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All owners of legal entities and businessmen are obliged to harmonize the organization with the new Company Law

All owners of legal entities and businessmen are obliged, in accordance with the provisions of Article 329 of the Law on Companies, to harmonize the organization (statute, company bodies and other acts) with this law and register changes within the period provided by this article for various forms of bisiness entities.

Please note that they are obliged to fill in all the missing data on the statement for the business entity in question in the single registration application, so that they can be entered on the last statement from the single CRPS information database.

Also, the applicant under full criminal and material responsibility declares that the data entered in the application are correct, in accordance with the single registration application which is an integral part of the Rulebook on the manner of management and content of the CRPS.

Limited liability companies (public companies and large companies) and Joint stock companies which are registered in the CRPS before the entry into force of this law (11.07.2020), are obliged to harmonize the organization and register the changes by 11.04.2021. years

Other companies registered in the CRPS until the entry into force of this law (11.07.2020) are required to harmonize the organization with this law and register change in CRPS until 11.01.2022. years

Partnerships and entrepreneurs who are not registered in the CRPS until the entry into force of this Law (11.07.2020), are obliged to make an entry in the CRPS in accordance with this law by 11.04.2021. years.

Entrepreneurs who are registered in the CRPS before the entry into force of this law (11.07.2020) are obliged to harmonize their operations and submit a registration application for registration in the CRPS in accordance with this law by 11.01.2021. years. Source

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Electronic invoice fiscalization in Montenegro starting from 01.01.2021.

The Parliament of Montenegro bring the Law on Fiscalization in the Trade of Products and Services, which provided the legal basis for the implementation of the electronic fiscalization project, which will enable the submission of data on the trade of products and services and fiscal invoices to the Tax Administration in real time.

On the 1st of January of 2021, Montenegro will fully embrace its new fiscal system. Because the system is electronic, the Ministry of Finance and the Tax Authority believe it will speed up the process of digitalization. The transitional period for the implementation of the new system will last until June 1st, 2021, when it will be possible to use the old and new methods of issuing invoices together.

The Tax Administration has said that the establishment of the electronic fiscalization system is aimed at improving the efficiency of the transaction control, which will contribute to the reduction of informal economy, gradual downsizing of tax administration and efficient management of tax controls.

All issued accounts, cash and non-cash, through fiscal service and internet connection are sent to the Tax Administration, which assdicts a unique account code upon receipt of the account and sends it as feedback to the taxpayer, which is also a confirmation that the account has been fiscalized

Practically, this means that all sellers of services or products will have to have a digital certificate, a permanent internet connection and special fixed printers through which they will issue invoices in real time. Each invoice will have to be approved by the tax administration before printing. The verification process itself will take only a few seconds. Source

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Payment of subsidies extends for another two months - 15.10.2020.

In accordance with development of the epidemiological situation, as well as with measures and recommendations of the Ministry of Health in relation to limitations regarding performance of economic activities, the Montenegrin Cabinet at today’s session decided, at the proposal of the Ministry of Economy, to extend the Programme of wage subsidy in order to mitigate the negative effects of the novel coronavirus epidemic Sars – Cov- 2 for another two months, i.e. to enable the subsidization of part of the October and November salaries. In line with the measures in force, October salaries will be subsidized to employees in the following activities:

1. Companies and entrepreneurs providing services in activities with codes: 55.10 (Hotels and similar accommodation), 55.20 (Resorts and similar facilities for short stays), 55.30 (Camping, caravans and caravan parks), 79.11 (Travel agency activities), 79.12 (Tour operator activities) and 79.90 (Other reservation service and related activities); companies and entrepreneurs performing the activity of specialized retail trade for the sale of souvenirs; Companies and entrepreneurs who organize excursions, trips and boat trips for tourist purposes - are entitled to subsidies for October salaries in proportion to the earnings, up to a maximum of 70% of the amount of taxes and contributions to the minimum wage and 70% of the net minimum wage.
2. For caterers who perform activities in municipalities where their work is prohibited, October salaries are subsidized in proportion to the earned salary, up to a maximum of 100% of the amount of taxes and contributions to the minimum wage and 100% of the net minimum wage. For caterers operating in other municipalities, October salaries are subsidized in proportion to the earned salary, up to a maximum of 50% of the amount of taxes and contributions to the minimum salary and 50% of the net minimum salary.
3. Companies and entrepreneurs providing services in activities with codes: 49.31 (Urban and suburban land passenger transport), 49.32 (Taxi transport) and 49.39 (Other passenger transport by land), as well as economic entities registered under another by the code of basic activity, which provide services of intercity passenger transport, international passenger transport, limo service, rent-a-car services, as well as services related to bus traffic, are entitled to a subsidy of August and September salaries in proportion to earnings, up to 50 % of the amount of taxes and contributions on the minimum wage and 50% of the net minimum wage.
4. Companies and entrepreneurs performing activities with codes 90.01 (Performing arts), 90.02 (Ancillary activities within performing arts), 90.03 (Artistic creation), 90.04 (Work of art institutions) and 59.14 (Film screening activities), and whose activities related to the organization and performance of concert, festival, film and theater programs, as well as music programs in catering and hotel facilities are entitled to a subsidy of October salaries in proportion to earnings, up to 100% of taxes and contributions to the minimum wage and 100% net minimum wage.
5. Companies and entrepreneurs whose activity is related to the organization of events whose holding is prohibited (agencies for organizing events, wedding dress salons, etc.) are entitled to a subsidy of October salaries in proportion to earnings, up to 100% of taxes and contributions to the minimum wage and 100% of the net minimum wage.
6. Companies and entrepreneurs that provide ancillary services in activities related to the organization of events whose holding is prohibited ( photographic services, etc.) are entitled to a subsidy of October salaries in proportion to the earned earnings, up to a maximum of 50% of taxes and contributions to the minimum earnings and 50% of the net minimum wage.
7. Employees who, by order of the Ministry of Health, in order to suppress the epidemic, certain quarantine or self-isolation measures are entitled to subsidies for October salaries under the same conditions as in the period July-September.
8. Subsidies for new employment are applied under the same conditions as in the period July-September.
9. Subsidizing paid leave to parents of children under the age of 11 will be defined by amending this information after a special order has been issued to address this issue.

The list of activities and the conditions for subsidizing November salaries will be determined by the Government later, in accordance with the development of the epidemiological situation in the country.
In addition, companies and entrepreneurs who meet the conditions defined by the Program for obtaining subsidies, and who for any reason were late to apply for the July and August subsidies within the originally set deadlines, are granted an additional deadline for applications in the period from 20 October to 31 October 2020. Source.

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Law on amendments to the law on value added tax entry into force - 06.08.2020.

Amendments to the law prescribe the application of a reduced VAT rate of 7% for the following services:

• - Accommodation in tourist apartments, in addition to previously prescribed other types of tourist accommodation - hotels, motels, tourist resorts, boarding houses, camps and villas,
• - Preparation and serving of food, beverages and beverages, except alcoholic beverages, carbonated beverages with added sugar and coffee, in facilities for the provision of catering services.

Also, the amendments to the Law on stipulate that VAT will be paid at the rate of 0% on:

• - Deliveries of products, ie services on the basis of a concluded donation agreement with state bodies and organizations and bodies of the local self-government unit and other public legal bodies,
• - Delivery of donations in the form of medical devices and protective equipment to state bodies and organizations and bodies of the local self-government unit and other public legal bodies, in order to suppress the consequences caused by epidemics of infectious disease.

This measure applies to all types of catering facilities registered in accordance with the Law on Tourism and Hospitality, and is applied from 04.08.2020. until August 31, 2021.

In addition to changes in tax rates, the amendments to the Act introduced the obligation to submit a monthly VAT return exclusively electronically, 3 months from the date of entry into force of the Act. One of the novelties brought by the Law refers to the standardization of electronic invoices as proof of the turnover of products or services. Source.

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Russia and Azerbaijan on "green list" - 04.08.2020.

At the session of the National Coordination Body for Communicable Diseases, chaired by President Milutin Simović, the list of countries whose residents can enter Montenegro was updated, so that residents of the Russian Federation and the Republic of Azerbaijan will be allowed to enter Montenegro without additional conditions

The Operational Staff for the Tourism Economy suggested, among other things, to the National Coordination Body, adding the Russian Federation and the Republic of Azerbaijan to the "green list" of countries whose residents can enter Montenegro without other conditions, and that the National Coordination Body consider the further liberalization on entry into Montenegro, for residents of the Western Balkan countries.

The National Coordination Body for Communicable Diseases assessed, while considering the epidemiological situation in the countries of our surroundings, and especially the reliability and relevance of available data, as well as the needs of our tourism industry and the national interests of Montenegro, that there are no obstacles for liberalization on the entry of Russian and Azerbaijani residents, until the decision on residents of the surrounding countries has been extended, while the Public Health Institute submits an epidemiological risk assessment for Montenegro on the basis of the liberalization on the entry of residents of the surrounding countries, for each country individually. Source.

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New Law on Business Organizations in Montenegro Entered into Force

The new Montenegrin Law on Business Organizations entered into force in July 2020. The reason for establishing the Law is directly related to the process of Montenegro’s accession to the European Union. The key criteria for the temporary closure of negotiations in Chapter 6 (Commercial law) is precisely the adoption of the Law. Additional goal is the full harmonization of the Law is with the so-called “Company Directives”.

Major Novelties are: Companies of Public Interest, Subsidiary, Breaking the corporate veil and the creditor’s lawsuit for collection of claims, Address for receiving e-mail, Procure, Special duties to company and lawsuits for breaching such duties, Company assets and capital, Entrepreneur and manager...please read Major Novelties.

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Third package of economic measures - Incentives for innovative activities

Montenegro opens new opportunities - a wide range of benefits and incentives for the development of innovative economy and startup companies, offers the same conditions for domestic and foreign companies and thus becomes an attractive destination for technological entrepreneurship and testing of new technologies. The measures of the third package related to strengthening the IT economy, which include a financial package of EUR 30 million for the period 2020-2024 in direct partnership between the Government of Montenegro and the domestic business sector with foreign direct investment.

The following measures:

• Establishment of the Montenegrin Strategic IT cluster - EUR 300,000
• Establishment of the Center for e-commerce support - EUR 150,000
• Establishment of an Innovation Centre with virtual and augmented reality technologies - EUR 25.5 million
• Support to the economy through subsidizing salaries, including tourism in the total amount of EUR 16.2 million
• Innovations in the public sector - EUR 339,000
• Continuous support to innovative startups - EUR 500,000

The measures aim to make the IT sector a new strong industry, with high export potential; that IT economy and digitalization become catalysts for the development of an innovative economy that will strengthen our traditionally strong industries (energy, tourism and agriculture) and which will support digital transformation of Montenegro. Source.

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Prime Minister presents third package of Government measures to support citizens and economy

Prime Minister Duško Marković said that the Government had adopted a third package of economic measures to support citizens and the economy to mitigate the effects of the coronavirus pandemic. The package is worth EUR 1.22 billion and covers a four-year period.

The third package of measures will include, the Prime Minister announced, certain short-term, and long-term measures. The purpose of short-term measures is to provide

• Support to the tourism sector in the amount of EUR 83,350,000;
• Incentive for agriculture and fisheries for the realization of investments in the total amount of EUR 89.4 million
• Improvement of the competitiveness of the economy through 17 program lines and EUR 10 million worth grants in 2020 alone
• Support to the economy through subsidizing salaries, including tourism in the total amount of EUR 16.2 million
• Support to the most endangered categories of the population in the amount of EUR 1.8 million

"So, within the intervention approach, we will again subsidies salaries and save our employees, reschedule loans and reduce the VAT rate from 21% to 7% on the preparation and serving of food and non-alcoholic beverages in hospitality industry for a period of one year" - said Prime Minister Duško Marković. Find out more.

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Salary subsidies continue, numerous economy support programmes begin

Through the third package of short-term measures, the Ministry of Economy will start with the salary subsidies from 1 August. EUR 18 million are planned by the end of the year. In the next three months, subsidies will be awarded for employee salaries in the amount of 50-100% of the minimum gross salary, as follows:

• Suspended industries 100%
• Tourism 70%
• Hospitality industry 50%
• Road transport 50%
• Quarantine and self-isolation 50%
• Parents of children up to 7 years 50%.
• To support new employment for 6 months, we will subsidies 70% of salary.

Furthermore, as a non-refundable support to the economy, we have allocated EUR 10 million for the Programm for improving the competitiveness of the economy, which includes 17 programm lines. Through support measures, we also provided interest-free loans for energy-efficient home for households. That project will start on 1 October, the Minister said. Find out more.

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Foreigners' documents are valid until 7 October

Application of the measure by which state bodies, state administration bodies, local self-government and local administration bodies, companies, public institutions and other legal entities, entrepreneurs and natural persons were obliged to issue permanent residence permits, temporary residence permits and temporary residence and work permits for foreigners, which have expired, on the basis of which they exercise some of their rights or perform an obligation before those bodies, and which were considered as valid until 30 September, has been extended until 7 October 2020.

Measures whose application has been extended for a certain period may be reconsidered after the expiry of those periods and their application may be extended again, Source.

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Wearing protective masks outdoors and indoors is mandatory throughout Montenegro

Wearing protective masks outdoors and indoors is mandatory throughout Montenegro, including children older than 7 years, except on beaches and in national parks, provided that physical distancing and previously prescribed measures are respected.

The gathering of persons is limited in the entire country to a maximum of 40 persons in outdoor public places, and to 20 persons in closed public places, with the obligation to maintain a physical distance of at least two meters. (This obligation does not apply to residential buildings.).... Source.

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Montenegro celebrates July 13th – Statehood Day

In Montenegro July 13th is celebrated as Statehood Day, because on that day in 1878 Montenegrin independence was recognized at the Berlin Congress and on the same date in 1941 nationwide anti-fascist uprising was launched. Because of this holiday Monday (13th July) and Tuesday (14th July) are non-working days. In this period Umbrella office will be closed but coworking and meeting room will be available 24/7 for all our clients.

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Montenegro celebrates July 13th – Statehood Day - 10.07.2020

In Montenegro July 13th is celebrated as Statehood Day, because on that day in 1878 Montenegrin independence was recognized at the Berlin Congress and on the same date in 1941 nationwide anti-fascist uprising was launched. Because of this holiday Monday (13th July) and Tuesday (14th July) are non-working days. In this period Umbrella office will be closed but coworking and meeting room will be available 24/7 for all our clients.

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UK, UAE, Turkey, Ukraine and Belarus on the "green list"

The National Coordination Body for Communicable Diseases has decided, at the suggestion of the Public Health Institute, to allow British residents to enter Montenegro without any additional conditions, i.e. to include the United Kingdom on the "green list" of countries which includes, among others, EU Member States.

Respecting the economic needs of Montenegro, the National Coordination Body, after discussion with the competent state epidemiological services and after reaching an agreement on the established measures to control passengers during boarding and disembarkation, decided to allow entry in Montenegro to residents of Turkey, the United Arab Emirates, Ukraine and Belarus who do not show symptoms and signs of coronavirus infection and meet other requirements which will be prescribed by the Ministry of Sustainable Development and Tourism. Source.

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Residence permits for foreigners are valid until 30 September

The National Coordination Body, at the suggestion of the Police Administration, decided that expired residence permits for foreigners in Montenegro are considered as valid until 30 September 2020, if the person to whom the permit applies meets all other legally prescribed conditions.

It was decided that after the previous similar measures, which were adopted during the epidemic, and following today's measure, the validity of the residence permits of foreigners after 30 September will not be extended, in this way. Source.

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Montenegro opens its borders to EU countries

Appreciating today's decision of the EU Council on the coordinated opening of borders of the European Union member states towards third countries, the National Coordination Body decided that Montenegro should allow the entry of EU residents, without additional conditions. When deciding, the facts about high epidemiological standards and quality health infrastructure of the European Union countries, were also taken into account. Residents of the European Union countries are allowed to enter Montenegro through countries which are not EU member states, but exclusively if they use those countries only as transit countries, or if they do not stay in those countries, as evidenced by the inspection at the time of entry/exit from those countries.

The National Coordination Body for Communicable Diseases will decide subsequently on the opening policy towards other countries. When deciding, all relevant epidemiological parameters in each country such as the number of active cases of infection, the trend and prevalence of active cases, and the overall response of each country to COVID-19, including available information on testing, monitoring, contacts monitoring, treatment, reporting, as well as the reliability of information, will be taken into account. Source.

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MEASURES IN FORCE - updated on 9 July:

Appreciating today's decision of the EU Council on the coordinated opening of borders of the European Union member states towards third countries, the National Coordination Body decided that Montenegro should allow the entry of EU residents, without additional conditions. When deciding, the facts about high epidemiological standards and quality health infrastructure of the European Union countries, were also taken into account. Residents of the European Union countries are allowed to enter Montenegro through countries which are not EU member states, but exclusively if they use those countries only as transit countries, or if they do not stay in those countries, as evidenced by the inspection at the time of entry/exit from those countries.

The National Coordination Body for Communicable Diseases will decide subsequently on the opening policy towards other countries. When deciding, all relevant epidemiological parameters in each country such as the number of active cases of infection, the trend and prevalence of active cases, and the overall response of each country to COVID-19, including available information on testing, monitoring, contacts monitoring, treatment, reporting, as well as the reliability of information, will be taken into account.

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Montenegro opens its borders to EU countries

Appreciating today's decision of the EU Council on the coordinated opening of borders of the European Union member states towards third countries, the National Coordination Body decided that Montenegro should allow the entry of EU residents, without additional conditions. When deciding, the facts about high epidemiological standards and quality health infrastructure of the European Union countries, were also taken into account. Residents of the European Union countries are allowed to enter Montenegro through countries which are not EU member states, but exclusively if they use those countries only as transit countries, or if they do not stay in those countries, as evidenced by the inspection at the time of entry/exit from those countries.

The National Coordination Body for Communicable Diseases will decide subsequently on the opening policy towards other countries. When deciding, all relevant epidemiological parameters in each country such as the number of active cases of infection, the trend and prevalence of active cases, and the overall response of each country to COVID-19, including available information on testing, monitoring, contacts monitoring, treatment, reporting, as well as the reliability of information, will be taken into account.

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Montenegro opens its borders to EU countries

Appreciating today's decision of the EU Council on the coordinated opening of borders of the European Union member states towards third countries, the National Coordination Body decided that Montenegro should allow the entry of EU residents, without additional conditions. When deciding, the facts about high epidemiological standards and quality health infrastructure of the European Union countries, were also taken into account. Residents of the European Union countries are allowed to enter Montenegro through countries which are not EU member states, but exclusively if they use those countries only as transit countries, or if they do not stay in those countries, as evidenced by the inspection at the time of entry/exit from those countries.

The National Coordination Body for Communicable Diseases will decide subsequently on the opening policy towards other countries. When deciding, all relevant epidemiological parameters in each country such as the number of active cases of infection, the trend and prevalence of active cases, and the overall response of each country to COVID-19, including available information on testing, monitoring, contacts monitoring, treatment, reporting, as well as the reliability of information, will be taken into account.

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