| Monaco Branch Company | |||
Because Monaco companies are subject only to tax on profits, foreign companies sometimes locate non profit-making functions in Monaco. A Monaco branch company is therefore an excellent, legal tax-exempt entity under these circumstances. Furthermore, employees working in Monaco for the company are not subject to personal income tax. The following is an overview of the advantages and disadvantages of a Monaco branch: |
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| Advantages of a Monaco Branch Company | |||
| 1. | Foreign companies incorporated in other jurisdictions set up headquarters in Monaco to carry out administrative, managerial or other functions which do not generate sales or profits, thereby legally aloowing the company to be tax-exempt. |
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| 2. | Employees of a Monaco Branch Company pay no income tax in Monaco. However, the rate of withholding tax on the interest income of EU residents for Monaco increased from 15% to 20% from 1 July 2008, and will rise to 35% by July 2011. |
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| 3. | Although a Branch Company requires government approval, the approval process is much quicker than that of a GBC, typically taking only two weeks after supply of corporate due diligence. |
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| 4. | In addition to the tax advantages of a Monaco branch company, Monaco is not perceived as a corporate tax haven, and therefore a local branch office projects a prestigious image to a foreign company's international clients and suppliers. |
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| Disadvantages of a Monaco Branch Company | |||
| 1. | Although a foreign company setting up a company in Monaco for administration functions pays no profits tax, it is required to pay a flat 2.66% of its operating expenses annually. |
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| 2. | Obtaining approval for a foreign branch/administration office is similar to a GBC, with permission granted by the Monaco government. Most foreign companies choosing to register a branch company in Monaco engage the services of a professional Firm who will complete the necessary application forms and liaise with the relevant authorities. |
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| 3. | A foreign company establishing a branch in Monaco is required to appoint an 'agent responsable' who acts as the local branch manager and whose signature appears on application forms to register the entity. The 'agent responsable' must be a resident of Monaco and have full powers to run the local branch operation. |
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| 4. | To obtain approval, the foreign company is required to submit corporate documents from its country of incorporation, three years' worth of audited accounts, a statement of business intentions in Monaco, evidence of available premises in Monaco, and evidence of adequate funds. It is difficult to obtain authorisation for the branch of a foreign corporation which has been in existence for less than three years . |
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| 5. | A foreign company obtains a license to operate initially for three years. Licenses are renewable, however the company's operations are subject to scrutiny from the government during the renewal process. |
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| Other Information | |||
| Refer to the following links to read more information on Monaco company formation: | |||
Contact Us |
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For more information on a Monaco branch company, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120 |
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FEES SCHEDULE Year 1 incorporation US$19,000 * Annual fees from Year 2 US$10,000 * Nominee director fee Company de-registration * This fee is based on the minimum share capital of 150,000 Euros, and includes notary fees and other government fees. This fee excludes 0.5% of the stated value of the authorised share capital, payable upon incorporation.
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