How to Register an Entrepreneurship in Montenegro
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Montenegro is a country in the Balkans, on the shore of the Adriatic sea. The capital city is Podgorica, while Cetinje has the status of the old royal capital. The currency used is the euro (€).
Montenegro has recorded great economic development in recent years. It is an attractive investment destination for Russians, Italians, Austrians, etc. The economy is mainly dependent on tourism, as it is a popular destination for summer vacations. If you're interested in starting your own business in Montenegro, becoming an entrepreneur is a good place to start. We have gathered all the information that you need to start your business.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
What's considered entrepreneurship in Montenegro?
Entrepreneurship is a business owned and run by an individual. It is similar to sole traders and proprietorships in other countries. The owner is a natural person, and their liability is not limited.
The entrepreneur is personally responsible for all assets and debts of their business. There are three types of entrepreneurship in Montenegro:
- Crafts business;
- Trade business;
- Hospitality business.
This business form is the easiest to establish and run. It is highly flexible to its changing environment, as the decisions can be made fast and the owner can act promptly.
To operate as an entrepreneur, you have to register with the authorities first. The procedure is similar for all three types.
Registration process: step by step
Step 1: Pay the registration fees
Visit any post office or commercial bank in Montenegro and fill the payment slips. There are two fees that need to be paid: the registration fee of €10 and the municipality fee of €3. An additional €0.4 postal services fee will be charged.
Step 2: Notarise the documents
Go to any authorized notary in Montenegro and ask for signature notarization. Make sure you bring your ID card. The cost of notarization is €2.98 per signature. You will need this when opening a bank account.
Step 3: Register as an entrepreneur
The entity in charge of this step is the Central Registry of Commercial Entities (CRPS). The office is located in Podgorica, Vaka Djurovića street, number 20. Fill out the business registration application for entrepreneurs and submit it, accompanied by a photocopy of your ID card and payment proof. If everything is in order, you will obtain a registration certificate.
Step 4: VAT registration
VAT registration is required if the entrepreneur is expected to have an annual turnover of more than €18,000. It can also be done at CRPS by submitting a VAT registration form.
Step 5: Make a stamp
Now, go to any stamp maker and provide the registration certificate to make an entrepreneur's stamp. This should cost around €20.
Step 6: Open a bank account
Go to any commercial bank in Montenegro and request to set up an account for domestic and an account for international payment operations. You will need the notarized signature, certificate of registration, entrepreneur's seal.
Step 7: Register with municipality
Visit the office in charge of your municipality and ask for a Trade or Crafts registration form. Fill it out and submit.
Step 8: Register with market inspection
In case of trade business, registration at the market inspection office has to be done. Here is the list of local offices.
Visit a tax office in your region and ask for a JPR form and Annex B- Natural person. After obtaining the Employee registration certificate, your business is set and ready to start operating.
Taxes in Montenegro
The income tax in Montenegro is calculated at 9%, and a standard VAT rate is levied at 19% of all goods and services.