Open your company in Monaco

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. 

Company formation in Monaco — legal forms, documents, approvals, timelines, ongoing duties, and practical setup notes for 2025.

For entrepreneurs, holding companies, family offices and international groups • We help scope needs, organize documents, and coordinate with qualified providers. Approvals are decided by the competent authorities and counterparties.

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Monaco at a glance

Monaco offers recognized commercial forms under civil law, a stable legal framework, and clear administrative steps. Companies may operate locally or internationally, subject to licensing and, where applicable, profit tax rules based on activity and where revenue is earned.

Main legal forms

Form	Typical use	Core features (summary)
SARL (Société à responsabilité limitée)	SMEs, trading and services	Minimum share capital €15,000; one or more managers (natural person); liability limited to contributions.
SURL (single-member SARL)	Wholly owned structure	Single shareholder; minimum capital usually €8,000 (natural person) or €15,000 (legal person); rules similar to SARL.
SAM (Société Anonyme Monégasque)	Larger projects, finance, holding	Minimum share capital €150,000; board of directors; publication formalities; suited to substantial operations.
SNC / SCS (Partnerships)	Specific joint ventures	SNC partners have unlimited liability; SCS combines general and limited partners with differing liabilities.
Branch	Foreign company presence	Operates under foreign parent; local representative; registration and publication requirements apply.

Documents and information usually required

• Identification and recent proof of address for shareholders, managers and beneficial owners.
• Clean criminal record extract(s) where applicable and recent civil status documents, as requested.
• Company purpose, business plan outline, and description of activities in Monaco and abroad.
• Evidence of share capital deposit and draft articles of association (statuts).
• For foreign shareholders: corporate documents and registers; certified copies and translations where requested.
• Registered office evidence and, where needed, lease or premises documentation.
• Publication and registration items (e.g., Journal de Monaco notices) as required by form.

How incorporation typically unfolds

1. Choose the form and name. Align legal form with activity and governance needs; check name availability.
2. Prepare the file. Draft articles, collect KYC, confirm share capital, and arrange premises.
3. Submit for approvals. File with the competent offices; respond to any requests for clarification.
4. Register and publish. Complete commercial registration and required publications.
5. Open accounts and start operations. Set banking, accounting, invoicing, and internal controls.

Tax and accounting notes

• Profit tax applies to commercial or industrial activities that earn more than 25% of revenue outside Monaco, or to certain IP-related profits; the current rate is generally 25%.
• VAT applies in Monaco in line with French VAT rules; standard rate commonly referenced at 20% with specific reduced rates.
• Companies keep proper accounts and follow local filing calendars; statutory audit and publication duties depend on size and form.

Governance and internal controls

Define manager and director powers in the articles, maintain shareholder and decision registers, set payment authorizations, and adopt AML/CFT policies proportionate to your risks and business model.

Frequently asked questions

1) What is the minimum share capital for a SARL?

€15,000. It may be paid in cash and/or in kind as permitted. Capital deposit evidence is included in the file.

2) Can I form a single-member company?

Yes. A SURL (single-member SARL) is allowed. The minimum capital is usually €8,000 if the sole shareholder is a natural person and €15,000 if a legal person.

3) What is the minimum share capital for a SAM?

€150,000, with a board of directors and publication requirements.

4) Is a local manager mandatory?

A manager (gérant) for a SARL must be a natural person. Specific residency or nationality conditions depend on the form and activity. The file is assessed under applicable rules.

5) Do I need an office lease?

Yes, companies normally provide premises evidence (registered office) suitable for the activity. Certain activities require specific approvals or fit-out standards.

6) How long does incorporation take?

Timeframes depend on the form and completeness of the file. Four weeks is a commonly cited benchmark for company creation after complete submission, subject to approvals.

7) When does profit tax apply?

Commercial or industrial businesses with more than 25% of revenue earned outside Monaco are generally within the profit tax scope. Certain IP-related profits are also within scope, regardless of territoriality.

8) What is the current profit tax rate?

25% for financial years within the current schedule, following prior step-downs from historical rates. Check the year of your first financial period.

9) Are there start-up reliefs?

New businesses may benefit from reliefs under applicable regimes. Conditions and calendars apply. Confirm with a local adviser for your project and year.

10) Which accounting duties apply?

Companies keep proper books, approve annual accounts, and, where thresholds are met, appoint statutory auditors and file publications in accordance with law.

11) Is publication in the Journal de Monaco required?

Yes, specific incorporation and corporate changes are published according to the form and event.

12) Can a foreign company open a branch?

Yes, subject to registration and publication duties. A local representative is appointed and activity rules apply.

13) Are there restrictions on activities?

Certain activities require prior authorization or licensing (e.g., financial services). Provide a clear business description and comply with sector-specific rules.

14) What are UBO and KYC expectations?

Identification of beneficial owners and managers is part of the file. Provide official documents, translations if requested, and maintain updated information.

15) How are dividends taxed at company level?

General withholding tax on outbound dividends is not a feature of Monaco’s system, but corporate profit tax and anti-abuse rules may apply. Cross-border outcomes depend on the counterparty’s jurisdiction.

16) Does Monaco apply VAT?

Yes. Monaco applies VAT in line with French VAT rules. The standard rate generally referenced is 20%, with reduced rates for specific items.

17) Can non-residents be shareholders?

Yes. Foreign individuals and entities can hold shares, subject to identification, approvals, and any sector-specific restrictions.

18) Are there ongoing corporate meetings and filings?

Yes. Hold meetings and approvals required by law and your articles, submit publications where applicable, and respect filing calendars.

19) Are management changes and share transfers regulated?

Yes. Certain changes require prior authorization, filings, and publications. Review your form’s statutory rules before executing changes.

20) Do I need legal and tax advice?

Yes. Laws, rates and thresholds change over time and depend on your activity and structure. Obtain advice tailored to your situation before filing.

Related reading

• Company formation services
• Monaco company formation (key data)
• Monaco residency: overview
• More articles on corporate structuring