Types of companies in Montenegro

Even though the state of Montenegro is a small country, it offers great opportunities for investment. According to the Act of Companies any legal entity or individual is free to set up international enterprises in the free trade zone of Montenegro. In order to establish a company in Montenegro there are some procedures that need to be complied, including registering the company, which is the most important step.  In Montenegro the institution which incorporates companies is the Company Register held by the Republican Ministry of Finance.

Open a Limited Liability Company in Montenegro
The limited liability company is the most used form of business in Montenegro as it has a rather simple structure and it is used for small to medium sized business activities. The company can be established by one or more legal entities or individuals. It has no minimum required capital, but does require opening a bank account for registration. The liability of the partners is limited to the amount invested in the company. A limited liability company can associate freely with other companies, and must have a Board of Directors to manage the company.

Create a Joint Stock Company in Montenegro
This company type is not as used as the limited liability company as it is designated for business at a larger scale. The Joint Stock company in Montenegro can be founded by at least two individuals who hold limited liability to the company's debts and obligations. The minimum required capital for such a company is EUR 25.000 which should be deposited in a bank account prior to registration. In order to register a joint stock company all the members of the management board must provide their names and social security numbers.

Open a Limited partnership in Montenegro
A limited partnership can be established by at least two members, who become partners in order o conduct joint business activities. There is no minimum capital required in order to establish a partnership in Montenegro as it is not designated for business at a large scale. The limited partnership implies that at least one member is a limited partner, holding a limited liability for the company's debts and obligations, without the right to interfere in the management of the partnership. The general partner is fully liable for the company's debts and obligations to the extent of his or her personal assets, instead being in charge with the management of the partnership.

Create a General Partnership in Montenegro
The general partnership is basically an ordinary partnership in which all the partners are general, bearing full liability for the partnerships' debts and obligations, to the extent of their personal assets. There is no requirement for a minimum capital.

Sole Proprietorship in Montenegro
A sole proprietorship is a company founded by one person and in some cases by married couples. There is no distinction made between the owner and the entity itself. The owner holds full liability for the company's debts and obligations, bearing the responsibility of management.