Cost of Setting Up a Company in Montenegro

Published on October 4, 2025 and written by Cyril Jarnias

Montenegro is attracting an increasing number of foreign entrepreneurs thanks to its business-friendly environment and competitive costs. If you’re considering starting a business there, it’s crucial to understand the various fees associated with company formation in this Balkan country. This article will guide you through the main costs to anticipate and provide tips to optimize your budget.

Registration Fees: Starting Your Entrepreneurial Journey

The first step to creating your company in Montenegro is officially registering it with the competent authorities. Registration fees are relatively affordable compared to other European countries, making Montenegro attractive to foreign entrepreneurs.

The total cost of registering a company in Montenegro typically ranges between $6,000 and $10,000. This amount covers the various administrative procedures needed to formalize your business:

• Legal publication fees: approximately €250
• Commercial registry registration: variable cost depending on the chosen company type
• Notary fees for drafting and authenticating statutes
• Obtaining a tax identification number
• Opening a professional bank account

It’s important to note that these fees may vary slightly depending on the legal form chosen for your company (LLC, Corporation, etc.) and the complexity of your structure.

The registration process in Montenegro is relatively quick and efficient. On average, it takes between 1 and 2 weeks to prepare all necessary documents, and an additional 5 to 10 days for official registration with the authorities.

Compliance Costs: Staying Within the Rules

Once your company is created, you’ll need to ensure compliance with various legal and regulatory obligations in effect in Montenegro. These compliance costs are essential to keep your business in good standing and avoid potential penalties.

Montenegro’s tax system is relatively advantageous for businesses, with competitive tax rates. Here are the main taxes to consider:

• Corporate tax: 9% to 15% of net profit
• VAT: standard rate of 21%
• Personal income tax: 9% to 15%
• Social contributions: approximately 33% of gross salary
• Property tax: generally less than 0.5% of property value

To ensure compliance with all these tax obligations, it’s recommended to hire a local accountant. The annual cost for bookkeeping and tax return preparation can range between €1,000 and €3,000 depending on the size and complexity of your business.

In addition to tax aspects, you’ll also need to comply with regulations regarding labor law, personal data protection, and safety. These compliance costs may include:

• Staff training on local regulations
• Implementation of compliant internal procedures
• Obtaining specific licenses or permits according to your industry

Initial Investment: Laying Solid Foundations for Your Business

Beyond registration and compliance fees, you’ll need to plan for an initial investment to concretely launch your activity in Montenegro. The amount of this investment can vary considerably depending on your industry and ambitions.

Here are the main expense categories to consider for your initial investment:

• Office rental: prices vary by location, but budget an average of €10 to €20 per square meter per month in major cities
• Equipment and furniture: computers, printers, desks, chairs, etc.
• Website development and marketing tools
• Recruitment and training of initial staff
• Initial inventory if necessary

For a startup or small business, the initial investment in Montenegro can range between €20,000 and €50,000. Of course, this amount can be much higher for more ambitious projects or in certain sectors requiring expensive equipment.

It’s important to note that Montenegro offers interesting opportunities for foreign investors. The country notably offers an investment citizenship program, which allows obtaining a Montenegrin passport by investing at least €250,000 in real estate. Although not directly related to company formation, this can be an additional advantage for some entrepreneurs.

Operational Expenses: Managing Your Business’s Daily Operations

Once your company is created and operational, you’ll need to handle recurring expenses to ensure its proper daily functioning. These operational costs are generally lower in Montenegro than in many Western European countries, which can help improve your profitability.

Here are the main operational expenses to consider:

• Rent and utilities: if you rent offices, budget between €10 and €20 per square meter per month
• Salaries: the average salary in Montenegro is approximately €500 net per month, but can vary depending on skills and experience
• Social contributions: approximately 33% of gross salary
• Electricity, water, internet: budget approximately €100 to €200 per month for a small office
• Professional insurance
• Bank fees
• Marketing and communication

With relatively low cost of living and salaries in Montenegro, your operational expenses can be significantly reduced compared to other European countries. This can help you reach profitability faster or invest more in your business development.

It’s important to note that certain sectors, like tourism or digital services, benefit from a particularly favorable environment in Montenegro. The country seeks to attract innovative businesses and offers interesting opportunities in these fields.

Cost Reduction Strategies: Optimizing Your Budget to Maximize Growth

To maximize your success chances and accelerate your business growth in Montenegro, it’s crucial to optimize your costs from the start. Here are some effective strategies to reduce your expenses without compromising your business quality:

1. Choose coworking: Instead of renting traditional offices, consider working in a coworking space. These spaces are increasingly available in Montenegro, particularly in major cities like Podgorica or Budva. This allows you to benefit from a professional environment at lower cost and meet other entrepreneurs.

2. Outsource certain functions: Rather than hiring full-time staff for all functions, consider outsourcing tasks like accounting, marketing, or IT support. This can significantly reduce your fixed costs.

3. Take advantage of government assistance: Montenegro offers various business support programs, particularly for startups and foreign investors. Check with local authorities to learn about grants or tax benefits you might qualify for.

4. Optimize your taxation: Montenegro’s tax system offers optimization opportunities. Consult a local tax expert to structure your business to minimize your tax burden while remaining perfectly legal.

5. Use digital tools: Prioritize online software solutions (cloud) rather than investing in expensive IT infrastructure. This will reduce your initial costs and provide greater flexibility.

6. Train yourself and your team locally: Instead of hiring expensive foreign experts, invest in training your local team. Montenegro has a qualified and motivated workforce that can quickly develop skills.

7. Negotiate with suppliers: Don’t hesitate to negotiate rates with local suppliers. As a new business, you might get favorable terms, especially if you commit long-term.

By applying these strategies, you can significantly reduce your formation and operating costs in Montenegro, while maximizing your success chances in this promising market.

Conclusion: Montenegro, an Attractive Destination for Bold Entrepreneurs

Creating a company in Montenegro represents an interesting opportunity for entrepreneurs seeking a business-friendly environment and competitive costs. With affordable registration fees, advantageous taxation, and moderate operational expenses, the country offers fertile ground for new business development.

Let’s recap the main advantages of creating a company in Montenegro:

• Competitive registration fees: between $6,000 and $10,000
• Fast formation process: 2 to 3 weeks on average
• Attractive taxation: corporate tax between 9% and 15%
• Moderate operational costs: rents and salaries below European average
• Interesting investment opportunities, particularly in tourism and digital sectors
• Investment citizenship program for entrepreneurs wanting to settle permanently

Although costs are generally advantageous, it’s crucial to properly prepare your project and anticipate all expenses. Careful planning and applying cost optimization strategies will maximize your success chances in this growing market.

Montenegro, with its strategic location at the gates of the European Union, its developing economy, and attractive quality of life, positions itself as a destination of choice for bold entrepreneurs wanting to develop their business in a dynamic environment with controlled costs.