The Parliament of Montenegro has adopted the Law on the Amendment of the Law on the Prevention of Illegal Business Operations.
In the Law on the Prevention of Illegal Business Operations (“Official Gazette of Montenegro”, No. 29/13), paragraph 1 of Article 9 has been amended as follows:
Article 9: A person who holds more than 30% of the capital in a company that is subject to bankruptcy or liquidation proceedings, has not fulfilled its tax obligations, or whose accounts are blocked due to enforced collection, cannot establish a company or register to conduct business activities as an entrepreneur. Additionally, such a person cannot acquire a share or become a member of another company through a concluded share transfer agreement.
The prohibition on establishing a company, as stated in paragraph 1 of this article, also applies to subsidiary companies of that company. The restriction outlined in paragraph 1 remains in effect until the reasons for its imposition are resolved. For the purposes of paragraph 1, “person” refers to a company, entrepreneur, or individual.
Therefore, previously, a person holding more than 30% of the capital in a company under bankruptcy or liquidation, not meeting tax obligations, or with blocked accounts due to enforced collection, could not establish a company or register as an entrepreneur. With these amendments, the restriction has been expanded to include the inability to acquire shares through a concluded share transfer agreement or to become a member of another company.
This Law was published in the “Official Gazette of Montenegro” No. 152/2022 on December 30, 2022, and came into force on the day of its publication in the “Official Gazette of Montenegro.”
