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The Share Capital in Montenegro

The Share Capital in Montenegro

An investor who wishes to open a company in Montenegro needs to take into consideration several aspects regarding the share capital regulations in this country. Our firm is specialized in company formation in Montenegro and can help you understand the principal issues concerning the functioning of share capital for your company.

The importance of the share capital in Montenegro

When your company is already established and functional the share capital represents the funds that you obtain from the stocks you sell. The specific regulations concerning the taxation of the revenues from stock selling fall under the Tax Law in Montenegro. The share capital in Montenegro must be reported on the balance sheet of the company and it is calculated by taking the sum of all the amounts paid initially by the shareholders. The shared equity in Montenegro is an indicator of the financial health of your company and it is calculated by extracting from the total assets of the company the total liabilities. 

Regardless of the type of company you open in Montenegro, you will be liable to the extent of your share contribution to the company. At the opening of a company, you might need support regarding the legal requirements for the share capital. In such situations, it is a good idea to look for help from a specialist in company formation in Montenegro. You can be assisted as well with setting up a corporate bank account necessary for depositing the minimum share capital.

Minimum share capital requirements in Montenegro

In Montenegro the following types of companies require a minimum share capital:

  • – the limited liability company (D.O.O), for which the minimum capital requirement is 1 Euro;
  • – the joint stock company, which requires a minimum share capital of 25. 000 EUR. 

Our specialists in company formation in Montenegro are readily available to assist you in various aspects regarding the share capital in your company. Therefore, feel free to get in touch with our agents when you intend to open a company, so that you can benefit from specialized assistance with all the administrative and legal aspects, including the requirements regarding the minimum share capital. 

In addition to this, you are also welcome to get in touch with our company incorporation consultants if you are interested to get information about online incorporation. Our specialists will not only guide you but also practically assist you with online incorporation.

Montenegrin businesses without minimum share capital requirement

In Montenegro, while registering a company, you are required to have a minimum share capital. But at the same time, some business structures do not require a minimum share capital as per the Commercial law regulating the country. The names and general details of these businesses are given below:

  • –  Sole traders;
  • –  Branch offices;
  • –  Representative offices.

The term sole trader refers to an individual who starts and runs a business by themselves. Being a sole proprietor may be a very lucrative yet difficult type of business to run. People who run sole proprietorships work for themselves. Even though sole traders are allowed to employ other staff members, they are the only ones accountable for the company’s operations. They are actively involved in managing the company and are in charge of the overall business operations.

Secondly, a branch office is a site where a business is operated in addition to the main office. Smaller divisions of various business units, including human resources, marketing, and accounting, make up the majority of branch offices. A branch office often has a branch manager who directly reports and is accountable to the main office. Whereas lastly, a representative office is a business location set up by a corporation to carry out marketing and other non-transactional functions in a foreign nation. They are created in a jurisdiction where the firm does not yet have an operating license. And these offices are not allowed to engage in any profit-generating activities. Companies typically utilize representative offices in other countries to source products. 

All these three business structures are not required to have a minimum share capital in Montenegro. If as a foreigner or a local individual, you are interested in opening any of the above-mentioned three business structures, you are welcome to contact our company formation specialists in Montenegro. Furthermore, you can also get help from our company formation agents if you want to know about the available virtual office packages in Montenegro.