Bringing Your Business to Montenegro: Customs, VAT, and the Strategic Advantage of Relocating Your Operations

TL;DR: Setting up a company in Montenegro is fast, low-cost, and foreigner-friendly. The most common structure is a D.O.O. (limited liability company) with just €1 required share capital. Registration goes through the Central Registry of Business Entities (CRPS), typically within a week once documents are ready. Corporate tax ranges from 9–15%, VAT is 21% with new 15% and 7% reduced rates, and residence/work permits can be tied to your business. Montenegro’s simple rules, affordable labor costs, and EU-aligned reforms make it a strong base for regional or global expansion.
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Starting a Business in Montenegro

Montenegro has become one of the most appealing countries in Europe for entrepreneurs and investors who want an efficient, low-tax environment and access to European markets. The process is direct, transparent, and designed to welcome foreign founders.

Below is a step-by-step breakdown of how to establish a company in Montenegro — covering entity selection, registration, tax and VAT, hiring, permits, and banking.

Choose the Right Business Structure

The limited liability company (D.O.O.) is the go-to structure for most foreign founders. It provides liability protection, simple management, and very low capital requirements.

  • Can be founded by one or more people (up to 30).

  • A single person can be both the shareholder and director.

  • Minimum share capital is €1.

Other options include:

  • Joint-stock company (A.D.) — minimum share capital €25,000; suited for larger or public operations.

  • Sole proprietorship (preduzetnik) — simple and inexpensive but offers no liability protection.

Register with the Central Registry (CRPS)

Company formation is done through the Central Registry of Business Entities (CRPS).
You’ll need to prepare:

  • The company name and description of activities

  • A registered address in Montenegro

  • Founding act (Articles of Association or decision)

  • Director and shareholder information

  • Proof of beneficial ownership (UBO registration)

Foreign documents must be translated into Montenegrin and properly legalized.
Electronic filing is available, and registration typically finalizes within a few business days once the paperwork is in order.

Note: Montenegro adopted a new Companies Act in 2025, effective January 1, 2026, bringing its laws closer to EU standards. New naming and governance rules will apply, so prepare documentation with that in mind.

Timeline and Practical Expectations
Once documents are ready, registration usually takes about five working days.
Including translation and notarization, the full process often spans 1–3 weeks from start to finish.
Taxation and VAT in Montenegro

Montenegro applies a progressive corporate income tax (CIT):

  • 9% on profits up to €100,000

  • €9,000 + 12% on profits from €100,000.01 to €1,500,000

  • €177,000 + 15% on profits above €1,500,000

The standard VAT rate is 21%, with reduced rates of 15% and 7% for specific goods and services introduced in 2025.

VAT registration becomes mandatory once your annual turnover exceeds €30,000, but many businesses register voluntarily to recover input VAT.

Hiring and Payroll Rules

As of October 2024, Montenegro introduced clear salary standards that remain valid through 2025:

  • €600 net/month minimum for positions requiring education levels I–V (up to high school).

  • €800 net/month minimum for positions requiring higher education (level VI and above).

Employers must ensure compliant employment contracts, contributions, and filings. These figures are also used to structure founder or manager salaries for residence permits.

Residence and Work Permits

Foreigners operating or managing a Montenegrin company for more than 90 days must obtain a temporary residence and work permit.
This can be applied for as a unified procedure and typically requires:

  • Company registration documents

  • Proof of financial means

  • Accommodation confirmation

  • Valid health insurance

Employers are required to notify authorities about any changes or terminations related to foreign staff.

Opening a Corporate Bank Account

Banks will request:

  • Certified passports of directors and shareholders

  • CRPS company registration extract

  • Founding documents and UBO details

  • Notarized translations of foreign documents

Some banks may also ask for a basic business plan or confirmation of local business activity. While the legal minimum share capital is €1, depositing a larger amount often speeds up account approval and builds credibility.

Choosing a Location

  • Podgorica — administrative and financial center; ideal for service or tech firms.

  • Budva, Kotor, and Tivat — best for hospitality, yachting, and tourism-related businesses.
    Each company must have a registered office address in Montenegro, regardless of whether the business operates from there daily.

Compliance Checklist (First 90 Days)
✅ CRPS registration completed
✅ UBO information submitted
✅ Tax and VAT accounts opened
✅ Payroll aligned with current minimum wage standards
✅ Residence/work permits initiated
✅ Bank account operational
Looking Ahead
The new Companies Act, entering into force in 2026, will align Montenegro further with EU business norms. It introduces updated naming conventions, governance procedures, and digital filing standards. Businesses formed in late 2025 should prepare their documents to meet these upcoming standards from the start.
FAQ
Frequently asked questions
We have put together some commonly asked questions.
What is the easiest company type for a foreigner?
A D.O.O. (limited liability company) — it’s simple, low-cost, and allows full foreign ownership.
What is the minimum capital requirement?
Just €1, though contributing more is advisable for banking and credibility reasons.

How long does the registration take?
Usually about one week, depending on document preparation and translation time.

When do I register for VAT?

Once your turnover exceeds €30,000 in 12 months. The standard VAT rate is 21%, with reduced 15% and 7% rates for certain sectors.

What is the corporate tax rate?
Between 9% and 15%, depending on your company’s annual profit.
Can I get residency through my company?
Yes. Owners and key employees can obtain temporary residence and work permits through the business.

Summary and Next Step

Montenegro offers an easy path to business ownership, competitive taxes, and fast company registration. With the right setup, you can launch a fully compliant company within weeks and start trading confidently in a market that bridges the EU and the Balkans.

To streamline the process, schedule a paid consultation with Relocation Montenegro — we’ll guide you through company formation, VAT registration, banking, and residence permits from start to finish.