Ban on Business Without Registration: Montenegro Prepares Fines of Up to 20,000 Euros
Amendments to the Law on Prevention of Illegal Business are under consideration in the Montenegrin parliament, with the aim of tightening control, reducing the gray economy, and improving tax compliance. What is considered illegal business? The law...
In the Parliament of Montenegro, amendments to the Law on Prevention of Illegal Business are under consideration, aimed at tightening oversight, reducing the grey economy, and improving tax compliance.
What is considered illegal business?The draft law clearly defines that illegal activity includes:
working without registration,conducting 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 game-of-chance organizers.
Restrictions for owners of troubled companiesThe new provisions introduce a strict ban for owners of companies facing financial difficulties:
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 stakes in other companies.
The ban remains in force until all reasons for its introduction are removed and applies even to dependent companies.Fines — up to 20,000 eurosThe proposed changes significantly increase the penalty amounts for violations:
(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:
absence of a bank account and conducting transactions outside it,holding cash above the prescribed limit,using blocked accounts for settlements,failure to submit reports on non-residents’ income,non-payment of taxes,issuing loans while having tax debt,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 hit to revenues
The new legislative measures have affected not only businesses, but also the media themselves. Montenegro’s leading publications — Pobjeda, Dan, and Vijesti —
The ban on gambling advertising in national media has deprived editorial offices of 10% to 30% of their revenue, putting 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 an unequal position and were not given a transition period to adapt, as was the case in Croatia or Serbia.
Editors emphasize: they support the need to regulate gambling and harmonize with
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 riskier and more expensive, and for the state — a step toward a healthier economy.
Ban on Business Without Registration: Montenegro Prepares...
