Most foreign investors choose the D.O.O. (limited liability company). It limits personal exposure and is flexible for small-to-mid-sized operations. The statutory minimum share capital is symbolic—one euro—while joint-stock companies (A.D.) require EUR 25,000 and are typically used for larger or fundraising-heavy ventures.

Montenegro maintains a centralized company registry: the Central Registry of Business Entities (CRPS). Incorporations, changes, and filings are handled there under the Company Law. Expect to provide founding documents, pay the fee, and file a unified application; foreign documents require translation (into Montenegrin) and legalization.

Key formation notes

• Single or multi-member D.O.O. permitted; director and shareholder can be the same person.

• A registered office in Montenegro is mandatory.

• Properly prepared originals or authenticated copies are required; foreign documents must be translated and legalized before filing.

Montenegro’s corporate income tax is progressive:

• 9% on profits up to EUR 100,000

• EUR 9,000 + 12% on the amount above EUR 100,000 up to EUR 1,500,000

• EUR 177,000 + 15% on the amount above EUR 1,500,000

That schedule is still competitive regionally, but it makes sloppy transfer pricing, thin capitalization, or casual loss utilization a bad habit. Build a conservative forecast and choose your extract/dividend policy accordingly.

• Standard VAT rate: 21%

• Reduced rates: 7% and 15% (the latter introduced in 2025 for certain supplies)

• Registration threshold: EUR 30,000 rolling over the last 12 months (mandatory above; voluntary below)

For most foreign-owned startups, ignoring VAT until “later” is the classic own goal. Model your first-year turnover realistically—if you will cross EUR 30,000, plan your VAT registration before invoicing. Once registered, expect to stay in the system for at least three years.

The practical route for founders and key staff is the Temporary Residence and Work Permit (TRWP)—a unified “single permit” allowing you to live and work in Montenegro. It’s typically issued for up to one year and renewable. Eligibility hinges on means of subsistence, accommodation, and health coverage; company employees can be sponsored by the local entity.

A common playbook: incorporate the D.O.O., appoint yourself as director or employee, then proceed with TRWP for the principal and—when relevant—dependants. After five years of continuous legal stay, permanent residence becomes possible.

Every operating company will need a local business (giro) account. Banks will expect passports and proof of address for directors/signatories, CVs, specimen signatures, and full company documents (CRPS extract, articles, incorporation decision). Complex structures trigger deeper documentation. Build timing for compliance interviews into your launch plan.

Pro tip: If your structure involves non-resident shareholders or multi-layer chains, compile fresh good-standing/incumbency evidence in advance to avoid a cold start at the teller window.

Leasing preserves cash and speeds entry. It’s also friendlier during the bank account/KYC phase and while you’re testing demand. Scrutinize escalation clauses, fit-out responsibilities, and registration of long leases.

Owning grants control and long-term equity. It also adds upkeep, zoning, and permitting obligations. If you plan to buy, line up a clean corporate structure, clear UBO records, and predictable CIT/VAT treatment before the notary visit.

Montenegro is pro-investment, but not permissive. The rules are clear, the thresholds are predictable, and the cost of getting the order wrong—entity, VAT, banking, permits—is lost time. If you align those pieces up front—especially VAT registration timing, UBO compliance, and TRWP—you’ll find the market not only accessible but quietly efficient.

Ready to move from theory to execution? Book a paid consultation with Relocation Montenegro. We’ll scope your structure, build your filing stack, and guide you from incorporation to residence permits and first payroll—clean, compliant, and fast.