What’s New in Montenegro?
From 17 June 2026, the Poreska Uprava (Tax Administration of Montenegro) made available a simplified procedure for setting up single-member limited liability companies (DOO) via their IRMS online portal. (irms.tax.gov.me) This makes incorporation faster and reduces administrative burdens for small business owners.
Advantages of the Simplified DOO Setup
- Speed & ease: Full registration can be done online through IRMS, without visiting multiple agencies. No need for manual filings across jurisdictions. (irms.tax.gov.me)
- Cost savings: Legal and bureaucratic costs drop as paperwork is reduced. You avoid many notarizations and physical submissions.
- Digital accessibility: Everything—from naming the company to registering activities—is done via the portal.
- Formal compliance sooner: You are recognized officially earlier, meaning access to formal contracts, banking, VAT registration, etc.
Step-by-Step Guide to Registering a Single-Member DOO
- Log into the IRMS portal of Poreska Uprava.
- Select “Simple DOO registration for single-member entities”.
- Provide the sole owner’s info, company name, planned business activity code, address.
- Submit all documentation electronically—no need for in-person visits unless requested.
- Once approved, obtain the tax ID and start operations.
- If you exceed certain thresholds (turn-over, employees), prepare for registration obligations like VAT.
Practical Example
Imagine you’re an international consultant, based in Podgorica, and want to operate officially rather than as a freelancer. You’d set up a DOO, register as a single-member entity. With this new system, you:
- Log in online;
- File personal and company data;
- Nominate your business activity;
- Receive confirmation and tax ID within a short timeframe.
Once registered, you can issue invoices as a company, deduct certain costs, enjoy liability protection, and possibly pay lower overall tax depending on net income versus expenses.
Considerations and Risks
- Corporate obligations: Annual reports, proper accounting, audit thresholds still apply.
- VAT thresholds: In Montenegro, once you cross the threshold for VAT, you must register and comply with VAT rules.
- Banking: Opening a business bank account under a newly setup DOO may require proof of registration and other formalities.
- Tax Burden vs. Self-employment: Sometimes being a DOO changes how contributions and corporate tax impact net vs. gross income. Model both.
Summary Points
- This reform sharply lowers barriers to formal business setup for solo operators.
- It enhances legal protection and opens opportunities for growth.
- Digital nomads thinking of staying long term, or doing business in Montenegro, have a golden opportunity to formalize operations with less hassle.
- But keep in mind ongoing compliance obligations—don’t let simplicity lead to surprises later.