PERMIT FOR TEMPORARY AND PERMANENT RESIDENCE OF ALIENS, THE LICENCE FOR WORK OR ESTABLISHMENT OF COMPANIES IN MONTENEGRO

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 investments. 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.

External Trade

Foreign Trade Law was adopted on 21 April 2004. and is fully compliant with the requirements and principles of the World Trade Organization (WTO) and the European Union. This law provides for monitoring flows of goods and capital, open market economy and increasing liberalization of trade in goods and services as well as the equality of all participants in foreign trade. Opportunity for foreign trade given to all persons in accordance with their legal and business capacity.

Customs

Customs legislation is in accordance with the requirements of the World Trade Organization (WTO) and the European Union shall apply from 1 April 2003. Law simplifies customs procedures ie. import-export procedures and introduces documentation for the goods identical to that used in the European Union. Law literally took over provisions of the WTO agreement on customs valuation and rules of origin. Regulation on the Implementation of the Customs Act and some provisions of the law are discussed in detail with attachments that contain both forms of documentation accompanying the goods. The law does not contain provisions on the measures to be applied at the border in order to protect intellectual property rights, but contains the basics for adoption of a bylaw by the Government that this matter was regulated.