10 reasons to invest in Montenegro
- Stability and safety
Montenegro is known to be a secure state with the big potential due to its political stability and economic resources. The EU integration process ensured market accessibility andprotection of property rights by the rule of law.At the same time, the state is joining NATO which brings strong defense guarantees provided by its legal system to all its members. The policy of Montenegro is committed to ensure collective security system as a basis to accomplish its defense and security goals. Montenegro’s visa regime has been liberalized in order to provide access to Schengen zone countries. At the moment Montenegro is a viable candidate to become an EU member.
- Progressive economic growth and development
Due to the introduction of German mark as the national currency in November 1999, and later the Euro in February 2002, the state has reached great success in ensuring a good business environment attractive for trustworthy foreign investors. Those were very efficient in demonstrating to others that Montenegro is a very interesting investment destination. It became reachable because of a number of economic reforms based on: (I) transparency, (II) financial stability, i.e. Euro as the official currency, (III) reduced degree of business regulation, (IV) moderate level of taxation (tax rate for corporate and personal income is only 9%); (V) free regime of capital flows; (VI) low degree of state interference in the economy (less than 12%). Apart from all these benefits here you find already privatized telecommunication and banking sector, import and services as well as petrol distribution companies. There are still some companies owned by the state but those are to be privatized in the nearest future which will enforce further economic development.
- Strategic geographic location
Montenegro is located on the Balkan Peninsula in the middle of Europe at the distance of around 500 km from Rome and Belgrade, 1500 km from Paris and Berlin, and about 2000 km from Moscow.
- There are 2 international airports: Podgorica and Tivat
- There are 3 sea ports: Bar, Kotor and Zelenika
- There is ferry boat connection: Bar-Bari-Bar, Bar-Ancona-Bar
- There is railway connection (total length of railway is 330km): Bar – Podgorica – Belgrad – Budapest
- Total length of roads is 6000 km
- Hub for regional business
There are several arguments why Montenegro can be the regional business hub for you:
- Currency. There is no hidden inflation due to the usage of Euro as the national currency. It also makes it easy to calculate the consolidated balance sheet and income statements for your companies.
- Transparency. This factor is probably the most significant. Montenegro with its kind and open people and transparent, business-friendly legislation system is a very comfortable place to start a company.
- Financial comfort. There are many private commercial banks and many banks are owned by European groups. It ensures convenience in making business within Montenegro and with other countries.
- Telecommunication. The state is perfectly connected to the rest of the world via optical cables network. And thanks to the fast Internet your business will have no problems with communication.
- Accessibility. There are daily flights to all regional capitals and major cities in Europe which makes it convenient to come to Montenegro for business and vacation. There is a reliable transport system formed by Port of Bar, the railway line Belgrade-Bar and the road network. New highway from North to South of the country is currently in process of construction.
- Flexible taxation system
Taxation system in Montenegro is flat which makes it very simple as opposed to the most countries in the world.
Besides, in Montenegro all major tax rates are lower than in most of the countries of the region and in Europe. Nevertheless the state’s government is trying to make its tax system even more flexible and attractive.
At the moment corporate income as well as personal income tax rate is only 9% which is the lowest level in the whole region. The VAT is at the level of 17% but some categories of goods and services are rated at 7% only.
All investors have a right to remit interest profit and dividend fully without any limitation.
- Business-friendly government
Administrative procedures in Montenegro are clear and open. Business community is able to comment on draft laws which can be found on the Parliament website. Once the Legislation is passed, it is published in the Official Newspaper. All national laws can be found in the local language on the Internet, most of them are also available in English. Practically all the major strategies accepted by the Government of Montenegro are also presented in English.
All companies officially registered in Montenegro are under the Commercial Court’s jurisdiction. The Court has its own computerized registry system and provides public access to information.
There are many laws protecting the rights of foreign investors. According to the Foreign Investment Law, foreign investment companies are given the same legal status and have the same rights and liabilities as local.
There is a choice for a foreign investor of opening a firm in Montenegro or investing in assets of a company. Either way it is done following the same procedures and under the same conditions as applied to the local companies. Foreign citizens also have a right to be CEOs and members of the board within companies according to the Business Organization Law.
- Equal terms for foreigners
Foreign investors are treated equally according to the Law. They are free to establish a new company, invest in it or purchase an existing company or a part of it.
Foreign citizens can have property rights on movable or fixed assets, as well as inheritance rights, the same as citizens of Montenegro. They also have a right of free transfer of assets to foreign or domestic companies and individuals.
The amount of investment is unlimited; foreigners may invest in any business. The one exception is the military industry where foreign investors can only invest up to 49%. But even in this case they can freely transfer all financial and other assets, including profits and dividends. It is easy to ensure an investment project through any national or international investment insurance company.
- High level of life quality
Two places in Montenegro are under UNESCO protection as world heritage sites: the old town of Kotor and Durmitor national park.
People in Montenegro can have quite rich cultural and social life. There are over 1000 sports clubs in the country as well as a great number of restaurants and cafes. Services supporting any leisure or business needs ensure a strong foundation for an excellent quality of life. Not to mention the fact that there are about 240 sunny days in the coastal area. Local healthy organic food is also a good additional advantage.
- Easy business start-up
It is quite easy to register a company in Montenegro. Minimum founding capital is 1€ and all the fees come up to only 22€. The registration process takes only 4 days. If you do not receive a registration certificate within this time you are considered automatically registered. You are also obliged to submit all the registration documents to the Tax Authority, there is a one window system to register in it. You can get your TAX ID and VAT number with a single document, same system works for you to regulate your health care and pension contributions.
- Additional information
In Ulcine area you find many additional advantages for investors, such as: lower labor costs and land prices, multicultural and multiconfessional environment, adequate reserves and supply of drinking water.