Opening a company in Monaco
Whether you are setting up a new business from the beginning or buying over one that already exists, the venture is most likely going to be challenging and require large amounts of research, preparation and consultation from experienced advisors.
In order to ease the process, MCM offers assistance and consultation to people looking to successfully set up or restart a business.
Opening a business in Monaco as a non-citizen requires satisfying a number of hurdles before one can be allowed to enter and stay. Factors such as taxation and social security legislation are important to consider. Business owners must be aware of all official procedures, obligations, and key agreements related to goodwill. For instance, a fundamental rule related to business in Monaco is that a permit must be granted before any business activities can begin.
The major forms of businesses in Monaco are as follows:
• the sole proprietorship
• the general partnership (SNC)
• the limited partnership (SCS)
• limited partnership with shares (“SCA”)
• general business corporation (SAM)
• limited liability company (SARL)
The Sole Proprietorship
This is a very common form of business in Monaco. Only the entrepreneur is liable for debts and these can be claimed from his or her own personal assets.
The General Partnership (SNC)
An SNC involves at least two partners with unlimited liability. They both have the power to make decisions unless otherwise stated in the partnership agreement. All partners regardless of status must be registered at the Tax Department and the title of the partnership must include names of both partners.
The Limited Partnership (SCS)
An SCS is based on an agreement between two partners, one silent and one general whose name must be included in the name of the partnership. The silent partner has limited liability which is dependent on his contribution while the general partner is fully liable for the company’s debts. The silent partner has no power to make decisions while the general partner acts as the manager of the company.
Limited Partnership with Shares (SCA)
A SCA is a special form of business which allows entrepreneurs to invest at least €150,000 into a company which are notarized by law and have certificates of incorporation. Government authorization is required for this type of business. The business must contain at least 2 shareholders but can have as many shareholders as desired.
General Business Corporation (SAM)
A SAM is very similar to the aforementioned SCA in that it is also a special type of business with similar features and requirements.
Limited Liability Company (SARL)
A SARL is fairly new to Monaco. It is a business type that requires a minimum share capital of at least €15,000, which are divided into shares. The contribution of a shareholder determines his or her liability. Transfer of shares only occurs at shareholder general meetings by the decision of shareholders.