How to register a company in Montenegro: A guide for employers

Expand in Montenegro—where low taxes and big opportunities fuel growth.

Montenegro is rapidly emerging as a prime destination for businesses expanding in Europe. With its business-friendly tax system, straightforward company registration, and strategic location, the country offers a compelling mix of affordability and opportunity.

Companies benefit from one of the lowest corporate tax rates in Europe (9–15%), minimal bureaucracy, and growing access to the European market. Additionally, Montenegro boasts a skilled, multilingual workforce and a booming digital and tourism economy, making it an ideal hub for startups and established enterprises alike.

The business benefits of registering your company in Montenegro

In Montenegro, low income-tax rates attract a growing talent pool of tech-savvy, English-speaking.

Here’s why setting up a company in Montenegro could benefit your business:

• Enjoy a flat 9–15% corporate tax rate, significantly lower than in many EU countries.
• Take advantage of competitive income tax rates starting at 9%, benefiting both employers and employees.
• Repatriate profits easily with no withholding tax on dividends for foreign investors.
• Benefit from a standard 21% Value-Added Tax (VAT), reduced rates for specific industries, and exemptions on exports.
• Access additional incentives and tax breaks for industries such as IT, tourism, and renewable energy.
• Expand into Balkan markets with free trade access to Serbia, Bosnia, Albania, and North Macedonia through CEFTA membership.
• Own and operate a business with no restrictions on foreign investors.
• Hire skilled professionals at more affordable rates than in Western Europe.

However, you don’t need to register your business here to hire Montenegro’s top talent. Instead, many companies partner with an Employer of Record (EOR). An EOR helps you grow your teams in the country without establishing a legal entity here. Yet it ensures that you meet all labor, tax, and legal compliances while also reducing your administrative burden.

How is partnering with an Employer of Record (EOR) different from company registration in Montenegro?

When expanding into a new market like Montenegro, an Employer of Record (EOR) can offer some advantages over standard company registration.

Aspect	Standard company registration	Employer of Record (EOR)
Purpose	Establishes a legal entity in Montenegro for full business operations.	Enables companies to hire employees and operate without setting up a legal entity.
Control	Full control over business decisions, operations, and hiring.	Limited control—businesses manage employees, but legal employment is handled by the EOR.
Cost	Higher upfront costs for registration, legal fees, office setup, and taxes.	Lower costs, as companies avoid incorporation fees and administrative expenses.
Compliance	Must comply with local tax laws, employment regulations, and reporting requirements.	The EOR handles all legal, tax, and employment compliance, reducing risk for businesses.
Setup time	Can take weeks or months, depending on bureaucracy and requirements.	Can be set up within days, enabling immediate market entry.
Scalability	Ideal for long-term expansion but less flexible for quick adjustments.	Highly scalable, allowing businesses to test the market, hire flexibly, or exit easily

Which option is best for your business?

• Choose standard company registration if you plan to establish a long-term presence, have multiple employees, and need full control over your business.
• Opt for an EOR if you want to hire quickly, test the market, and avoid complex legal and compliance issues.

Registering your company in Montenegro is fairly straightforward but can limit the speed of your expansion and increase your legal and administrative responsibilities. For companies that want to expand quickly, an Employer of Record (EOR) can offer a more scalable and risk-free alternative.

How an EOR simplifies Montenegro company registration

Here is how an Employer of Record (EOR) can simplify your market entry into  Montenegro:

• Fast and streamlined setup: Expand into Montenegro without setting up a legal entity, saving time and reducing administrative complexity.
• Payroll and tax management: Accurately process salaries, tax deductions, and social contributions, backed by local experts.
• Full compliance with local labor laws: Meet Montenegro’s employment regulations, tax laws, and labor rights requirements, and avoid legal pitfalls.
• Significant cost savings: Eliminate the upfront costs of company registration, legal fees, office space, and ongoing corporate compliance.
• Workforce scalability: Easily hire, expand, or downsize as needed, making an EOR ideal for testing new markets and managing project-based teams.
• Seamless talent acquisition: Tap into Montenegro’s skilled workforce without the complexities of direct hiring. The EOR manages contracts, benefits, and HR administration.
• Risk mitigation and legal protection: Reduce exposure to compliance risks, employee disputes, and penalties by ensuring full regulatory adherence.

Before evaluating whether an EOR is the right choice for your business, let’s explore the the company registration process in Montenegro.

A step-by-step guide to registering your company in Montenegro

With low corporate tax rates (9–15%), 100% foreign ownership, and a straightforward registration process, setting up a company in Montenegro is relatively simple. Businesses can choose from various structures, including Limited Liability Companies (LLC), Joint Stock Companies, and Sole Proprietorships.

Here’s a guide:

Step 1: Choose your business structure

Before registering, decide on the most suitable legal entity based on your business needs:

• Limited Liability Company (LLC – “DOO”): Most common business type; requires at least one shareholder.
  Best for: SMEs, startups, and foreign investors.
• Joint Stock Company (AD): Suitable for large businesses with multiple shareholders.
  Best for: Large corporations and publicly traded companies.
• Sole proprietorship: A simple structure for individual entrepreneurs.
  Best for: Freelancers and small businesses.
• Branch office: Extension of a foreign company in Montenegro.
  Best for: Companies looking to operate under an existing entity.

Step 2: Reserve a business name

• Check name availability through the Montenegrin Business Registry.
• Ensure the name is unique and follows local naming regulations.
• Register the name with the Central Registry of Business Entities (CRBE).

Step 3: Prepare the required documents

To register your company, you’ll need:

• Company founding documents (Articles of Association).
• Identification documents (passport or national ID for shareholders).
• Proof of a registered business address in Montenegro. Bank certificate confirming initial capital deposit (if required).
• Power of attorney (if using a local representative).

Step 4: Register your business with the CRBE

• Submit all required documents to the Central Registry of Business Entities (CRBE).
• Pay the registration fee (varies by business type).
• Receive your registration certificate, usually within a few days to a week.

Step 5: Open a business bank account

• Choose a Montenegrin bank or digital banking provider to open a corporate account.
• Provide company registration details, proof of address, and shareholder information.
• Deposit minimum share capital (if required, varies by business type).

Recommended banking solutions: Erste Bank, CKB Bank, NLB Bank, or Revolut Business for digital-friendly options.

Step 6: Register for taxes and social contributions

• Obtain a Tax Identification Number (PIB) from the Tax Administration of Montenegro.
• Register for Value-Added Tax (VAT) if revenue exceeds the legal threshold.
• Enroll employees in the social security system (mandatory for hiring staff).

Step 7: Obtain business licenses and permits (if required)

• Depending on your industry, you may need additional permits (e.g., tourism, finance, or construction licenses).
• Check with the Montenegrin Chamber of Commerce for sector-specific requirements.

Step 8: Set up payroll and compliance services

• Implement local payroll processing and ensure compliance with labor laws and tax obligations.
• Using a global payroll solution like Multiplier can simplify tax compliance and employee payroll processing.

By following these steps, you can successfully register your company in Montenegro and start operations confidently. Let’s break down how expensive this would be.

What are the costs of company registration in Montenegro?

Understanding the true cost of registering a business in Montenegro is crucial for proper financial planning. Here are the main costs associated with starting a company here.

1. Registration and initial setup costs

These are the mandatory costs incurred when officially establishing your company.

• Company registration fee:
  According to government sources, at the time of publishing this article,
  • The registration fee for a Limited Liability Company (DOO) is €10, and an administrative fee of €12 is required for the announcement in the Official Gazette.
  • For a Joint Stock Company (AD), the registration fee is €50, with the same administrative fee of €12.
• Notary fees: €50–€300 (for document certification and legal agreements).
• Legal services: €500–€2,000 for lawyers or consultants to assist with registration.
• Company seal (if required): €20–€50. (not mandatory)
• Translation and apostille fees: €50–€200 (for foreign documents).

1. Minimum share capital requirements

• Limited Liability Company (LLC – DOO): €1 (minimum), but higher capital may be required based on industry.
• Joint Stock Company (AD): €25,000 minimum share capital.
• Sole proprietorship: No minimum capital required.

1. Annual maintenance and compliance costs

Once registered, businesses must maintain compliance with Montenegro’s regulations.

• Company address renewal: €100–€500 annually (for virtual or physical office space).
• Accounting and bookkeeping services: €100–€300 per month, depending on business size.
• Annual tax filing and reporting: €200–€1,000 (if outsourced).
• Business license renewal (if applicable): €50–€500 annually, depending on the industry.

1. Payroll, taxes, and social contributions

Businesses with employees must comply with Montenegro’s tax and payroll regulations.

• Corporate tax: 9–15% on net profits.
• Value-Added Tax (VAT): 21% (standard rate), 7% (reduced rate) for certain industries.
• Social security contributions: Approximately 30% of an employee’s gross salary (employer’s share).
• Payroll processing fees: €50–€200 per employee per month (if outsourced).

While setting up a business in Montenegro is affordable compared to many European countries, the hidden costs of compliance, payroll, and legal fees can add up.

Companies looking for a low-risk, cost-effective expansion strategy can benefit from an EOR, which provides a simplified, all-inclusive pricing model—allowing businesses to operate in Montenegro without the financial and administrative burden of entity registration.

Comparing costs: Legal entity registration vs. Employer of Record (EOR)

Below is a side-by-side cost comparison to help you make an informed decision.

Cost category	Standard company registration	Employer of Record (EOR)
Setup and registration fees	€1,000–€3,000+ (includes legal, notary, and registration fees)	€0 (No registration needed)
Share capital requirement	€1 (LLC) to €25,000 (Joint Stock Company)	€0 (No capital required)
Business address and office	€100–€500 per year (virtual or physical office)	Included in EOR service
Legal and compliance costs	€1,500–€5,000 per year	Included in EOR service
Payroll and HR administration	€50–€200 per employee per month	Included in EOR service
Corporate tax (9–15%)	Must file and pay	Handled by EOR provider
Accounting and bookkeeping	€100–€300 per month	Included in EOR service
VAT and tax filing	€200–€1,000 annually	Included in EOR service
Employee benefits and social security (≈30%)	Paid & managed by employer	Handled by EOR provider
Scalability and market exit	High costs & legal complexity	Easy entry & exit without liabilities

For companies seeking a cost-effective and low-risk entry into Montenegro, an EOR provides a streamlined alternative to traditional company registration. Instead of managing complex legal and financial obligations, businesses can focus on growth while the EOR handles compliance, payroll, and HR administration—all at a predictable, consolidated cost.

Note: All figures we provide are approximate and may vary based on specific circumstances, service providers, and regional differences within Montenegro. Talk to our team: they will know the latest numbers and can guide you on reducing these expenses with an EOR.

Choose Multiplier for your Montenegro expansion

Expanding your business into Montenegro can be a complex process, but with Multiplier, you can hire, manage, and pay employees seamlessly—without setting up a legal entity. As a trusted Employer of Record (EOR), Multiplier simplifies global expansion by handling payroll, compliance, and HR administration, allowing you to focus on growing your business instead of navigating legal complexities.

Why choose Multiplier as your partner of choice for Montenegro

• Local hiring expertise: Easily hire top talent in Montenegro with fully compliant employment contracts and a smooth onboarding experience.
• Effortless payroll management: Ensure accurate and timely salary payments, tax deductions, and social security contributions—all managed in compliance with Montenegro’s labor laws.
• Comprehensive HR solutions: Manage onboarding, expense tracking, and time-off requests through a centralized, user-friendly platform.
• Compliance assurance: Stay compliant with local labor laws, tax codes, and employment regulations, reducing legal risks and administrative burdens.
• Attractive benefits packages: Offer locally tailored healthcare, insurance, and perks to attract and retain top talent in Montenegro.
• Reliable support: Get dedicated customer support and enjoy the security of enterprise-grade compliance and data protection.

Multiplier takes the hassle out of managing your workforce in Montenegro, letting you focus on driving results and scaling your business. With expert compliance, seamless payroll, and a platform designed for deep operational efficiency, we’re your partner in hassle-free growth.

Take the first step toward EOR-supported expansion in Montenegro. Book a Demo.