The registration of business entities in Montenegro is conducted with the Central Register of business entities run by the Tax Administration. The incorporation process can be divided into three steps which are pre-incorporation, incorporation, and post-incorporation. The pre-incorporation phase first begins with developing a corporate structure for their company.
Here are the steps to be taken:
- Develop Articles of Incorporation of the company
- Draw up a Decision on the establishment of the company
- Certify the decision/agreement in 2 copies at the court, or by a notary;
- Extract from the Central Depository Agency. When taking over the extract, it is needed to submit a copy of the identity card of the founder or a certified copy of the passport if the founder is a foreigner.
- A copy of the identity card (if the founder is a Montenegrin national) or a certified copy of passport (if the founder is a foreign national). Certify at the court or by a notary;
Afterward, you will be required to provide a list of three company names to be submitted to the Central Registry of Business Entities of Tax Administration. The name is reserved so that no one else can use it or register their business under the same name.
The incorporation process involves the acquisition of the company’s seal. The seal helps the company to conduct legal businesses and deal with legal issues. A company seal has the registered company name, year of incorporation, company logo and year in which it was filed. The company is then registered with the commercial courts and the Central Registry of Business Entities of Tax Administration.
Upon registration the client gets a registration certificate, tax identification number and Value added tax number and customs authorization. With these, the client can conduct his or her business without being scared of the law enforcers. All that the client needs is to declare the earnings and pay the necessary tax. For those planning to open several businesses under the same name, the registration certificate remains in the head office while the rest get a copy. The business owner is to declare the number of subsidiaries he has and the employees.
There are five post-incorporation steps which include:
- business premises,
- bank account opening,
- tax registration,
- municipality notification, and
- engagement completion.
After the bank account has been opened the forms are submitted for tax registration and the earnings can easily be tracked. The municipality is also notified of the existing business and notification fees paid. Without notification issues with the municipality council would arise whereby the business would end up being closed down especially if necessary payments have not been made. With this, the registration process has been completed.