Open a Holding Company in Montenegro

If you want to open a holding company in Montenegro, you can rely on our company formation agents. They can help you open a business in Montenegro, including a holding company.

Quick Facts
Applicable law	Holding companies must be registered in accordance with the Company Act.
Legal entities used	The private and public limited liability companies can be used for such an entity.
Incorporation method	The holding must be registered as any other business in Montenegro.
Registration timeframe (approx.)	About one month.
Types of holdings available for registration in Montenegro	– investment, – financial, – pure, – mixed holding companies.
Specific requirements (if any)	Yes, the company must have a legal seat in Montenegro.
Authorization requirements (if any)	When operating in the financial sector, the holding may require authorization from the Central Bank of Montenegro.
Shareholding structure	The holding company may be the only shareholder in one or more subsidiaries.
Minimum capital for Public Company	EUR 25,000.
Taxation of a holding in Montenegro	The holding pays corporate income tax at progressive rates of 9%, 12% and 15%; dividends received from Montenegrin companies are exempt.
VAT registration requirement (YES/NO)	No, the holding does not need to register for VAT in Montenegro considering its role is not to develop commercial activities.
Control over the subsidiary (ies)	The holding has full control over its subsidiary(ies).
Accounting and reporting requirements	Annual tax returns and financial statements must be filed with the Montenegrin tax authorities.
Access to double taxation treaties (YES/NO)	Yes, to about 45 treaties.
Support in setting up a holding company in Montenegro (YES/NO)	Yes, you can rely on our company formation agents in Montenegro for such a service.

What is a holding company, according to the Montenegrin legislation?

The holding company is an entity that is registered for investing and/or managing other businesses, called subsidiaries.

What are the main features of a holding company in Montenegro?

Here are the features of a holding company:

Just as establishing an LLC can shield a person’s assets from debts incurred by their firm, establishing a holding company in Montenegro can shield a company from more extensive financial losses;
A holding company is a type of autonomous firm that conducts its operations following specific legal regulations for the course of its existence;
The assets and equity of the other companies are owned by a holding company, which also typically maintains a record of only the oversight capabilities and potential;
A holding company’s primary goal is to manage other businesses, regardless of the type of entity it is, such as a limited liability partnership or perhaps a limited liability company. Holding companies are also able to own many types of properties, such as patents and trademarks.

Here is also an infographic on this topic:

Do I need a local partner if I open a holding company in Montenegro as a foreigner?

No. You can retain full ownership of the Montenegrin holding company even if you are a foreign investor.

What are the legal forms a Montenegrin holding company can take?

You can register a holding company as a private or public limited liability company in Montenegro.

The decision should be based on the size of the company.

What are the steps to open a holding company in Montenegro?

You must follow the regular company formation steps in Montenegro, specifically:

reserve the commercial name;
draft the incorporation papers, the Articles of Association;
file the registration documents with the Companies Register;
open a bank account in Montenegro.
apply for a tax number.

Similar steps can be followed for opening a holding company in another European country, for example in Slovakia. Investors interested in this country can be assisted by a local team of incorporation agents who have helped many clients start businesses in Slovakia, including holding companies.

Why open a holding company in Montenegro?

There are various reasons that call for you to open a holding company in Montenegro. For instance:

1. Control over subsidiaries

If you are interested in incorporating a holding company in Montenegro, you should know that a holding company must exercise control over its subsidiaries.

2. Day-to-day management is not required

If you are a busy person who does have money to invest in different companies but does not have enough time to look after such investments. Then a holding company is an option for you. You are not required to look after your subsidiary’s day-to-day operations. You should know that a holding company may be the owner of companies operating in several unrelated sectors.

3. Holding companies have less liability

Separating functioning organizations from the resources subsidiaries utilize creates a liability barrier. So, each subsidiary is responsible for its own debts. The assets of the holding company or any other subsidiary operating under a holding company are inaccessible to a subsidiary’s creditor.

If you have further questions regarding what benefits a holding company can offer you, you are welcome to get in touch with our company incorporation consultants.

Here is also a video on this topic:

How long does it take to open a holding company in Montenegro?

The procedure takes about one week to be completed.

NOTE: We can represent you during the process, should you not be able to come to Montenegro.

Do I need to deposit a specific capital when setting up a holding company in Montenegro?

It depends on the type of structure of the company. For example, for a private limited liability company is EUR 1, while for a public one, it is EUR 25,000.

What types of holding companies can I set up in Montenegro?

You can set up:

a pure holding company;
a management holding;
an operating holding;
a financial holding.

NOTE: In the case of financial holdings, special share capital requirements may apply, which is why we recommend discussing this topic with one of our agents.

Besides assisting you with information, our specialists can also offer you their practical services if you need help with incorporating a holding company in Montenegro. Contact our company incorporation experts to help you open a holding company in Montenegro.