Monaco is one of the most popular and prestigious world jurisdictions, and a huge number of individuals look to live and work here.
Monaco has the world’s second-highest GDP nominal per capita. It has an unemployment rate of 2%, and also has the world’s lowest poverty rate and the highest number of millionaires and billionaires per capita in the world.
The Mediterranean environment, beautiful nature, high economic level, and sparing tax policy makes Monaco the territory exceptionally attractive for businessmen.
Major Forms of Legal and Business Presence in Monaco
If you intend to incorporate a company in Monaco or start doing business there in any other way, the following registration options are available to you:
- Limited Liability Company (SARL) – It’s a legal person that may be established by two or more individuals who bear the limited liability for the results of the entity’s operation within the amounts of funds contributed. The Shareholders may be natural or legal persons.
- Joint-stock Company (SAM) – It’s a traditional form for which commercial, insurance, and financial activities are allowed, and the number of founders starts from two. The liabilities of shareholders are restricted to the proportions contributed to such a company only. This entity is governed by the Board of Directors. The directors may be natural or legal persons.
- General Partnership (SNC) – Its members shall conduct commercial activities only and have unlimited liability over the outcomes of the partnership’s operation. A minimum of two members are required without specifying the maximum number of such shareholders.
- Limited Partnership (SCS) – It’s a form of business that can be inaugurated and run by two persons at least: (i) active partners – they are jointly and severally responsible for the results of the entity’s operation, and (ii) limited partners – they are not accountable for the results of the partnership’s operation and bear liability within the limits of their contributions only.
- Branch – a foreign company may open and run commercial activities in Monaco, the same as overseas. The liability for the results of such commercial endeavors is vast, and one director is assigned to the branch of a foreign company in Monaco.
Advantages of opening a company in Monaco
Opening a company in Monaco is the key to numerous opportunities, including residence permits for the creator and his family. Among the advantages of opening a company in Monaco are:
- High level of business reliability
- Absence of taxes on real estate, inheritance, and profits
- Monaco is a politically stable country. And it is free from political conflicts while internal peace is common.
- Foreign Shareholders: Foreigners can own all of the shares in a SARL.
- Shareholders’ liabilities are limited to their contributions to the share capital.
- Two-Year Tax Exemption: The first two years of a company incorporation are completely exempt from tax.
- Low Minimum Share Capital
Tax System of Monaco
Company registration in Monaco might be a good option for doing your business when it comes to tax policy. Although Monaco is not a tax-free shelter, it charges nearly 20% value-added tax, collects stamp duties, and corporations face a 33% tax on profits unless they can show that three-quarters of profits are generated within the territory. All companies incorporated in Monaco must also register for VAT.
Requirements for registration of a company in Monaco
- Certificate of incorporation granted by the Commercial Registry
- Board of Directors resolution pledging at least the required minimum capital for SARL
- Minimum of two shareholders for SARL
- Minimum of two directors
- Registered office address
- Assignment of a Local registered agent
- Minimum share capital of 15000 Euro.
List of documents required for a company formation in Monaco
- A completed application form for business articles of association in the Territory of Monaco
- Two articles of incorporation documented with the Tax Office: Direction des Services Fiscaux
- A curriculum vitae per partner
- A civil status document
- Birth certificate
- An extract from the criminal record of less than 3 months
- In case of the presence of a legal entity, provide an extract from the review of the Board of Directors or the shareholders’ meeting who decided to contribute to the company’s capital.
- In the case of lease management, the agreement or the commitment to lease
- In case of a goodwill acquisition, the deed of assignment or the pledge of assignment.
Monaco Registration Steps
Company formation in Monaco imposes passing the following registration steps:
- Defining your business goals and objectives you plan to realize through the limited company.
- Choosing a business name for your company.
- Obtaining details about the company’s founders and beneficiaries.
- Hiring a local director, who should be an individual from the territory.
- Opening an account with a local bank to deposit the required amount of capital on the account and verify the fact by a notary.
- Taking care of the availability of a real office. This is thoroughly checked by the administration, and you cannot change it, otherwise, you will have to re-register the company.
- Drafting and verifying all the documents from the local attorney.
- Paying tax on the allowable capital at the time of business registration.
- Presenting the contract, documentation, and registration forms to the registrar for authorization and subsequent registration if the package is compliant with the requirements of the legislation. If the procedure of opening a company in Monaco was successful, the founders will receive an official certificate, which the notary assures.
- Registration for tax and social security advantages.
- Publishing information about the business in the Journal de Monaco.
- Procuring licenses and permits for regulated types of activities.
It is not necessary to visit Monaco to start a company, but it is important to get the required documents ready and the necessary requirements to incorporate a company in the territory.
Ready to incorporate your company in Monaco? Contact Damalion now to set up your Monaco company now.