Monaco company registration

DOING BUSINESS IN MONACO

Since 2003, Healy Consultants Group PLC has assisted our Clients with migrating to Monaco and starting their business there. Our services include i) Monaco business registration ii) government license registration iii) personal and corporate bank account opening services in Monaco and abroad iv) employee recruitment v) visa strategies and vi) office rental solutions in Monaco.

SummaryLLCGeneral Business CorporationRepresentative officeBranch officeTrustFoundation
Also known asSARLSAMBureau Administratif MonegasqueSuccursaleTrustFondation
Best use of company?doing business as a residentdoing business as a non-residentMarketing & researchSpecific projectsTax planningwealth management
Legally tax exempt if properly structured?YesYesYesYesYesYes
Recommended entity for business setup by foreigners?NoYesYesYesYesYes
How soon can you invoice Clients/sign sales contracts?3 months3 weeks1 month1 month1 month6 weeks
How soon can you hire staff?3 months3 weeks1 month1 month1 month6 weeks
How soon can you sign a lease agreement?immediatelyimmediatelyimmediatelyimmediatelyimmediatelyimmediately
How long to supply corporate bank account numbers?4 months2 months5 months5 months5 months3 months
How long to supply company registration / tax numbers?3 months3 weeks1 month1 month1 month6 weeks
Limited liability entity?YesYesNoNoYesYes
Government approval challenging to secure for foreign owners?YesNoNoNoNoNo
Resident director/partner/manager/ legal representative required?NoNoYesYesYesYes
Minimum paid up share capital?€15,000€150,000nonenonenonenone
Corporate bank account location?HSBC MonacoCredit Suice MonacoHSBC MonacoING BankCredit Suice MonacoEFG Bank
Average total business set up engagement costs?US$22,700US$19,900US$23,250US$23,600TBDTBD
Average total engagement period?4 months2 months5 months5 months5 months3 months

See full table

Accounting and tax considerationsLLCGeneral Business CorporationRepresentative officeBranch officeTrustFoundation
Corporate tax if sales outside Monaco below 25%?0%0%0%0%0%0%
Corporate tax if sales inside Monaco below 25%?33.3%33.3%0%33.3%0%33.3%
Group HQ tax incentives?YesYesYesYesYesYes
Must file an annual tax return?YesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYes
Must appoint an auditor?NoYesNoNoNoNo
Access to double taxation treaties?YesYesNoYesNoYes
Withholding tax on payments to foreign shareholders?0%0%None0%0%0%
Company RegistrationLLCGeneral Business CorporationRepresentative officeBranch officeTrustFoundation
Resident director/partner/manager/ legal representative required?NoNoYesYesYesYes
Minimum number of shareholders/partners?22Parent companyParent company12
Maximum shareholding for foreigners?100%100%100%100%100%100%
Minimum statutory paid up share capital?€15,000€150,000nonenonenonenone
Shelf companies available?YesYesNoNoNoNo
Time to incorporate a new entity?3 months3 weeks1 month1 month1 month6 weeks
Can easily convert to a PLC?YesYesNoNoNoNo
Public register of shareholders and directors?YesYesYesYesYesYes
Can have preference shareholders / beneficiaries?YesYesNoNoYesYes
Business ConsiderationsLLCGeneral Business CorporationRepresentative officeBranch officeTrustFoundation
Good entity for trademark registration?NoYesNoYesNoNo
Can secure an import and export license?YesYesNoYesNoNo

Government grants available?Yes
Can bid for Government contracts?Yes
Security deposit to be kept with Government?No
Can secure trade finance?Yes
Sponsorship by a local citizen required?No
Our Client needs to travel to Monaco for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Business Development Agency
Minimum number of directors/managers?1
VAT payable on sales to local customers?20%
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?Yes
Shareholders & directors documents to be attested\translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO?Yes
This country is a member of the ICSID and TRIPs?No
Average custom duties suffered?1%
Government foreign investment approval required?Yes
Average monthly office rental? (€ per sq m)€40
Minimum statutory monthly salary?€1634.23
Average monthly salary for local skilled employees?€2900
€ deposit interest rate? (1 year average)0.15
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Monaco company registration

      Monaco business advantages and challenges for foreigners and locals

    1. It is possible to register a General Business Corporation in Monaco (GBC, locally known in Monaco as a SAM) with only i) two shareholders and ii) two directors, who all can be foreigners and reside outside of Monaco. While Monaco business registration requires a minimum paid-up capital of at least €150,000, our Clients do not need to travel to complete the procedures;
    2. Monaco is a great place for high net worth individuals to live because:
      • Monaco residents do not have to pay any local personal income tax to the Monaco tax authorities. French citizens constitute the main exception to this rule as they are usually subject to French personal income tax;
      • There’s also no inheritance or gift tax in Monaco, excepted on local assets. Monaco is hence a good residency solution for foreigners planning to transfer their wealth to their family members;
      • While the official language of Monaco is French, most locals are also fluent in English, Italian, Russian and other main European languages;
      • Monaco is a hub for wealthy entrepreneurs and businessmen, who enjoy its casinos, bars and restaurants, yacht harbor and its international airport (located in Nice);
      • Monaco real estate is a safe investment. Local residences are often luxurious, with great utilities and facilities;
      • Monaco is lastly a safe place for families with kids, with little criminality;
      • Foreigners can request a residency permit in Monaco provided i) they have a lease agreement for a residential address in Monaco ii) have no criminal records and iii) have sufficient income (at least €0.5 million per year in most cases). Forming a company in Monaco is not required for eligibility.

    3. Forming a company in Monaco offers the following tax advantages:
      • Companies making over 75% of their sales within Monaco are legally exempt from corporate income tax;
      • Companies subject to corporate income tax still benefits from a two years tax holiday from the date of their formation in Monaco. Thereafter, these businesses benefits furthermore from reduced rates of i) 8.5% (3rd year) ii) 16.5% (4th) and iii) 25% (5th year);
      • Although Monaco is not a member of the European Union, it is still part of the EU customs zone, so entrepreneurs exporting products and services to other EU countries will not be subject to custom duties;
      • Monaco implements no withholding taxes are foreign exchange controls and the country is part of the Eurozone.

    4. Monaco is a regulated, stable jurisdiction within an established judiciary, giving international investors long-term security. Despite being a private jurisdiction, Monaco has made a transparency pledge to the Organisation for Economic Cooperation and Development (OECD), and in late 2009 was added to the OECD white list. The country currently has nineteen tax information exchange agreements (TIEAs) with countries including i) the United States ii) Germany iii) France iv) Australia v) Belgium and vi) Argentina.

    Disadvantages of Monaco company registration

    1. A Monaco company is not an offshore company. It is subject to corporate income tax of 33% if its global sales exceed 25% of its total sales. Monaco also requires companies registered in Monaco to apply value added tax on their local and French sales at the French rate of 20%;
    2. Starting a business in Monaco is time consuming and costly because:
      • Monaco’s Government closely vets prospective investors and companies. Under the terms of its license, each company must abide by stringent operating restrictions, including: i) the company must carry out only the narrow band of activities for which it is licensed and ii) the company must have physical premises and staff in Monaco;
      • Monaco company formation is expensive, due to a minimum paid-up capital of €150,000. The required amount is furthermore significantly higher in many industries, so it is important to carefully plan ahead the structuring of the company;
      • Because of complex and lengthy government approval procedures, Monaco company formation takes up to six months. Companies being set up to conduct activities such as commercial banking, investment management, notary services, legal services, architects, certified public accountants and insurance companies are subject to additional approvals. Most entrepreneurs engage the services of Healy Consultants, who will efficiently handle all government approvals, as well as liaise with local Monaco notaries, who have the exclusive authority to legally register Monaco companies.

  • Best uses for a Monaco company

    1. Monaco is an ideal location for an international administrative center. Located within France and close to Italy, Monaco is in direct contact with many leading European markets such as France, Italy and Spain;
    2. Monaco is a cauldron of international entrepreneurs mainly in the financial luxury and tourism industry, where most of the population is foreign, the perfect ingredients for creativity and exchange of skills across industries and cultures, stoked by a liberal, entrepreneurial free market.

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Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: €22,700
  • Minimum capital: €150,000
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Directors: 2
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 0%/33%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: SAM

Contact us

For additional information on our company registration services in Monaco, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
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