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Opening a branch vs. a subsidiary in Montenegro

Opening a Branch vs. a Subsidiary in Montenegro

Updated on Wednesday 18th January 2017

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Montenegro is a fast developing European country that might be of great interest for foreign investors. Two accessible options for such investors are the opening of a branch in Montenegro or the establishment of a subsidiary. While the latter stands on its own as a separate legal entity, the former relies more on the parent company. The foreign companies which intend to extend their business in this country should call on a law firm in Montenegro for complete legal support and professional guidance. 

Steps for branch establishment in Montenegro

Although it has its own management, a branch cannot take the most important decisions without checking first with the parent company. This is one of the reasons for which in Montenegro, branches inherit in their name the original name of the main company to which it is added the ending branch.
 
In order to open a branch in Montenegro a decision of establishment should be elaborated and signed by the board of the parent company. Consequently, in maximum 30 days, branches will have to be registered in the Montenegrin Registry. Some of the documents which need to be prepared are:
  • the name and the address of the newly established branch;
  • the domain of activity;
  • the name and line of business of the parent company;
  • memorandum of association of the main company;
  • the names of the legal representatives;
  • balance sheet and financial evidence of the parent company.
 
These documents might require translation in as much as the foreign company will need an interpreter to deal with the authorities of the Montenegrin State. The simplest solution for the investor is to employ a law firm in Montenegro to elaborate the required documents and to make sure any eventual language barrier is overcome.

The registration of a subsidiary in Montenegro

The foreign investor who intends to open a subsidiary in Montenegro must choose from the legal structures available in this country. For example for a subsidiary with a capital larger than EUR 25,000, the suitable option would be a joint stock company. For a lesser amount, one can form a limited liability company. If the investor is not very familiar with the Company Law in Montenegro then it would be advisable to work with our lawyers in Montenegro who can help you form the appropriate legal structure in accordance to your objectives and company values. Moreover they will help you prepare the mandatory documentation, and to obtain the required certificates and authorizations. 
 
Don’t hesitate to contact our Montenegro lawyers for a simple and fast opening of a branch or a subsidiary in Montenegro
 

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