Start to Set Up a Business in Montenegro
Situated in the continent of South-Eastern Europe, Montenegro gained its independence in 2006. Montenegro is the 163rd largest nation in the world with a total area of 13,812 square kilometres (13,452 square kilometres of land and 360 square kilometres of water). Bordering Bosnia and Herzegovina to the north; Serbia to the east, Albania to the south and Croatia to the west, Montenegro is emerging as a business hub due to its strategic location.
Why Invest in Montenegro
According to the latest World Bank annual ratings, Montenegro is ranked 50 out of 190 economies in the ease of doing business. Montenegro’s membership with the WTO and the government’s efforts in harmonizing with EU legislation has led to an ideal place to do business.
1. Steady Growth in FDI
In 2018, the economy of Montenegro advanced 5% year-on-year in the third quarter, following a 4.9% growth in the last period. The figure shows the strongest pace of expansion since the three months to June of 2017. From 2001 until 2018, the GDP Annual Growth Rate in Montenegro averaged 2.77%. Montenegro also an increase in FDI or Foreign Direct Investment by 659232.90 EUR Thousand in 2017. The increment in the figure evidence attracts global businessmen to invest in Montenegro.
2. Business-Focused Economic System
It is fast becoming the magnet for investment because of its business-focused economic system, attractive tax regime, and monetary stability. Montenegro’s tax regime has been very favourable to global investors, with proportional corporate profit tax set at 9% and a slew of tax exemptions available. Furthermore, The Montenegrin government has offered local and foreign companies equal legal treatment. Foreign investors are allowed to invest in any industry and they can freely transfer all financial and other assets (including profits and dividends).
3. Strategic Location
Many global investors have chosen Montenegro as their investment destinations due to the country’s strategic position. Sat at the crossroads of Western Europe with the eastern European countries, Montenegro’s strategic location provides access to the regional markets. From Montenegro, foreign investors can establish trade relations with Africa, India, Russia, and other Asian countries.
4. Robust Investment Opportunities
Tourism is one of the important pillars behind the country’s economic growth. It recorded 1.3 million tourist visitations in 2014 – the World Travel and Tourism Council has predicted that investment in the field of tourism will be very profitable in Montenegro. The telecommunications and manufacturing sectors are other sectors that offer vast investment opportunities.
The highly educated and well-trained young population is another reason that appeals to foreign investors. The Montenegrin government supports businesses and investments by keeping the procedures transparent and straightforward. On top of the robust business environment, Montenegro boasts a long tradition of diplomatic and peaceful policy that ensures political stability.
Below is a snapshot of the advantages of investing in Montenegro:
- Dynamic economic growth
- Multi-ethnic harmony
- Political stability
- Strategic geographic position
- Highly skilled human resource
- Attractive tax climate (corporate tax 9%)
- Pro-business Government
- Easy and straightforward business start-up
In conclusion, Montenegro is more than just a tourist attraction but offers companies and potential investors a friendly business environment. If you are interested in setting up a business in South-Eastern Europe, Montenegro has a lot to offer! 3E accounting can guide you to start a business in Montenegro, contact us now.