Montenegro: Operating a Business

Setting Up a Company

Limited Liability Company (LLC/d.o.o): Number of partners: Minimum: 1 person with a maximum of 30
Capital (max/min): EUR 1
Shareholders and liability: Liability limited to the capital contributed
Joint Stock Company (JSC/a.d.): Number of partners: Minimum of one person
Capital (max/min): EUR 25,000
Shareholders and liability: Unlimited liability
General Partnership (GP/o.d.): Number of partners: Minimum: 2 partners
Capital (max/min): No minimum capital requirement
Shareholders and liability: General partners are personally liable, with no limitation, for the company's debts and obligations
Limited Partnership (LP/k.d.): Number of partners: Minimum: 2 partners
Capital (max/min): No minimum capital requirement
Shareholders and liability: General partners are personally liable, with no limitation, for the company's debts and obligations; whereas silent partners are liable to the extent of their contributions
Sole trader: Number of partners: Only one
Capital (max/min): No minimum capital requirement
Shareholders and liability: Unlimited liability

The Competent Organisation: All documents are available at the Central Register of the Tribunal of Commerce.

Setting Up a Company	Montenegro	Eastern Europe & Central Asia
Procedures (number)	8.0	5.3
Time (days)	12.0	11.8

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Montenegro.
Company Registration Service in Montenegro

	2018	2019	2020
Labour Force	277,006	282,668	271,834

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: The legal duration of work is 40 hours a week.
An employee has 18 working days holiday a year. Employees who are minors have 24 working days and part-time employees 30 days.
Retirement Age: For men, retirement age is at 65, with 40 years of contributions.
For women, retirement age is at 60, with 35 years of contributions.
Working Contracts: Work contracts are open-ended contracts.
However, there are fixed term contracts for at most 9 consecutive months for seasonal work, increase in activity or replacements.
It is possible to sign a fixed term contract for 5 years if it is for carrying out a clearly defined project which needs a long period of time.

Minimum Wage: The minimum monthly wage is EUR 550.
Average Wage: Average monthly gross earnings in Montenegro is EUR 480.
Social Contributions: Social Security Contributions Paid By Employers: Contributions paid by the employer are:
- 9.6% for retirement and disability contributions
- 6% for health insurance
-0.5% for unemployment insurance
Social Security Contributions Paid By Employees: Contributions paid by the employee are:
-12% for retirement and disability contributions
- 7.5% for health insurance

Social Dialogue and Involvement of Social Partners: Unions have considerable power in Montenegro; the Confederation of Unions in Montenegro (CUTM) brings together 19 unions.
Labor law, which was last amended in 2005, guarantees all employees the freedom to join a union without prior authorization, on condition that the criteria fixed in the statute of union organizations are observed. A union can come into being if at least five people so wish. It must request registration with the Ministry of Health, Labor and Social Affairs. The authorities cannot dissolve a union nor suspend its activities.
Labour Unions: Union of Free Trade Union of Montenegro
Unionisation Rate: About 95% of the workforce in the formal economy is unionized.
Labour Regulation Bodies: Ministry of Labor and Social Welfare

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