The joint stock company can be created in accordance with the Company Law of Montenegro and can be used by both local and international investors. It is most suitable for large activities that can be undertaken in various economic sectors.
If you want to establish a joint stock company in Montenegro, our local specialists are at your disposal with tailored support. Discover below the steps to set up such a business entity.
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Steps to open a Montenegrin joint stock company
The procedure of creating a joint stock or public limited liability company is the same as for any other legal form, the only difference being in the incorporation requirements.
Here are the steps to open such a company in Montenegro:
- company name reservation;
- Articles and Memorandum of Association drafting;
- incorporation with the Companies House;
- bank account opening;
- tax and VAT registration.
If the case requires, a Montenegrin joint stock corporation may also be subject to licensing requirements.
Feel free to rely on our company formation agents in Montenegro for assistance in creating the documents required for this type of entity.
Types of joint stock companies in Montenegro
There are two forms of the joint stock company that can be operated in Montenegro:
- the private one;
- the public one.
The difference between them is that the private one cannot trade its shares on the Stock Exchange, while the public one is open to new investors through the sale of shares on the stock market. If you need guidance on how to open a company in Montenegro, our specialists can assist you.
Specific requirements applicable to joint stock companies
Oftentimes, the joint stock corporation is compared to the private limited liability company in Montenegro. Here are the main aspects to consider about the first:
- it requires at least 1 shareholder;
- it must have a board of directors made of at least 3 directors/managers;
- it must also appoint at least 1 auditor upon registration;
- it must have a minimum share capital of EUR 25,000 or the equivalent in any other currency.
This type of business form can be used by both local and foreign investors without the need for the shareholders to be residents of this country.
Our company registration officers in Montenegro can explain the principles under which such an entity can operate, especially since it is mostly used in sectors like banking and insurance.
Documents required to register a joint stock corporation in Montenegro
If you want to establish such a company in Montenegro, you will need to consider the following documents:
- the decision to incorporate the entity or the shareholders’ agreement;
- the bylaws of the future enterprise;
- the decision related to the appointment of company officers, such as directors, chairman of the board, auditor, and secretary.
When it comes to public companies, it will also be required to obtain authorization issued by the Capital Market Commission for the initial issuance of shares and the implementation of the public offering for subscription and payment of shares.
In the case of a private joint stock company, all shares will be purchased at the time of incorporation without a public offering for subscription and share payment.
How long does it take to incorporate a public company in Montenegro?
The registration process of a joint stock company in Montenegro can be divided into several stages with different timeframes, as follows:
- the incorporation with the Trade Register and tax authorities can be completed in 5 to 10 days;
- the opening of the bank account can take about 3 or 4 weeks;
- the total time for registration is about 5 weeks.
If you want to open a joint stock corporation in Montenegro, contact our agents for support.