Montenegro Residency & Company Registration (2024) – Your Ultimate Guide

Montenegro Company Formation and Residency in 2024

A step-by-step guide to achieving Temporary Residence in Montenegro by Company Formation in 2024

Are you an ambitious entrepreneur or remote employee seeking new opportunities in a stunning, low-tax European destination? Look no further! Montenegro is the ideal location to optimize your wealth and enjoy the benefits of a cost-effective lifestyle. In this comprehensive guide, we’ll explore the step-by-step process of obtaining Montenegro residency through company formation, empowering you to capitalize on the country’s unique advantages.

• Montenegro, known as the “Hidden Jewel of the Balkans,” offers an enticing blend of picturesque landscapes, a thriving business environment, and affordable living. It’s no wonder that small to medium-sized business owners, remote workers, and those seeking a second residency outside the EU are flocking to this beautiful country. By forming a company in Montenegro, you’ll gain access to a low-tax jurisdiction, enabling you to maximize your profits and leverage geo-arbitrage to your advantage.
• The Montenegrin government recognizes the potential of foreign investment and has implemented business-friendly policies that foster growth and development. As a result, this emerging economy presents an attractive landscape for entrepreneurs, remote employees, and their families. With a strategic location in southeastern Europe, Montenegro offers unparalleled access to the European market, making it the perfect base for your business and lifestyle aspirations.
• If you’re ready to take the leap and embark on your Montenegro residency journey, our professional services are tailored to guide you through the company registration process, obtain your residence and work permit, and ensure a seamless transition to your new life. With our expertise and support, you’ll be able to focus on what matters most: growing your business and enjoying the unparalleled beauty and opportunities that Montenegro has to offer.

So, are you ready to unlock your potential and embrace the Montenegro residency advantage? Dive into this guide and discover the incredible opportunities that await you in this European gem.

If you are interested in longer-term solutions to relocating to Montenegro, visit the following pages:

• Emigrate to Montenegro: Residence Permit & Tax Residency Guide
• Relocation Services in Montenegro
• 10 Reasons You Should Register a Company in Montenegro in 2024
• Montenegro Residency by Company Formation (2024) – A Comprehensive Step-by-Step Guide
• Montenegro Company Formation & Residency Services – Fully Managed Solution
• Montenegro Residency in 2024 – The Complete Guide

Montenegro Residency by Company Formation 2023

Important Sources and Useful Information

The most important factor in understanding entry, visa, residence and citizenship requirements is having access to correct, reliable and up-to-date information. That’s why we’ve provided with the following list of links to our sources:

• https://www.gov.me/en/article/types-of-visas-2
• The Law on Foreigners (Aliens Act) (Official Gazette of Montenegro, No. 82/08, 56/14, 28/15, 16/16, 12/2018 and 03/2019; ENG version)
• Decree on Visa Regime – (Official Gazette of Montenegro, No 33/19)
• Government of Montenegro information on Citizenship and Residency in Montenegro.
• Ministry of Foreign Affairs 
• https://www.gov.me/en/article/temporary-residence
• https://www.gov.me/en/article/permanent-residence
• https://www.gov.me/en/article/programme-for-attracting-digital-nomads-in-montenegro-adopted
• https://en.wikipedia.org/wiki/Visa_policy_of_Montenegro
• https://www.wikidata.org/wiki/Q7935378
• https://montenegrodigitalnomad.com/residency-in-montenegro
• Montenegro Law on Personal Income Tax – Download the PDF
• Ministry of Finance and Social Welfare of Montenegro, Department of Public Revenues
• Ministry of Foreign Affairs – Agreements on Double Taxation Avoidance treaties
• https://taxsummaries.pwc.com/montenegro/individual/taxes-on-personal-income

Why Choose Montenegro for Residency and Business?

Montenegro offers a myriad of advantages for entrepreneurs, remote workers, and their families. By establishing residency in this strategic location, you’ll enjoy the following benefits:

1. Strategic geographic location: Nestled in southeastern Europe, Montenegro’s prime location offers seamless access to European, Middle Eastern, and African markets, making it the perfect hub for international business operations.
2. Growing economy and investment opportunities: Montenegro’s emerging economy presents lucrative investment opportunities and a competitive edge, driven by its pro-business policies and ambitious development plans.
3. Low taxes and business-friendly environment: Montenegro boasts a 9% to 15% corporate tax rate and a simplified tax system, attracting foreign investors and business owners looking to maximize their profits.
4. High quality of life and affordable living costs: Montenegro offers an exceptional quality of life with its stunning natural landscapes, diverse cultural heritage, and low cost of living, making it an attractive destination for families and individuals alike.

Resource: [link to Montenegro’s government website or investment promotion agency]

Overview of Montenegro Residency by Company Formation

Eligibility Criteria

To qualify for Montenegro residency through company formation, you must fulfill the following requirements:

• Minimum investment requirements: Invest in a local company or establish your own, fulfilling the necessary capital and employment criteria.
• Types of companies eligible for residency: Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs) are the most common structures chosen by foreign investors.
• Proof of financial stability: Provide evidence of your financial resources, demonstrating your ability to support yourself and any dependents.
• Due diligence and background checks: Undergo necessary background checks, including criminal record checks and financial due diligence.

Resource: [https://www.gov.me/en/government-of-montenegro/citizenship-and-residency]

Advantages of Montenegro Residency by Company Formation

Establishing residency in Montenegro through company formation unlocks numerous benefits, including:

• Business incentives and support from the government: Montenegro offers a range of incentives, such as low taxes and streamlined procedures, to foster a supportive business environment.
• Access to the European market: Montenegro’s strategic location and strong trade ties with the EU facilitate access to the European market, driving business growth and expansion.
• Direct access to the Schengen Area: Montenegrin residents can apply for their Schengen visa from inside Montenegro, making it easier to access the Schengen area.
• Possibility of family reunification: Your family members may be eligible to join you in Montenegro, ensuring a smooth transition and an exceptional quality of life.
• Healthcare for you and your family under Montenegro’s national health service.

Resource: [https://mfic.me/montenegro]

Step-by-Step Guide to Montenegro Residency through Company Formation

Step 1 – Company Registration in Montenegro

Our expert team will assist you in registering your company in Montenegro, guiding you through the following steps:

• Choosing the right company structure: We’ll help you select the ideal structure for your business, whether it’s an LLC or JSC.
• Preparing necessary documentation: We’ll ensure that all required documentation is correctly prepared and submitted, streamlining the registration process.
• Registering with the Central Registry of Commercial Entities: We’ll manage your company registration, ensuring compliance with Montenegro’s commercial regulations.
• Opening a bank account: Our team will assist you in opening a corporate bank account with a reputable Montenegrin bank.

Step 2 – Apply for Montenegro Residency

Once your company is registered, we’ll support you in applying for Montenegro residency:

• Gathering required documentation: We’ll help you compile all necessary documents, ensuring a seamless application process.
• Submitting the application: Our team will guide you through the submission of your residency application to the relevant Montenegrin authorities.

Step 3 – Obtain a Work and Residence Permit

After your residency application is approved, we’ll help you secure a work and residence permit:

• Conditions for obtaining a work and residence permit: We’ll ensure that you meet all conditions for obtaining a permit, including company registration and documentation.
• Required documentation: Our team will assist you in gathering all necessary documents for your work and residence permit application.
• The application process and expected timeline: The timeline for complete setup of your company, residence permit issue and accounting setup is usually 4 to 6 weeks.

Resource: [http://montenegrodigitalnomad.com/residency-in-montenegro]

Temporary Residence Permit in Montenegro

Step 4 – Opening Bank Accounts and Accounting

After your residency permit is issued, our team prepares the required paperwork to open your company bank accounts:

• Opening company bank accounts: We’ll ensure that all of the paperwork is completed to allow the opening of your company bank accounts with a local Montenegrin bank.
• Opening personal bank accounts: We will ensure that you can open your Montenegrin personal bank accounts at the same time as your company accounts.
• Accounting and online banking: Our accounting team will set up all of your accounts and ensure that your online banking is ready for you to operate your company regardless of your location.

Resource: [http://montenegrodigitalnomad.com/residency-in-montenegro]

Renewing Your Montenegro Residency

To maintain your residency status in Montenegro, we’ll support you through the annual renewal process:

• Validity period of the initial residence permit is usually 12 months: We’ll inform you about the duration of your initial residence permit and when you need to apply for renewal.
• Renewal process and requirements: Our team will guide you through the renewal process, ensuring that you meet all requirements and submit the necessary documents.

Documents Required for Temporary Residence by Company Formation

For the company incorporation:

• Signed and notarized special power of attorney (SPA)
• Valid passport
• Company name
• Company activities (we can advise)

The special power of attorney needs to be signed and notarized with a Notary Official if made in person in Montenegro.
If the special power of attorney is sent from outside of Montenegro then it needs to be signed and notarized with a Notary Official in the source country (and apostilled depending on the country).
(The special power of attorney does not need to be made in the applicant’s home country.)

For the work/residence permit applications
Founder/Exec director:

• Valid passport with at least 18 months remaining
• Certificate of no criminal record (with apostille) – Less than 6 months old.
• Education diploma and transcript of grades (minimum high school level)
• Proof of accommodation in Montenegro – 12-month accommodation rental contract.

For married spouse:

• Valid passport with at least 18 months remaining
• Certificate of no criminal record (with apostille) – Less than 6 months old.
• Marriage certificate (original with Apostille)
• Proof of accommodation in Montenegro – 12-month accommodation rental contract.

For children under 18:

• Valid passport with at least 18 months remaining
• Birth certificate (original with Apostille)
• Proof of accommodation in Montenegro – 12-month accommodation rental contract.

Complete process for Temporary Residence by Company Formation in Montenegro

Here is a breakdown of the process, in order of events:
(It has been noted where personal attendance is required)

• Client arrives in MNE as a tourist, with a 90 days stay.
• Sign a Power of Attorney with a notary for us to establish the company and file the required paperwork. (Personal attendance – Executive director)

(SPA can be completed and sent from outside Montenegro as described above)

• Company Incorporation – 7 to 15 days
• During this time the client can find an apartment to rent and sign a 12-month lease, also notarised. This lease must include the names and details of all applicants.
• The client takes at least 2 official copies from the notary – 1 for the main applicant, and 1 for family members.
• Executive Director Work Permit Application – 1 Day (Personal attendance – Executive director)
• Executive Director Work Permit Collection – 15 Days later (sometimes longer)

Approximate total time for the Company Incorporation and Executive Director’s permit – 4 weeks (Up to 6 weeks)

When we have collected the Executive Director’s permit we can complete the following:

• Submit family permit applications. (Personal attendance – All family applicants)
• Open company and personal bank account. 1 to 2 days (Personal attendance – Executive director)
• Have all accounting set up.
• When family permits are ready, the spouse will also be able to open a personal bank account by showing their permit in the branch. (Personal attendance – Any bank account applicants)

Approximate total time for all residence permits to be issued – 6 to 8 weeks
It is possible in theory for a whole family to have their residence permits in 6 weeks if everything is perfect in terms of client schedules and there are no delays in the permit processing centers. However, in our experience, a more realistic expectation is between 6 and 8 weeks for a family.

Online Banking
Clients will have access to online banking for their company and personal bank accounts for the purpose of making salary and tax payments, with instructions from the accountant.

In Summary – Company Formation and Residency in Montenegro

Unlocking the potential of Montenegro residency through company formation has never been easier. By partnering with our professional team, you’ll receive expert guidance throughout the company registration, residency application, and permit acquisition processes. Our goal is to ensure your successful transition to life in Montenegro, allowing you to focus on growing your business and enjoying the unparalleled lifestyle this European gem has to offer.
Don’t wait to seize this incredible opportunity. Click the button below to book a consultation call and begin your Montenegro residency journey today. Together, we’ll pave the way for your success in this thriving, low-tax European destination.

Frequently Asked Questions About Montenegro Residency by Company Formation

What is the cost of company registration in Montenegro?

With our complete start to finish service, company registration and residency in Montenegro costs 2100 Euros to:

• Register an LLC in Montenegro
• Obtain a Montenegro Work and Residence Permit
• Open company and personal bank accounts
• Setup all company accounting

Are foreigners allowed to establish a business in Montenegro?

Yes, foreign entrepreneurs can create a limited liability company in Montenegro with a starting capital of just 1 euro. The company must have a minimum of one business owner and one director, who may be the same individual.

What is the corporate tax rate in Montenegro?

As of 07 June 2022, companies operating in Montenegro are subject to a progressive corporate income tax (CIT). Depending on the realized profit of taxpayers, the applicable tax rate ranges between 9% and 15%.

Is foreign income taxed in Montenegro?

Income earned by foreigners in Montenegro is subject to taxation in the country. Tax rates for citizens and foreigners are the same, varying between 9% and 15%.

How can I start a small business in Montenegro?

Follow these steps to start a small business in Montenegro:

1. Verify the availability of your desired company name.
2. Certify the company’s founding agreements.
3. Submit a request application for company formation in Montenegro.
4. Obtain the company’s stamp.
5. Open a bank account within the Montenegrin banking system.

What is Montenegro’s VAT rate?

The standard VAT rate for taxable supplies in Montenegro is 21%. However, some supplies are taxed at a reduced 7% rate (such as bread, milk, books, pharmaceuticals, and computers) and a 0% rate (e.g., export of goods, supply of gasoline for vessels in international traffic).

Is Montenegro considered a tax haven?

Montenegro is widely regarded as a tax haven worldwide thanks to its comparably low rates of corporate and personal income taxation.

What is the average salary in Montenegro?

The average wage in Montenegro increased to 940 EUR/month (1004.123 USD/month) in January 2023. The maximum average wage for employees was 792 EUR/month, and the minimum was 267 EUR/month. Data is published monthly by the Statistical Office.

What is a PIB in Montenegro?

Upon establishing a bank account, the company reports to the tax authority to receive a PIB (taxation identification number) and VAT number (value-added tax).

How much of a salary is taxed in Montenegro?

In Montenegro, personal income tax starts at 9% and increases to 15% on salaries above €1,001/month. A 21% VAT is levied on new goods and services.

What is Montenegro’s ease of doing business ranking?

Montenegro ranks 50th out of 189 economies in the ease of doing business, according to the latest World Bank annual ratings.

Is Montenegro classified as a low-income country?

With a Human Development Index (HDI) of 0.832, Montenegro is considered a highly developed economy by UN definition.

Is living in Montenegro affordable?

Montenegro offers a cost-effective lifestyle, with lower prices for basic products than in many other countries. This includes real estate prices, which range from $915 to $2540 per square meter.