A branch opened in Montenegro it's an extension of the foreign parent company, without being a legal entity but with permanent character. A branch has its own management and has the right to negotiate business with other entities but requires a special approval from the parent company before closing major deals. The registered office of a branch is not the same with the one of the foreign company.
All the responsibilities for its actions are taken by the foreign company because of the fact that the branch office is not considered a legal entity. Our experts in company registration in Montenegro can tell you more details about the characteristics of branch offices.
The name of the branch opened in Montenegro must contain the original name of the foreign company followed by the type of company and the termination “branch”.
Before starting to operate business, a branch must be registered no longer than 30 days after the decision of establishment in the Central Registry of the Commercial Court of Montenegro with the following information and documents: the name and the address of the branch, the performed activities, the name and type of business of the foreign company, an authenticated copy of the memorandum of association of the foreign company (along with the Serbian authorized translation), the certificate of registration and an extract from the foreign register to prove the existence of the company in that country, the name and details of the foreign company’s representatives, the name and details of the resident person of Montenegro authorized to act in the name of the branch, the balance sheet and the profit and loss statements of the foreign company.
Any changes in the status of the branch or the foreign company must be announced no longer than 20 days. The liquidation of the parent company must be registered immediately in the Register along with the name of the liquidators or the liquidation procedure. Closing the branch is another action that must be registered in the Central Registry.
As a result of registration, the branch opened in Montenegro will receive in maximum four working days the tax identification number, the registration certificate, the value added tax number and the customs authorization. The entire registration process of a branch office can be handled fast and easy by our team of Montenegro company formation specialists.
If the branch will hire personnel, the next step after registration is submitting a list with the employees at the Health and Pension Funds and at the Tax Administration counter.
The last step is notifying the municipal and inspection authority in charge with economic affairs.
Members of EU may have special benefits in opening a branch in Montenegro. For example, the Stabilization and Association Agreement signed with the members of EU gives the right to the members to establish branches with the same right in Montenegro and with the right to acquire, use and rent real estate here.
Please contact our experts in company formation in Montenegro if you are interested in extending your business in this country. We will analyse your request and we will find the best business solution according to your needs.