News: Company Formation and Registration Services in Monaco (SAM)

Company Registration in Monaco

Monaco (officially known as the Principality of Monaco) is a principality state or country located on the French Riviera in Western Europe. Monaco is bordered by France, and the Mediterranean sea on the southern coast of France, near the border with Italy. Monaco is a principality under a constitutional monarchy. The population of Monaco is over 38000 (Thirty-eight thousand) people. The official language is French, but Monégasque, Italian, and English are widely spoken and understood in the principality. 

Monaco was officially recognized as an independent state by the Franco-Monegasque Treaty of 1861, with Monaco becoming a full United Nations voting member in 1993. Monaco has the world's second-highest GDP nominal per capita, It also has an unemployment rate of 2%, according to the CIA World Factbook, Monaco has the world's lowest poverty rate and the highest number of millionaires and billionaires per capita in the world.

Benefits Of Company Formation In Monaco

• Monaco is included in the “white list” of OECD (Organization of Economic Cooperation & Development) and also has tax information exchange agreements (TIEAs) with several countries.
• Monaco is a politically and economically stable country. The country is free from political conflicts while internal peace is prevalent.
• Foreign Shareholders: Foreigners can own all of the shares in a SARL.
• Limited Liability: Shareholders liabilities limited to their contributions to the share capital.
• Two Year Tax Exemption: The first two years are completely tax exempt. However, U.S. taxpayers and all other subjects to world income taxation must report all income to their governments.
• Two Shareholders/Directors: Two shareholders required where both can become the required two directors.
• Low Minimum Share Capital: The minimum required share capital is 15,000 Euro.

Business in Monaco: Taxes

Monaco has high social insurance taxes, payable by both employers and employees. The employers' contributions are between 28% and 40% (averaging 35%) of gross salary, including benefits, and employees pay a further 10% to 14% (averaging 13%).

However, Monaco is not a tax-free shelter; it charges nearly 20% value-added tax, collects stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the principality. All companies incorporated in Monaco must also register for VAT.

Bookkeeping in Monaco

The Bookkeeping Laws in Monaco

Companies incorporated in Monaco must lodge annual returns and tax returns.

Tax returns are filed three months after the end of a fiscal year. Any tax due is immediately applicable.

Tax losses can be carried forward (maximum of up to 5 years) and in certain cases, chargeback of losses for up to 3 years.

Monaco companies must conduct the activity it declared during the registration and incorporation of the company submit a statement from the Balance Sheet annually. Copies of financial reports are kept in the company.

It is also necessary to annually submit calculation on profit and loss, after auditing and approval by the auditor at the general annual meeting of shareholders.

Features of S.A.R.L Company Formation in Monaco

• Limited Liability: Shareholders liabilities limited to their contributions to the share capital.
• Two Year Tax Exemption: The first two years are completely tax exempt. However, U.S. taxpayers and all other subjects to world income taxation must report all income to their governments.
• Foreign Shareholders: Foreigners can own all of the shares in a SARL.
• Limited Liability: Shareholders liabilities limited to their contributions to the share capital.
• Two Shareholders/Directors: Two shareholders required where both can become the required two directors.
• Low Minimum Share Capital: The minimum required share capital is 15,000 Euro.

Features of S.A.M Company Formation in Monaco

• Name and surname of the founder can be included in the company name. The abbreviation SAM shall be at the end.
• The minimum number of founders is 2 persons. Participant of the Board of Directors has the right to be the director maximum in 8 companies that are registered in Monaco.
• Financial, commercial and insurance activities are permitted.
• The founders shall make cash contribution when registering the company.
• Minimum share capital equals to € 150 000. This amount should be deposited in the account of the local bank. It is necessary to confirm committing the mentioned action by the notarized act.
• Liability of the director is determined by mandate and power of attorney. There is a personal liability. Liability of the founders is limited to amounts of contributions.
• The official act of registration of the company in Monaco shall be certified by the notary. Information concerning company registration in Monaco is published in the edition of Journal de Monaco. Official authorities approve and confirm Charter and constituent documents.
• Company is managed by the Board of Directors.

Requirements for Registration of a Company in Monaco

• Certificate of incorporation issued by the Commercial Registry;
• Board of Directors resolution subscribing at least the required minimum capital for SARL;
• Minimum of two shareholders for SARL (Individuals or legal entity are allowed);
• Minimum of two directors (Individuals or legal entity are allowed from any country in the world) ;
• Registered office address;
• Appointment of a Local registered agent;
• Minimum share capital is 15000 Euro.

List Of Documents Required For Company Formation In Monaco

Individuals must provide the following requirements:

• Applicant’s birth certificate;
• Applicant’s police record prepared within the past three months;
• Copy of the applicant’s national identity card (passport, driver’s license, or national ID card);
• Curriculum Vitae (CV) of the applicant;
• Two copies of the Articles of Association;
• Three copies of a special form containing personal information of each shareholder;
• Summary of the types of business activities and an estimated first three-year turnover;
• Formal application detailing the proposed business activities in Monaco; and
• Copy of office lease agreement.

How to Register a Company in Monaco: the Process of Registration

Step 1. Law and Trust works with the client to get the company’s name and activity approval from the Commercial Registry of the Principality of Monaco;
Step 2. Law and Trust with the client to secure the Memorandum of Association (MOA);
Step 3. Law and Trust collects, prepares and files the necessary incorporation documents on behalf of the client to the relevant authorities for approval;
Step 4. Law and Trust works with the client to open a corporate bank account in Monaco;
Step 5. Law and Trust deliver the certificate of incorporation personally to the client or via courier service.

Monaco Company Formation FAQs

• How much does it cost to register a company in Monaco?

The cost of registering a business in Monaco depends on the type of company and certain other factors. It starts at $5925. The total cost includes The total cost of registration includes a comprehensive review, company registration service, and certificate.

• How long does it take to register a company in Monaco?

It takes from 60 days for company registration to be completed in the principality of Monaco. 

• Can I start a business without registering it in Monaco?

It is not possible to start a business in Monaco without registration, a license is required to operate or run a business in Monaco.

• Do I need to visit Monaco to start a Company there?

It might not be necessary to visit Monaco to start a company, it is more important to get the required documents ready and the necessary requirements to incorporate a company in the principality.

• Do I need a local address to register a company in Monaco?

Yes, it is required to have to a registered address in the principality of Monaco to complete company registration and formation process. 

Why Incorporate with Law&Trust International?

Benefits of company registration, formation, and incorporation service with Law&Trust International in Monaco include:

• Full range of related services: Provision of a full range of legal, corporate, government, and business intelligence related services in Monaco. A detailed overview of our services includes full legal support of the company registration procedure, obtaining a legal address, interaction with the official government authorities of the jurisdiction, state fees, legal address of the company for a year, production and registration of company stamps and advising the client as part of the registration process. Opening a bank account and the cost of this service are discussed during the consultation.
• Professionals and expertise of Law: Worldwide registration and legal maintenance of companies, accounting services, and audit, tax planning and optimization, trademark and patent registration, and many more. Law and Trust provide the client with the best company incorporation services.
• Domestic service: Law&Trust ensure our services cover every region, area or state in Monaco. Be rest assured that no matter where the new company intends to incorporate in the principality, we’ve got the location covered.
• Free initial advice: Free consultation from the lawyers of Law&Trust International regarding strategies or the provision of services for analyzing and developing a legal position on an issue the client raises in Monaco.
• Confidentiality: Law&Trust makes use of modern technological features to keep the records and details of every client safe.
• Efficiency and productivity: Strategically providing up to date personalized services to help your business succeed.

Ready for Company Incorporation?

If you are interested in registering and incorporating a company in Monaco, contact Law & Trust International by simply sending an email or call now to take your business to the next level!