Opening a Legal Entity in Montenegro
A DOO (Društvo sa Ograničenom Odgovornošću) is Montenegro’s equivalent of an LLC and the most widely used legal form for doing business in the country. It is popular among foreign entrepreneurs due to a straightforward incorporation process, transparent requirements, and a competitive tax environment.
What we need from you
- Founder’s passport
- Director’s passport (if different from the founder)
- Company name
- Type of business activity
- Montenegro phone number
- Montenegro address
- Address in country of citizenship
What you receive
- Registered legal entity in Montenegro
- Registration decision
- Articles of Association
- Company seal
- Extract from CRPS (Central Register of Business Entities)
Key benefits of establishing a DOO
- Recognized legal entity
- Enables you to enter into contracts, hire employees, and work with international partners.
- Limited liability
- Shareholders’ liability is limited to their contributions to share capital (minimum €1).
- Corporate tax from 9%
- Corporate tax from 9% — a progressive scale: 9% up to €100,000 of profit, 12% up to €1.5 million, 15% above.
- Market access
- Simplifies cooperation with EU and other international partners.
Obligations of a DOO
- Accounting
- Every company must keep records of its operations and submit tax declarations.
- Tax payments
- In addition to corporate tax — from 9% (progressive scale: 9% up to €100,000 of profit, 12% up to €1.5 million, 15% above) — social contributions are due if you have employees.
- Employee registration
- When hiring, labour law must be followed: employment contracts and contributions are mandatory.
- Company maintenance
- Even with no active operations, annual reports must be filed and minimal administrative fees paid.
VAT-exempt threshold
Companies with annual turnover below €30,000 are exempt from mandatory VAT registration. Once exceeded, registration becomes compulsory and the standard VAT rate is 21%.Opening a DOO in Montenegro is an accessible and promising step for entrepreneurs looking to enter international markets or run a business in Europe with minimal overhead.
Read next
- TaxesTax System of MontenegroProgressive corporate tax 9–15%, VAT 21%, social contributions, real estate tax, filing and payment deadlines for companies.Updated 19 October 2026
- EmploymentAnnual Leave in Montenegro 2026: Employer Guide20 working days, the 1/12 rule for new hires, carry-over until 30 June, cash only on termination, fines. What changed after the General Collective Agreement lapsed.Updated 19 October 2026
- EmploymentEmployment Contract TerminationRedundancy, liquidation, violations — notice periods and compensation for each ground.Updated 11 October 2026