TYPES OF COMPANIES:
Limited Liability Company - corresponds to the form LTD and the most present form of the company. May be established by one person or more domestic or foreign legal entities or individuals. Directory
A joint stock company - Initial capital for the establishment of joint stock company is at least 25 000,00 EUR. Shall be established when the collected capital by selling shares. LTD can be transformed into a joint stock company. Directory
All the laws of regulations relating to the establishment, operation and taxation system are in line with European standards, with benefits for foreign investors in order to increase the number of foreign investors.
FOREIGN INVESTOR IS:
- a foreign legal or natural person;
- a company with a share of at least 10% of foreign capital into the equity of the company;
- a company which was founded by a foreign person in Montenegro;
- Montenegrin citizen residing abroad.
A foreign investor is considered to be a person who is on the basis of investments acquired Montenegrin citizenship in accordance with the law.
FORMS OF FOREIGN INVESTMENTS
A foreign investor may be in Montenegro:
- establish a company (alone or with other investors);
- to establish a foreign company;
- acquire shares and shares in the company;
- buy a company.
PRINCIPLES OF FOREIGN INVESTMENT
A foreign investor may, on the territory of Montenegro establish a business organization and invest in the company, on such terms and conditions under which local entities can establish business organizations or invest funds in companies (national treatment), unless this law provides otherwise.
Foreign investor can invest in domestic business organization or only with national legal
or natural person to establish a company for manufacturing and marketing of weapons and military equipment.
A foreign investor can have in a company referred to in paragraph 1 of this article share of more than 49%
equity funds or proprietary rights, or the right to vote.
A foreign investor may invest in an enterprise, in violation of Article 7 of this law only on the basis of approval
The state administration authority for foreign trade (hereinafter: the Ministry), with
obtained an opinion of the state administration in charge of defense.
In the procedure of issuing approval referred to in paragraph 1 of this Article particularly appreciated the quality, type and scope by
Rules on the methodology for assessing the quality of the type and volume of foreign investments referred to in paragraph 2 of this Article
prescribed by the Ministry, within 120 days from the date of entry into force of this Act.
Company for production and trade of arms and military equipment can not negotiate an arrangement
before it gets approval from the Ministry.
Foreign investment in insurance companies, banks and other financial institutions and the free zone shall be made in
accordance with the law.
PROTECTION OF FOREIGN INVESTORS
Assets of foreign investors can not be expropriated, except when the law or on the basis
Act established public interest, for a fee in accordance with the law.
Foreign investor who suffers damage as a result of Rata state of emergency shall be entitled to damages that are not
be lower than the compensation that belongs to the domestic legal and physical person, in accordance with the law.
A foreign investor is entitled to compensation by illegal or improper actions
official or state authority, in accordance with the law.
According to tax law all legal entities which generate revenues in excess of 18,000 €, they are required to register for this tax. Tax (VAT) is the same as for domestic companies and 17% (except for certain areas of food, medicines, computers, etc.), where they were reduced to 9% or exempted from payment.
Income tax is payable at a rate proportional to the amount of 9% of the tax base.
Porez na dohodak fizičkih lica se ne plaća ukoliko je ostvareni godišnji dohodak 785 €, a za kategorije
ličnog dohotka koje premašuju ovaj iznos plaća se od 15% do 23 %.
Law on Property Tax in water flexible rates (by municipalities) ranging from 0.08% to 0.8% compared to the market value of the property.