Open a Holding Company in Montenegro

A step-by-step guide to opening a holding company in Montenegro

1. Review your company's requirements: Tax savings and asset protection are two of a holding company's most popular advantages. The owner of a small business may also benefit from forming a holding company since it can offer asset protection for operating the company's high-value assets;
2. Choose a structure for your company: The corporation and the limited liability company, or LLC, are the two most common types of holding companies. As the form you select could have an impact on your taxes and liability, you should decide which one best suits your needs;
3. Business application: Your holding company will be established in accordance with the Montenegrin state law and the kind of business form you wish to establish;
4. Bank account: The holding company and the operating company must keep separate bank accounts and accounting records to continue operating as independent businesses;
5. Invest in the holding firm: You must fund the business to begin investing in the operating company before you begin using the holding company;
6. Keep a record of your transactions in accounting: Keep thorough accounting records of the transactions that occur between your operating and holding firms as you run your enterprises. To ensure legal separation between the entities, separate accounting records are essential.

Features of a holding company 

• - Just as establishing an LLC can shield a person's assets from debts incurred by their firm, establishing a holding company in Montenegro can shield a company from more extensive financial losses;
• - A holding company is a type of autonomous firm that conducts its operations following specific legal regulations for the course of its existence;
• - The assets and equity of the other companies are owned by a holding company, which also typically maintains a record of only the oversight capabilities and potential;
• - A holding company's primary goal is to manage other businesses, regardless of the type of entity it is, such as a limited liability partnership or perhaps a limited liability company. Holding companies are also able to own many types of properties, such as patents and trademarks.

Montenegro taxation 

• -  The corporate profit tax (CPT) in Montenegro is 9%;
• -  The general withholding tax rate in Montenegro is 9%; 
• -  The municipal government of Montenegro has the option of imposing a payroll tax of 15% on employee salaries.