Montenegro is an ideal place for anyone seeking to start their own business in Europe with a small start-up capital. Company registration takes place in the Central Register of Legal Entities (CRPS). In general, the process of opening a company can take from a few days to a few weeks, depending on how quickly the necessary certificates can be obtained. Buying an existing business in Montenegro is much easier but requires more money.
Advantages of registering a company in Montenegro include no restrictions for foreign citizens, submission of a minimum package of documents, and the opportunity to obtain a residence permit. The article provides everything you need to know to open your own business in Montenegro.
How does business in Montenegro attract foreigners?
Advantages of opening a company in Montenegro for foreigners:
- Easy business registration. Documents can be submitted and received online as the country rapidly develops its electronic public services sector;
- The terms for foreigners to open a company in Montenegro are similar to those for Montenegrin citizens, including tax rates, required documents, and fees;
- Low authorized capital. Foreigners need to deposit a minimum of EUR 1 in a corporate bank account for an LLC, or nothing at all for sole proprietorships;
- Low costs. Compared to other European countries, Montenegro is relatively inexpensive for renting premises, paying utility bills, and paying employees’ salaries;
- Profit from company activities is taxed at a rate of 9%, much lower than in most European and Asian countries;
- Residence permit. Montenegrin business owners have the right to apply for a residence permit, potentially leading to citizenship.
With a population of just over 600,000, the country is comparable to some cities in larger countries. Therefore, developing an effective business that focuses solely on the local target audience is extremely difficult. Companies that work in the tourism sector or export goods and services have much more prospects.
Business taxes in Montenegro
When compared to other European countries, the Montenegrin taxation system is quite flexible and attractive for small businesses.
Type of tax | Rate, % |
---|---|
On profit | 9 |
Interest income | 5 |
Dividend income | 15 |
VAT | 21 — general 7 — reduced* |
On real estate | 0,25–1 of the cadastral value of housing annually |
* for food, medicine, medical products, public transportation, religious services, antiques as well as tickets to the cinema, theater, and exhibitions, the rate is in accordance with Article 24a of the Law of Montenegro “On Value Added Tax.”.
For comparison, the rates are 19-47% in Spain, 15% in France, and 24% in Italy. Montenegro has signed several bilateral agreements with other countries to prevent double taxation, ensuring that its tax residents do not pay the same tax twice. In general, doing business in Montenegro is much more favorable than anywhere else in Europe when you look at the difference between income and business taxes paid.
Mandatory expenses for entrepreneurs in Montenegro include payment for an accountant’s services (about EUR 80-100, depending on the accountant’s qualifications and the company’s size). To avoid fines from inspectors due to the country’s constantly changing legislation, you should carefully choose a responsible specialist who is aware of the latest changes and can competently manage the accounting firm.
Montenegro offers tax benefits for large and small businesses that start-up entrepreneurs can use. For example, according to Article 43 of Montenegro’s “Value Added Tax” law, individuals who sell goods or provide services up to EUR 30,000 are exempt from VAT. Some companies registered and operating in underdeveloped regions of the state are also granted privileges. These companies are exempt from paying taxes for the first three years.
Business ideas
Montenegro is a small country with well-established traditions and a rapidly growing tourism sector. When opening a business here, consider the consumer market situation: the local population uses familiar services and buys goods mostly from trusted sellers. Experienced entrepreneurs recommend expanding beyond the Montenegrin market and offering goods and services to citizens of other European countries.
The tourism sector in coastal cities is growing quickly. The number of visitors grows every year, so services such as car, yacht, and housing rentals; entertainment; bars and restaurants; and area excursions remain in demand. Keep in mind the seasonal nature of such companies’ work: most companies and establishments close during the winter months due to a lack of customers. Agriculture is considered more stable in contrast, but local firms already occupy the niche, making it difficult to compete.
The most promising business ideas in Montenegro:
- Rental of movable property: The rental of yachts, small boats, scooters, cars, and bicycles is in high demand. Since Montenegro is a small country, tourists can see all the sights in a couple of days by car. In coastal towns, yacht rentals for private events, sea excursions, and fishing are in high demand.
- Restaurant business. Opening bars, cafés, or restaurants in major tourist spots along the Adriatic coast is a lucrative business option for foreigners. However, selling alcohol and cooking require licenses from local authorities.
- Large, five-star hotels are popular and profitable, but require large investments for opening and maintenance. A small apartment complex or guest house with a dozen rooms is quicker to pay off.
- Beauty salons. Immigrants say that Montenegro has an acute shortage of good beauty specialists. Experienced colorists, top makeup artists, and stylists who can do model haircuts are not easy to find in the country. With qualified staff, a beauty salon, a spa center, or a massage room can be successful.
- Childcare institutions. Almost all Montenegrin cities have a shortage of preschool institutions and other developmental centers where you can sign up for various clubs. Children’s entertainment complexes for family recreation and leisure are a promising business opportunity for foreigners.
Buying a ready-made business or starting a new one?
For those who do not want to organize the business from scratch, buying a Montenegrin company that already has established partnership arrangements, a customer base, and a reputation is easier. Typically, the business is sold with employees, licenses, and other useful contacts, which makes it easier for the new owner to start working. While such businesses are profitable immediately after purchase, they are not cheap.
For beginning entrepreneurs with limited start-up capital, it is more profitable to open a company in Montenegro and develop it gradually. It will take a long time to see a profit with minimal investment. The time it takes to break even depends on the specific type of business and its area of activity. Future entrepreneurs should consider the conservative nature of Montenegrins. Locals dislike changing their habits, so don’t expect them to actively demand new goods and services.
A Montenegro residence permit opens up many opportunities for you:
- Doing business in a country with one of the lowest tax rates in Europe: 9%;
- Simplified processing of Schengen visas for 2-5 years;
- Residency status for your spouse and children under 18 years of age;
- European Union citizenship.

Leave an application and get a consultation with an immigration specialist
Business purchase
Profitable businesses in Montenegro rarely go up for sale, except for hotels and restaurants. The latter can easily be found through international brokerage companies, which offer assistance in concluding the contract and providing notary support for the transaction, in addition to the real estate itself. Due to the small local population, it is relatively easy to find a profitable business to purchase during a personal visit to the country. Montenegrins are much more likely to seek advice from acquaintances on finding a business than to search online forums or social networks.
To buy an existing business, you must thoroughly check it beforehand, excluding unprofitable options and firms with debts. An independent auditor and a lawyer who are familiar with the specifics of doing business in Montenegro can help facilitate this process. A notary certifies the sale and purchase of the company, and then changes are made to the register of legal entities indicating the new owner. The re-registration process takes a few days, but searching for a suitable option and conducting an audit can take weeks.
The cost of a business depends on its location, profitability, payback period, and total profit. For instance, a 17-room mini-hotel in Sutomore can be purchased for EUR 375,000, whereas a similar proposal in Budva or Tivat would cost twice as much. A small coastal restaurant with full daily seating pays for itself in the first year of operation, however, it is not always easy to achieve such demand.
A step-by-step guide to opening a company in Montenegro
Any foreign citizen can register a company in Montenegro, regardless of whether they have a residence permit. The conditions for opening a business are the same for foreign and local entrepreneurs. First, the future owner of the company must decide on the legal business structure.
Legal forms of business activities
There are 6 main types of companies in Montenegro:
- Sole Proprietorship: A self-employed individual who carries out economic activities in their own name and is liable for all their property under the law;
- Branch of a Foreign Company: An organizational unit that carries out activities outside the territory that the main company is registered in;
- Joint-Stock Company: An organization with authorized capital divided into shares and owned by one or more owners;
- Limited Liability Company (LLC): A form of company that can be founded by one or more individuals or legal entities with an investment of funds and formation of authorized capital in a share ratio;
- Limited Partnership: A union of several general partners, who are responsible for the company with their own property, and limited partners, whose liability is limited to their contribution to the company;
- Partnership: An association of two or more individuals or legal entities based on a cooperation agreement under one name and with a single identification number.
Foreigners most often choose the LLC form for their business, while small firms without many employees usually register as sole proprietorships.
Company registration in Montenegro
A foreign entrepreneur must complete several steps to open a business in Montenegro:
- Research the legal requirements for entrepreneurs. The current provisions for registering a company in Montenegro are prescribed in the laws “On Companies” No. 01-1286/2 and “On the Classification of Activities.” Separately, entrepreneurs should learn about tax rates and possible benefits for their business type. Most entrepreneurs seek the help of migration lawyers and qualified intermediaries with experience in this field at this step, in order to properly register the company.
- Fill out the form and prepare the documents. The form can be downloaded from the Central Registry of Legal Entities of Montenegro (CRPS) website. The application requires you to provide general information about the future company and its director. Information on how to fill out the form is included in the document itself.
- Obtain the certificate. To complete the registration process, you will need an electronic signature from the company owner, which is issued by authorized certification bodies in Montenegro.
- Register the company with CRPS. The entrepreneur must create an account in the system, upload the completed application and the required documents, and submit the receipt for the state duty payment of EUR 8 (EUR 43 for a joint stock company). Then, the company owner must sign with their electronic key. Once completed, the company name will appear in the registry, and the owner will be assigned a tax number.
- Prepare additional documents. At this stage, the company draws up a charter, opens a bank account, and prepares a company seal. Additional permits for operating the company, such as licenses, can be obtained from local authorities.
Required documents
The basic set of documents required to open a company in Montenegro:
- A passport valid for at least three months from the application date;
- An application containing all the company’s data;
- A memorandum of association;
- Articles of Association;
- Receipt of payment of state duty;
- An extract from the tax office confirming the company has no outstanding debts.
Depending on the company’s legal structure and type of activity, additional permits, licenses, and documents may be required.
Costs and processing times of opening a company
The total cost to open a company in Montenegro for foreign entrepreneurs depends on the company’s authorized capital and state fees. To register a joint-stock company, at least EUR 25,000 must be deposited into the corporate account. To create a limited liability company (LLC), the minimum authorized capital is only EUR 1. Other business structures do not require a mandatory transfer of funds to a company account though they do require a state fee of 8 EUR.
Registering a company on the CRPS website usually takes up to 5 days, but preparing the documents can take a few more weeks. Not knowing the Montenegrin language, local laws, or how to set up a company may cause problems that delay the opening of a business or result in mistakes during the registration process. These issues may even prevent a company from being able to operate in Montenegro.
Residence permit in Montenegro through business
To obtain a residence permit, a company owner needs a national visa to Montenegro and must be officially employed as a director in his or her own company. To do so, they must first obtain a permit to hire a foreign employee.
The mandatory requirements for candidates to obtain a residence permit through the business registration are:
- A passport valid for at least three months beyond the requested residence permit period;
- No criminal record for more than six months for a criminal offense in Montenegro or the country of origin;
- Proof of sufficient funds to support oneself;
- No entry ban to Montenegro;
- Proof of adress in Montenegro;
- Health insurance policy;
- No threat to the safety or health of local residents.
The following documents are submitted to the immigration department of the Montenegrin police: statutory documents of the company, a copy of the foreign passport, a nostrified diploma, proof of address and finances, a certificate of no criminal record, medical insurance, and an application with a photo. The residence permit registration process takes 2-3 weeks. In order to extend the residence permit after its expiration, you must continue to receive a regular salary and not leave the country for more than 30 days. After five years, if you meet the legal requirements, you can apply for permanent residence. After ten years, you can apply for citizenship.
When filling out and submitting documents, it is important to study the current legislation and its latest amendments.
