If you want to open a crypto company in Montenegro, you must know that from a legal stance, it will be regarded as an innovative business. Also, it should be noted that there are no specific conditions to obtain a crypto license, or a Virtual Asset Service Provider (VASP) permit in Montenegro.
If you are planning to open a cryptocurrency company in Montenegro, you are welcome to get in touch with our company incorporation agents.
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Characteristics of a cryptocurrency company in Montenegro
There is no clear regulation of the cryptocurrency industry in Montenegro. However, the standards enacted in the nation and Europe should be followed by exchanges and exchangers even when a license for cryptocurrencies has not been awarded. In preparation for its upcoming membership in the EU, Montenegro has updated its financial legislation and included the regulations of the EU.
So, to open a cryptocurrency company in Montenegro, you ought to:
- open a local bank account for business purposes;
- register your cryptocurrency company in Montenegro with a physical office;
- take care of the implementation of AML (Anti-Money Laundering) legislation (this is a Pan-European requirement for recipients of licenses for the cryptocurrency exchange).
- the company must have policies to prevent money laundering and terrorist financing;
- register for Social Security purposes;
- use a public notary to certify the articles of association;
- obtain the taxpayer and VAT number, and also request the registration and customs certificate;
- obtain the business seal;
- register and pay the publication charges;
- inform the inspection authorities that the economic activity has begun;
- given the uncertain prospects for a crypto license in Montenegro, it is desirable to hand over functions between local legal entities.
Bearing in mind all these points, you can open a cryptocurrency company in Montenegro, or our local agents can provide you with practical guidance throughout the incorporation process. Furthermore, online incorporation is also available in Montenegro. All you have to do is choose any company type and interact with our agents. They can perform online incorporation for you.
Steps to register a crypto license in Montenegro
The nature of the assets must be thoroughly analyzed in order to receive a crypto license in Montenegro. Additionally, a precise set of regulatory requirements that the company’s potential license recipient must adhere to must be identified. There are no specific legislative provisions that would govern the requirement of a separate license in this jurisdiction to deal with such assets. An analysis by our experts regarding the type and traits of the cryptocurrency assets used in the transactions that will be carried out is provided below:
- gathering data about a prospective licensee, including its beneficial owners;
- creation of internal policies, risk analysis, and compliance;
- choosing the future licensee’s management and authorized individuals;
- completing registration papers and putting together a packet of paperwork to register a license;
- submission of a bundle of paperwork for a license, with the potential for later information sharing with the regulator;
- if permission is received, a license will be issued.
All these are the steps for registering a crypto license in Montenegro. This virtual form of currency is not completely regulated yet, so, you might face difficulties while getting a crypto license registered. It is recommended that you acquire the services of our company incorporation consultants in Montenegro. They can provide you with comprehensive assistance to help you open a crypto company in Montenegro and also obtain a related license.
Compliance requirements after opening a crypto company in Montenegro
Setting up a Virtual Asset Service Provider in Montenegro implies respecting various regulations. They must ensure these rules are complied with on a continuous basis. As such, VASP license holders will:
- identify and analyze the risks related to the transactions they complete and report them to the Montenegrin Central Bank, Securities Market Commission, or even to the Ministry for Finance;
- develop measures to combat the financing of terrorism;
- identify their clients and monitor their crypto-related activities;
- report on their operations with the relevant authorities;
- appoint one or more officers to ensure it respects the compliance requirements;
- conduct regular training for employees;
- keep and update a list with indicators of suspicious operations and clients;
- maintain records of all transactions and personal information on the customers;
- continuously monitor its operating system.
Our company registration agents in Montenegro can advise on the compliance requirements to respect as a crypto license holder.
Cryptocurrency taxation in Montenegro
The corporate tax rate applicable to crypto companies in Montenegro is levied at progressive rates ranging from 9% to 15% as follows:
- for profits of up to EUR 100,000 the lower rate of 9% applies;
- for profits exceeding EUR 100,000 but lower than EUR 1.5 million, an EUR 9,000 tax is paid plus a 12% rate for income above EUR 100,000;
- for profits above EUR 1.5 million, a tax of EUR 177,000 plus a 15% rate on the income above this amount must be paid.
Legislation applicable to crypto operations in Montenegro
Considering there is no special legislation for VASPs in Montenegro, they will be treated in accordance with the following laws:
- the Innovation Activity Law;
- the Registry of Innovation Activity Rulebook;
- the Law on Incentives for Research and Innovation Development;
- the Rulebook on Closer Conditions for Acquiring the Status of the Beneficiary of Incentive Measures for Development of Research and Innovations.
According to them, VASPs can also benefit from various tax benefits in Montenegro. They depend on the legal form of the company and the business model employed.
If you want to open a company in Montenegro and apply for a VASP license, you can obtain updated information on the applicable laws from our local consultants.
Cryptocurrencies are not currently covered by Montenegro’s anti-money laundering and money transmission regulations. Although the present Prevention of Money Laundering and Financing of Terrorism Act does not directly address cryptocurrencies, a broader interpretation can lead to the conclusion that cryptocurrencies should be covered by the definition of “assets” and as a result be subject to this law.
In 2018, the government introduced the Prevention of Money Laundering and Financing of Terrorism Act Amendments, which, among other things, mandate that all legal and natural persons disclose cryptocurrency transactions over the equivalent of EUR 15,000 in value. These changes have not been adopted yet, though.
However, Montenegro features advanced financial regulations and incorporates EU directives’ guidelines. The implementation of AML (anti-money laundering) legislation should therefore be handled by cryptocurrency platforms (this is a Pan-European requirement for holders of licenses for cryptocurrency exchanges). The Montenegrin cryptocurrency company must have policies to combat money laundering and terrorist financing, internal control rules, technical means of tracking suspicious transactions, etc.
If you have further questions regarding how Montenegrin cryptocurrency companies comply with the anti-money laundering legislation, consult with our agents. They will not only help you set up a cryptocurrency company in Montenegro but also assist you in understanding the related rules and regulations.
Cryptocurrency startup ideas in Montenegro
Businesses in the cryptocurrency space are not just built around creating new coins or mining existing ones. Investors have a variety of chances for startup concepts that will connect with an existing or new bitcoin or blockchain company. They are a complicated skeleton of duties and related services, for instance:
- exchange platforms: A cryptocurrency exchange platform makes it possible for traders to quickly swap and transact with different cryptocurrencies. People can exchange without any restrictions. This has contributed to the cryptocurrency exchange platform’s success;
- crowdfunding: Anyone interested in starting a new business can use the crowdfunding platform to easily raise the necessary money. To put it briefly, the concept of venture capitalism is seen as an alternative to crowdfunding. The investors in this case are not major stockholders; instead, they make a little contribution to the company, which would eventually be repaid;
- cryptocurrency and blockchain consultancy: For Montenegrin business owners who already have a great deal of expertise working with cryptocurrencies, this is a chance to grow a company by offering cryptocurrency and blockchain consultancy to other startups in this domain.
If you are wondering how to initiate these startups in Montenegro, you are welcome to get in touch with our company incorporation experts. They can explain it to you in detail.
Furthermore, you may rely on the assistance of our incorporation specialists if you want to set up a branch in Montenegro. They will give you in-depth instructions on the rules and requirements of a branch in Montenegro.
How can our agents assist you?
In addition to assisting you with the registration and legalization of businesses relating to the Fintech sector, virtual financial products, and non-fiat currencies, our company incorporation agents in Montenegro can complete the necessary documentation for cryptocurrency exchange licenses.
Our experts will choose the jurisdiction for you, create a plan of action, a company, and a tax scheme, and provide assistance with technical and organizational challenges. Their services are at your disposal, you can also get customized services related to the formation of a cryptocurrency company in Montenegro.
Please find below the services of our specialists related to cryptocurrency company incorporation, they will:
- construct a documented foundation for meeting the AML/KYC criteria;
- develop a registration package of paperwork for the organizational form that has been chosen;
- obtain a certificate, and open a bank account;
- create a business strategy with you that will meet Montenegrin standards.
You can also get additional legal protection for cryptocurrency-related activities in Montenegro from our company registration specialists. With the assistance of our agents, you can start working in a promising field legally and without wasting any time or effort.
In addition to helping you establish a crypto company, our agents can also provide you with investment details if you want to immigrate and avail yourself of Montenegro citizenship by investment there. It comes with the benefit of free movement to places like Montenegro, the Schengen Area of Europe, Russia, Turkey, etc. It takes 8-10 months to approve an application for Montenegro citizenship by investment after it is submitted.
Contact our company incorporation experts if you are interested in acquiring a crypto license in Montenegro. They will assist you in all possible means.