A foundation in Montenegro represents a legal entity established by one or more individuals or legal persons (founders), having the objective to operate a specific non-profit purpose, such as: humanitarian activities, educational events, environmental protection and more. Below, our specialized Montenegrin company formation agents offer a comprehensive guide on the key aspects of setting up and operating a foundation in Montenegro, including registration requirements, documents to prepare and taxation.
| Quick Facts | |
|---|---|
| Applicable legislation | The 1999 Law on Non-Governmental Organizations. |
|
Types of foundations available in Montenegro |
– private foundations, – charities or non-profit foundations, – associations. |
|
Requirement to create private foundations |
The private foundation requires at least one founding member. |
| Condition to create public benefit foundations | At least 3 members are required to create a non-profit foundation. |
| Requirement to have Montenegrin resident members (YES/NO) |
Yes, only in the case of non-profit foundations, at least one of the members must be a Montenegrin resident. |
| Creation document |
Memorandum and Articles of Association. |
| Registration requirements |
Montenegrin foundations must be registered with the Ministry of Public Administration and the Statistical Office. |
| Trade Register incorporation required (YES/NO) |
Only when engaging in commercial activities. |
| Local bank account requirement (YES/NO) |
Yes. |
| Activities permitted |
– charities, – humanitarian, – educational, – research and development, – environment protection, – sport-related activities. |
| Tax registration required (YES/NO) |
Yes. |
| Possibility for foreign NGOs to operate in Montenegro (YES/NO) |
Yes, the Non-Governmental Organizations recognizes foreign foundations. |
| Possibility for foreigners to set up foundations in Montenegro (YES/NO) |
Yes, foreigners are allowed to establish NGOs here. |
| Tax benefits |
Exemptions for incomes obtained from grants, donations, and membership participation are available. |
| Support in creating a foundation in Montenegro (YES/NO) | Yes, you rely on our company formation agents in Montenegro for assistance in setting up an NGO. |
Table of Contents
Types of foundations in Montenegro
As mentioned in Montenegro’s Law on Non-Governmental Organizations, specified in the Official Gazette of Montenegro, Articles No. 39/11, 37/17, foundations in Montenegro present their existence under the broader category of non-governmental organizations (NGOs) operating activities across the country. The main types of foundations that can be established in Montenegro are:
- Private foundations in Montenegro that are established by individuals to support charitable or cultural projects and have a private significance;
- Public-benefit foundations in Montenegro are created to serve broader community needs or social purposes, aiming a non-profit purpose.
Our specialists can offer additional details regarding Montenegro company formation, especially about establishing a Montenegrin foundation, whether is a private or public type of foundation.
Activities of public foundations in Montenegro
Foundations in Montenegro that have the purpose of the public benefit have the obligation to operate in one or more of the following activities:
- humanitarian or charitable aid activities and events;
- educational initiatives across students in Montenegro;
- cultural development and preservation;
- health and medical support operations;
- environmental protection events and activities;
- promotion of human rights publicly ;
- scientific or research activities.
It is also important to mention that Montenegrin foundations are subject to additional supervision operations conducted by the Ministry of Public Administration, which is responsible for NGO registration and monitoring in Montenegro. Our company formation agents can offer effective support to open a foundation in Montenegro under the authority’s requirements.
Below, we have an infographic on this subject:
Requirements to establish a foundation in Montenegro
To legally set up a foundation in Montenegro and fully operate this kind of entity, the following steps are necessary and imposed by the law:
- Drafting Articles of Association, which represents the document that states the purpose, structure, governance, and rules of the foundation;
- Drafting the Deed of Incorporation, which is a notarized declaration stating that the founders started the process of creating the foundation.
- Registration with the Central Register of NGO, which is managed by the Ministry of Public Administration;
- Organizing an appointment of a governing body representing minutes of appointment with the management board;
- Identification of the beneficial owner,s which is required under Montenegro’s anti-money laundering (AML) regulations: proof of income, id, financial records, etc.
The legislation also requires that all documents must be submitted in Montenegrin, and foreign founders may require certified translations and legal representation to successfully open a foundation in Montenegro.
Documentation required to register a foundation in Montenegro
As the registration of the foundation in Montenegro is to be fully completed and legally active, the following documents must be prepared before registration:
- founding act (signed and notarized) of the foundation in Montenegro;
- Articles of Association;
- personal identification of founders (passport copies or national ID);
- proof of registered office in Montenegro;
- minutes from the appointment meeting of the governing body;
- application form for NGO registration in Montenegro.
Our company formation agents can help with the preparation of the documents and other organizational matters in order to set up a foundation in Montenegro in the most effective and legally based way.
Data on NGOs in Montenegro
As of 2024, official data mentions a growing number of NGOs, active or inactive, in Montenegro:
- A total number of 10,998 NGOs were registered with the Ministry of Public Administration;
- 6,691 of these were classified as active NGOs;
- This equates to more than one active NGO per 100 inhabitants.
For more information and support from our company formation agents regarding Montenegro company formation and opening a foundation in Montenegro, especially, do not hesitate to contact us.