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Montenegro’s Foreign Investment Law

Published at: 08.12.2023.
Montenegro’s Foreign Investment Law

Montenegro’s Foreign Investment Law, which was adopted by the Parliament in 2011 (changes and addition in 2017, new Law in 2019), establishes the framework for investment in Montenegro. The law eliminates previous investment restrictions, extends national treatment to foreign investors, allows for the transfer and repatriation of profits and dividends, provides guarantees against expropriation, and allows for customs duty waivers for equipment imported as capital-in-kind. There are no limits on foreign control and right to private ownership or on establishing companies in Montenegro.

The Foreign Investment Law recognizes 4 types of companies within its regulation:

  • Limited liability company;
  • Joint stock Company;
  • Montenegro branch office;
  • Montenegro representative office.

Limited liability companiesare the most common types of business for foreign investors and entrepreneurs because they allow for a single individual to be a director and a shareholder at the same time, regardless of nationality or residency.

Joint stock companiesare designed for large businesses that require a starting capital of 25.000 euros. This amount has to be deposited into the company’s account during incorporation.

The Montenegro branchoption is intended for foreign investors who already own a company in another country. Other forms of business opened by a foreign company, either as a subsidiary or for research purposes, area representative office.

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