The companies from Montenegro must obey a series of regulations published in the Official Gazette.
For instance, the organization of the companies is stipulated in the Business Organization Law (published in the Official Gazette of Montenegro, number 06/02 dated 8th February 2002, Official Gazette of Montenegro, number 17/07 dated 31st December 2007). Here are described the basic forms a business can take in Montenegro and the way this companies may be registered.
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Types of Companies in Montenegro
There are six business forms available in Montenegro:
- – individual entrepreneur;
- – general partnership;
- – limited partnership;
- – limited liability company;
- – joint stock company;
- – foreign company branches.
All of these companies have the possibility to be registered in the Central Registry, but for the limited liability companies and the joint stocks companies there is a mandatory action in order to receive legal personality. Our specialists in company formation in Montenegro can help you incorporate any of the company types presented above.
The provisions of Business Organization Law in Montenegro
In the Business Organization Law are also stipulated the penalties received for breaking the law.
It is strictly forbidden for a company to perform actions that require a license if the business license was not issued yet, not using the registered name in commercial actions, to perform commercial activities before the minimum share capital was deposited, to intervene in an auditor’s work, not to elect the members of the board in time. Our Montenegro company formation agents can help you comply with these regulations.
There are also regulations regarding the registry that cannot be broken: all the required documents must be deposited on time for registration and any change that might interfere in the company structure must be immediately reported.
Company Liquidation Regulations in Montenegro
The liquidation and the reorganization of companies in Montenegro are regulated by the Law on Business Organization Insolvency (published in the Official gazette of the Republic of Montenegro, numbers 06/02, 01/06).
A case regarding the insolvency of a company is raised by the debtor or the creditors by submitting a Petition to the Court with the following content: the name of the Court, information regarding the petitioner and the debtor (name and address), due date of the claim and it’s value, proving documents, a list with the petition attached documents, a declaration from the creditor stating that the debtor has not paid its dues (this is available only if the creditor has raised the claim).
As a result, the Official Gazette must publish information regarding the claims, the investment of the administrator, information regarding the first meeting of the creditors, the timeframe of filling the claims.
If the Court considers that the creditor claim was wrongly submitted and caused damages to the debtor it may undertake the creditor to pay for this damages.
Our team of company formation exeprts in Montenegro can give you more details about the rules and regulations included in the Company Act. If you wish to start a company in the country, feel free to contact our experienced company registration team in Montenegro.
Foreign investors in need of company formation services in other jurisdictions are invited to contact our partners: Firmengründung in Montenegro and Региситрация компаний Черногорье.