ABOUT MONTENEGRO

Amongst all the countries in Europe, Montenegro, officially the Republic of Montenegro, is a small yet geographically diverse country located in Southeastern Europe, on the Balkan Peninsula. It is renowned for its stunning Adriatic coastline, dramatic mountains, deep canyons, and historical towns, making it a rapidly emerging tourist destination. The capital of Montenegro is Podgorica, which is its largest and most populated city, serving as the country’s primary administrative and economic hub. According to the report of the World Bank, Montenegro has been classified as an Upper Middle-Income Nation, with its economy heavily reliant on tourism and energy. The currency of Montenegro is the Euro (EUR), which it unilaterally adopted in 2002 without being an official member of the Eurozone. As of today’s exchange rates (June 2025), 1 Euro is approximately 89.85 Indian Rupees. The population of Montenegro is estimated to be around 615,000 in 2024. Its neighbouring countries are Croatia to the west, Bosnia & Herzegovina and Serbia to the north, Kosovo to the east, and Albania to the southeast. The official language of the country is Montenegrin (which is mutually intelligible with Serbian, Bosnian, and Croatian). English proficiency is growing, especially in coastal tourist areas and among younger generations, facilitating international communication. The majority of the population identifies as Orthodox Christian, with significant Muslim and Roman Catholic communities. Currently, Montenegro has two international airports, with Podgorica Airport (TGD) being the primary gateway, and Tivat Airport (TIV) serving coastal tourist areas, offering growing air connectivity. As a coastal country, Montenegro boasts a crucial commercial seaport in Bar, which is a major deep-water port on the Adriatic Sea, vital for international trade and serving as a logistics hub for the region.

The corporate income tax rate in Montenegro is progressive, ranging from 9% to 15%. This tiered system starts at 9% for taxable profits up to €100,000, 12% for profits between €100,000.01 and €1,500,000, and 15% for profits exceeding €1,500,000. This relatively low tax burden is a significant incentive for foreign investors. Montenegro offers various investment incentives, particularly for strategic investments in tourism, renewable energy, and agriculture. These can include state aid, subsidies for job creation, and customs duty exemptions for certain equipment. The Free Zone of Bar provides additional benefits like customs duty exemptions and simplified procedures. As an EU accession candidate country, Montenegro is actively aligning its legal and regulatory framework with EU standards, aiming for greater predictability and transparency for investors. Opesh Group of companies will be helping you in the completing Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Montenegro has been simplified over the years, aiming to create a more investor-friendly environment. The Montenegrin Investment Agency (MIA) is the primary governmental body dedicated to promoting and assisting foreign direct investment. A foreign investor who is planning to start his business in Montenegro can form various company types, with the most common and flexible structures being a Limited Liability Company (Društvo sa ograničenom odgovornošću or d.o.o.) or a Joint Stock Company (Akcionarsko društvo or a.d.). The d.o.o. is the most popular choice for foreign investors due to its simplicity and flexibility, allowing 100% foreign ownership with a minimum share capital of just €1. Montenegro’s legal system is based on civil law, with ongoing reforms to harmonize with EU directives, providing an increasingly stable and predictable environment for businesses.

In Case an investor is planning to establish a d.o.o. in Montenegro or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Montenegro and we will also guide you about how to follow the procedure while formulating your company in Montenegro.

Types of Business which can be started in Montenegro-

• Tourism & Hospitality: This is the backbone of Montenegro’s economy. Opportunities are vast in developing high-end hotels, luxury resorts, boutique accommodations, marinas, adventure tourism facilities, and specialized tour operations.
• Energy (Hydropower & Renewables): Montenegro has significant untapped potential in hydropower, solar, and wind energy. Opportunities exist in developing new power plants, upgrading existing ones, and manufacturing renewable energy components.
• Agriculture & Food Processing: Rich agricultural land, especially in the north and central regions, offers potential for organic farming, fruit and vegetable production, wine production, olive oil, and high-quality food processing for local consumption and export.
• Real Estate: High demand for residential and commercial properties, especially along the coast and in major cities. Opportunities exist in luxury residential complexes, holiday homes, and commercial office spaces.
• Information & Communication Technology (ICT): A growing sector with increasing demand for digital solutions. Opportunities are in software development, IT outsourcing, e-commerce, and digital transformation for tourism and other industries.
• Infrastructure & Construction: Ongoing needs for modernizing transport infrastructure (roads, railways, ports) and public utilities create opportunities for construction companies and related services.
• Wood Processing: With abundant forest resources, opportunities exist in sustainable forestry and the production of high-quality timber products and furniture.

Advantages of Starting Business in Montenegro-

• Competitive Tax Environment: Low and progressive corporate income tax rates (9-15%) are highly attractive for businesses.
• Euro Currency in Use: The unilateral use of the Euro provides currency stability and simplifies financial transactions with Eurozone countries.
• Rapidly Growing Tourism Sector: A significant and continuous increase in tourist arrivals and investments, particularly in high-end tourism.
• Untapped Renewable Energy Potential: Abundant resources for hydropower, solar, and wind energy, offering substantial investment opportunities.
• Strategic Location: Positioned on the Adriatic coast, providing a gateway to the Western Balkans and easy access to European markets.
• EU Accession Candidate Status: Commitment to EU integration signals ongoing reforms, legal harmonization, and long-term stability for investors.
• Competitive Labor Costs: Relatively lower labor costs compared to Western European countries.
• Beautiful Natural Environment: A clean and stunning natural environment that attracts both tourists and a high quality of life for residents.

Business Opportunities for Indians in Montenegro-

There are excellent business opportunities in Montenegro for new investors who are planning to start their business abroad. Montenegro’s growing tourism sector, significant renewable energy potential, and EU accession path present compelling avenues for Indian companies looking for growth in Southeastern Europe. Indian investors with strengths in Tourism infrastructure development (e.g., building and managing hotels, resorts, wellness centers), Renewable Energy projects (solar power plants, potential for small hydro), IT services (digitalization solutions for tourism, e-governance), Agriculture & Food Processing (modernizing practices, food export), Real Estate development, and Infrastructure development, can find significant potential for investment, partnerships, and market entry.

Imports & Exports-

Many goods are imported and exported from Montenegro. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Montenegro:

• Aluminum and articles thereof
• Iron and steel
• Electricity
• Wood and wood products
• Beverages (e.g., wine, spirits)
• Scrap metal

Major items which are imported in Montenegro:

• Machinery and transport equipment
• Mineral fuels and oils
• Foodstuffs
• Electrical equipment
• Chemicals
• Consumer goods

Major items traded between Montenegro and India (data is generally very limited):

• Exports from Montenegro to India: Likely very niche, primarily specific metal products, wood products, or raw materials.
• Imports in Montenegro from India: Pharmaceuticals, textiles, chemicals, machinery, and some consumer goods.

Manufacturing-

Manufacturing in Montenegro is relatively small compared to its services sector, but it does exist in specific niches. Opportunities can be found in aluminum production (though its primary aluminum smelter faces challenges), steel processing, wood processing and furniture manufacturing, and some food and beverage processing (e.g., dairy, wine). The sector is focused on leveraging local resources and aiming for higher value-added production.

Mining-

The mining business in Montenegro is limited but present for certain resources. The main mining activities involve the extraction of bauxite (for aluminum production) and coal (mainly lignite) for domestic energy needs. Other less significant operations include industrial minerals like salt, aggregates, and limestone. While there are some other known mineral deposits, large-scale, diversified metallic mining is not a primary economic activity.

Major Indian companies which are currently working in Montenegro-

Due to its smaller market size and emerging economy status, major Indian conglomerates typically have a limited direct physical presence in Montenegro. However, interest can be growing, and indirect engagement or smaller-scale investments can be observed:

• Tourism & Hospitality Sector: Indian investors, particularly those in the hospitality industry or real estate development, might explore opportunities for hotel or resort construction/management, given the booming tourism sector.

• Renewable Energy: Indian companies with expertise in solar or hydro power might explore project development opportunities.

• IT Services: Indian IT firms may engage in outsourcing or provide digital solutions to Montenegrin businesses, especially those in tourism.

• Pharmaceutical Distribution: Indian pharmaceutical products are likely distributed in the Montenegrin market through local partners.

• GDP = $7.7 billion (nominal, 2024 est.)

• GDP Growth = 3.2% (2024 est.), 3.4% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, Montenegro has actively pursued reforms to improve its business climate and attract foreign investment as part of its EU accession process.

• GDP per Capita = $12,470 (nominal, 2024 est.)

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