As anyone can guess, the Montenegrin economy is quite small. It is an open economy, and most of its trade occurs with the neighboring countries such as Serbia. If you are planning on forming a business in Montenegro, then you should know that the essential commodities in the country include manufactured goods, agricultural goods, raw materials, and transport equipment.
In this article, we will discuss the topic in more detail, so keep on reading if you want to find out more!
let’s get started.
The official statistics
According to MONSTAT, the total external trade in goods last year has reached 3 016.2 million EUR. The total value of exported goods was 415.5 million EUR, while the import was 2600.7 million EUR. As you can see, Montenegro imports many more goods than it exports.
Their strongest partners based on export were Serbia, Hungary and Bosnia and Herzegovina. On the other hand, their main trading partners in imports were Serbia, Germany, and China.
If you’re interested in learning more about the statistics, you can find all the data you need on MONSTAT’s official website. Of course, the 2020 annual data will be available at the end of the year. We can expect to see a completely different statistical situation for 2020, considering the impacts the pandemic had on the Montenegrin economy.
Montenegro is not an EU member, so it has its own Customs regulations. Nonetheless, the country aspires to join the European Union as soon as possible, so they’ve adhered to many of the international trading standards.
Export and import tax rates range from 0% to 30%. There are 14 of them in the system, which can be quite complicated to explain, so we suggest you talk to a legal representative before forming a trading company in Montenegro.
Other than that, Montenegro has entered various international agreements with other countries to simplify the processes of trade. Overall, talking to industry professionals as well as company formation lawyers is the best way to learn about the legal regulations inside of the country.
How to set up a trading business in Montenegro
Now, this can be quite complicated as it depends on various legal factors and your specific situation. First of all, you’ll have to register as a trader and get the necessary licenses. You can engage in trading activities in Montenegro as a sole-trader, a partnership, or even as an LLC, as long as you obtain a VAT number and the other necessary licenses. Some goods may require you to get special licensing just to get them over the border, so keep that in mind.
You should read the law and get in contact with Montenegro-based lawyers for additional help.
The bottom line
Montenegro is a small economy that mostly relies on imports when it comes to international trade. As it aspires to become the next new member of the European Union, you can expect it to broaden its trading capabilities in the near future. Overall, if you are interested in starting a trade business inside of the country, make sure to consult with legal professionals before proceeding.