The Special Purpose Vehicle (SPV) is a company created by another enterprise with the intention of minimizing potential financial problems. Also known as a Special Purpose Entity (SPE), this type of company can also be created in Montenegro for various reasons.
Below, our company formation agents in Montenegro invite you to discover the main characteristics of SPVs and the reasons for setting up such entities. Clients can rely on us if they want to open SPEs in this country.
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Who can open an SPV company in Montenegro?
There are no restrictions on the shareholders of SPVs in Montenegro, however, this type of entity is often used by foreign companies with large capital seeking to protect their assets from the liability incurred by the ownership of another business. As such, the SPE company is one of the best ways to launch a firm in a new country.
The registration of a SPV company in Montenegro is the same as for any other domestic enterprise, especially since the shareholders will use a local entity for incorporation. Based on this information, the SPE will have:
- its own legal status;
- its own assets;
- its own liabilities.
This way, in case of bankruptcy of the SPV or of the parent company, each of them will be protected from the liabilities of the other.
If you want to open a company in Montenegro and decide on an SPV, you can rely on our local specialists for support.
Legal forms of SPVs in Montenegro
In most cases, an SPE is incorporated as a private limited liability company in Montenegro. For this purpose, the parent company:
- secure a local address;
- provide its details, including proof of registration in the home country;
- ensure the capital of the company, which at the moment is set at 1 euro, however, the parent business will deposit the amount necessary for the SPV’s activities.
It is also possible for the SPE to be registered as a joint stock company, however, in this case, the minimum capital is 25,000 euros.
Once you choose the appropriate form, you can rely on our company registration advisors in Montenegro to draft the necessary paperwork.
Registration authorities
SPV companies in Montenegro can be created to fulfil various purposes. This means that after registering the entity with the Commercial Register, it may need specific business licenses, which may imply further registration with other authorities.
In many countries, SPEs are used for financial activities, specifically for securitization of various types of loans. When used for such operations, the company may need to obtain authorization from the Montenegrin Central Bank.
You can rely on our agents for detailed information on whether SPVs need or not special business permits to operate in Montenegro.
Most common uses of SPVs in Montenegro
There are various reasons to create a SPV in Montenegro, however, they are often used for:
- real estate acquisition and ownership;
- asset distribution;
- startup activities that may be risky for the parent company.
New tax regulations applicable to companies
As any other business, SPV companies in Montenegro will be considered domestic entities. This is why, if you decide on this legal vehicle, you must get acquainted with the latest changes in the tax regulations applicable at a corporate level.
Here they are:
- the corporate tax is now levied at progressive rates, with the lowest of 9% and the highest established at 15%, based on the taxable profit;
- the standard VAT rate remains 21%, however, for certain products and services, a 15% rate was introduced;
- real estate transactions are also taxed at rates ranging from 3% to 6%.
If you want to open SPV company in Montenegro, contact us for support.