Rights of Foreign Investors in Montenegro

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The government of Montenegro allows for foreign business owners to own 100% of his/her company – which is one of its greatest advantages of company formation in Montenegro because it allows the foreign investor to have the space to organize and structure the company without the need to find a local businessman to join into a partnership.

A 49% to 51% company ownership split is usually expected when forming a company in a foreign jurisdiction – and the split swings in the favor of the local business owner who will be the owner of 51% of the company.  And yes, one would be correct in thinking that this, while understandable, is not entirely fair on the foreign investor.

Not only will the business owner not have majority ownership of the new company, but there will be an additional stepping stone on the complicated path of company formation that puts the company at risk.  Do you know a reliable businessman in the jurisdiction you are wanting to form your company in?  Choosing a business partner in your home country is a difficult task at the best of times, let alone finding a business partner in an unfamiliar country. Fortunately, in Montenegro, you won’t need to.

Montenegro considers both local and foreign investors in Montenegro to be equal in the eyes of the law.  This has resulted in a favorable business environment for everyone who wants to form a company in Montenegro.

Foreign business owners in Montenegro are entitled to own 100% of his/her company.  Foreign investors have the privilege of being treated the same as the local population of Montenegro.  Foreign investors are free to behave in the same way as local investors, which is a substantial advantage for those who are interested in forming a company in Montenegro.

Let’s take a closer look at who is considered to be a foreign investor in the eyes of Montenegro’s legal system and the benefits that come with being a foreign investor in Montenegro.

Foreign investors in Montenegro, as stated in Montenegro’s foreign investment law, refer to:

  • A citizen of Montenegro who has a residence in a foreign country;
  • A foreign legal entity or individual;
  • A legal entity which has at least 10% share of foreign capital in the total entity’s capital or a legal entity that is established in Montenegro by a foreign person;

Montenegro, by law, states that a foreign investor may establish or purchase an enterprise and obtain interest and shares in a legal entity.

Benefits granted to foreign investors in Montenegro:

  • Private ownership is protected by the Constitution in Montenegro and stipulates that foreign investors and local investors shall receive equal treatment ;
  • Foreign investors can own 100% of a company;
  • Foreign investors can own land in Montenegro;
  • Foreign investors can participate in privatization processes in Montenegro.

The benefits that a foreign investor receives extend beyond owning 100% of his/her company.  Foreign investors can also buy and own land in Montenegro.  These are crucial factors when it comes to opening your business quickly and running your business in the way that you choose.

In short, Montenegro offers foreign investors simplicity and freedom with an uncomplicated company formation process with as few steps and red tape as possible.  Choose freedom, choose Montenegro.

Stevan. M

Stevan. M

Stevan is a Montenegro based writer and consultant

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