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

Chapter 3 – Right of establishment and freedom to provide services

What is being negotiated?

The right of establishment and the freedom to provide services is one of four freedoms for the functioning of the EU single market.

Freedom to provide services enables the European Union’s internal market to function and covers the right of establishment in any Member State of the European Union. Establishment of an enterprise means the right to start and pursue an activity in any Member State.

Montenegrin business entities (natural or legal persons), upon accession of Montenegro to the European Union, will be allowed to provide services freely in each Member State of the European Union, without being resident there. The service provider will be able to provide cross-border services using his professional title without further recognition of qualifications in that Member State. The recipient country can only ask the service provider to declare that he/she will provide the services (providing evidence of citizenship, qualifications and practice in the home country).


This chapter covers three areas: mutual recognition of professional qualifications for the pursuit of regulated professions, right of establishment and freedom to provide services, postal services.

The right of establishment will enable Montenegrin business entities to start and carry on business in a stable and continuous manner in one or more EU Member States.

A particular challenge in this part is the alignment of national legislation with the Services Directive, thereby ensuring the freedom to provide cross-border services. This Directive regulates all services and creates an obligation to facilitate administrative procedures in the field of service provision, provides greater transparency through the establishment of a Single Point of Contact (SPC), and defines a list of requirements that should not be applied during the establishment of a company neither during cross-border provision of services.

When it comes to postal services, the aim of the European Commission is to create a common market for postal services and to ensure the quality of services provided, gradually opening that sector to competition.

When Montenegro becomes a member of the EU, recognition of professional qualifications acquired in Montenegro will be one of the conditions for pursuing a commercial profession in another Member State.

When was the chapter opened?

Chapter 3 – Right of establishment and freedom to provide services was opened on 11 December 2017 at the Intergovernmental Conference in Brussels. Negotiations in this chapter are ongoing.

Opening benchmarks?

In this chapter, Montenegro had one opening benchmark related to the development of a comprehensive strategy for alignment with the acquis in the area of qualifications. The benchmark was met by adopting the National Qualification Development Plan for the Regulated Professions with the 2013-2018 Action Plan.

Closing benchmarks?

Montenegro is working intensively to meet European standards and to create conditions for the closure of this chapter, by meeting the closing benchmarks:

1. Montenegro adopts and presents to the European Commission a list of regulated professions within the meaning of the relevant acquis, specifying the activities covered by each profession and the justifications on the regulations;
2. Montenegro aligns all study programmes under which qualifications for regulated professions are acquired in Montenegro with the requirements of Directive 2005/36/EC and its relevant amendments;
3. Montenegro adopts the horizontal law on services transposing the Services Directive 2006/123/EC and demonstrates further progress in the alignment of sectoral legislation.
4. Montenegro adopts amendments to its national legislation so as to repeal any nationality requirements for access and exercise of service activities, except for nationality requirements justified and proportionate according to Article 51 TFEU. These amendments should be applicable at the latest by the date of accession.

The key activities implemented under the first final benchmark were the adoption of the Law on the Recognition of Professional Qualifications for Performing Registered Professions on July 27, 2018 and the adoption of the Decision on the Establishment of the List of Registered Professions on November 22, 2018.

In relation to the second benchmark, Montenegro has adopted the National Qualification Development Plan for the Regulated Professions with the 2013-2018 Action Plan, which contains an overview of the minimum requirements for the regulated professions (for doctors of medicine, specializations in the field of medicine, nurse – specialist study program “Nursing”, dentists, specializations in the field of dentistry, veterinarians, midwives, pharmacists and architect). According to the harmonized programs, the first generations of the study programs Architecture, Medicine, Pharmacy, Dentistry and College of Medicine have already been enrolled.

In order to meet the third closing benchmark, an Action Plan for the transposition of the Internal Market Services Directive 2015-2018 was adopted. This AP contains a horizontal legislative and institutional framework for the implementation of the Services Directive, as well as a vertical (sectoral) review of legislation that does not comply with the Directive and administrative deadlines for amending regulations in accordance with the articles of the Directive, while the Law on Services was adopted on October 16, 2017.

In relation to the fourth benchmark, a set of legislative acts was adopted in order to abolish all citizenship requirements for access to and enjoyment of the freedom to provide services, including: the Law on Advocacy, the Law on Amendments to the Law on Public Executors, the Law on Amendments to the Law on Public Administration Notaries, the Law on Court Interpreters and the Law on Amendments to the Law on Mediation, and a Decree amending the Decree on Conditions for Performing

Representation before the Customs Authority, thus completing activities for meeting this benchmark.

What are the activities in the coming period?

In order to close this chapter, key commitments are related to activities for the establishment of the Single Contact Point, which will enable electronic registration of businesses and ease of business start-up and freedom to provide services.

Institutions / organizations participating in the negotiation group?

The negotiator for Chapter 3 as well as the Head of the Working Group are from the Ministry of Economy, while the contact person for Working Group 3 is the representative of the European Integration Office.

Institutions / organizations involved in the work of the Working Group are: Ministry of Economy, Ministry of Public Administration, Ministry of Health, Ministry of Sustainable Development and Tourism, Ministry of Education, Ministry of Transport and Maritime Affairs, Ministry of Labor and Social Welfare, Ministry of Agriculture and Rural Development, Administration for Inspection Affairs, Agency for Electronic Communications and Postal Services, European Integration Office, Union of Employers of Montenegro, Chamber of Commerce of Montenegro, Chamber of Crafts of Montenegro, Chamber of Engineers of Montenegro, Medical Chamber of Montenegro, Chamber of Pharmacies of Montenegro, University of Donja Gorica, University Mediterranean, University of Montenegro and National Association of Nurses and Midwives of Montenegro.

What is the benefit for Montenegro of this chapter?

Chapter 3 brings numerous benefits for citizens of Montenegro, both for providers and service users. With the accession of Montenegro to the EU, Montenegrin natural and legal persons will be able to provide their services freely in each EU Member State without being resident in their business. The activities carried out within the chapter are reflected in improving the business environment, by simplifying the procedures for issuing business registration licenses, and removing barriers to business registration. Facilitating business start-up procedures should contribute to increased investment in our country, start-up businesses and job creation. Opening up the market for businesses from EU countries will contribute to greater competitiveness of businesses, which should result in higher quality of services and better prices.

It is particularly important to emphasize that through mutual recognition of professional qualifications, citizens of Montenegro will be able to carry out activities and provide services in other EU countries.

Chapter 3 - Working Group

Goran Nikolić


Svetlana Božović

Head of the WG

Aleksandar Mašković

Secretary of the WG

The Working Group was formed in September 2012. The negotiator for this chapter is Goran Nikolić, Director General of the Directorate for Industry and Entrepreneurship at the Ministry of Economy. Head of the Working Group is Svetlana Božović, Head of the Directorate for Multilateral and Regional Trade Cooperation and Foreign Economic Relations at the Ministry Economy. The contact person of the Working group is Aleksandar Mašković from the European Integration Office.

The working group consists of 29 members (15 from state institutions and 14 from civil society organizations).