Company formation in Montenegro

At a glance

Entity

Limited liability company (društvo sa ograničenom odgovornošću, d.o.o.) — by far the most common vehicle, over 80% of registered entities

Corporate tax

Progressive: 9% on profit up to EUR 100,000; 12% on the slice from EUR 100k to EUR 1.5m; 15% above EUR 1.5m (as of 2026). Standard VAT is 21%.

Incorporation time

~3-7 business days once notarised founding documents and name reservation are in order

Minimum capital

EUR 1 minimum share capital (nominal); the '1 euro company' figure ignores notary, address, banking and accounting costs

Resident director

No resident director or resident shareholder required. A foreigner may be the executive director, but a non-resident executive director must obtain a Montenegrin residence and work permit to actually take up the role.

Audit

Statutory audit follows EU-harmonised size criteria: large and medium-sized companies and public-interest entities are audited; small and micro d.o.o.s are generally exempt. A company is 'large' if it exceeds at least two of: 250 employees, EUR 50m revenue, EUR 25m assets. Confirm current thresholds against the Law on Accounting/Audit before relying on exemption.

Remote set-up

Yes — formation is possible without travelling, via a notarised (and apostilled, depending on country) special power of attorney. Founding documents must be notarised by a Montenegrin notary; if founders are abroad they can be notarised at a Montenegrin embassy/consulate. The new Companies Act (in force from 1 Jan 2026) introduces EU digital-tools provisions, but in practice notarisation and in-person/PoA KYC still apply.

Government fee

Low: roughly EUR 10 CRPS (Central Registry of Business Entities) registration plus ~EUR 12 for the mandatory Official Gazette publication (~EUR 22 total). Notary fees are separate and are the larger real cost.

Best for

This suits founders who want a low-cost EU-candidate base, a flat-ish single-digit headline tax and a residence-permit angle. They should be able to tolerate an administrative and banking environment that is still maturing.

The process

1. Reserve the company name and prepare the founding act/statute with a Montenegrin notary (or via notarised, apostilled power of attorney if acting remotely)
2. Notarise the founding documents and shareholder/director identification (KYC), including apostilled foreign documents
3. File the incorporation with the Central Registry of Business Entities (CRPS); the company gains legal personality on the day of registration
4. Register for tax/VAT (VAT registration where turnover thresholds are met), open a corporate bank account and set up accounting