An amendment to the Aliens Act allows foreigners who are directors to be involved with more than one company and to continue working beyond the retirement age of 67.
A temporary residence and work permit is generally valid for a period of one year and can be extended for two more years. After this three-year period, a foreigner is required to obtain a new permit. However, in the case of directors who own more than 51 percent of the share capital of a company, the permit may be extended indefinitely.
Also, a permit beyond the annual quota may be issued to a foreigner who is an executive director of a company that is registered in Montenegro in accordance with the law governing the forms of performing business activities and their registration.
The new amendment also allows directors to be employed by more than one company, as a permit may be issued to a foreigner for the purpose of performing duties as a director with several employers.
Directors are required to have an employment agreement in Montenegro, and in general, an employment agreements is terminated by law when an employee reaches 67 years of age and has at least 15 years of insurance service. However, directors are now exempt from that age limit; thus, a permit may be issued to a foreigner who is older than 67 years of age if he or she is a director of a company and owns more than 51 percent of the share capital.
The deadline for concluding an employment agreement has also changed. An employer is now required to conclude an employment contract with a director and register him or her for compulsory social security within 24 hours from the date of the issuance of the permit.
Comment
This is the latest of many reforms to the Aliens Act that enables directors to operate in more than one company and to be employed regardless of their age.
Written by Milena Rončević Pejović and Luka Prelević in cooperation with Karanović & Partners and Roger James of Ogletree Deakins
© 2019 Karanović & Partners and Ogletree, Deakins, Nash, Smoak & Stewart, P.C.