:: Editor Notes: Law on Business organisations has introduced minor registration fees and has simpified the incorporation procedure. Other changes in this law relate to more precisely defined rights of shareholder and protection of minority shareholders.

-- Montenegro is the country with the lowest corporate tax rate in the south east European region (9%) while Croatia has the highest rate (20%). --

• The Montenegrin tax policy is harmonised with European legislation.


• The FDI level in Montenegro was much higher than expected. In the Economic Reform Agenda for Montenegro, adopted in 2002, it was expected that FDI in 2006 in Montenegro of total foreign direct investments (FDI) in Montenegro in 2006 amounted to €502 million, which is 31% higher than the total FDI of th previous year.



The rights and obligations of new founders are preciely specified and are more flexible. According to the Law on Business Organizations business is conducted by entrepreneurs and business organisation:

• Limited Partnership


• Joint Stock Company Limited


• Cooperative


• Liability Company


• Units of Foreign Companies