Glossary
The terms you meet in Montenegro, one by one.
Short definitions, with the Montenegrin name where you will see it in documents, and a link to the page where the term is used.
We reply on the next working day. We name the fee in writing, in our reply to your inquiry. Scope and timing are confirmed in writing before work starts.
A to Z
Terms
- 100-day entry plan
The sequence of decisions, approvals and costs for the first 100 days: structure, company, bank, people, premises and permits, reporting.
Where it is used : 100-day entry plan- ADakcionarsko društvo
Joint-stock company, used for larger ventures and companies planning to raise capital.
Where it is used : AD- Arm's length principle
Transactions with related parties must be priced at arm's length and documented. If your group will trade with the Montenegrin company, plan the transfer pricing before the first invoice.
Where it is used : Arm's length principle- Cadastrekatastar
The register where land and property titles are checked before any deposit, together with encumbrances and building permits.
Where it is used : Cadastre- Corporate income taxporez na dobit pravnih lica
Corporate income tax is progressive: 9% up to EUR 100,000 of taxable profit, 12% from EUR 100,000.01 to EUR 1,500,000, and 15% above EUR 1,500,000 (Corporate Income Tax Law, Art. 28, from tax year 2022).
Where it is used : Corporate income tax- CRPSCentralni registar privrednih subjekata
Central Registry of Business Entities, where a company is registered. It is searched on the Tax Administration's IRMS portal.
Where it is used : CRPS- DOOdruštvo sa ograničenom odgovornošću
Limited liability company, the usual form for SMEs, subsidiaries and single-owner companies. Registration is done by Montenegro Advisory or your own lawyers.
Where it is used : DOO- Due diligence
Financial, tax and legal review of a target before signing. In the Schule network it is done by Montenegro Advisory, under a separate engagement.
Where it is used : Due diligence- Encumbrance
A charge or right registered on a property. Checked in the cadastre before you commit, together with the title.
Where it is used : Encumbrance- EU candidate country
Montenegro has been an EU candidate country since December 2010 and opened accession negotiations in June 2012. Legislation is being aligned with EU rules.
Where it is used : EU candidate country- Euro without the euro area
Montenegro has used the euro as its currency since 2002, without being part of the euro area. There is no exchange-rate risk for euro investors.
Where it is used : Euro without the euro area- Go / no-go view
The written answer to whether Montenegro fits your plan, with reasons. Part of the market brief.
Where it is used : Go / no-go view- Investor site visit
A two- to three-day programme of meetings in Montenegro, prepared and attended with you, with a briefing note per meeting and a written debrief.
Where it is used : Investor site visit- Long list
Names from registers, industry sources and our network, before screening.
Where it is used : Long list- Market brief
A written brief with sources on demand, competitors, price levels and the rules that apply to your activity, with a go / no-go view and the open questions for the next step.
Where it is used : Market brief- PIBporeski identifikacioni broj
Tax identification number of a company, issued with registration.
Where it is used : PIB- Screening
Checking names through public financial statements, ownership and reputation.
Where it is used : Screening- Shortlist
Locations, partners, suppliers or targets that fit the brief, with a one-page profile per name and contact routes.
Where it is used : Shortlist