In Montenegro, educational institutions of all levels of education can be established as public or private.

A private institution may be established by national and foreign legal entity or natural person.

To carry out activities of education, a private institution needs to be licensed by the Ministry of Education, Science, Culture and Sports.

An institution can be established if:

• there is a sufficient number of children, pupils or learners attending it;
• an educational programme has been adopted or approved, in accordance with law, or a programme of education has been adopted, or a foreign educational programme has been approved;
• educational, i.e. teaching and other professional staff, have been provided, in line with a special regulation;
• adequate premises, teaching materials, equipment etc. have been provided, in accordance with norms and standards;
• funds for the establishment and operation have been provided;
• hygienic and technical conditions have been provided, in accordance with special regulations.

Besides providing the proof on meeting the said conditions, the founder of a private institution is obliged to submit the proof of transferring the initial capital to the account of a commercial bank, time-deposited for a period equal to the duration of the study programme, or a commercial bank’s guarantee that the amount of funds required for the implementation of the programme has been provided. The initial capital, i.e. the funds required for the implementation of the educational programme, are calculated on the basis of the cost of education of pupils on a particular educational programme and the number of pupils for which the license is sought.

The proof of provided initial capital or the guarantee of a commercial bank will be activated in case the founder decides to cancel or discontinue the work of the institution before pupils complete their education according to the relevant educational programme, following the request of a public administration body in charge of budget affairs. These funds will be used for the completion of education that pupils had started.

The contents and the procedure of adopting an educational programme at a private institution are determined by the act establishing the institution. Educational programme of a private institution becomes publicly valid once the National Council for Education finds that it corresponds to the publicly valid programme for the relevant field of education. The criteria for determining the validity and value of educational programme of a private institution corresponding to that of a publicly valid educational programme are adopted by the National Council, following the proposal of the Bureau for Education Services, i.e. Centre for Vocational Education.

An institution may be established according to the public-private partnership model for the field of education. The act establishing the institution regulates the manner of the institutions’ management and governance.

A concession for carrying out a publicly valid educational programme may be awarded to a private institution, national or foreign legal entity or natural person that meets the requirements for carrying out education prescribed by law.

Higher education is provided by licensed higher education institutions, in accordance with the Law on Higher Education and the Rulebook on detailed requirements for establishing, performing activities, licensing procedure and manner of keeping a register of higher education institutions. These institutions include universities, faculties, art academies and post-secondary non-tertiary schools. The institutions can be established as public or private.

A private institution may be established by a national and foreign legal entity or natural person.

An institution acquires the capacity of a legal entity by registering at the Central Registry of Legal Entities, unless otherwise provided by law.

An act on establishing and discontinuing a private institution is passed by the founder.

An institution can be established and can perform its activity, if it has:

• certificate on accreditation of a study programme;
• adequate premises (classrooms, laboratories, library, premises for extracurricular activities of students) owned or leased, along with teaching materials, equipment and other materials necessary for the performance of activities;
• proper conditions and unrestricted access for persons with disabilities;
• academic staff appointed to academic titles in accordance with Montenegrin regulations, of whom at least three teachers for undergraduate studies, and two teachers for master’s studies, holding an academic title and full-time employment;
• one half of associates out of the total number of associates required for teaching all study courses on each year of studies, with concluded employment agreements;
• resources for founding and performance of activities; and
• hygienic and technical conditions, in compliance with special regulations.

An institution is considered to have provided academic staff in the field of medical sciences for clinical courses, employed at a health institution which serves as a teaching base of the institution.

The Founder of a private institution is obliged to submit a commercial bank’s guarantee on time-deposited financial assets in the amount required for the implementation of the study programme for a period of one year. Funds required for the implementation of the study programme are calculated on the basis of cost price of education per student for a certain study programme, as well as the number of students for which the license is requested. Before the expiry of the financial guarantee and until the beginning of the next academic year, the institution is obliged to provide the Ministry with the proof of provided necessary funds to perform its activity during the next academic year.

The guarantee of a commercial bank will be activated in case the founder decides to discontinue or close down the institution, or a study programme before students complete their education according to the relevant study programme, following the request of a public administration body in charge of financial affairs.

The funds can be used only for the students’ completion of education.

For the purpose of funding students of private institutions attending study programmes of public interest that are not carried out at any public institution, it is possible to allocate funds from the budget of Montenegro. The criteria for determining the study programmes of public interest at private institutions that are not implemented at any public institution are prescribed by the Government, following the opinion provided by the Council for Higher Education.

Regarding funds allocated to a private institution, the Government prescribes certain conditions for their use and requires the private institution to submit the budget proposed for the performance of its activities for the next fiscal year.

The private institution is responsible for the lawful and dedicated use of funds allocated by the Government and is obliged to provide the Government with access to financial books and records.

Students of public and private higher education institutions are entitled to:

• dormitory accommodation and board;
• student loans;
• scholarships for best students;
• transport allowance concerning suburban and intercity traffic;
• health care in compliance with special law;
• establish sport associations in accordance with law.

The criteria, manner, conditions and the amount of fee for exercising rights are prescribed by the Ministry of Education, Science, Culture and Sports.