Commercial Law in Montenegro
Commercial Law in MontenegroUpdated on Monday 30th January 2023
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The commercial law in Montenegro covers all aspects related to the establishment and function of the companies, the management of the free trade zones and the sector of foreign investment. Several laws comprise the commercial law in Montenegro and some of the most important ones are: the foreign investment law, the law on bills of exchange, the law on free trade zones, the law on investment funds, the law on business organisation and the law on insolvency.
Our lawyers in Montenegro can offer you a detailed presentation of the legal provisions of the commercial law.
The Business Organization Law in Montenegro
The Law on Business Organization was published in the Official Gazette of Montenegro in 2002 and was amended in 2010 and 2011. This law regulates the forms of legal entities pursuing economic activities and their process of registration. Obtaining special permits and licenses by Montenegrin companies is also stipulated within this legal framework. Other aspects envisaged by the Business Organization Law in Montenegro are: the status of legal person, the forms of organization, the definition of a registered office, and the procedure of choosing a name for the company. A pact known as E-2 between Montenegro and the United States of America enables Montenegrin passport holders to get long-term residency permits in the country. The advantages of obtaining Montenegrin citizenship via investment include visa-free travel to 122 nations across the world. This nation is expected to join the EU, which might lead to future visa-free travel to Europe's Schengen Area.
The law on foreign investment in Montenegro
As part of the commercial law in Montenegro, the foreign investment law regulates all aspects related to the modes of foreign investments, the rights and obligations of investors, their legal protection and the ways to promote and attract foreign investment. According to the provision of this law, a foreign investor in Montenegro can do the following:
• Establish any type of company – sole traders, limited liability companies, joint stocks, branches and subsidiaries;
• Acquire interest and shares in this company;
• Purchase an enterprise.
An equal treatment of both domestic and foreign investors is granted through the provisions of this law. Specific measures for the protection of foreign investors are granted: they are not subject to expropriation and if the public interest requires this action, compensation has to be paid in accordance with the law. Compensation of foreign investors is also granted if he/she suffers damage as a result of war or emergency. Our law firm in Montenegro can tell you more about the legislation concerning foreign investment in this country.
The law on investment funds in Montenegro
This law is part of the commercial legislation in Montenegro and was published in the Official Gazette in 2011. It regulates the conditions for the establishment and operations of investment funds and investment funds management companies, the conditions for issue and redemption of investment funds and the transformation of investment units. The purpose of an investment fund is to raise funds for natural persons and Montenegrin companies and invest those funds in securities. The types of investment funds, their organization management and the rights and the obligations of the owners are regulated within this legal framework.
If you want to set up an investment fund and need legal advice or if you want to know more details about the commercial law, don`t hesitate to contact our attorneys in Montenegro.