Set Up a Financial Company in Montenegro

Foreign entrepreneurs and companies interested in operating in Montenegro have various industries they can set up operations. Among these, the financial industry has become quite appealing in the last few years, as it has evolved quite a lot. One of the advantages of setting up a financial company in Montenegro is that such a business can complete one or more activities, based on the licenses it obtains upon registration.

Below, we invite you to read about the main requirements for opening a Montenegro financial company. You can rely on our law firm in Montenegro for complete assistance in setting up such a business in this country.

What are the main laws governing the financial industry in Montenegro?

There are various laws that must be respected upon the creation of a financial company in Montenegro. However, such a business will fall under the law which regulates the activities it completes.

The following laws regulate the financial sector in Montenegro:

1. the Law on Credit Institutions and the Central Bank of Montenegro Law which refer to the creation of banking institutions in this country;
2. the Law on Payment Transactions which provides for the opening of financial companies offering payment services;
3. the Consumer Credit Law which covers all the aspects related to offering loans and credits to customers of financial companies;
4. the Law on Insurance which provides for the activities of insurance and reinsurance companies in Montenegro;
5. the Law on Financial Leasing, Factoring, Purchase of Receivables, Micro-Lending, and Credit-Guarantee Operations which covers several activities completed by financial businesses.

The registration of a financial company in Montenegro is supervised by the Central Bank which is also issues most of the operating licenses for such businesses.

Our lawyers in Montenegro can offer more information on the legislation governing financial institutions in this country.

How to register a financial business in Montenegro

The creation of a financial company in Montenegro will need to comply with the provisions of the Company Law with respect to the incorporation with the Trade Register. It is worth noting that in order to open a company in the financial sector a joint stock company must be registered when it comes to setting up banking institutions. The same business form must be used upon the registration of a company for offering insurance and reinsurance activities.

Foreign financial companies can operate in Montenegro through the registration of branch offices, as the registration requirements are easier to comply with.

The registration of a financial company can be quite complex, which is why the experience of a Montenegro law firm is essential in order for it to be completed in a proper manner. Our lawyers will assist you in detail in setting up a financial company in Montenegro.

Requirements to be met by financial companies before licensing

There are a few specific requirements for Montenegrin financial companies to respect before applying for their licenses with the Central Bank. Specifically:

• such companies must have a physical presence in this country;
• they must also create the documentation related to risk management procedures, know-your-client and anti-money laundering rules, IT and information security systems;
• such businesses must also have staff and management with experience in the financial field;
• apart from their experience, they must also have good conduct;
• details on the internal auditing rules must also be presented with the Central Bank upon filing for a financial license.

Even if Montenegro is not an EU member state yet, financial companies can operate in these countries. Banks and other finance-related enterprises must comply with GDPR regulations when seeking to offer their services in the European Union.

The financial sector is highly regulated, and if you want to open such a business, you can rely on our law firm in Montenegro to ensure legal compliance.

Special requirements for opening a financial company in Montenegro

It is good to know that both local and foreign investors can establish financial companies in Montenegro under the same circumstances. However, they must also respect the same conditions related to undertaking such activities.

Among the special requirements which must be observed when establishing a business in the financial sector in Montenegro are:

• the minimum share capital for opening a banking institution in Montenegro is EUR 7.5 million;
• a business plan for 3 years must be submitted when applying for a banking license in Montenegro;
• for insurance companies selling life-insurance products, the minimum share capital is 800,000 euros;
• for insurance companies selling accident and voluntary health insurance products, the minimum share capital is 500,000 euros;
• for companies selling compulsory traffic insurance products, the minimum share capital is 1,250,000 euros;
• for companies selling property insurance and motor vehicle insurance products, the minimum amount of money required is 1 million euros;
• for companies selling life and non-life insurance products, the minimum share capital is 2,250 million euros;
• for companies undertaking reinsurance activities, the minimum share capital is 2 million euros;
• insurance companies must also bear the abbreviation AD appended to their trade names.

The banking license is issued by the Montenegro Central Bank. Our lawyers in Montenegro can offer more information on the requirements related to starting a financial company here.

Our law firm in Montenegro can help foreign investors who want to set up businesses in the financial sector with the drafting of the documents that need to be filed for registration and licensing with the local authorities.

Operations to be completed by traditional financial institutions in Montenegro

Most financial companies in Montenegro complete the following activities:

• offering various types of loans, among which credits and mortgages;
• issuing guarantees related to different forms of financial instruments;
• factoring operations;
• payment processing and recording;
• international payment services;
• securities trading and other transactions;
• taking money deposits;
• safeguarding services related to various types of assets;
• safe deposit box solutions.

Our lawyers in Montenegro are at your disposal if you want to open a financial company and need support in filing for a special business license for this purpose.

Electronic money activities in Montenegro

Apart from traditional services, Montenegro financial companies can also offer e-money solutions, in accordance with EU directives. Crypto-asset service providers must register with the Capital Market Commission under the 2025 AML law amendments, and a MiCA-aligned crypto law is being prepared. Such businesses are allowed to carry out the following activities:

• custodian services;
• trading;
• crypto exchange solutions;
• virtual currency placements;
• order transmissions and executions;
• portfolio management;
• financial advisory services.

Please note that for such companies, additional requirements apply. For example, to obtain an electronic money payment (EMI) license, a minimum capital of EUR 350,000 is required.

Furthermore, if you are planning to relocate and get a Montenegrin residency permit, the services of our immigration lawyers are at your disposal. It is not enough to establish a company in Montenegro, according to Montenegrin law. Most people who want to go this route establish their own company and then hire themselves as executive director to qualify for temporary residency.

For complete information and assistance in setting up a financial company in Montenegro, please contact our lawyers.