News: Registration of Company in Monaco-Sarl

SARL company in Monaco

The Principality of Monaco is a diminutive state. It is associated with France by many people, because it shares border on land with France and it is washed by the Ligurian Sea. Despite quite a small area, above jurisdiction is one of the most densely populated in the world. It is a member of the UN, the OSCE, the Council of Europe, Interpol, UNESCO and WHO.

The form of government is a constitutional monarchy under the protectorate of France. The state is administratively divided into 4 districts.

The population of Monaco speaks French, Italian and English. Monegasque is also widespread in terms of teaching in educational institutions during several decades.

National currency of the principality is euro since 2002. 

The country can only partially be called an offshore zone. It has both classic features of offshore jurisdictions and specific requirements for the organization and conduct of activities within the state.

Is it possible to establish an offshore company in Monaco?

Monaco is among countries with preferential taxation regime. Therefore, an enterprise will not be considered as offshore one in fact.
There are the following organizational and legal forms of a company in the country:

1. SARL.
2. Societe Anonyme Monegasque (SAM).
3. Branch of a foreign company.
4. Partnerships with limited or unlimited liability.
5. Trust enterprises.

There are no restrictions for joint-stock companies and partnerships only. There are particular rules for other organizational and legal forms. For example, in order to start its activities, SARL must have a minimum authorized capital on an account in a local bank and pay a one-percent tax rate on capital.

SARL Registration: Basic Rules

1. The abbreviation SARL should be at the end of a name.
2. There should be at least 2 founders, legal or national persons. Managing Director (CEO) should be only natural person. Directors and founders are not assigned with the status of a trader.
3. Confirmation of the availability of initial capital by a certificate/statement from the bank.
4. The charter and founding documents should be published in the Journal de Monaco.

Are you considering the offshore zones of Monaco? The country has preferential taxation system, and tax benefits make it possible to refer to a company in Monaco as an offshore company.

Prior to conclusion of the convention on taxes on commercial profits with France (1963), there was no direct tax in Monaco. If the profit of your enterprise on the territory of the state is 75% or more, your company will be exempt from paying income taxes.

Any registered firm in Monaco will be considered "domestic" one. According to current legislation, a non-resident enterprise can not be established in the country.

An offshore company in Monaco will not officially be considered as such. The SICCFIN department will check its activities for compliance with the legislation and transparency of financial transactions.

Why founders are interested in the offshore zones of Monaco

The state provides enterprises with tax incentives.

Any company is exempt from paying taxes for the first 2 years of activity. 

Property and real estate are not subject to tax. In Monaco, you do not need to pay a municipal tax.

Are there any offshore zones in Monaco? No. The state is suitable, as a rule, for experienced entrepreneurs, since, despite various tax breaks, the country has a rather high cost of living. Be ready to spend money, not just to multiply profits.

Our specialists can provide you with a legal advice on the requirements for companies in Monaco. A wide range of services is provided for maintenance of companies and registration of licenses.

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