Owners or co-owners holding more than 25% stakes in companies that are in bankruptcy or have blocked accounts due to debts will no longer be allowed to establish new companies. The Tax Administration will have the authority to block accounts of businesses and entrepreneurs who fail to re-register or align their organizational acts with the Law on Business Companies. Taxpayers will also be able to make money transfers not only through banks but equally through registered payment institutions.
These are the key changes in the amendments to the Law on Preventing Illegal Business, prepared by the Ministry of Finance and submitted to the Parliament by the Government.
The government notes that the grey economy is one of the biggest challenges facing Montenegro’s business sector, with consequences in tax evasion, market distortion, unfair competition, and inefficient resource allocation. Reducing the grey economy is considered a key imperative for the Montenegrin government, as it has been identified as a major business barrier.
The amendments allow the Tax Administration and its inspectors to block accounts of companies and entrepreneurs who have not completed registration or aligned their acts and organization with the Law on Business Companies. This also applies to companies required to register in any official registry but have failed to do so.
To further reduce the number of taxpayers avoiding payment of due obligations, the amendments introduce stricter restrictions for debtors. Individuals holding more than 25% in a company under bankruptcy or liquidation, who have unpaid obligations or blocked accounts, will be prohibited from founding new businesses or buying shares in other companies, except through inheritance or a final court decision.
The law also introduces fines ranging from €10,000 to €20,000 for companies that make payments to or receive payments from blocked accounts. The same penalty applies if a company fails to ensure the technical conditions for timely access to account data from the Central Bank of Montenegro.
Changes also cover gambling operators, who were previously exempt from cash register maximums. Under the amendments, they may set higher limits only with prior approval from the tax authority.
Payment institutions—legal entities registered with the Central Bank to provide payment services—will see expanded authority. They can now process payments for taxpayers via electronic money institutions and other registered payment institutions, provided the recipients’ accounts are not blocked due to enforced collection procedures.
These amendments aim to simplify and improve business operations for taxpayers while increasing compliance and efficiency in collecting public revenues. The government expects these measures to strengthen fiscal, financial, and macroeconomic stability in Montenegro.
Commercial banks will face increased competition as payment institutions gain more authority and EU-aligned norms are implemented. This is expected to reduce banking fees and introduce digital finance solutions, including the arrival of Europe-based fintech companies and digital banks in Montenegro.
