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7 Important Business Regulations in Montenegro

7 Important Business Regulations in Montenegro

Updated on Tuesday 27th June 2017

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Important Business Regulations in Montenegro

Montenegro has been in the last year through a constant process of modernization in terms of corporate legislation and business framework. The preoccupation of this state to attract and facilitate foreign investment in this country is visible from the business regulations which have been adopted in order to encourage medium and small business to develop. You can confidently follow the legal advice provided by our law firm in Montenegro regarding the business regulations in Montenegro and their impact on your enterprise. 
 
Here is a list of the 7 most important regulations when doing business in Montenegro:


1.    Types of companies in Montenegro

The Law on Business Organizations released in 2002 provides the types of companies that a foreign investor can open in Montenegro. This law allows for legal structures very similar with those which function in other European states. The individual entrepreneurship and the limited liability company are one of the most popular choices for small scale enterprises.


2.    Company formation in Montenegro

The Corporate Law regulates the formation and the administration of a new company in this country by foreign businessman investing in Montenegro. They can do business on their own account for the purpose of gainig a profit.


3.    Business licensing in Montenegro

When opening a company in Montenegro, one of the most important business aspects is obtaining the appropriate licenses and permits. Depending on the legislation, Montenegrin companies fall under the provisions of different types of licenses and permits.


4.    Montenegrin companies must obtain a construction permit

The municipality of Podgorica is the authority in charge with implementing the urban development and technical requirements for constructing buildings in Montenegro. According to the Construction Law, the companies have to obtain main project study and fire protection study, pay compensation for utilities provision on construction land, obtain a building permit from the municipality, receive inspection from the Administration for Inspection Affairs during construction and obtain building use permit from the municipality.


5.    Paying taxes in Montenegro

In terms of taxes, the normal VAT rate is 19% but taxes are usually subject to frequent changes due to adoption of new economic policies. According to the Law on Foreign Investment (zakon o stranim investicijama) issued in 2003, the foreign companies are treated by the Montenegro state like local entities, and they bear the same company tax or 9%. By accessing the wide variety of legal services provided by our attorneys in Montenegro you can be sure that your business is in compliance with the most recent schemes adopted by the government in support of foreign investors or with the latest tax regulations.  


6.      Submit to the labor market regulations

The Labor Code stipulates all employment regulations that apply to Montenegrin entrepreneurs when hiring workers, organizing working schedules, improving job quality or drawing employment contracts.


7.    Montenegro as an important trading center

Foreign investors turn to Montenegrin market due to the measures taken by the local government to liberalize the trade regime. Importing and exporting commodities from Montenegro is a rather simple process and there are several trade agreements with the EU facilitating trade in Montenegro.

Please feel free to contact us and discuss your questions with one of our attorneys in Montenegro, who can emphasize to you the most important business regulations in this country and thus help you conduct your commercial activity successfully.

 

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