Montenegro has provisionally closed 18 of the 33 EU negotiating chapters, with the latest closures covering competition policy and the customs union, as the country moves toward a business environment increasingly aligned with European Union rules. The EU and Montenegro provisionally closed the two chapters on 14 July, while an EU working party has begun preparations for an accession treaty. All 33 negotiating chapters are open, but the provisional closures remain subject to review. The government’s objective of EU membership in 2028 remains a political target rather than a guaranteed accession date.
For companies, however, regulatory changes are taking effect before membership. Rules covering company formation, auditing, consumer protection, payments, public procurement and state aid are being brought closer to the EU acquis, creating changes in corporate compliance and operating requirements.
Company registration rules bring broader disclosure requirements
A new companies law and a separate business-registration law entered into force on 1 January 2026, introducing expanded disclosures, digital procedures and EU-style provisions governing cross-border conversions, mergers and divisions. Changes to corporate governance, together with new accounting and audit legislation, have increased requirements for boards, public-interest entities and external auditors. Fully digital company formation remains dependent on connected software and secondary legislation.
The reforms affect a sizeable foreign-owned business population. MONSTAT recorded 31,442 active foreign-owned businesses in 2025, an increase of 4.9 per cent from 2024. Turkish-owned businesses represented 38.7 per cent of the total, while Russian-owned businesses accounted for 21.5 per cent. Retail, professional services and construction were the largest sectors among foreign-owned businesses. MONSTAT has cautioned that changes to the business register are affecting the statistical series.
The new requirements extend disclosure, accounting and beneficial-ownership obligations to a large number of small trading, property and services companies. For businesses entering the market, more recognisable corporate structures and digital registration procedures can reduce legal and administrative differences between Montenegro and EU jurisdictions. Companies with family ownership structures, cash-intensive operations or limited administrative staffing face additional compliance requirements. The changes are also creating demand for audit, legal, registry-software, compliance and cybersecurity services, while some smaller entities may consolidate, become dormant or leave the register.
Established EU-linked companies have a compliance advantage
Banks and telecommunications companies with EU-based parent groups enter the transition with existing compliance systems developed at group level. Larger domestic companies can also distribute regulatory costs across established operations. Smaller Montenegrin businesses must finance additional controls while administrative services, courts and permitting systems continue to develop.
The European Commission’s 2025 report found that only four of 37 actions under a programme designed to remove barriers to business had been completed. Public registers were not yet fully interoperable, administrative procedures remained cumbersome and informality continued to affect businesses that paid taxes and complied with labour regulations. Property rights and municipal planning remain additional factors for companies operating in Montenegro. Incorporation under updated legislation does not remove potential delays involving land records, restitution claims, permits or infrastructure.
The source identifies Lidl’s prolonged assembly of retail sites and the slow progression of announced renewable-energy projects into operating assets as examples of the difference between legal alignment and practical project execution.
Regulatory implementation remains a key factor for businesses
Montenegro’s small market limits the ability of companies to maintain multiple parallel compliance systems. Regulatory capacity can also affect competition when institutions lack sufficient staffing or process applications slowly. The transition is taking place alongside macroeconomic constraints. The IMF expects Montenegro’s medium-term economic growth to remain at approximately 3 per cent and has warned about fiscal slippage and a current-account deficit of around 18 per cent of GDP.
The country’s economy remains heavily dependent on tourism and imports, increasing the importance of investment capable of generating exports, productivity gains and employment throughout the year. The regulatory changes are therefore affecting both new entrants and existing companies. Businesses with transparent financing, scalable operating systems and models compatible with EU requirements are positioned within a progressively harmonised regulatory framework.
Companies whose margins depend on limited transparency, weak consumer enforcement, cross-border costs, protected market positions or expectations of state support face changes as Montenegro moves closer to EU standards. Montenegro is implementing European corporate and economic rules before obtaining EU membership and voting rights. The legislation is being introduced through changes to company law, registration, corporate governance, accounting, auditing and other areas of business regulation, while the practical effect will depend on implementation by courts, regulators, ministries and municipal administrations.
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