A liaison office in Montenegro
is a structure through which a foreign entrepreneur can extend his/her headquarters in Montenegro, in order to check the business opportunities in this country. A liaison office
is also useful for company owners who have already established branches in Montenegro and who need a representative office in this country. Our law firm in Montenegro
can offer you all details regarding the procedure of setting up a liaison office
in this country and can inform you on legal means available for company formation in Montenegro.
If you plan to open a company, you need to comply with the regulations and obligations as per the country's legislation. Our lawyers in Montenegro
can help you understand the company law
which is currently working in the country. With this understanding, you will know the types of companies permissible in this country, their regulations, liabilities, and the related taxes as per the type of the company.
The activities of an Montenegro representative office
A representative office or a liaison office in Montenegro
can have different functions; however it cannot conduct commercial activities. As such a liaison office cannot issue commercial documents such as invoices or sign contracts
with other entities. Its main attribute is to maintain the connection between the headquarters abroad and the local market.
Through a representative office an investor
can perform an analysis of the Montenegro market even if this structure does not actually bring any direct financial gains. A liaison office in Montenegro
can help you in building more efficient collaborations with suppliers or clients in this country. Moreover, entrepreneurs can establish a liaison office in Montenegro
in order to conduct promotional activities.
Our attorneys in Montenegr
o are ready to answer your questions concerning the legal status of a liaison office
in this country and on the type of activities you can conduct in a representative office
in this country.
Furthermore, if you are an investor who needs legal guidance regarding legislation for foreign investments
in Montenegro, you are welcome to get in touch with our knowledgeable lawyers. They will provide you with comprehensive guidance in this regard. Moreover, their legal assistance can help you make rational investment choices. Because investing in a foreign country is quite a tough task, once you understand our lawyer’s legal guidance, it can be an easy decision for you to make.
Incorporation of a representative office in Montenegro
In order to incorporate a liaison office in Montenegro you don’t need to go through the complete registration process required for commercial entities. The Company Registry in Montenegro requires only a name reservation for the representative office and some data concerning the foreign company which it represents.
No taxation rules
apply for liaison offices, since these structures do not deal with financtial transactions related to commercial activities.
In foreign countries, it is crucial to comply with the taxation to avoid any liabilities. Therefore, you can get the legal help of skilled lawyers at our law firm in Montenegro to know if this country has any double taxation avoidance agreement
with your home country. If such an agreement exists, you will be free from paying any extra taxes.
Liaison office vs. branch and subsidiary in Montenegro
A liaison office in Montenegro represents the place of business that serves as a network connection amid principal place of business, also known as the parent company, and entity like branch, which does not engage in any commercial, trading, or industrial activity, either directly or indirectly, and survives on inward revenue received through normal banking channels. If you establish a branch office in Montenegro, you are not obliged to hire a local director. This office operates in the same way as a parent company. Usually, medium enterprises register a branch in this country to take advantage of the great flexibility. This office also protects from liability provided by the branch. Please find below the key facts related to the regulations of a branch or a subsidiary in Montenegro:
- as a subsidiary is an extension of the parent company, any liability on a branch will transfer to the parent company. This may include due debts or other reasonable liabilities;
- if a subsidiary faces any court proceedings in Montenegro, the parent company will take all the responsibilities, whatever happens in the court order;
- although, certain other company types have the obligation of hiring at least one Montenegrin citizen who is a permanent resident. But branches are free from this obligation, and they are not required to hire any local person;
- a subsidiary is considered a non-resident entity in Montenegrin, and it is not considered eligible for grants or tax exemptions, tax incentives. In addition to this, the branch does not qualify for tax exemptions from foreign income or double taxation relief as per the Montenegrin Network of Double Taxation Avoidance Agreements (DTAs);
- as subsidiaries have the same composition as the parent companies, they also undertake the same activities as the relative parent company.
If you are planning to establish a branch office in Montenegro, you must have a locally registered address in this country; please keep in mind it should not be a mailbox address. You can rely on the legal services of our seasoned attorneys if you want to open a liaison office in Montenegro. They can help you understand the features and characteristics of liaison offices in this country.
Moreover, if you want to obtain citizenship by descent i
n this country, you can also get in touch with our attorneys in Montenegro. They can help you in the application and document submission process. It is recommended to acquire legal assistance to avoid any complications and delays in legal proceedings. This step can save your time and energy.
Corporate income tax in Montenegro
The companies and branches that are engaged in monetary activities in Montenegro are obliged to pay tax. Therefore, please find below the corporate income tax (CIT
) rates in this country, according to the Revenue Administration
- Montenegro applies a flat 9% rate of corporate income tax;
- The withholding tax rate in Montenegro is also 9%.
Feel free to contact
our Montenegro lawyers
in order to get a complete picture on what a liaison office
can offer to foreign business owners, and how a representative office
can be established in Montenegro.