Establishing a Montenegro subsidiary is the first step to working in the country. Once you have a registered entity, you’re ready to hire team members, start running payroll, and administer compensation and benefits. That said, it could take you anywhere from a few weeks up to a year to complete the Montenegro subsidiary setup process.
G-P offers an easier way to expand to new locations. As an Employer of Record (EOR), we streamline the time-consuming and complex processes required to build global teams, including offering the compensation and benefits that comply with the country’s laws – all without requiring entity setup.
How to set up a Montenegro subsidiary
Several considerations can significantly impact the time requirement and nature of the incorporation process. For example, your location can impact costs and availability since different regions or cities often have their own Montenegro subsidiary laws. It’s best to work with a consultant who can help you find the best location within the country if you’re not familiar with the area.
Another important factor is your type of entity. Montenegro allows you to incorporate as one of several different kinds of entities, including a private limited company, public limited company, branch, and more. However, most companies incorporate as a private limited company, also known as a limited liability company (LLC), for flexibility and benefits.
Establishing your LLC involves the following steps:
- Choosing a unique trade name that’s different from your parent company’s name
- Verifying your chosen name for authenticity
- Drafting a Memorandum and Articles of Association
- Opening a local bank account and depositing your minimum share capital
- Registering for tax and VAT purposes
- Obtaining an employer number with the Montenegro authorities
- Applying for the necessary licenses with the authorities, agencies, or institutions based on your applications
Montenegro subsidiary laws
You must meet Montenegro’s subsidiary laws related to the type of entity you’ve chosen. For example, a business expanding as a joint stock company would need at least EUR 25,000, but they’d require only EUR 1 to expand as an LLC.
You also need 1 founder to register your company, and you cannot have more than 30 shareholders. Each shareholder is only liable based on their capital contribution.
Benefits of setting up a Montenegro subsidiary
Once you finish the Montenegro subsidiary setup process, you can start reaping the benefits of working in the country. If you’ve incorporated as a LLC, you will also protect your parent company, which won’t incur any fines or litigation based on the actions of the subsidiary. Plus, your subsidiary can operate independently, using its own culture.
Other important considerations
It takes a significant amount of time and money to succeed in the Montenegro subsidiary setup process. However, you can make it easier by working with your accounting department beforehand to figure out how much money you’ll need. You should also clear your schedule so that you’re free to travel back and forth to Montenegro.
It’s also best to ensure you have the support and guidance of an expert in Montenegro’s subsidiary laws. You can work with one of your existing employees to learn the applicable laws or work with a third party. An accountant, lawyer, or consultant will understand all the applicable laws and ensure you’re staying compliant.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.