Montenegrin company forming for Montenegro citizens through investment
Published at: 17/05/2019 05:21 pm
Montenegro is not only the perfect location to obtain a European passport but one of Europe's last low-tax jurisdictions as well, the lowest corporate tax of Europe is only 9%.
How to register an LLC in Montenegro? (Limited Liability Company)
For single or multiple owners, the LLC must be registered at the Central Registry of Business Entities. In the case of a single owner, he or she must submit a notarised "Decision on the Establishment of the Company” form. If there are more than one owners, to submit the notarised "Incorporation Agreement" is a must.
The office will issue the "Certificate of Registration" and the number of registration in one week. After the company receives the Certificate of Registration may start the operation, but officially they should wait 10-15 days until the Official Gazette publishes the information about the new firm. It is essential that the Montenegrin companies must have a local address.
What are the advantages to form a company in Montenegro as a citizen?
- Non-resident individuals pay tax only on their locally sourced income or income attributed to their permanent establishment in Montenegro. The non-residents are also subject to withholding tax on some of the income sourced in Montenegro.
- A legal entity is a tax resident if it is incorporated in Montenegro.
- The shareholders' liability is limited to their share contribution.
- There is no withholding tax on the distribution of income between Montenegrin companies; it can be a useful tool for tax deferral.
- There is no minimum capital in Montenegro for company forming.
- One sole shareholder is enough; the same person can be the Montenegrin company's director as well.
- The euro is the official currency.
Taxes of the Montenegro company
One of the most attractive features of Montenegro is the 9% corporate tax. This rate is the lowest in Europe, sharing the first position in the most competitive business tax ranking with Hungary. In addition, non-resident citizens of Montenegro do not pay personal taxes on their foreign sourced income. It means that you can maintain your Montenegro citizenship, living in another country and Montenegro does not impose the corporate or individual tax on your income derived in other countries. However, if you rent out your qualifying residential real estate for the citizenship, the situation will be different, please read our related post.
Discus Holdings Ltd is an official agent of Montenegro Citizenship by Investment programme. Ask for a free consultation about the citizenship by investment programme and company forming in Montenegro.