The Parliament of Montenegro is considering Amendments to the Illegal Business Prevention Act, the purpose of which is to tighten control, reduce the gray economy and improve tax discipline.
What is considered an illegal business?
The bill clearly defines what constitutes illegal activity:
- work without registration,
- conducting business without the necessary permits,
- or in violation of the conditions under which these permits were issued.
It is especially emphasized: No company or entrepreneur can operate without official registration and permits.Exceptions are made only for banks, microcredit organizations, postal operators, and organizers of games of chance.
Restrictions for owners of distressed companies
The new regulations introduce a strict ban for owners of companies with financial problems:
- persons who own more than 30% of companies in bankruptcy or liquidation,
- as well as those whose accounts are blocked due to tax debts.
Such persons will not be able to:
- open new companies,
- register as entrepreneurs,
- acquire shares in other companies.
The ban remains in effect until all reasons for its introduction are eliminated and applies even to dependent companies.
Fines of up to 20 euros
The proposed changes significantly increase the penalties for violations:
- legal entities – from 10,000 to 20,000 euros,
- responsible persons (directors, managers) - from 2,000 to 3,000 euros,
- Entrepreneurs - from 4,000 to 6,000 euros.
What violations will be punished?
Among the main violations:
- lack of a bank account and conducting transactions without it,
- storage of cash in excess of the established limit,
- use of blocked accounts for settlements,
- failure to file income reports for non-residents,
- non-payment of taxes,
- issuing loans in the presence of tax arrears,
- Illegal organization of gambling in cafes and restaurants.
New responsibilities for the media
The law requires media outlets to verify the legality of advertisers before publishing ads. Additionally, editorial offices must keep records of such checks and report quarterly to the tax service.
Media outlets have already felt the hit to their revenues.
The new legislative measures have affected not only businesses but also the media themselves. Montenegro's leading publications—Pobjeda, Dan, and Vijesti— sent a letter government agencies, warning that the Law on Games of Chance, which has come into force, could seriously undermine the financial stability of the media.
The ban on gambling advertising in national media has deprived editorial staff of 10% to 30% of their revenue, threatening job security, content quality, and even the existence of entire newsrooms. While foreign digital platforms continue to freely carry such advertising, local media have found themselves on an uneven playing field and have not been given the transition period to adapt, as was the case in Croatia or Serbia.
The editors emphasize that they support the need to regulate gambling and harmonize it with EU standards, but they are calling on the authorities to find a balance between combating shady practices and supporting independent journalism. Proposals include the creation of a temporary support fund and open dialogue with the government to preserve media pluralism and ensure a stable and informed public.
Why all this?
The main goal of the amendments is to reduce the shadow economy, improve business transparency, and ensure regular tax revenues. The authorities hope this will help strengthen the country's financial system and create a more predictable and healthy business climate.
For entrepreneurs, this is a signal that working "in the shadows" will become much more dangerous and expensive, and for the state, it is a step toward a healthier economy.
