Set Up an Insurance Company in Montenegro

Set Up an Insurance Company in Montenegro

Updated on Monday 27th February 2023

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Set-Up-an-Insurance-Company-in-MontenegroForeign investors interested in doing business in Montenegro have various industries they can choose from. The financial one is made of several subsectors, among which insurance represents a good option for foreign entrepreneurs who need to comply with the provisions of the Montenegro Insurance Law. However, there are several laws which need to be respected when setting up an insurance company in Montenegro.

Below, our lawyers in Montenegro explain the requirements and the main steps associated with opening an insurance business here. You can rely on our law firm for assistance in registering and obtaining the licenses for a Montenegro insurance company.


The main laws governing the insurance sector in Montenegro


Both local and foreign investors can open insurance companies in Montenegro, as long as they comply with the following laws:

  1. the Law on Insurance which was created in 2006 and last amended in 2013;
  2. the Company Law which provides for the requirements for starting a business in Montenegro;
  3. the Law on Obligations which is part of the Montenegro Civil Code and which provides for the for the obligation of concluding certain insurance contracts;
  4. the Law on Tax on Insurance Premiums, as insurance companies are required to impose specific premiums based on the type of insurance contracted by a client;
  5. the Law on Bankruptcy and Liquidation of Insurance Companies – these companies are subject to specific bankruptcy and liquidation conditions and procedures.

Even if the legislation on insurance is quite complex, it is quite easy to create an insurance business in Montenegro with the help of our lawyers.


The registration procedure of an insurance company in Montenegro


The registration of an insurance company will be completed with the Montenegro Trade Registrar by following the requirements of the Company Law. It should be noted that the both local and foreign investors under the form of natural persons and companies can establish insurance companies in Montenegro. However, the form an insurance business in Montenegro can be the joint stock company which must contain the designation AD in its name.

As any other business in the financial sector in Montenegro, insurance companies must too comply with specific share capital requirements which must be deposited with prior to registering the company. The shares issued by an insurance company must be registered shares.  Also, the company must have a registered address in Montenegro.

The incorporation procedure of an insurance company can be completed with the help of our Montenegro lawyers. Besides helping you with the incorporation of an insurance company, you can also get in touch with our lawyers if you need residency in Montenegro. Fortunately, Montenegro has a simple company formation procedure. Being the executive director of your own company also fulfills Montenegro's residency requirements. Please get in touch with our lawyers to learn about the other residency related requirements. 


Activities completed by insurance companies in Montenegro


The creation of an insurance company in Montenegro implies respecting the requirements related to the activities such a business can undertake. These will also determine the share capital of the company.

There are two types of activities which can be completed by an insurance company in Montenegro and these are divided into life insurance and non-life insurance activities. A company can select only one type of activity.

The following types of companies can be set up in the insurance sector in Montenegro:

  • insurance agencies;
  • insurance brokerages;
  • reinsurance companies which are usually registered by foreign companies.

With respect to the activities, an insurance company can complete, a life insurance business can be grouped as follows:

  • life insurance;
  • annuity insurance;
  • supplemental insurance;
  • other classes of life insurance.

In the case of non-life insurance companies, the services to be provided are more extensive. Among these, we mention the following:

  • accident insurance;
  • motor vehicle insurance;
  • health insurance;
  • aircraft and vessel insurance;
  • voluntary real estate insurance;
  • general liability insurance;
  • financial loss insurance;
  • travel insurance;
  • other classes of non-life insurance.

No matter the type of activity an insurance company decides to undertake, it will need to obtain an authorization from the Insurance Supervision Authority in Montenegro. Our Montenegro law firm can guide you through the authorization procedure.


Share capital requirements for Montenegro insurance companies


As mentioned above, setting up an insurance company in Montenegro is subject to specific share capital requirements, as follows:

  • non-life insurance companies require at least 2 million euros in share capital;
  • non-life insurance companies can require a 3 million euros capital for activities in Article 9 in the Insurance Law;
  • life insurance companies are subject to a share capital of 3 million euros;
  • reinsurance companies must secure a share capital of at least 3 million euros.

If you need assistance in setting up an insurance business, please contact our Montenegro lawyers.