Monaco Company Formation

Monaco is a prestigious jurisdiction for company registration

A company in Monaco is not just a business activity, but also prestige.
The wealthiest people do business in Monaco and the wealthiest citizens of the world live there. The advantage of doing business in Monaco is the broad prospects for high profits.

How to open a company in Monaco

It is impossible for a non-resident to create a commercial company in Monaco, only residents have the right to do so, and even for them it is almost impossible, priority is always given to citizens of Monaco, of whom there are only about 3,000 people!

In addition, it is impossible to open a company without a residence permit in Monaco, and to obtain one, you must either buy real estate or rent it and apply for a residence permit. Any company in Monaco begins with obtaining a permit.

The Principality of Monaco is very small, so it is very important to draw up a business plan and decide on the company’s strategy correctly so that the authorities of Monaco will give you permission to conduct commercial activities.

The creation of companies and their approval is carried out through the Cabinet of Ministers of Monaco and a special decision of the Cabinet of Ministers is issued for the establishment of each company and each commercial area, and the Cabinet is very reluctant to give the go-ahead for new commercial companies. Unless this concerns the so-called SCI form, i.e. a company intended exclusively for the purchase of real estate, but not for commercial activities.

Therefore, the only chance for non-residents is to buy a ready-made company in Monaco or to buy real estate.

Buying a company in Monaco will give the opportunity to obtain a residence permit for 1 year with a further extension, after 10 years you can apply for citizenship.

In case of buying a ready-made company, it will not be possible to change the constituent documents. If there is an intention to engage in construction or concert activities, then in Monaco it is unrealistic to enter the construction business, as well as the concert business.

Organizational and legal forms of companies in Monaco

The forms of ownership of companies in Monaco are determined by the Commercial Code of Monaco, which is based on the Commercial Code of France.

Business registration in Monaco, as well as obtaining a residence permit in this country, is in many ways similar to opening a company in France, but with local specifics.

• Limited Liability Company (SARL)
• Anonymous Monegasque Society (SAM)
• Joint Stock Company (SCA)
• Simple Public Company (SNC)
• Simple Management Company (SCS)
• There is another exclusively Monegasque form: SCI, used to own and manage real estate.
• It is also possible to register trusts and funds in Monaco.

After the government of Monaco approves your activity, you can begin the process of registering a company.

Stages of registering a company in Monaco

To conduct business and contribute the authorized capital, you must open a commercial account in a Monegasque bank.

The authorized capital of a company in Monaco depends on the legal form you choose: for SAM it is 150,000 euros, SARL – 15,000 euros, and there must be at least 2,000 euros in the SCI bank account.

The company must have a registered office. A special feature of business in Monaco is that permission is given based on the documents provided upon request; if you subsequently want to change the legal address, re-registration will be required.

It is adviseable starting a business with the SARL form, since the Monegasque authorities are reluctant to issue SAM licenses upon initial request. You can subsequently re-register your company.

When registering a business in Monaco, all constituent documents must be drawn up and certified by a local lawyer.

The final stage of registration is entering the company into the Commercial Register of Monaco.

The first meeting of shareholders, according to the legislation of Monaco, must take place no later than 3 months after receiving the permit.

A company in Monaco will give you and your family the right to obtain a residence permit in Monaco – not every foreigner can do this.

It is possible to obtain a residence permit in Monaco through business immigration, but this is quite an expensive and troublesome pleasure.

When preparing and submitting documents for obtaining a residence permit in Monaco, it is necessary to take into account not only short-term goals, but also the possibility of obtaining Monegasque citizenship in the future. 

Taxation in Monaco

An important point is the taxation of Monaco

A very unique tax system, the income tax in Monaco is quite high, but there is no VAT, real estate tax or residence tax.

For those wishing to live in this European oasis, there is a simpler way – obtaining a residence permit in Monaco for financially independent individuals.

This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.

BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.

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If you wish to register a company in Monaco our team will be happy to help you there and provide you with more detailed information, you can contact us at [email protected]