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Montenegrin company

01.01.2010
Author: Marina SHONIA
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On the small and medium enterprises in Montenegro high hopes and the authorities, and entrepreneurs themselves. Easy registration firm and moderate taxes encouraged to open a business here, not only local residents, but also Russians.
It is no secret that in Montenegro, a non-resident can take ownership of land only if he opens a company in the country. It's a matter of a few days, which does not require a lot of money. If the buyer does not plan to do business, then only the name remains of the new company after the purchase of the property. Those owners who have not abandoned their business, in a growing economy, have a real chance to develop it and succeed.
It is already possible to talk about a certain political stability in Montenegro, as well as the gradual streamlining of legislation. Today, by opening their own company, investors can be more confident in the future than they were a couple of years ago.
The government sees the great potential of the young state in the tourism sector, and already tourism revenues make up a significant part of the Montenegrin budget. This area has been officially given priority over industry and agriculture, and a state program for the development of tourism until 2020 has been developed. It is obvious that a wide field of activity opens up in this area for private companies, although the choice of industry is not limited to tourist services.

The best business is in demand
According to Valery Telpuk, chairman of the international legal board of KODEKS (Herceg Novi), until recently, the real estate business was the most popular among Russians in Montenegro. Real estate agencies owned by Russians began to appear three years ago, immediately after the formation of the independent state of the Republic of Montenegro, on the wave of buying activity, including from Russian citizens. Such offices are concentrated on the coast, in the main resort towns – Bar, Budva, Herceg Novi, Kotor - and are designed for the interest of Russian buyers.
Another common type of activity is the construction of country house settlements and hotel complexes. But if at the initial stage of market development, small companies that owned small plots of land were building, then by today the situation has changed. The tone is set by large investors developing hectares of land. There are many Russian companies among them, including Mirax Balkan, Barkley, Veles Capital.
An option for starting a commercial activity may be the purchase of an existing small hotel, restaurant, store or opening your own business. Most of Montenegro's housing stock consists of two- or three-storey houses, and some of them are registered as hotels. The ground floor is usually occupied by the owner, and the upper floors with a corridor layout are given over to apartments for guests. If the mini-hotel is located on the waterfront of the resort town, then in the same house there are summer restaurants operating during the tourist season – from May to October. Last year, the average prices for such facilities were about 500,000 euros (that is, about 2,000 euros per 1 sq. m.).
Alexey Smirnov, representing the real estate agency Adriatik Stroinvest, adds that Montenegro lacks good specialists in areas such as programming, computer and office equipment maintenance, as well as repair technicians and interior decoration of the premises. The services of companies engaged in such activities will be in demand, while such a business does not require large investments of capital.
Valery Telpuk considers investments in agriculture to be profitable business areas, especially in economically less developed mountainous and northern areas, where foreigners can count on the support of the state and local authorities. Good farming opportunities exist, for example, in the community of Niksic, in the Grahovo district. It is only 30 km from the sea, but the land and the construction of the necessary buildings will cost several times cheaper here than on the coast.
According to Valery Telpuk, among the companies registered by Russians in Montenegro, there are also those that rely on innovative technologies, for example, they develop and implement solar energy systems, are engaged in the rapid construction of inexpensive prefabricated houses.

Let's do the procedures
The procedure for registering a company in a local court is simple and takes 3-5 days. A non-resident founder is only required to have a passport. Registration fees, depending on the legal form of the company, amount to 200-250 euros, the most popular form is DOO (Drustvo sa Ogranicenom Odgovornoscu), that is, a limited liability company.
To register, it is necessary to prepare the founding agreement, the articles of association of the company, make a seal and open an account in a Montenegrin bank. After the founder has received the registration certificate, he must register the company with the tax authorities and the statistical office. After that, as well as payment of registration fees, the company is assigned an identification number.
A Russian citizen can stay in Montenegro for 30 days without a visa. "Your own business or a work permit obtained from the authorities of Montenegro," says Miodrag Kolevich, adviser to the Embassy of Montenegro in Russia, "allows you to count on obtaining a long–term visa, which is issued for a period of three months to a year. The purchase of real estate is not the basis for issuing a visa, although it can contribute to making a positive decision if there are other factors to consider."
According to Valery Telpuk, for many Russians, their own business in Montenegro is not only a way to earn money, but also a way to legalize their stay in the country.

Consumable part
Montenegro is not an offshore zone, but its tax system is less burdensome than in most other European countries. The VAT rate is 17% (legal entities with a turnover of less than 18,000 euros per year do not pay this tax), income tax is 9%. The government provides tax benefits to foreign investors who operate in underdeveloped areas of the country, for example, it exempts them from income tax for three years.
There are practically no unofficial extortions from the controlling structures in Montenegro. It is better for Russian businessmen to get rid of the habit of circumventing existing rules.
At the moment, employers dictate the rules in the Montenegrin labor market, so there are no problems with the selection of personnel, including qualified Russian-speaking personnel. At the same time, the average salary in Montenegro is lower than in Russia: a salary of 500 euros for an experienced specialist is considered good earnings.
The annual rental of office space in the capital of Montenegro, Podgorica, last year cost an average of 240 euros per 1 sq. m. As a rule, small premises with an area of up to 100-200 sq. m are offered, which meets the needs of most local entrepreneurs. There is a choice of areas both in old buildings and in facilities erected over the past three years.

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Anna
thanks for the info
2 of Oct 2009 6:54:39
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