Montenegro emerged as a sovereign state in 2006 separating from the Union of Serbia and Montenegro. Since its independence, the state has faced continuing growth rates and in 2010 the European Commission recommends that Montenegro be named as a formal candidate to join the European Union. The progress has continued for the nation, with joining the World Bank and IMF in 2007 and the World Trade Organization in 2011. The nation is steadily on course in the next year or two to become a full flight member of the European Union.
Economy of Montenegro
Montenegro economy has been successful in the last few years with a steady rise in GDP, with its economy in the process of transition into a market system. There are plenty of opportunities for business to invest in the country. Since independence the state has been looking to privatize the state owned companies in the fields of banking, telecommunication and oil. Many nations have begun to take notice of the rich land in Montenegro and the potential the economy has to be successful in Europe. Nations such as Italy, Norway, Austria, Russia, Hungary and the United Kingdom have invested heavily in the nation, with Montenegro recording a net foreign direct investment of $483 million being one of the highest capita investments per capita in Europe.
The Economy took a slight step bank in 2015 due to the downturn in oil prices, however the it is on its way to a healthy recovery in investment along with strong growth in domestic demand. The government has actively promoted the foreign investment in the country and this likely to continue to boost the economy for this independent state.
Doing in Business in Montenegro
In the recent years, the government of Montenegro has introduced substantial reforms and has created a business friendly environment. According to the World Banks Group “Doing Business 2016”, Montenegro ranks 46 out of 189 world economies in ease of doing business and 59 out of 189 for starting a business. The countries membership with the WTO and the efforts of the government in harmonizing with EU legislation has led to an ideal place to conduct business. This in combination with the nations adopted tax regime has been very favorable to foreign investors, making its tax regime one of the most competitive in Europe, with proportional corporate profit tax set at 9% and other various tax exemptions available.
Further, the government of Montenegro has offered local and foreign companies equal legal treatment, Thus, foreign investors are allowed to i) invest in any industry ii) freely transfer all financial and other assets, including profits and dividends.
Montenegro offers companies and potential investors i) a friendly business environment, ii) a low tax burden and iii) legal protection. If you are interested in setting up a business in Montenegro, please view this Montenegro company registration page and Healy Consultants Group PLC will be pleased to assist you in registering a company.