1. Starting a Business
in Montenegro
AZ CONSULTING
MONTENEGRO

2. Why to set-up a company in Montenegro
Montenegro is a small tourist-oriented Mediterranean country with a very fast
developing economy.
Its position is congenial lying between Western and Eastern Europe, it offers a
“visa-free” entrance to most of the other countries worldwide and it is
relatively convenient for a company formation and for obtaining a temporary
residence permit.

3. Why to set-up a company in Montenegro
NATO, EURO COINS & FREE TRADE AGREEMENTS
• Montenegro offers a safe environment to investors, having almost completed its
jurney to join NATO (January 2017) and an economical stability having adopted the
Euro currency together with the first EU countries, back in 2002.
• Montenegro offers the right conditions for a productive international business
having signed several agreements, including a free trade agreements with CEFTA,
EFTA, Russia, Turkey, Ucranine, and soon with Belarus and Kazakhstan

4. Why to set-up a company in Montenegro
ECONOMIC COOPERATION AGREEMENTS
• Since re-gaining its independence, Montenegro signed 12 agreements on economic
cooperation: with Bulgaria, China, Hungary, Serbia, Qatar, Turkey, Macedonia,
Slovenia, Azerbaijan, UAE, Czech Republic and the Abruzzo region-Republic of
Italy). In addition to the agreements signed as an independent state, the agreements
signed by the former state unions in which Montenegro was a member (SFRY, SRY,
SMN), which have been consolidated, are also applicable (Cyprus, Austria, Poland).
• The main objective of these agreements is to establish an institutional framework
for cooperation by expanding and improving the economic interests.

5. Why to set-up a company in Montenegro
AGREEMENTS ON DUAL PROMOTION AND PROTECTION OF INVESTMENTS
• These agreements strive to create a stable framework for investment and better use of
economic resources. They define the conditions for investing between countries,
allowing free transfer of funds, the right of subrogation, compensation in the event of
expropriation and settlement of disputes between investors and countries, including
the settlement of disputes between the countries themselves.
• Since re-gaining its independence, Montenegro has signed 10 agreements on
economic cooperation with: Serbia, Czech Republic, Finland, Denmark, Qatar,
Macedonia, Malta, Azerbaijan, UAE and the BENELUX Economic Union.

6. Why to set-up a company in Montenegro
• Montenegro has the lowest requirements
in Europe, as the company authorized
capital can be equal to 1 euro only.
• The tax system in Montenegro consists of:
• corporate income tax;
• personal income tax;
• Value Added Tax (VAT);
• Real Estate transfer tax;
• Social security contributions;
• Excise duties;
• Fees;
• Customs duties.
• The tax system for foreign investors is the
same as for local business entities.
• Corporate income tax amounts to 9%; the
tax rate on personal income is 9% or 13%.
• Upon payment of the corporate income tax,
business entities operating in Montenegro
have the possibility to transfer funds to their
accounts abroad at the end of the year.

7. Why to set-up a company in Montenegro
• Two positive rates of value
added tax (VAT) are applied:
a standard rate of 19% and the
reduced rate of 7%, while the
zero rate applies to: export
transactions and delivery of
medicines and medical devices
that are funded by the Republican
Health Insurance Fund.
• Value added tax is calculated and
paid for:
o delivery of products and services
done for a fee by the taxpayer
within the performance of its
business activities;
o imports of products;
o imports of motor vehicles (new
and pre-owned) is liable to VAT
at the rate of 19%;
o trade in pre-owned passenger
vehicles, motorcycles and vessels
for which the taxpayer was not
entitled to input VAT deduction
upon acquisition is not subject to
VAT; In this case, a special tax is
paid at the rate of 5% by the
buyer;
o trade in land (agricultural,
construction, developed and
undeveloped), is not subject to
VAT.
• The tax rate on Real
Estate transfer is proportional
and amounts to 3% of the tax
base. Trade in real estate is
considered to be all acquisitions
of ownership over real estate in
Montenegro and this area is
thoroughly regulated by the Law
on Real Estate Transfer Tax.

8. Why to set-up a company in Montenegro
• Compulsory social insurance in
Montenegro is paid by the employees,
employers, entrepreneurs and farmers
who are not contributors to
unemployment insurance.
• Contributions for compulsory social
insurance are:
o contribution for compulsory pension
and disability insurance;
o contribution for compulsory health
insurance;
o contribution for unemployment
insurance.
o Contribution rates are different
depending on the category of taxpayers,
and they are defined by the Law on
Compulsory Social Insurance.
• Types of fees in Montenegro, that have
to be paid by investors, are:
o administrative fees;
o court fees;
o utility fees;
o registration fees;
o sojourn fees.
• The basis of the customs system in
Montenegro consists of the Law on
Customs Tariff and the Customs Law.
Customs clearance under this law,
includes receipt of import customs
declaration, inspection of goods and
classification according to the customs
tariff and other tariffs, fixing the
customs basis, amount of customs duties
and other import duties charged on the
goods, collection of fixed customs duty
amounts and other import duties.
• According to the law, investors may be
eligible for exemption from customs
duties.

9. Purchase of Real Estate in Montenegro
• Foreigners in Montenegro have the right to purchase real estate under the conditions fulfilled by domestic
entities and by presenting an identification document. However, according to the Law on Property Relations,
a foreigner can not own natural resources, public goods, agricultural land, forests and forest land, cultural
monuments of great and special importance, real estate in a land-border area up to a depth of one kilometre
and islands, real estate located in an area which was declared by law an area in which foreigners can not have
right of ownership in view of protecting the interests and security of the country.
• Exceptionally, foreigners may also acquire the right of ownership on agricultural land, forests and forest land
having a surface area of up to 5,000 m2, only if a residential building located on that land is subject to the
contract of divestiture (sale, gift, exchange, etc.).
• Foreigners may be entitled to a long-term lease, concession, BOT and other arrangements of public-private
partnership, over the above mentioned real estate.
• By means of legal transactions, foreigners may transfer the right of ownership to domestic persons, as well
as to foreign persons that may acquire the right of ownership.

10. Why AZ CONSULTING Ltd
• We are a multi-platform consulting agency established in 2013 in Montenegro that provides foreign investors,
approaching for the first time or regularly operating in the Montenegrin market, with a proper assistance and advisory.
Our services benefit from an experience gained on the local market in several fields, including Retail, Real Estate and
Finance and offer to local businesses a portfolio of solutions coming from abroad.
• AZ Consulting turns to be a substantial aid to foreign investors and to companies that are keen to delocalize their
production in a fast-developing country with a qualified labour force at low cost, the lowest income tax in Europe, one
of the lowest globally speaking, and several additional benefits provided by the Montenegrin Government in support to
foreign investments.
• AZ Consulting counts on the expertise of its Russian and Italian founders which make of their direct experience a
good use. At AZ Consulting we understand our clients’ needs as we had them first; we prevent potential risks as we
faced them already; we know this market from a foreigner perspective and we know how to interpret it from a local
side. Last but not least, we put our clients first, providing a tailored-made service and a full-time commitment.
Safe, serious, on time, precise, affordable: our clients use these terms to define us.

11. Timetable for the set-up of a Ltd
• To prepare and to sign the preliminary documents at the Notary office 1 day
• To open any Personal bank accounts 1 day
• To prepare the Company Statute ~ 3 days
• To have registered the company to the Central Registry of Business Entities ~ 10 days
• To open any Company bank accounts (once company is established) 1 day
• To obtain a residence and a working permit (for Director and any worker) ~ 30 days
• To obtain a PDV number (once company is established) ~ 5 days
o AVERAGE TIME ESTIMATED: THE TIMINGS VARY BY THE CALENDAR (FESTIVITIES, SEASON, ETC.) TYPE OF COMPANY AND THE SERVICE DELIVERED
o ACTIVITIES ARE HERE LISTED IN A CRONOLOGICAL ORDER

12. The Set-up of a Ltd Company
List of Services
Residence & Working Permits
• Complete Registration at the Commercial Court
• Statut; "Odluka"; gather of all needed docs
• To register the company at Tax Office
• To register the VAT number
• To register the company at the Customs Offices
• Translation and Nostrification of documents*
• Admin.ve expenses; full taxes; corporate stamp
• Notary fees
• Interpreter support
• Company domiciliation
Full Company Set-Up
• Full procedure until the release of the Permits
• Fees / Taxes
• Tutor present at Police and Admin.ve Offices
NON-RECURRING COSTS PAID ONCE AT THE COMPANY SET-UP. THERE WILL BE AN ANNUAL COST FOR THE RENEWAL OF THE PERMITS
* FOR TRANSLATIONS OF “LESS POPULAR” LANGUAGES, COSTS WILL EXCEED. - NOSTRIFICATION OF THE HIGH SCHOOL DOCUMENTS. FOR UNIVERSITY CERTIFICATES THE PRICE WIL BE HIGHER
**RESIDENCE PERMI FOR “JOIN THE FAMILY” IS HALF PRICE, IN ADDITION (EQUAL TO €250,00). – WEDDING CERTIFICATE IS AN EXTRA COST AND DEPENDS ON THE LENGTH OF THE BOOK (ABOUT €25/PAGE) – VAT NOT INCLUDED IF PAID “OUT OF THE POCKET”

13. The Set-up of a Ltd Company
List of Services
• Accounting Service
• Daily activities as Attorneys
• Company Domicile at our Head Office
• Concierge & Seretary service (Mon. - Fri. from 9am to 6pm)
Languages spoken: Italian / English / Russian / Serbian - Montenegrin
• Unlimited use of our premises in Tivat and Podgorica
• On-call service (extra-time, week-ends, holidays)
€ 350,00
(+ 19% VAT)
• Domicile for Director
€ 50,00
(+ 19% VAT)
RECURRENT PAYMENTS ON MONTHLY BASIS
€ 150,00
(+ 19% VAT)