Holding Company in Montenegro

Holding Company in Montenegro

Updated on Thursday 23rd April 2020

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If you intend to invest in Montenegro, the opening of a holding company is an important step for increasing the security and the good management of your business. By relying on our law firm in Montenegro you can benefit from legal advice and documentation elaboration preliminary to the formation of a holding company in Montenegro.  

Why open a holding company in Montenegro?

According to the legislation in Montenegro, the holding company is defined as a structure that holds shares from several other companies. If you want to invest in Montenegro and become a holding company, what you have to do is to buy a specific amount of assets or stocks from local companies, regardless of their legal structure. Therefore, as a holding company, you will own completely or partially several subsidiaries, which might renounce to any previous power of decision, or on the contrary, might negotiate a certain degree of independence. 
If your holding company owns a subsidiary in proportion of 100%, then you have full property rights on the technology of the subsidiary. On the other hand, in the meantime, your responsibility increases. You have to take into consideration both the pluses and minuses of a total ownership when you enter negotiation with other companies.
As a holding company in Montenegro you will have as well a significant influence on the management of the subsidiaries. You can have power of decision regarding the direction of the subsidiaries, and even if you won’t intervene in the effective production strategy of the goods, you can watch and supervise the growth and development of the subsidiary. The companies that you hold will remain responsible for the daily organization, activity and internal operations. Our lawyers in Montenegro can offer further clarifications regarding the regulations concerning holding companies in this jurisdiction.  
One of the reasons for which many investors choose to open a holding company in Montenegro is the covering that this type of structure provides in case of loss. The eventual bankruptcy of the subsidiaries does not enter the responsibility of the holding company.

Assets owned by a holding company in Montenegro

You might want to know what type of assets you can own as a holding company in Montenegro. The following list contains the available options:
  • Owning shares in several enterprises;
  • Purchasing stocks in limited liability companies or partnerships;
  • Properties, lands or buildings ;
  • Copyright, patent and trademarks;
  • Stocks;
  • Bonds.
When you intend to open a holding company in Montenegro please feel free to contact our  Montenegro lawyers who can offer you the professional legal assistance you need.