A business and cost plan before starting a business in Montenegro

Why plan first?

Once the documents are ready, the official registration of a company in Montenegro is a relatively short procedure. After registration, however, regular obligations begin: rent, accounting, staff, tax returns and sales activity. Without a business model and a cash plan that can meet these obligations, the business will not work even if the company has been formed.

This guide lists the topics that should be put in writing before you move on to the incorporation documents. Information on legal requirements is based on official sources published by the Tax Administration of Montenegro (Poreska uprava) and is listed in the sources below.

Define your business model on one page

The first step is to write down in plain language what the activity is and where the income will come from. This page becomes a common starting point both for your own decisions and for the lawyer, accountant and bank you will speak to later.

• What will you sell: a product, a service or both?
• Who is your customer: businesses in Montenegro, individuals, tourists or buyers abroad?
• How will you sell: a shop, online sales, wholesale distribution, project-based contracts?
• How will you set your prices, and who are your competitors?
• Is the activity seasonal or steady throughout the year?
• Who will manage the business; will the founders live in Montenegro or manage it remotely?

Choose the company type

In Montenegro, the formation of companies is governed by the Law on Companies (Zakon o privrednim društvima, “Sl. list CG” 90/25, 121/25), and the registration procedure by the Law on Registration of Business and Other Entities (Zakon o registraciji privrednih i drugih subjekata, “Sl. list CG” 92/25, 121/25). According to the rules published by the Tax Administration, business activity may be carried out as a general partnership (OD), a limited partnership (KD), a limited liability company (DOO), a joint stock company (AD) or a sole trader (preduzetnik). A foreign company may also register a branch in Montenegro (dio stranog privrednog društva).

In a DOO, the form foreign investors often consider, the capital is divided into shares and the company may have no more than 30 members. The minimum share capital under the law is 1 euro; special laws may require a higher amount for certain special types of company. The minimum share capital for an AD is 25,000 euros. A low minimum capital does not mean it will be enough to finance the business: you need to plan separately for the funds that will cover the costs of the first months.

Which type suits you depends on the number of members, the liability structure, the form of management and the nature of the activity. This is a legal decision and should be made together with a lawyer.

Know the registration process in outline

Companies are registered in the Central Register of Business Entities (Centralni registar privrednih i drugih subjekata, CRPS), kept by the Tax Administration. The registration application is submitted electronically using a single standard application form. According to the Tax Administration's rules, a DOO registration application is generally accompanied by: the memorandum of association certified in accordance with the law, the articles of association (statut), details of the members of the management body and the decisions appointing them, statements accepting the appointment, an e-mail address and, if capital above the minimum amount is contributed, proof of payment.

The law also allows a DOO to be formed without the founders being physically present, using a qualified electronic signature and the notary's electronic certification; the authority may still request personal attendance where it considers this necessary. The registration decision assigns the company a registration number and a tax identification number (PIB). After registration, any changes to the company's details must be reported to the register within seven days.

According to the fee decision published by the Tax Administration, the register fee for registering the formation of a DOO is 15 euros. This amount is the register fee only; notarial certification, translation, document certification, bank and consultancy costs must be calculated separately. Because the amounts may change, check the current decision before applying.

Plan your tax and invoicing set-up from the start

Whether value added tax (PDV) registration is mandatory depends on the conditions in Montenegrin VAT legislation and on your activity. For the current threshold and registration rules, consult the Tax Administration or an accountant; we do not state an amount in this guide because we have not been able to verify it.

The Tax Administration also runs the electronic fiscalisation system. Before you start selling, clarify with your accountant which software or device will be used to issue your invoices and under which rules. This should appear as a separate item in your cost plan.

Group your cost items

We do not give figures here, because amounts vary greatly by sector, city and the scale of the business. Instead, so that you do not leave out any items when collecting quotations, we suggest thinking about costs in four groups.

• Set-up costs: notary, translation and certification, register fee, bank account, legal advice
• Regular fixed costs: rent, utility bills, accounting, software and fiscalisation, insurance, communications
• Staff costs: wages, employer obligations, recruitment and training
• Activity-related costs: stock, transport, warehousing, marketing, sector-specific permits and certificates
• Personal costs: travel, accommodation and, if needed, residence procedures for the founders
• A reserve set aside for unexpected costs

Break your cash flow down by month

Profitability can be calculated annually, but it is monthly cash that keeps the business going. Prepare a table showing the expected receipts and payments for each month on separate lines. Reflect in the table that sales are likely to start slowly in the first months, that customers may pay late, and any seasonal fluctuations.

Run the table with at least two scenarios: the situation you expect, and one where sales fall behind plan. Seeing in which month the cash balance turns negative in the second scenario shows how much start-up funding you need.

Choose the location based on customers and logistics

The company's registered address, the place where the activity is actually carried out and the warehouse or point of sale do not have to be the same; but each may involve separate costs and permits. When choosing a location, consider together proximity to your customers, supply and delivery routes, the availability of staff and the seasonality of the activity. Before signing a lease, check with the relevant municipality and a specialist whether the premises are suitable for the activity you plan.

Check permits and personal circumstances separately

Registration in the register may not be enough on its own for every activity. Regulated areas such as food, tourism, health, construction or transport may require additional permits, licences or certificates of compliance; which document is required is determined by the relevant ministry or municipality according to the type of activity.

If the founders plan to live or work in Montenegro, residence and work permits are a separate process. Travel is also part of the plan: according to the official pages of the Government of Montenegro, citizens of the Republic of Türkiye will need a visa to enter Montenegro from 1 November 2026. As visa rules can change, check the current notice of the Ministry of Foreign Affairs before travelling.

Decide who will do what

In company formation, legal steps are carried out by a lawyer and a notary, tax and accounting work by an accountant, and registration by the competent authority. Invest Consulting does not carry out these procedures itself; it prepares the business and cost plan together with you, organises the document list and coordinates the process with the relevant professionals. This way, every professional works from the same plan and with complete information.