The Minimum Share Capital in Montenegro
The Minimum Share Capital in MontenegroUpdated on Friday 25th August 2017
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The minimum share capital in Montenegro is the minimum amount of contribution that shareholders must bring into a company as required under the business legislation of Montenegro. The minimum share capital is needed when a company is registered in Montenegro and can change over time. The type of company you want to set up in Montenegro may imply a certain minimum share capital.
Our lawyers in Montenegro can give you extensive information about the share capital regulations.
Montenegrin companies which require a minimum share capital
The limited liability companies (Drutvo s ogranienom odgovornou) and joint stock companies are the most popular business types in Montenegro. Entrepreneurs looking to invest in Montenegro usually choose a limited liability company when starting a business. It can be set up by a single individual, but the total number of them cannot exceed 30. The founders of the limited liability company can also be the shareholders and directors of the company. The minimum share capital of a limited liability company is 1 EUR and it has to be deposited in a bank account during the company incorporation procedures. The liability of the members is limited by their capital contribution to the company.
The joint stock company is specific for large businesses or Montenegrin corporations. There are two types of joint stock companies: private or public. The latter usually lists shares into the Montenegro Stock Exchange. It can be established by a single partner and the minimum share capital is 25,000 EUR. This amount of money has to be paid in at incorporation. Our law firm in Montenegro can guide you through the process of establishing a company and give you details about the share capital requirements.
Companies in Montenegro which don`t require a minimum share capital
According to the Commercial law in Montenegro, there are several types of businesses which don`t need a minimum share capital at registration. These are the following:
• Branch offices – they are established by foreign legal entities and their activities are limited by the scope of the parent`s company business. It does not require a minimum share capital in Montenegro, since it is paid in the country where the parent company is established;
• Representative offices – they are not allowed to engage in profit activities in Montenegro and their purposes are very strictly established by the business legislation;
• Sole traders in Montenegro – are individual businesses where the owner is personally liable for the company assets and debts.
We kindly invite you to contact our attorneys in Montenegro if you want to start a company and need professional assistance in the registration process.