Naslovnica Chapter 3 – Right of establishment and freedom to provide services

Chapter 3 – Right of establishment and freedom to provide services

The freedom to provide services is one of the four fundamental freedoms that enable the functioning of the European Union’s internal market, and it also includes the right of establishment in any EU Member State. The right of establishment means the right to start up and pursue an economic activity in any Member State.

Member States should ensure that the right to establish companies for EU nationals and legal persons in any Member State, as well as the freedom to provide cross-border services, are not hindered by national legislation, subject to the exceptions provided for in the Treaties.

Upon Montenegro’s accession to the European Union, Montenegrin business entities (natural or legal persons) will be allowed to freely provide services in any EU Member State without establishing themselves there. A service provider will be able to provide services across borders using their professional title, without additional recognition of qualifications in the host Member State. The host state may only require the service provider to notify that it will provide services (while submitting proof of nationality, qualifications, and engagement in an economic activity in the home state).

Sub-areas?

This chapter covers the following sub-areas: mutual recognition of professional qualifications, the right of establishment and the freedom to provide cross-border services, and postal services.

With regard to the mutual recognition of professional qualifications between Member States, for certain regulated professions it is necessary to implement a minimum common training framework so that qualifications are automatically recognized in all EU Member States. Directive 2005/36/EC on the recognition of professional qualifications is the key act in this area.

The right of establishment allows business entities of a Member State to start and pursue economic activities in a stable and continuous manner in one or more EU Member States. A particular challenge in this area is the alignment of national legislation with Directive 2006/123/EC on services in the internal market. The aim of the Services Directive is to establish a single internal market for services by removing legal and administrative barriers to the development of service activities between Member States. The Directive is a horizontal instrument covering a wide range of different services and affecting a significant number of national laws and regulations. It regulates all services and creates an obligation to facilitate administrative procedures in the area of service provision, ensuring greater transparency through the establishment of a Point of Single Contact for services (PSC).

The Point of Single Contact and the PSC portal have been fully operational since 25 June 2024 (www.psc.gov.me).

The Point of Single Contact (PSC) is a portal created in each EU Member State to facilitate entrepreneurs in starting a business in the field of services, not only in their own country but across the entire European Union. The portal provides key information on procedures to be followed, requirements to be submitted to competent authorities, possible costs of those procedures (in the form of fees or other charges), as well as relevant legislation. The establishment of a PSC is an obligation of all EU Member States in accordance with Directive 2006/123/EC on services in the internal market.

The PSC can help when you plan to start a new business or expand your service business in your own or another EU Member State.

At one place, the Point of Single Contact provides useful information on the conditions for:

  • business registration and operations,
  • carrying out service activities and professions,
  • the operation of foreign nationals,
  • doing business in other EU Member States (the EUGO network).

When it comes to postal services, the objective is to create a common market for postal services and ensure the quality of services provided, gradually opening this sector to market competition. The EU acquis on postal services aims to ensure the provision of a universal postal service and the establishment of an internal market for postal services and high-quality postal services for end users. Establishing an independent national regulatory authority in this field is a key element for the proper implementation of EU rules and the effective functioning of national postal services markets, and ultimately of the internal postal market.

When was the chapter closed?

Chapter 3 – Right of Establishment and Freedom to Provide Services was officially opened on 11 December 2017 and provisionally closed on 16 December 2025 at the Intergovernmental Conference in Brussels.

Opening benchmarks?

In this chapter, Montenegro had one opening benchmark related to the preparation of a comprehensive strategy for alignment with the acquis in the field of qualifications. The benchmark was met by the adoption of the National Plan for the Development of Qualifications for the Performance of Regulated Professions, with the Action Plan 2013–2018.

Closing benchmarks?

Montenegro worked intensively on meeting European standards and thus created the conditions for closing this chapter by fulfilling four closing benchmarks:

  1. Montenegro adopts and submits to the European Commission a list of regulated professions in accordance with the relevant acquis, specifying the activities covered by each profession and providing an explanation of the regulation;
  2. Montenegro aligns all study programmes leading to qualifications for regulated professions in Montenegro with the requirements of Directive 2005/36/EC and its relevant amendments;
  3. Montenegro adopts a horizontal law on services transposing Directive 2006/123/EC on services and demonstrates further progress in aligning sectoral regulations;
  4. Montenegro amends national legislation to abolish all nationality requirements for access to and enjoyment of the freedom to provide services, except for nationality requirements justified and proportionate under Article 51 TFEU. These amendments are to be applicable no later than the date of accession.

Activities carried out to meet the closing benchmarks

Due to the passage of time during which new regulations governing regulated professions were adopted, as well as changes in the organization of public administration, on 15 May 2025 the Government of Montenegro adopted a new Decision determining the List of Regulated Professions, thereby fulfilling the first closing benchmark in this chapter.

For the purpose of continuing the harmonization and implementation of the EU acquis in the area of recognition of professional qualifications for regulated professions—relating to the implementation of Directive 2005/36/EC on the recognition of professional qualifications and Directive 2013/55/EU amending Directive 2005/36/EC, in the part concerning automatic recognition of professional qualifications based on minimum training requirements (medical doctor, dentist, pharmacist, general care nurse, midwife, veterinarian, and architect)—and for further alignment of sectoral regulations in this area, on 31 July 2025 the Parliament adopted: the Law on Health Care (“Official Gazette of Montenegro”, No. 91/25), the Law on Amendments to the Law on Veterinary Medicine, and the Law on Amendments to the Law on Construction of Buildings. Relevant by-laws were also adopted, all with the aim of achieving full alignment with the provisions of the Directives concerning minimum training requirements.

In accordance with the European Commission’s comments, Montenegro revised study programmes leading to qualifications for the professions of medical doctor, dentist, pharmacist, general care nurse, and architect, which are subject to automatic recognition based on minimum training requirements, in order to align them with Directive 2005/36/EC on the recognition of professional qualifications and Directive 2013/55/EU amending Directive 2005/36/EC.

In order to further align with Directive 2006/123/EC on services in the internal market, on 10 July 2025 the Parliament adopted the Law on Amendments to the Law on Services.

Given the obligation to amend legislation to abolish nationality requirements for access to and enjoyment of the freedom to provide services, in the context of fulfilling the obligations defined by the fourth closing benchmark, the Parliament adopted: the Law on Construction of Buildings, the Law on Amendments to the Law on the Protection of Persons and Property, the Law on Amendments to the General Law on Education, and the Law on Amendments to the Law on Court Experts.

What are the benefits of this chapter for Montenegro?

The right of establishment and the freedom to provide services bring numerous benefits for the citizens of Montenegro, both for service providers and service users. Upon Montenegro’s accession to the EU, Montenegrin natural and legal persons will be allowed to freely provide services in any EU Member State without establishing themselves there. Activities carried out under this chapter are reflected in the improvement of the business environment through the simplification of procedures for issuing permits for business registration. Facilitating procedures for starting a business should contribute to increased investment in the country and the creation of new jobs. Opening the market to businesses from EU countries will contribute to greater competitiveness, which should result in higher service quality and more favorable prices. It is particularly important to emphasize that through the mutual recognition of professional qualifications, citizens of Montenegro will be enabled to perform activities and provide services in other EU Member States as well.

Chapter 3 - Working Group

Ivona Savićević

Negotiatior

Ivona Savićević

Head of the NWG

Vanja Banović

Secretary of the NWG

 

 

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