct foreign investments.