TYPES OF BUSINESS ENTITIES IN MONTENEGRO
The Limited Liability Company (Drutvo s ogranienom odgovornou) in Monetnegro can be formed by at least one shareholder but the total number of them cannot exceed 30. The liability of the members of a D.O.O is limited by the contribution to the capital.
A Joint Stock Company (Akcionarsko drutvo) is designed especially for large businesses due to the fact that it requires a high amount of capital (25.000 EUR) and the shares of it can transferable to the public. The major decisions are also taken by the General Meeting of the shareholders but the daily decisions are taken by the Board of Directors appointed by it. An auditor is also appointed in order to check the company’s finances.
The foreign investors which owns a company in another country can open a Montenegro branch if are providing the minimum share capital and if is taking the whole responsibility for its actions.
Other forms of business opened by the foreign companies are the subsidiaries and in research purposes, the representative offices.
INCORPORATION PROCEDURE IN MONTENEGRO
Required documents for company`s registration are:
1. Article of Incorporation (Decision on founding) and minutes from the Session of the Founders
2. the Statute;
3. List of founders, members of a company, managers and members of the board of directors, if they are appointed: a) the first and surnames and any former names; (b) their personal identification number (c) their residential addresses; (d) their citizenship; (e) details of any other directorships, memberships in limited liability companies or partnerships, or other management positions held in Montenegro or elsewhere and the place of registration of such companies if not in Montenegro; name of an executive director; name of the company, address of the seat of the company and address for receiving official correspondence, if they are different; persons authorized to represent the company and information if the representation is collective or individual; a document which would confirm payment of registration fee.
4.Decision on appointing of director and his approval
6.Obtaining company’s seal
The company seal or stamp is a core instrument in company legal transactions. The company orders a seal or stamp upon registering with the Company Registry because it is essential for subsequent company transactions including opening a bank account and registration with Tax Authority. The seal is made on the day it is ordered.
7.Opening a bank account
The companies must open a bank account in order to register with Tax Authority.
Request for opening of the bank account is submitted on the form ZZOUR of the bank, by post or personally, and it has to have the following information:
– Name of the requesting party
– Address of the seat of the company and the telephone
– Name of the account
Besides the form ZZOUR, an entrepreneur has to submit the following documents:
1. A confirmation of the Central Registry of Commercial Entities in Podgorica on registration (validated copy),
2. A contract on opening of the account and keeping the account (is closed in a bank),
3. Notification of MONSTAT on classification of the activities (original document),
4. A card of the deposited signatures (is received in the bank),
5. OP (validation of the signature) a form validated at the Notary
6. A document on tax identification number (PIB) by the Tax Authority of Montenegro,
7. Act of foundation (a copy),
8. Photocopy of IDs of authorized persons of the company
9.Registration with Tax Authority
The company must file a bank account certificate as well as single registration form (JPR) to register the company and its employees with the Tax Administration. Registration is then automatically done with the Employment Bureau, the Pension Fund, and the Health Fund.
WORK PERMIT AND RESIDENCE PERMIT
Upon registration of the company in Central Registry of Commercial Entities in Podgorica, request for obtaining working permit can be submitted with following documents:
- Decision on registration issued by Central Registry of Commercial Entities
- White card (issued by Police when Foreign citizen enters the country)
- Confirmation from the bank on the amount over 300.00 €.
- Contract on lease of the apartment
- Health insurance (international or could be paid in local insurance company)
- The document issued in home country that there are no criminal procedures against the foreign citizen
- Verified Certificate on acquired level of qualification
- Administration fees
On the basis of work permit foreign citizen will obtain temporary residency permit (1 year) that can be extended.