Montenegro Company Formation & Entity Choice

Common entity types

The limited liability company (DOO) is by far the most common vehicle, alongside joint-stock companies and entrepreneur registrations. Companies register with the Central Registry of Business Entities (CRPS).

• Limited liability company (DOO) — Društvo sa ograničenom odgovornošću — most common form; 1 to 30 founders, liability limited to contributions (Company Law (Zakon o privrednim društvima))
• Joint-stock company (AD) — Akcionarsko društvo — share-capital company suited to larger ventures (Company Law (Zakon o privrednim društvima))
• Entrepreneur (preduzetnik) — Sole trader / self-employed registration; taxed under entrepreneurial PIT scale (Company Law (Zakon o privrednim društvima))

Share capital, steps and timeline

A DOO can be formed with nominal share capital and 100% foreign ownership. Incorporation is handled through the CRPS.

• Minimum share capital — DOO — €1 EUR (Company Law (Zakon o privrednim društvima))
• Minimum share capital — AD (joint-stock) — €25,000 EUR ((approx — confirm current statutory minimum)) (Company Law (Zakon o privrednim društvima))
• Registration authority — Central Registry of Business Entities (CRPS), under the Tax Administration (Company Law (Zakon o privrednim društvima))
• Core incorporation steps — Reserve name at CRPS; notarize founding act/agreement and statute; deposit capital in a bank; file with CRPS; obtain Tax ID (PIB) and VAT registration if applicable (Company Law (Zakon o privrednim društvima))
• Typical registration timeline — Approximately 7 to 10 working days for CRPS registration; ~3-4 weeks including bank account and tax setup ((approx — practitioner estimate)) (Company Law (Zakon o privrednim društvima))
• Foreign ownership — 100% foreign ownership permitted; no local partner required (Company Law (Zakon o privrednim društvima))

Core annual compliance

Registered companies must keep statutory accounts, file financial statements and annual tax returns, and maintain a beneficial-ownership record.

• Annual financial statements — Filed annually (typically by end of March of the following year) ((approx — confirm exact statutory filing deadline)) (Accounting Law (Zakon o računovodstvu))
• Annual corporate income tax return — Filed by end of March of the following year (Corporate Profit Tax Law (Zakon o porezu na dobit pravnih lica))
• Beneficial ownership register — Companies must register and maintain beneficial-owner data in the central register (Law on Prevention of Money Laundering and Terrorism Financing (Zakon o sprečavanju pranja novca i finansiranja terorizma))
• VAT registration & monthly returns — Register once turnover exceeds €30,000 over 365 days; file monthly VAT returns (Value Added Tax Law (Zakon o porezu na dodatu vrijednost))