Attraction of Monaco
The attraction of Monaco as a place of residence and for the operation of businesses is well known.
Ever since 1869 when Prince Charles III ordered that there be no tax imposed on revenue the Principality has implemented a light taxation policy.
The only direct tax in Monaco is one imposed on profits made in industrial and commercial activities. There is no real-estate tax nor residence based taxation.
Monaco is geographically positioned at the heart of Europe, easy to reach and benefits from a favourable all-year-round climate. The French and Monegasque territories, including their territorial waters, form one customs union and French customs legislation is directly applicable in the Principality of Monaco.
Monaco is safe and secure, for residents, visitors and for business. It has an education system focused on personal development and success, and medical facilities which are at the forefront of modern technologies. It is the cultural capital of the region, with world-class concerts, ballet, night-life, arts, cuisine, fashion and sport.
Business and employment
There are more than 5,000 businesses in Monaco operating in a wide range of sectors including international trade, banking and finance, other services, tourism, retail, real estate and construction, shipping, and yachting among others.
Businesses benefit from a moderate taxation system. There is no tax on profits for businesses if 75% or more of their turnover is made in the Principality.
With more than 30 000 inhabitants and a workforce of 47 000 (43,000 in the private sector) – with less than 4% unemployment – Monaco is an ideal place for you to pursue your professional life.
Foreigners can occupy a private salaried position in Monaco providing they possess a work permit for the post they have acquired.
Approval is given for new businesses after scrutiny of the business plan, and consideration of the individuals involved in the project and the specific business areas in which the entity will operate.
Taking into account the ownership, employment, taxation and other business issues we can help you to choose the appropriate structure amongst the existing forms;
- Société Anonyme Monégasque (S. A. M.)
- Société à Responsabilité Limitée (S.A.R.L.)
- Société en Nom Collectif (S.N.C.), a general partnership
- Société en Commandite Simple (S.C.S.), a limited partnership
- Sole trader
We can advise on the applicable tax regime. Depending on the activity corporation tax at 33.33% may be due on normally computed profits. A company whose turnover outside the Principality does not exceed 25% of its total turnover is exempt from corporation tax. Generous limits exist for deductible directors’ remuneration.
Starting with the drafting of the “objects” of the business to be included in the statutes we can assist you throughout the application process.
It will be necessary to carefully prepare the presentation to be submitted to the Monegasque authorities, who will require a business plan and budget, as well as information and documentation concerning the shareholders and managers of the new business.
Currently it should be expected to take up to 3 months for the authorisation to be obtained. This timeframe will depend on the quality of the submission the complexity of the dossier, and the interest of the activity for the Principality.
Once the file has been officially accepted we will help you with the various formalities to be completed; with the tax/TVA office, the official Journal de Monaco, the employment authorities, the Registry of Commerce etc. which will enable you to obtain the authorisation to start the business.
From a practical point of view we can put you in contact with the local business partners you will need to successfully operate your business, including bankers, estate agents, employment agencies, lawyers, accountants, auditors, insurers, telephone and electricity operators etc.
We can explain to you the requirements for residence in the Principality and can assist you with any applications for residence in Monaco and with the tax and estate planning implications.