Business in Montenegro

A self-employed entrepreneur, called preduzetnik, is a natural person who operates under their own name and is liable with their entire assets. A limited liability company, called DOO, is a separate legal entity and can be formed with minimum capital of EUR 1. Other forms include AD, OD, KD, a branch of a foreign company, and the newer SE and EEIG forms under the Companies Law amendments that fully apply from 1 January 2026. The suitable form depends on liability, ownership, management, financing and the planned activity. The registration file normally identifies the legal form, the main activity under the national activity classification, the registered seat, the founding act or articles of association and the persons authorised to represent the business. The Central Registry of Business Entities, known as CRPS, operates within Poreska uprava. Registration of a company creates its legal personality and is connected with general tax registration and a tax identification number, known as PIB. The eFirma and IRMS systems support incorporation, amendments and the issue of extracts and certificates. Since 2026, electronic incorporation also covers new companies, company parts and foreign non-resident founders, with video identification and electronic documents available in the relevant process. A DOO application can require the founding act, articles of association, board consent where applicable and proof of payment. A preduzetnik generally submits identification or a passport, the application and the required fees. Foreign individuals without an IRMS entry may first need advance registration with Poreska uprava through evidencijastranacaulIRMS@tax.gov.me and submission of a passport or residence or work permit before completing the CRPS or portal registration. The decision period is up to five working days for domestic founders and up to ten working days in other cases; practice can be faster, often one or two working days. Official registration costs are not stated consistently across public sources and can change during the electronic-system transition. One Public Services Centre indication lists EUR 5 for Poreska uprava and EUR 3 for Službeni list for a DOO, while a Biznis.gov.me indication lists EUR 10 for preduzetnik registration and EUR 12 for publication. Confirm the current CRPS and IRMS charges before filing. Notary services, a bank account, accounting, fiscal software and sector-specific licences can add to the total. During operation, the business records changes with CRPS, keeps the required company and ownership information, prepares financial statements and submits tax returns through IRMS or Poreska uprava. Companies such as DOO and AD generally have an obligation to register their real owners; preduzetnik is excluded from that register obligation. Real-owner entries and changes are handled through eFirma or IRMS within the applicable eight-day period and without a fee. Fiscalisation covers cash and non-cash sales of goods and services, including the issue of a fiscal receipt through the relevant ROF or SEP setup. Value-added tax rates include a standard rate of 21%, a reduced rate of 7% and a zero rate, but registration thresholds and exemptions require a separate check. Corporate income tax is 9%. The 15% global minimum tax applies only to international groups and large national groups meeting the consolidated EUR 750 million threshold. Support programmes are published by Ministarstvo ekonomskog razvoja through biznis.gov.me/Programi, with applications made through programi.gov.me when a call is open. The 2026 programme covered food and metal production capacity and women’s entrepreneurship, but its 20 July 2026 deadline has passed. Grants, reimbursements, subsidies and training depend on each call and do not create an automatic entitlement. Ownership or management changes, transfers of shares or stocks, status changes, mergers and divisions are recorded through CRPS and can also create tax consequences. A transfer of shares may trigger 15% capital-gains tax for a natural person under the relevant Poreska uprava guidance. A voluntary liquidation uses a decision, CRPS and Službeni list notices, appointment of a liquidator, creditor protection, settlement of obligations and deletion from the register. Insolvency proceedings are handled by Privredni sud Crne Gore through bankruptcy or reorganisation. Permanent inability to pay or over-indebtedness can justify proceedings; payment default for 45 days after maturity together with a complete payment stoppage lasting 30 uninterrupted days is an indicator in the researched framework. A business with debts cannot simply leave the register without addressing them. Employee registration and labour-law matters belong to the employment framework, while banks provide account and payment infrastructure rather than a separate business-registration process. Additional approvals may be required from the responsible professional or local authority for a particular activity.