Over 31,000 Companies in Montenegro Operate With No Employees

In Montenegro, more than 31,000 companies currently operate without any employees, raising questions about the state of the country’s business environment. According to data from the Tax Administration, this figure indicates that many of these firms may be newly established and awaiting business opportunities, or they may be inactive without plans for closure.

The statistics reveal that a total of 88,239 entities are registered in Montenegro, with a significant portion—over a third—having no employees at all. Specifically, 31,207 companies are entirely devoid of staff, while an additional 36,407 companies employ just one person, typically the owner. These figures underscore the dominance of micro-enterprises and self-employed individuals in Montenegro’s economy.

Insights into Business Activity

The prevalence of companies with no employees could indicate a considerable number of inactive or “dormant” firms. Many businesses are registered in anticipation of future projects or opportunities, with owners often waiting for the right moment to hire staff. Some companies may also exist solely for a specific project that has yet to commence, resulting in a lack of immediate employment needs.

Furthermore, some of these entities remain registered because owners have not initiated closure procedures. This may be due to the administrative burden and costs associated with liquidation or the potential for reactivation if a new business opportunity arises.

Company Size and Employment Trends

The data from the Tax Administration highlights a distinct trend in company size within Montenegro. The majority of firms operate with only one employee, reflecting a common business model in the micro and small business sector. These entities often function in service industries, consultancy, IT, marketing, or construction, relying on temporary workers or contractors rather than formal employment agreements.

As the size of companies increases, the number of employees decreases sharply. For instance, 8,326 companies have two employees, while 6,711 firms employ between three and five workers. In the small business category, 2,690 entities have between six and ten employees, and 1,419 companies employ between eleven and twenty. Even fewer companies employ larger workforces: 875 firms have between twenty-one and fifty employees, and only 297 companies employ between fifty-one and one hundred workers.

The trend continues with larger businesses, as only 274 companies employ between one hundred and five hundred workers, and a mere 22 firms have between five hundred and one thousand employees. Remarkably, only eleven companies in Montenegro employ more than a thousand people.

The data illustrate that Montenegro’s economic landscape is heavily reliant on microenterprises and self-employment. With more than 88,000 registered entities, it is evident that three-quarters of them do not employ anyone or have only one employee. This situation highlights the critical role that a small number of businesses with larger workforces play in contributing to overall employment in the country.