Holding companies can own one or more subsidiaries and only serve as a holding structure for their subsidiary’s outstanding stock. They often just provide their daughter firms ownership and oversight rather than producing any goods or services themselves. If you want to open a holding company in Montenegro, you can get in touch in touch with our company formation agents. They can help you open a holding company in Montenegro.
Furthermore, if you are seeking help with online incorporation, our company registration specialists can help you.
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A step-by-step guide to opening a holding company in Montenegro
Please find below a general guide about how to open a holding company in Montenegro. Besides this, if you are planning to open a branch in this country, our agents can also guide you through its step-by-step incorporation procedure. Here are the steps to open a Montenegrin holding company:
- Review your company’s requirements: Tax savings and asset protection are two of a holding company’s most popular advantages. The owner of a small business may also benefit from forming a holding company since it can offer asset protection for operating the company’s high-value assets;
- Choose a structure for your company: The corporation and the limited liability company, or LLC, are the two most common types of holding companies. As the form you select could have an impact on your taxes and liability, you should decide which one best suits your needs;
- Business application: Your holding company will be established following the Montenegrin state law and the kind of business form you wish to establish;
- Bank account: The holding company and the operating company must keep separate bank accounts and accounting records to continue operating as independent businesses;
- Invest in the holding firm: You must fund the business to begin investing in the operating company before you begin using the holding company;
- Keep a record of your transactions in accounting: Keep thorough accounting records of the transactions that occur between your operating and holding firms as you run your enterprises. To ensure legal separation between the entities, separate accounting records are essential.
Our company formation agents can guide you further about the vigilant steps that you must take before you open a holding company in Montenegro.
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Regulations of a holding company in Montenegro
Holding companies in Montenegro are regulated by the Companies Act, which sets out the legal framework for the establishment, operation, and dissolution of companies in Montenegro. The Companies Act defines a holding company as a company that has the primary purpose of owning shares in other companies and controlling them. In Montenegro, holding companies are subject to various regulations and requirements, for instance;
Holding companies must be registered with the Central Register of Montenegro. The registration process involves submitting the company’s articles of association, proof of ownership, and other relevant documents. Holding companies are required to have a minimum share capital of €25,000. They must prepare and submit annual financial statements and reports to the Montenegrin Central Register. You should also know that holding companies are subject to corporate income tax on their profits. However, there are certain tax incentives and exemptions available to holding companies, such as the exemption from capital gains tax on the sale of shares. If you are planning to open a holding company in Montenegro, you are required to have a board of directors that is responsible for overseeing the company’s operations and ensuring compliance with relevant laws and regulations.
Overall, holding companies in Montenegro are subject to strict regulations and requirements to ensure transparency, accountability, and proper management of assets. Companies need to seek legal advice and guidance to ensure compliance with the relevant laws and regulations. If you need answers to any questions about the regulations or practical assistance regarding incorporating a holding company, you can get in touch with our Montenegrin company formation agents. They can offer you their expert services in this regard.
Besides this, if you wish to open a D.O.O., get in touch with our agents.
Set up a holding company in Montenegro as a foreigner
If you are interested in opening a holding company in Montenegro, you should know that foreigners can open a holding company here. Montenegro has a favorable business environment and welcomes foreign investors to establish and operate companies in the country. Foreigners can establish a holding company in Montenegro either as a branch of a foreign company or as a separate legal entity. In both cases, the company must be registered with the Central Register of Montenegro and comply with the requirements set out in the Companies Act. To establish a holding company in Montenegro, foreigners must follow the same procedures and requirements as domestic companies. This includes providing documentation such as the company’s articles of association, proof of ownership, and other relevant documents. Additionally, foreigners may need to obtain a work permit or residency permit to live and work in Montenegro.
Foreign investors need to seek legal advice and guidance to ensure compliance with the relevant laws and regulations, as well as to navigate any language or cultural barriers that may arise. As a foreigner, if you are thinking about incorporating a holding company in Montenegro, you are advised to do it with the assistance of our experienced company formation specialists. They will not only provide you with knowledge but also offer you practical assistance throughout the whole company incorporation procedure.
Do foreigners need a work permit to open a holding company in Montenegro?
Yes, foreigners may need a work permit to open a holding company in Montenegro if they plan to live and work in the country as part of their involvement in the company’s operations. The work permit is a document that allows a foreigner to legally work and reside in Montenegro. According to the Law on Employment of Foreigners in Montenegro, foreigners who wish to work in Montenegro must obtain a work permit from the Ministry of Labor and Social Welfare. The work permit is issued for a specific job and employer and is valid for up to one year, with the possibility of renewal.
If you are planning to establish and operate a holding company in Montenegro as a separate legal entity, you may need to apply for a work permit if you intend to take up a managerial or other operational roles in the company. This requirement applies to both EU and non-EU citizens. Foreign investors need to seek legal advice and guidance to understand the specific requirements for obtaining a work permit in Montenegro and to ensure compliance with the relevant laws and regulations. If you need further help regarding opening a holding company in Montenegro, the services of our agents are at your disposal.
If you wish to set up a branch office in Montenegro, our company formation agents can help you.
Features of a holding company
If you are planning to open a holding company in Montenegro, our company incorporation consultants can assist you. Before you incorporate this specific company structure, you can get a general idea about the features of a holding company:
- – Just as establishing an LLC can shield a person’s assets from debts incurred by their firm, establishing a holding company in Montenegro can shield a company from more extensive financial losses;
- – A holding company is a type of autonomous firm that conducts its operations following specific legal regulations for the course of its existence;
- – The assets and equity of the other companies are owned by a holding company, which also typically maintains a record of only the oversight capabilities and potential;
- – A holding company’s primary goal is to manage other businesses, regardless of the type of entity it is, such as a limited liability partnership or perhaps a limited liability company. Holding companies are also able to own many types of properties, such as patents and trademarks.
These are the basic features of a holding company. Keeping in view these points, if you still want to open a holding company in Montenegro, our specialists can help you in this matter. Our company incorporation agents can also assist you if you are planning to purchase a shelf company in this country.
Why open a holding company in Montenegro?
There are various reasons which call for you to open a holding company in Montenegro. For instance;
1. Control over subsidiaries
If you are interested in incorporating a holding company in Montenegro, you should know that a holding company must exercise control over its subsidiaries. But also keep in mind it is not required to possess all of the stock or membership interests in those subsidiaries. This makes it possible for the holding company to take over another business and its assets for less money than if it had bought out all of the subsidiary’s ownership interests. If you are interested in such control over other companies by investing less capital in them, then incorporating a holding company is an option for you.
2. Day-to-day management is not required
If you are a busy person who does have money to invest in different companies, but does not have enough time to look after such investments. Then holding company is an option for you. You are not required to look after your subsidiary’s day-to-day operations. You should know that a holding company may be the owner of companies operating in several unrelated sectors. Even if the holding company’s owners and managers are unaware of such firms, each subsidiary has its own management to handle day-to-day operations. So, your holding company does not require to indulge itself in the daily management of the subsidiaries, and it also lessens the burden of the holding company.
3. Holding companies have less liability
No one likes a liability, and when you are about to choose your company structure, a holding company is a recommended option for you. It has various subsidiaries operating under it, but it is also not liable for the loans of its subsidiaries nor even in case of their liquidation. Separating functioning organizations from the resources subsidiaries utilize creates a liability barrier. So, keep in mind each subsidiary is responsible for its own debts. The assets of the holding company or any other subsidiary operating under a holding company are inaccessible to a subsidiary’s creditor. For instance; one entrepreneur’s shoe company is having financial trouble and is unable to pay its managers and employees. The assets of the subsidiary that owns the show company are subject to a court order, but those of the holding company, the subsidiary that operates the hotel, and the subsidiary that owns the renting apartments are not. So, in this way, each corporate structure is only liable for its problems, others do not have a liability.
If you have further questions regarding what benefits a holding company can offer you, you are welcome to get in touch with our company incorporation consultants.
Montenegro taxation
It is highly suggested that you establish your company in Montenegro if you desire to do so. It is one of the European countries with the lowest tax rates. The Montenegro taxes are listed below:
- – The corporate profit tax (CPT) in Montenegro is 9%;
- – The general withholding tax rate in Montenegro is 9%;
- – The municipal government of Montenegro has the option of imposing a payroll tax of 15% on employee salaries.
Furthermore, if you need information about Montenegrin citizenship by investment, our specialists can assist you. They can offer you guidance about the reliable areas where you can invest to acquire citizenship in Montenegro.
Why do you need the services of an incorporation agent?
As a foreigner, it is not an easy task to incorporate a company in Montenegro. So, it is always recommended to get help from local agents. They have a better understanding of the laws regulating the country. Furthermore, they also have the know-how of the business market. So, if you are planning to open a holding company in Montenegro, the services of our agents are at your disposal. They can help you establish this specific company in the following steps:
- – Establish a holding and its subsidiaries companies;
- – Select the structure of the holding company (i.e limited liability company, corporation, etc.);
- – Apply for incorporation of the holding company according to the state laws;
- – Establish a bank account for your holding company;
- – Fund the holding company to start investing in the subsidiary companies;
- – Keep the records of the holding companies;
- – Operating a holding company and subsidiaries under it;
- – File the taxes of holding and the subsidiary companies.
By following all these steps, our agents can incorporate your holding company in Montenegro. Our agents can also offer you services in other matters related to the holding companies in Montenegro. For instance; a holding company’s management is also in charge of selecting where to put its money in investments. So, you are welcome to rely on our company formation agents to understand how to manage these situations.
However, our agents have also provided a general guide for you here regarding how a holding company can get capital for regulating its operations. The holding company can get the money for its investments by borrowing money or by selling stock stakes it holds or selling equity shares of its subsidiaries. The capital it gets from its subsidiaries in the form of dividends, distributions, interest payments, rent, and payments for any back-office services it may render can also be used to generate income. If you still have questions in this regard, you can ask our agents. They will provide you with comprehensive answers. Besides assisting you with information, our specialists can also offer you their practical services if you need help with incorporating a holding company in Montenegro. Contact our company incorporation experts to help you open a holding company in Montenegro.