BI Consulting founder Ratko Nikolić presented an analysis of companies operating along the Montenegrin coast in 2025 at the second regional TBM Business Talks in Bečići

Companies in southern Montenegro generated €3.6 billion in revenue last year, accounting for around a quarter of Montenegro’s overall economy, according to an analysis presented by Ratko Nikolić, lead analyst of the Top Business Montenegro initiative and founder of BI Consulting, at the second regional TBM Business Talks in Bečići.

“There is capital and investment in the south, but the question is whether and to what extent they are sustainable, and how we can make them more beneficial to our economy,” Nikolić said at the event, held at Hotel Splendid.

The number of registered companies is growing, while active companies are declining

At the end of last year, there were 44,687 registered companies in southern Montenegro. The largest number were registered in Budva – 16,625, followed by Bar – 10,364 and Herceg Novi – 6,806. These three municipalities also recorded the highest revenues.

However, only 15,157 companies submitted financial statements for the previous year, accounting for around one-third of the total number of registered companies in the south.

The gap between the number of registered and active companies is particularly evident when looking at the period from 2021 to 2025. The number of registered companies increased by 16,011 during this period, but this growth was not matched by the number of companies submitting financial statements.

“Until 2023, the number of companies submitting financial statements was also growing, reaching 18,615. However, over the following two years, the number of active companies fell to 17,666 in 2024 and 15,157 in 2025,” Nikolić said.

He expects the gap between registered and active companies to narrow in the coming years through the implementation of new regulations and the Law on Companies.

“Companies that fail to submit financial statements will be classified as inactive, and if this practice continues, they will also be removed from the register. This will gradually reduce the gap between the number of companies and submitted financial statements, hopefully leading to their complete alignment and a point at which every company submits its annual financial statement within the prescribed deadline,” Nikolić said.

The south employs around 54,000 people

The south’s share of the total number of financial statements submitted nationwide in 2025 was almost the same as in 2021, which Nikolić attributes to the withdrawal of a significant number of foreign founders.

Companies in the south employ around 54,000 people, with Budva, Bar and Herceg Novi also leading in this segment. Nikolić noted that this figure does not include employees of companies operating in the south but registered in other municipalities, such as major retail chains.

The southern region accounts for around 30% of total employment in Montenegro, with a decline recorded in 2025. At the same time, the south’s share of business revenues is increasing and currently stands at 21.4% of total business revenues generated by the Montenegrin economy.

Positive net results, except in Kotor

In terms of net results, companies in Kotor were the only ones to record a cumulative loss, while the situation in other municipalities was considerably more favourable.

The trend in net results over the observed period also demonstrates the significant impact of the pandemic year of 2021 on the southern economy. Following a loss of €64.6 million in 2021, companies in the southern region accounted for 12% of Montenegro’s total net result in 2025.

“In 2021, the south recorded a negative net result, but the situation subsequently improved. By comparison, the post-COVID period was more successful in the north, due to the greater presence of industries such as energy and food production,” Nikolić said.

Economic activity remains concentrated in the central region

Top Business Montenegro analyses of the southern and northern regions of Montenegro also point to a pronounced concentration of economic activity in the central region, whose share of the Montenegrin economy has been growing for years.

The analysis of the southern region was presented as part of the second regional edition of TBM Business Talks, through which Top Business Montenegro uses data and dialogue with the business community to address the development potential and challenges facing different parts of Montenegro.