What Should You Know About Montenegro? INVEST IN MONTENEGRO 2017 111 Frequently Asked Questions MONTENEGRO IS THE NEXT NATO MEMBER What Should You Know About Montenegro? INVEST IN MONTENEGRO 2017 111 Frequently Asked Questions This publication is product of The Montenegrin Investment Promotion Agency (MIPA) 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 Dear Reader, We are pleased to offer you new, 2015. edition of “111 Frequently Asked Questions”. We hope it will contribute to your better understanding of the overall situation in Montenegro and help you in establishing your business. On the 2nd of December of 2015, NATO Foreign Ministers agreed to invite Monte- negro to begin the process to become the twenty-ninth member of the NATO Alli- ance. Montenegro got independent in 2006, and this is the second most important day for Montenegro in recent history. Montenegro was the least developed country among 6 countries of the ex-Yugoslavia. Today, Montenegro is, by almost all of the economic parameters, most developed country in the whole region. We share the vision of the NATO Secretary General Jens Stoltenberg: ‘‘NATO mem- bership made my own country safer, and it will make Montenegro safer too. It will be good for Montenegro, it will be good for Europe, and it will be good for the Al- liance.’’ Here we are answering 111 frequently asked questions about the investments op- portunities of Montenegro. You are welcomed to come to ask more questions. Mon- tenegrin Investment Promotion Agency (MIPA) is at your disposal for any question related to the foreign investments of Montenegro. We believe it is important to get your attention to several general facts about Mon- tenegro: • Geographically strategic position of Montenegro in Europe • Montenegro is in process of negotiation for joining the European Union (EU) • Montenegro is in process for the full membership into NATO; • We treat foreigners and domestic ones equally with regard to investments; • For majority of the countries visas are not required; • The euro is official currency since 2001 • One of the most competitive corporate tax regimes in Europe I would like to use this opportunity to invite you to come to Montenegro, and inves- tigate the investment potential of Montenegro. Our comparative advantages are in tourism, agriculture and renewable energy sector. In all three of them we have enor- mous potential. Yours Sincerely, Miloš Jovanović, MSc CEO Montenegrin Investment Promotion Agency (MIPA) 3 INVEST IN MONTENEGRO 2017 | 111 Frequently Asked Questions 4 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 What is MIPA? The Montenegrin Investment Promotion Agency (MIPA) is a national investment agency set up by the Government of Montenegro in 2005 to promote foreign invest- ments in Montenegro and to facilitate the economic development of Montenegro. MIPA’s mission The mission of MIPA is to partner with foreign and domestic investors, the public and private sector, and international groups and individuals to increase investments in Montenegro and help bring accelerated economic development, dynamic growth and prosperity for all Montenegrin citizens. It promotes specific projects to foreign investors and has a publicity function in bringing such projects to the attention of the international public. MIPA advances Montenegro as a competitive investment desti- nation by actively facilitating investment projects in the country. What can MIPA do for you? MIPA helps you find business opportunities in Montenegro by: • Being a business partner and actively facilitating your business needs; • Providing you with relevant information on the investment climate, institutional framework and related legal issues; • Assisting you in obtaining permits and licenses on national and local levels of authority; • Developing specific strategies for concrete sectors and countries; • Helping you locate greenfield and brownfield site options according to your specific requirements; • Giving initiatives and supporting cooperation with domestic supplier companies and other local partners; • Maintaining an investment opportunities database; • Identifying eventual “red tape” obstacles to doing business in Montenegro and providing recommendations to the Government for its systematic removal; • Advertising your project, with an aim to create a relationship between Monte- negrin companies and people and foreign investors. How to Contact Us? Montenegrin Investment Promotion Agency (MIPA) Jovana Tomaševića 2A, 81000 Podgorica, Montenegro Tel/fax: (+38220)203-140, 203-141, 202-910, 202-911 Web: www.mipa.co.me E-mail: [email protected] 01. Where is Montenegro? Montenegro belongs to the middle Mediterranean region. It is located in Southeast 5 INVEST IN MONTENEGRO 2017 | 111 Frequently Asked Questions Photo: Stefan L. Beyer; http://www.slb-photography.com/ 6 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 Europe, on the central part of the Balkan Peninsula and southern coast of the Adri- atic Sea. Geographic coordinates of extreme points North latitude East latitude North 43o 32’ 18o 58’ South 42o 50’ 19o 22’ East 42o 53’ 20o 21’ West 42o 29’ 18o 26’ Montenegro is bordered by Croatia and Bosnia and Herzegovina on the west, Serbia on the northeast, Kosovo and Albania on the east and Italy across the Adriatic Sea. The borders are 614 km in length with a coastline of 293,5 km, of which 73 km are sand beaches. 02. What is the total land area? Total land area of Montenegro is 13,812 km2. High and extensive mountain massifs intersected by river gorges and deep valleys cover most of the country. Larger lowland areas are to be found in the south, near the coastline. General Data Area in km2 13.812 Total population 622,159 Capital Podgorica Old Royal Capital Cetinje Currency EUR Climate Continental and Mountain Mediterranean Time zone CET (GMT + 01:00) 7 INVEST IN MONTENEGRO 2017 | 111 Frequently Asked Questions 03. What is the capital of Montenegro and what are other major cities? The capital of Montenegro is Podgorica. With a population of 185,937, it represents the political, economic, administrative and cultural heart of Montenegro. Major cities are: Niksic with a population of 72,824, which is located 54 km northwest of Podgori- ca, and Bijelo Polje with 46,676 inhabitants, located 120 km north of Podgorica. 04. What is the importance of the accession of Montenegro to NATO? One of the main foreign policy’s goals of Montenegro is a membership in the North Atlantic Treaty Organisation (NATO). Alliance membership is a long-term guarantee of sovereignty and territorial integrity of a country, safety of its citizens, and a pre- condition for successful economic growth and progress. The countries of the region share the belief that NATO is the best guarantee for long-term safety and stability in the Western Balkans. NATO membership is a matter of national interest and an answer to the question what strategic outlook should the country take to ensure that future generations will live in peace. A formal invitation was issued by the alliance on 2 December 2015, beginning the final accession talks. ,,This is a crown jewel of the long-standing national efforts and comprehensive reform processes launched in 2006. Exactly nine years ago, Montenegro has embarked on this journey by joining the Partnership for Peace (PfP). Today, we are entitled to feel proud that we have in a relatively short time earned the trust of our partners and received a membership invitation.’’ Milo Djukanovic, PM of Montenegro As a NATO member, Montenegro will much better valorize all its potential in a safe environment. Each investor will prefer to invest in a country that is safe, enjoys sta- bility and which is a member of the world recognized international organisation. It also applies to tourists. With membership in NATO, Montenegro will strengthen en- vironment for domestic and foreign investment and this environment would guaran- tee stability of investments. New chances for Montenegrin economy NATO codification system came out of necessity of allies interoperability. The basic idea of codification is very simple, however, in the background lies a complex orga- nization led by the Committee AC / 135, a complex software system in the NSPA, the system of communication with the various commercial software 55 countries world- wide. Codification of Montenegrin products opens the possibility of using the advan- tages of a much larger market 8 111 Frequently Asked Questions | INVEST IN MONTENEGRO 2017 73 products are codified in Montenegro so far. These are the products of companies: Tara, Plantation 13 July, Franca Mesopromet, Suza Water Group, Poliex, Martex, ag- ricultural producer Goran Mijušković, Water factory Lipovo, AD Bjelasica Rada. In addition to these companies, NCAGE (NATO COMMERCIAL AND GOVERNMENT EN- TITY CODE) received the company Adriatic Shipyard, Jugobicikl-traffic trade, Jadroa- gent Bar, Studio Mouse, MB Electronic, mill Niksic, Montenegro Defence Industry, Port of Bar, Port of Kotor, Travel agency, Mortgage Bank, Interprodukt, Matic MT. By receiving this code all the companies have entered into NATO master catalog, a da- tabase of companies and organizations 28 NATO countries and 38 countries that are not NATO members, and offering products and services of NATO member states. New chances for tourism Montenegro, as a tourist, investment attractive country, with NATO membership ensures more favorable environment for investment (strengthening the rule of law is a guarantee to investors). Montenegro’s membership in NATO would have had and the importance of tourism, especially since, in addition to natural beauty, cultural-his- torical monuments, leisure and entertainment for tourists is general safety. The citi- zens of NATO countries are a great tourist, and travel consumers usually choose safe destinations. 05. Will the membership of Montenegro in NATO reduce the inflow of FDI from Russia? MIPA is firmly convinced that membership of Montenegro in NATO will not reduce the inflow of FDI from Russian Federation. Russian business is welcome in Montene- gro and our integration with NATO shouldn’t hurt Russian investment.