Open Company Branch or Subsidiary in Montenegro

There are various forms of engaging in business in Montenegro, including setting up companies and branches of foreign companies. A Montenegrin branch is a not considered a separate legal entity from its parent company, which is liable for the debts and obligations of the branch. The incorporation process of a foreign branch is not more complex then for a regular Montenegrin company. However the required documentation is more complex.

Preliminary activities prior to registering a company branch in Montenegro
In order for the branch to be able to commence its activities it must obtain a registration certificate from the Company Registry. This means that the documents required for the registration application have to be prepared and notarized. Also a representative must be authorized through power of attorney to carry out the registration procedures. The company branch must open a bank account in order to deposit the working capital. After these procedures are completed the branch is ready to apply for registration.

Registering a Montenegrin company branch with the Company Registry
Any Montenegrin company wishing to engage in commercial activities must apply for registration at the Company Registry of Montenegro. The founders, or the representative authorized to carry out the incorporation procedure must submit an application containing the prepared documentation. The notarized articles of association of the company must be submitted in the application along with the list of names and addresses of the managing board with their specimen signatures and the power of attorney for the representative. Also the parent company must prove its existence with a registration certificate issued by the relevant institution in the respective foreign country. The legal limit for the registration process is four days, but in practice everything is completed in two days, and the registration certificate is issued in the name of the Montenegrin branch.

After registration the branch must prepare the application for registration with the Tax Authorities. The application must contain the registration certificate of both the parent company and the branch and detailed information on the object of activity of the branch. Also the employees must be registered for social security. However, the Montenegrin branch comes into existence upon issuance of the registration certificate.

Setting up a foreign company branch in Montenegro from abroad
Foreign investment in Montenegro is treasured therefore the government encourages entrepreneurs to invest in many business sectors. In order to set up a foreign-owned branch, a legal representative must be authorized through power of attorney. Also the company must have a permanent office on the territory of Montenegro.

How long does it take to set up a company branch in Montenegro?
The incorporation process is simple and straightforward therefore each procedure is completed in matter of days. Preparing the documents for registration takes about one day and the registration certificate is obtained in two days. Registering for tax purposes and social security takes no longer then four or five working days. A Montenegrin branch is usually incorporated in maximum two weeks.