Company formation in Monaco

Have you wished to follow your dream and set a business up in Monaco but never dared to take the final step? You are aware of the Principality’s tax advantages but you need a starting reference point? Or do you already have a specific project and you need some professional advice for the creation of your company in Monaco? We explain in detail all the steps needed to start up and create a business in Monaco, plus all the other formalities you need to fulfil.

The benefits of creating and setting up a company in Monaco?

SAFE AND SECURE: Businesses, residents, and visitors feel secure.
FOREIGN SHAREHOLDERS: Foreigners can own all of the shares in a Limited Liability Company (SARL)
TWO YEAR TAX EXEMPTION: The first two years are completely tax exempt
NO BUSINESS PROFIT TAX: Only if 75% + of turnover is made in the Principality.
SHARE CAPITAL LOW: It is just 15,000€

Maintenance + Follow up

With the company active and your business running we maintain accounting and legal requirements.

Implementation

Once analysed a proper solution for your project we implement the strategy and set up the company.

Tailor-Made Solutions

We providing you with optimal solutions for your specific project after the initial analysis of your business model.

Feasibility

Setting up a company is an important decision and a feasibility study will be suggested by us.

High Quality and Standard of Living

The Principality’s government has a long-term strategy to balance and guarantee a good quality of life. It oversees housing, daily life, animation and development. Monaco is a leisure destination with hotel and water infrastructures of great repute. Native sporting, cultural and entertainment are combined with international events to make an integrated lifestyle. Monaco embraces multicultural acceptance. More than 135 nationalities are living in Monaco. They do so in harmony. Commonplace communication in the Principality is in French, English and Italian.

The Ease of Business Transactions in Monaco

Monaco’s corporate business connections make it easy to do transactions on an international corporate level. It has always been the objective of the Principality to highlight its business leaders and companies themselves internationally.

In recent years, Monaco’s government has simplified businesses creation procedures. Although sometimes they are sometimes long, the formalities are quite simple. More information can be found in “how to create your company in Monaco” below.

WHY CREATE A COMPANY IN MONACO

Monaco is ideally located, south of the idyllic Côte d’Azur / French Riviera on the Mediterranean Sea. In addition to being the optimal place for creating a business, the Principality its surrounding landscapes, perfect climate, casinos and luxury tourism is world renowned. Monaco is experiencing dynamic growth thanks to its tourism and real estate sector that contributes to its incredible and continuous economic development.

Its present tax benefits include:

Personal Taxation

Residents, including foreign nationals are income and capital gains exempt
No extra taxes levelled on foreign non-residents
Property and housing tax exemption

Company Taxation

Companies established in Monaco are corporate income tax exempt when most of its business is in the Principality.

BUSINESS TYPES THAT MAY BE FORMED IN MONACO

SARL
Name
Limited Liability Company
Legal Name: May include the name of one or more associates

Associates
> 2 minimum, no maximum
> Native or legal persons
> Manager: has to be physical manager, associated or not

Share Capital
15.000 euros minimum

Activity
Commercial

SAM
Name
Monegasque limited company
Legal Name: May include the name of one or more shareholders

Associates
> 2 shareholders minimum, no maximum
> Cannot exceed the maximum member to 8 boards of commercial companies based in Monaco

Share Capital
150.000 euros minimum

Activity
Commercial or Civil

SNC
Name
Partnership
Legal Name: Partnership

Associates
> 2 minimum, no maximum
> Natural or legal persons

Share Capital
No minimum capital

Activity
Commercial

SCS
Name
Limited partnership
Legal Name: Names of one or more general partners

Associates
> 2 categories: the general partners, who are merchants or limited partners
> 2 minimum, 1 sponsor and one sponsor, no maximum
> Natural or legal persons

Share Capital
No minimum capital

Activity
Commercial or Civil

HOW TO START A BUSINESS IN MONACO

THE DIFFERENT STEPS TO FOLLOW

It is important to keep in mind that setting up a business in Monaco is a big undertaking that requires careful preparation and professional advice.

Before going headlong into setting a company up, we must first learn about the fundamental rules that govern setting up a business in the Principality.

Step by Step

Company Statues

Company Statues

To constitute a company in Monaco, articles of association must be established by private deed or by notarial deed.

To find out more about the mandatory information that the statutes must contain, please consult the following page.

The statutes are registered at the Tax office (Direction des Services Fiscaux). This is a pre-requisite for obtaining a business authorisation practice license.

Business license

A business license is a necessity

This licence is issued by the Minister of State to non-native Monegasque nationality and who wish to do commercial, craft, industrial or professional business activities in Monaco (on their own or as a part of a company).

In order to obtain this authorization, the following criteria must be met:

Professional honourability = no criminal record
Professional qualification = certain activities require special conditions to practice (diplomas, for example). The owner must show that they have the skills and experience to undertake the business
Creation of a stable infrastructure = the facilities must be operational, that is to say, adapted to the exercise of the activity.
The business authorization licence is granted by the Minister of State. Within three months the license applicant will be informed.

Starting Capital / Bank Account

Starting Capital and Opening a Business Bank Account in Monaco
The minimum capital is different depending on the legal form of the company. In the case of an LLC, it is divided into equal shares of all the partners.

Starting capital is made by paying into an Monaco account which was written on the official company registration document with the Trade and Industry Register.

A valid resident card or ID card must be presented. Banks must have collected information from their clients about their financial situation and the reasons for opening an account.

When opening the bank account, a deposit account agreement is established.

A written contract takes place between the bank and a witness not acting for professional needs. It specifies the conditions under which this account operates and the rights of each of the two parties. Any deposit account transactions are in accord with the deposit account agreement.

Once a year, every company must submit their accounts to the Principality’s Trade and Industry Directory (RCI). The accounts submitted to the RCI must be issued by a chartered accountant who is a member of the ‘Ordre des Experts Comptables de Monaco’.

Domicile Company

Domicile Your Company Activity In Monaco

To carry out a business activity, the natural or legal persons state a company address to justify premises where they are based.

The domiciliation can take place:

At your home
In commercial premises or offices
In a business center

Post-authorization registration formalities
Once you have obtained the business licence, you must complete the following formalities:

Register the company in the Trade and Industry Directory
Inform the Monegasque Institute of Statistics and Economic Studies (IMSEE) of the company’s fiscal identification number
Declare the existence of the company or company with the Tax Office: Direction des Services Fiscaux
Adhere to social organizations: Health Insurance Fund, Accident and Maternity of Independent Workers (CAMTI) and Independent Pension Fund of Independent Workers (CARTI)
Hiring staff: create an official employer record with the government Employment Service for recruiting staff and obtaining hiring aids

DOCUMENTS REQUIRED

A completed application form for business articles of association in the Principality of Monaco
Two original articles of incorporation registered with the Tax Office: Direction des Services Fiscaux
One curriculum vitae per partner
A civil status document (certificate of nationality or copy of the identity card for Monegasques, photocopy of the residence card for residents, copy of the identity card or passport for foreigners)
Birth certificate (s)
An extract from the criminal record of less than 3 months (for Monegasque residents via the General Registry of Monaco and the National Criminal Record or by Internet for French residents)
In case of presence of a legal entity, provide an extract from the deliberation of the Board of Directors or the shareholders’ meeting who decided to contribute to company’s capital, an “CV / civil status” form, a criminal record of under 3 months, a photocopy of the identity card or passport of, an economic information notice and an extract from the commercial register of the legal entity containing the ‘social object’
In the case of lease management, the contract or the promise to lease
In case of a goodwill acquisition or right to lease, the deed of assignment or the promise of assignment

SUBSTANCE REQUIREMENTS TO SET UP A BUSINESS IN MONACO

To create business in Monaco the following substantive requirements, must be fulfilled:

At least 2 associates
The manager must be Monegasque
Private or authentic deed
The extracts of the articles of incorporation are be published in the ‘Journal de Monaco’
Obligation to obtain an authorization / declaration to business practice
State the domicile company address and have a physical location
Comply with the Technical Committee for Health and Safety
Receive a visit from the official Direction of Foresight, Urban Planning and Mobility
Register the company in the Trade and Industry Directory
Declare the existence of the company or company with the Tax Office