Company Liquidation in Montenegro

Company Liquidation in Montenegro

Updated on Wednesday 22nd April 2020

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How can a company be liquidated in Montenegro?

If a company has reached its objectives or due to any reason is desired to be liquidated, it must follow the regulations of the Law on Business Organization, the Business Organization Insolvency Law, Law on Bankruptcy and Liquidation of the Insurance Companies, Law on Bankruptcy and Liquidation of the Banks. Our Montenegro lawyers can give you more details about the provisions of this legislation.
The liquidation of a Montenegro company can be voluntary or compulsory. The voluntary decision is taken by the company members, while the decision of compulsory liquidation is taken by the competent Court.
Other method of company liquidation is the shorter voluntary liquidation which can be initiated if there are no liabilities left and the liquidation decision was approved by all the members of the company.

The compulsory company liquidation in Montenegro is taken by the Court which has the role of appointing the liquidator and supervising its actions. 

Our team of attorneys in Montenegro is ready to help businessmen with expert advice whether we are talking about a voluntary or a compulsory company liquidation.

What are the steps for company liquidation in Montenegro?

The decision of liquidation of a company in Montenegro must be registered with the Register of the Commercial Court by the company’s management no later than five days since it was taken. During the general meeting where the decision is taken, an individual or a corporate body must be appointed in order to complete the process of liquidation. His details must also be registered at Register of the Commercial Court.
The liquidator is taking the place of the management board as soon as his details are officially registered. 
His first assignment is to deliver a notification related to the liquidation to the creditors and also to the tax authority. The claims cannot be submitted shorter than 60 days from the written notification. The notification must also be published in a daily newspaper at least two times, with an interval of minim 15 days and maximum 30.
In the notification are stipulated the maximum term of submitting the claims by the creditors. The usual term of submitting the claim is not shorter than 60 days since the publication of the announcement. For the disputed claims, the maximum term of submitting it to the Court is 30 days since it was received.
All the claims submitted after the expiration of the deadline must be satisfied after all the other claims submitted in time are fulfilled. All the remaining assets are divided between the entitled shareholders. A final report related to the way the process was performed and a balance sheet with all the company’s assets must be presented in front of a final meeting of the shareholders. After being approved, a copy of the final report and a request of de-registration must be sent to the Register but not later than 7 days from the meeting. The register is sending a notification of de-registration to the Official Gazette and the company ceases to exist.

How long does it take to liquidate a company in Montenegro?

The process of company liquidation in Montenegro can take from a few weeks (in case of a shorter voluntary liquidation) to several years if the claims are contested or other issues occur. 

Our Montenegro law firm can guide you through the entire company liquidation procedure, making sure that all the financial and legal obligations are being fulfilled. Contact our law office for more information.