Starting a Startup in Montenegro: A Practical Guide

Published on October 4, 2025 and written by Cyril Jarnias

Montenegro, a small Balkan country on the Adriatic Sea, has transformed into a true paradise for entrepreneurs since gaining independence in 2006. With its legal framework favorable to foreign investment and dynamic economic environment, Montenegro is attracting more and more startup founders from around the world. In this article, we will explore the reasons that make Montenegro an attractive destination for creating innovative businesses, the most suitable legal structures for launching your startup, as well as the available funding options to support your project’s development.

Montenegro: A Fertile Ground for Innovative Startups

Montenegro has positioned itself as a destination of choice for entrepreneurs seeking opportunities. Several factors contribute to the country’s attractiveness for startup creation:

A Favorable Economic Environment: Since its independence, Montenegro has established a regulatory framework open to foreign investment. Business registration procedures have been simplified, and the government provides legal guarantees to investors. This policy has created a dynamic entrepreneurial ecosystem, attracting more and more innovative project leaders.

Competitive Business Creation Costs: Launching a startup in Montenegro is significantly less expensive than in many other European countries. Business creation fees typically range between $6,000 and $10,000, representing an affordable initial investment for many entrepreneurs.

Advantageous Taxation: Montenegro offers one of the lowest corporate tax rates in Europe, set at only 9%. Additionally, new businesses can benefit from tax exemptions during their first years of operation, significantly reducing the tax burden during startup.

Government Support for Startups: The Montenegrin government has implemented several initiatives to support innovation and the growth of young companies. These measures include creating a specific registry for startups, establishing a controlled testing environment (sandbox) for innovative businesses, and simplified procedures for startups.

A Strategic Geographic Position: Located in the heart of the Balkans, Montenegro offers easy access to Central and Eastern European markets. This advantageous geographic position allows startups to quickly develop in growing markets.

Suitable Legal Structures for Launching Your Startup in Montenegro

Choosing the right legal structure is crucial for your startup’s success in Montenegro. Here are the main options available to you:

Limited Liability Company (DOO): This is the most common legal form for startups in Montenegro. It offers limited liability to partners and provides great flexibility in business management. The minimum required share capital is only 1 euro, making it accessible to most entrepreneurs.

Joint Stock Company (AD): This legal form is more suitable for startups planning rapid growth and considering raising significant funds. It offers greater ease in attracting investors but requires a higher minimum share capital of 25,000 euros.

Sole Proprietorship: This option is ideal for solo entrepreneurs or small startups in the launch phase. It offers great management simplicity but does not provide separation between personal and professional assets.

The startup registration process in Montenegro has been significantly simplified in recent years. Here are the main steps to follow:

• Choose a unique business name and have it validated with the central business registry
• Prepare the company’s articles of association
• Open a bank account and deposit the share capital
• Register with the tax administration and obtain a tax identification number
• Register with social security

The entire process can be completed online via the single business registration portal, significantly reducing delays and administrative costs.

Funding Your Startup’s Development in Montenegro: Available Options

Funding is often the lifeblood for startups. Fortunately, Montenegro offers various options to support the development of your innovative business:

Montenegro Investment and Development Fund (IDF): This public organization is the main source of funding for businesses in Montenegro. It offers reduced-rate loans and guarantees for startups in priority sectors such as innovation, green technologies, and sustainable tourism. Since its creation in 2008, IDF has supported over 400 projects, primarily in the industrial sector.

Government Grants: The Montenegrin government offers various grants to support innovation and entrepreneurship. These aids can cover up to 50% of eligible costs for innovative projects. The Employment Agency of Montenegro also provides funds for new entrepreneurs, particularly for job creation.

Angel Investors: Although the angel investor network is still developing in Montenegro, there are increasing funding opportunities through this channel. These investors bring not only funds but also their expertise and network, which can be valuable for a young startup.

Venture Capital Funds: The venture capital market in Montenegro is still emerging but developing rapidly. Regional funds are beginning to show interest in Montenegrin startups, offering funding opportunities for businesses with high growth potential.

European Funding Programs: As a candidate country for EU membership, Montenegro has access to certain European funding programs. For example, the COSME program (Programme for the Competitiveness of Enterprises and SMEs) offers loan guarantees and venture capital for innovative startups.

Crowdfunding: Although less developed than in Western Europe, crowdfunding is gaining popularity in Montenegro. Local and international platforms allow startups to raise funds from the general public, offering an interesting alternative to traditional funding methods.

It’s important to note that to benefit from these funding options, your startup will generally need to present a solid business plan and demonstrate its innovation and growth potential. Therefore, it’s crucial to properly prepare your funding application and seek assistance from local experts if necessary.

Challenges and Opportunities for Startups in Montenegro

Although Montenegro offers a favorable environment for startups, it’s important to be aware of the specific challenges and opportunities in this market:

Challenges:

• Limited domestic market size: With a population of approximately 620,000, the Montenegrin market is relatively small. Startups must therefore often consider an internationalization strategy from the beginning.
• Access to talent: Although the country has a skilled workforce, competition for the best talent can be tough, particularly in technological fields.
• Developing digital infrastructure: Although the country is heavily investing in its digital infrastructure, some regions may still suffer from connectivity limitations.

Opportunities:

• Growing sectors: Tourism, green technologies, and the digital economy are expanding sectors in Montenegro, offering numerous opportunities for innovative startups.
• European integration: Montenegro’s EU accession process opens new perspectives in terms of access to European markets and funding.
• Quality of life: Montenegro offers an attractive living environment with its beautiful landscapes and relatively low cost of living, which can be an asset for attracting international talent.

To succeed in Montenegro, it’s crucial to understand these challenges and opportunities well and adapt your strategy accordingly. Don’t hesitate to surround yourself with local experts and integrate into the country’s entrepreneurial ecosystem to maximize your chances of success.

Conclusion: Montenegro, A Springboard for Your Innovative Startup

Montenegro is establishing itself as a destination of choice for innovative entrepreneurs seeking an environment conducive to their startup’s development. With its advantageous taxation, simplified business creation procedures, and government support for innovation, the country offers fertile ground for ambitious projects.

The different legal structure options, particularly the limited liability company (DOO), provide great flexibility in structuring your business. Additionally, the numerous available funding sources, ranging from reduced-rate loans to government grants and European funds, offer interesting opportunities to support your startup’s growth.

Although the domestic market is limited, Montenegro can serve as an ideal springboard for regional and European expansion. Growing sectors like sustainable tourism, green technologies, and the digital economy offer numerous opportunities for innovative entrepreneurs.

To maximize your chances of success, it’s crucial to understand the specifics of the Montenegrin market well, integrate into the local entrepreneurial ecosystem, and adopt an internationalization strategy from the beginning. With a well-thought-out approach and good preparation, your startup can fully benefit from the advantages offered by Montenegro and position itself as a key innovation player in the region.