Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in Europe, Monaco is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Monaco, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Monaco?
- Promising location
Monaco’s location in the heart of Europe provides quick access to key EU markets, including France, Italy, and Switzerland. Its proximity to major international transport hubs, such as airports and Mediterranean ports, allows companies in Monaco to easily optimize their logistics processes, reduce shipping costs, and minimize transit times.
- Stability
Monaco is renowned for its political stability and low crime rates, which create a favorable environment for business and investment. The economy is well-developed and stable, enabling the local government to support enterprises effectively through various incentives and programs. A high standard of living and a reliable legal system further enhance investor confidence, protecting corporate interests and minimizing risks.
- Favorable tax system
Monaco’s tax regime is particularly beneficial for non-resident companies, as there is no income tax for most businesses that do not operate in France. This allows international companies to optimize their expenses and increase profits by taking advantage of tax benefits and incentives. Additionally, Monaco offers special financial incentives for specific sectors, such as innovation and technology, making it an ideal place for businesses to thrive with low tax obligations.
- Effective registration process
The company registration process in Monaco is quick and transparent, making it significantly easier to start a business. The requirements for documentation are minimal, and support from government authorities helps entrepreneurs swiftly obtain the necessary permits. Thanks to this favorable administrative policy, companies can begin operations promptly, focusing on growth without delays caused by bureaucratic procedures.
- Well-developed infrastructure
Monaco boasts a highly developed infrastructure, including modern office centers, high-speed internet, and reliable transportation networks, which greatly facilitate business operations. With an international port, its proximity to major airports in Nice and Monaco, as well as an efficient public transport system, companies can easily manage logistics and maintain connections with
- Highly skilled workers
Monaco offers access to highly educated workers with expertise in finance, law, technology, and management. Its proximity to leading European educational institutions means that many professionals have international experience and a high level of training, which is a significant advantage for companies focused on global markets. The skilled talent pool, with diverse backgrounds, enhances the competitiveness of businesses operating in Monaco, enabling them to adapt to international standards and innovations.
How to register a company in Monaco and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Apply for authorisation to engage in commercial activities
- Declare the intention to engage in commercial activities
- Declaration of commercial activity
- Drafting and signing of the Memorandum of Association and Articles of Association of the company
- Registration of the company in the Monaco Register of Trade and Industry
- Obtaining a NIS number (Statistical Identification Number)
- Declaration of the existence of the company to the Monegasque Tax Department
- Registration of managers with CAMTI-CARTI (Caisse Autonome de maladie des travailleurs indépendants – Caisse Autonome de retraite des travailleurs indépendants) – Monaco’s social funds
Requirements for registering a company in Monaco on the example of a Limited liability Company / Sabiedrība ar Ierobežotu Atbildību (SIA):
- Shareholders: two or more shareholders (individuals or legal entities).
- Director: at least one director or manager (gérant) must be located in Monaco or in the adjacent (PACA) territory.
- Minimum Share Capital: €15,000.
- Legal Address: a SARL must have a registered office address.
- Liability: the company has limited liability only with its share capital.
- Accounting: companies in Monaco are required to file accounts.
What do you have to know about taxes when registering a company in Monaco?
Corporate income tax (CIT):
- Companies are subject to CIT if they carry out “commercial or industrial” activities in or from Monaco and if at least 25% of their turnover derives from transactions carried out directly or indirectly outside Monaco.
- The standard CIT rate is 25%.
- The newly created companies are exempted from CIT during the first two fiscal years.
Personal income tax (PIT):
- Monaco does not levy a PIT, thus Monaco does not levy any income tax on individuals, except French nationals.
Value-added tax (VAT)
- The standard VAT rate is 20%.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Monaco. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Monaco, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Monaco and pave the way for your business success!
Our contacts
If you want to become our client or partner, feel free to contact us at support@manimama.eu.
Or use our telegram @manimama_sales and we will respond to your inquiry.
We also invite you to visit our website: https://manimama.eu/.
Join our Telegram to receive news in a convenient way: Manimama Legal Channel
Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
