Of the 9 companies that were established in Montenegro last year, almost 063 percent were founded by foreigners (mostly citizens of Russia and Turkey) with a capital of almost 80 million euros, according to data provided by the Tax and Customs Administration (Revenue and Customs Administration - UPC).
Number of companies founded by foreigners, amounted to 7, and in more than half of the cases these are citizens of Russiawho established 3 companies in Montenegro. After them, the most numerous are citizens Turkeywho founded 1476 companies last year alone. Thus, the citizens of Russia and Turkey have established more than 5000 companies, which is 75% of the total number of companies established by foreigners.
Far behind Russia and Turkey in the list of foreign founders of companies in Montenegro are citizens Serbia, who founded 275 companies, followed immediately by citizens Germany from 247 to Ukraine with 200 companies.
Citizens in fifth place Belarus with 138 newly created companies, and the next on the list - Italians, Kosovars, British and citizens of Bosnia and Herzegovina - have opened less than 100 companies in Montenegro over the past year.
Main activities of new companies in Montenegro
The SKP reported that the activities of the newly created companies of foreign founders are different, and most of them, 873, which is about 12 percent of the total, are engaged in wholesale or retail trade.
“About nine percent of them registered for computer programming activities, and 510 companies were registered as restaurants or other catering businesses. Then there are companies that are engaged in consulting services (473 companies). From 200 to 300 new companies are registered in the Central Register of Business Entities in the following activities: advertising agencies, hairdressers and beauty salons, real estate rental, information technology consulting services, data processing and application services, and design activities. UPC.
According to data presented to UPC, 114 hotel and accommodation services companies were founded by foreigners last year.
In addition to companies, more than 1000 new entrepreneurs were also registered.
In addition to companies, 1032 new entrepreneurs were also registered last year, where the structure was reversed, that is, 775 local residents and 257 foreigners.
As for the current year, 2778 new companies were registered by the end of March, and the trend of the previous year continued, so that 2016 or 72 percent of companies were founded by foreign citizens.
“The amount of capital for companies founded by foreigners and registered in 2023 is 2 euros,” UPC said in a statement.
The structure of the departure of foreigners has not changed significantly compared to last year. Russian citizens founded 2023 companies in 1238, which is 60 percent of the total number of foreign citizens, while a fifth of the companies were founded by Turks. They are followed by citizens of Serbia, Germany, Ukraine, Belarus, in much smaller numbers.
Citizens of exotic countries also open companies in Montenegro
Interestingly, there are companies that were founded by citizens of exotic countries such as Thailand, Ghana, Kyrgyzstan, the British Virgin Islands, Nepal.
During this year, 249 wholesale or retail companies were founded by foreigners; building construction.
2022 is a record year in terms of foreign direct investment in Montenegro
Last year was a record year for Montenegro in terms of volume foreign direct investment, which amounted to one billion 151 million euros. In pre-crisis 2019, foreign investment amounted to 778 million euros.
Foreigners have invested the most money in the purchase of real estate in 2022, 448 million euros. Last year was the last year that the economic citizenship program was in place, under which foreigners could apply for Montenegrin citizenship by purchasing real estate under certain conditions. That this is the main reason why foreigners invest in real estate is evidenced by the fact that in 2019 they bought property worth 178 million euros.
Last year, foreigners invested 401 million in the so-called intercompany debt, that is, they lent it to their own or other companies in Montenegro. While foreign investment in domestic companies and banks in 2019 amounted to one million euros.
Most foreign investment in 2022 came from Serbia (137 million euros), followed by Russia (127 million), Germany (100 million), Switzerland (98 million), United Arab Emirates (89 million), Turkey (78 million) , Italy (58 million), USA (48 million), Cyprus (45 million).
