Company registration in Monaco

Registration of a company in Monaco is a procedure that requires compliance with certain requirements. This jurisdiction is one of the important financial centers. Therefore it is especially popular with entrepreneurs who intend to start a business in Europe.

Benefits of registering a company in the Principality of Monaco

Registration of a company in Monaco has the following advantages:

• favorable tax climate;
• stable political and economic situation;
• one of the most reliable financial centers in Europe;
• favorable geographic location;
• there is no income tax in the country;
• there are no residency requirements for shareholders;
• developed banking infrastructure;
• confidentiality;
• flexible tax system;
• you can register a company in Monaco remotely;
• high level of GDP;
• there is no exchange control.

An additional advantage for those who want to create a company in Monaco may be the possibility of obtaining a residence permit in this state.

Organizational and legal forms of companies in Monaco

If you have decided to establish a company in Monaco, you should study the popular forms of business that are allowed by law in this country:

• Société Anonyme Monégasque (SAM) is a Monaco limited liability company;
• Société en Commandite par Actions (SCA) – joint stock company;
• Société à responsabilité limitée (SARL) – private limited company;
• Société en Nom Collectif (SNC) – unlimited partnership;
• Société en Commandite Simple (SCS) is a limited liability partnership.

Features of SARL institution in Monaco:

• a minimum of 2 founders is required, who can be both individuals and legal entities;
• such companies may carry out commercial activities;
• under the law, a minimum capital of 15 thousand EUR is required;
• legal entities cannot be directors;
• it is also required to open a bank account for a company in Monaco since the authorized capital must be subject to a special certificate from a local bank.

Requirements for establishing SAM in the Principality of Monaco:

• to register a company in Monaco, you must have at least 2 founders;
• the minimum capital is EUR 150 thousand;
• you need to provide a notarized confirmation of the deposit of capital to the local bank account;
• founders are liable up to the amount of their contribution.

Features of company registration in Monaco

Entrepreneurs often decide to register SAM in Monaco. SARL is also a widespread institution in the Principality of Monaco. The registration procedure for any company should include the following steps:

1. It is necessary to submit an application to the registration chamber;
2. Next, you should prepare and certify the constituent documents;
3. After that, it is necessary to deposit the authorized capital in a local bank;
4. Appoint directors and pay a cash fee;
5. Submit the required package of documents to the relevant regulatory authorities;
6. Publish data on the establishment of the company in the Journal de Monaco.

For entrepreneurs who have decided to register a company in Monaco, it is important to take into account that, under the current legislation, the company must have a registered local address.

Additional registration nuances

Non-residents who are interested in registering a company in Monaco without a visit will need:

1. Appoint a local director;
2. Open a bank account in Monaco;
3. Register the address of the office space on the territory of the state;
4. Pay tax (1% of the authorized capital) during the registration process.

The establishment period is from 2 weeks. Also, the company undertakes to annually provide bank statements, profit and loss statements, and audit and store all financial documents in a real office space.

It is also worth taking into account that before issuing a permit to register a company in Monaco, government authorities take into account:

• Applicant’s qualifications and professional skills;
• The reputation of the person who applies for the registration of a business in Monaco;
• The presence of a local agent, as well as his experience;
• The presence of a company address (carefully checked by the authorities);
• Capital.

Taxation in the Principality of Monaco

One of the benefits of setting up a company in Monaco is a tax exemption for the first two years. Also, certain tax incentives may apply to businesses over the next three years.

If you intend to register a company in the Principality of Monaco, pay attention to the following tax rates:

• Income tax – no, provided that the company’s turnover outside the state is no more than 25%;
• Profit rate for legal entities (basic) – 33.3%;
• Personal income tax – no;
• Property tax – no;
• Municipal tax – none;
• Currency control – no;

In terms of reporting requirements, companies have to annually:

1. provide regulators with information from the Balance;
2. send reports on profits and expenses; as well as
3. conduct audits.

It is worth noting that the reporting is not publicly available.