Ban on Business Without Registration: Montenegro Prepares Fines of Up to 20,000 Euros
Amendments to the Law on Prevention of Illegal Business are currently under consideration in the Montenegrin parliament, with the aim of tightening control, reducing the grey economy, and improving tax compliance. What is considered illegal business? The law pro...
In the Parliament of Montenegro, the following are under consideration amendments to the Law on Prevention of Illegal Business, aimed at tightening control, reducing the grey economy, and improving tax discipline.
What is considered illegal business?
The draft law clearly defines that illegal activity includes:
working without registration,
doing business without the required permits,
or in violation of the conditions under which those permits were issued.
It is specifically emphasized: no company or entrepreneur may operate without official registration and permits. Exceptions are made only for banks, microcredit organizations, postal operators, and games of chance organizers.
Restrictions for owners of troubled companies
The new rules introduce a strict ban for owners of companies with financial problems:
persons who own more than 30% in companies that are 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 force until all reasons for its introduction are eliminated and applies even to dependent companies.
Fines — up to 20,000 euros
The proposed changes significantly increase the penalty amounts 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.
Which violations will be punished?
Among the main violations:
absence of a bank account and conducting transactions outside it,
holding cash above the established limit,
using blocked accounts for settlements,
failure to submit reports on non-residents' income,
non-payment of taxes,
issuing loans while having tax arrears,
illegal organization of gambling in cafes and restaurants.
New obligations for the media
The law requires media outlets to verify the legality of advertisers before publishing ads. In addition, editorial offices must keep records of such checks and report quarterly to the tax administration.
The media have already felt the blow 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 to state authorities, warning that the Law on Games of Chance, which has entered into force, could seriously undermine the financial stability of the media.
The ban on gambling advertising in national media has deprived editorial offices of 10% to 30% of their income, which puts jobs, content quality, and even the existence of entire newsrooms at risk. While foreign digital platforms continue to freely place such ads, local media have found themselves in unequal conditions and have not received a transition period for adaptation, as was the case in Croatia or Serbia.
Editors emphasize: they support the need to regulate gambling and harmonize with EU standards, but call on the authorities to find a balance between fighting shadow practices and supporting independent journalism. Among the proposals are the creation of a temporary support fund and an open dialogue with the state in order to preserve media pluralism and stable public information.
Why all this?
The main goal of the amendments is to reduce the scale of the shadow economy, improve business transparency, and ensure regular tax revenues to the budget. The authorities expect this to help strengthen the country's financial system and create a more predictable and healthy business climate.
For entrepreneurs, this is a signal: working “in the shadows” will become much more dangerous and expensive, and for the state — a step toward a healthier economy.
