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Montenegro was recognized as an independent sovereign principality at the Congress of Berlin in 1878. After World War I, during which Montenegro fought on the side of the Allies, Montenegro was absorbed by the Kingdom of Serbs, Croats, and Slovenes, which became the Kingdom of Yugoslavia in 1929; at the conclusion of World War II, it became a constituent republic of the Socialist Federal Republic of Yugoslavia. When the latter dissolved in 1992, Montenegro federated with Serbia, creating the Federal Republic of Yugoslavia and, after 2003, shifting to a looser State Union of Serbia and Montenegro. In May 2006, Montenegro invoked its right under the Constitutional Charter of Serbia and Montenegro to hold a referendum on independence from the state union.

Montenegro is a tiny country in the Balkans with its major cities located on the Adriatic shore, opposite Southern Italy. Montenegro company has some evident advantages and, of course, some drawbacks, which we describe below.

The pros:

  • Montenegro is not an offshore jurisdiction, but a company in Montenegro has the lowest taxation in Europe - 9% on declared profit (personal profit tax is also 9%). Although it is located in Europe, it is not a EU member, which means there's no information exchange with EU (and no automatic exchange of financial account information).
  • The company is easy to incorporate and maintain, incorporation can be done remotely, minimum capital is 1 euro only, initial and ongoing costs are incomparably lower than in any EU country. Local currency is euro so there's no loss during wire transfers. The company can obtain VAT. Bank account can be opened within 20 minutes.
  • A company director or/and employee gets temporary residency in Montenegro.

The cons:

  • All the information related to the company founder and director is public. Nominees are not available as the local legislation provides that company director is fully responsible for all company activities.
  • Although the company can be registered remotely, the company director will have to visit Montenegro to apply for a temporary residence permit (we will help with the procedure) and to open a corporate account. The company will need accounting support (we will provide accounting services).

As you can see the cons can be disregarded if you need an affordable business vehicle with a bank account in euro zone allowing certain level of privacy. We will provide full support for your company including incorporation, account opening, obtaining VAT number, application for a temporary residence permit and ongoing accounting.

If you believe a company in Montenegro can help you in your business, please ask for details. We will be happy to advise.

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A company and a bank account in Montenegro