For many years, Monaco has stood out as a haven for operating businesses not to mention a great place to reside.
This has in part been due to the order given by Prince Charles III that revenue should not be taxed. Since this directive was given, there has been a very light taxation principle implemented by this Principality.
In Monaco, the only direct tax that is imposed on enterprises and residences is on any gains made from commercial and industrial activities. Real estate and residents of Monaco are not taxed learn more on VATIT.
Monaco is found at the very heart of Europe and it is easily accessible. Due to its position, it benefits from great weather throughout the year. The Monegasque and French territories as well as waters considered to be in their territory fall under one customs union. In the Principality, the French-based customs regulations and legislation is used.
Monaco offers visitors and residents a safe and secure haven to reside and enjoy themselves. The education system used in this area is designed to ensure that learners develop wholesomely and succeed. It also medical facilities fitted with the latest and best technology. In the region, Monaco is considered the cultural capital due to its arts, fashion, cuisine, sports, nigh-life, ballet and the world class concepts that can be found in this city.
Business Enterprises And Employment In Monaco
In this city, there are roughly 5,000 diverse business enterprises which cover many sectors of the economy such as finance and banking, international trade, tourism, real estate, construction, shipping, retail, yachting and many other areas.
Businesses operating in this city are governed by a very moderate system of taxation. If a business makes 75% or of their profits and turnover within the precincts of the Principality, there is no tax levied.
Monaco has around 30,000 residents. The total workforce is about 47,000 people, 43,000 who are employed within the private sector. Monaco has a rate of unemployment of less than 4%. Given the figures above, this city is an ideal place for individuals seek to kick-start or further their professional endeavors.
For foreigners seeking to live in Monaco as privately salaried residents, all that is needed is a work permit with information on the work one does.
To get approval for the operation of a new business, one is required to submit a detailed business plan, stakeholders who will participate in the business as well as information on the business area one is hoping to enter. After scrutiny by authorities, an approval is issued if everything is in order.
Which Is The Most Ideal Business Structure To Use In Monaco?
There are several business structures you can choose to use in Monaco. We can help you identify the best and most appropriate structure for your business based on the form of ownership, taxation, employment and other business issues. Some of the structures available include:
Société en Nom Collectif (S.N.C.) – This is a general business partnership
Société en Commandite Simple (S.C.S.) – This involves a limited partnership
Société à Responsabilité Limitée (S.A.R.L.)
Société Anonyme Monégasque (S. A. M.)
Structure for Sole Traders
Useful Advice On How To Run Your Monaco Business
We can also offer useful advice on the tax regime that is applicable for your business. Depending on the level of activity in a corporation, corporation tax can be levied at 33.33% especially is profits are taken into account. Companies and firms that do not operate within the principality and which have a total turnover of less than 25% are exempt from paying for corporation tax. There are also very attractive limits on deductibles that can be made from compensation for directors.
What Assistance Can We Provide?
We can help you in the starting of a business. We will be there to guide you through the application process beginning with the drafting of ‘’objects’’ which have to be included in statutes.
When submitting an application to the Monegasque authorities, careful preparation is necessary. Some of the things required by these authorities include, a detailed business plan and budget, documentation and information on prospective managers and shareholders of a new business entity.
Today, an application for the authorization to open a new business can take up to 3 months. The time frame for authorization however depends on the complexity of the application dossier, the interest the business will generate in the Principality as well as quality of the application.
After your application has been received and accepted, we will help you complete the formalities with other crucial offices such as the TVA/Tax office, Registry of Commerce, employment regulatory authorities and the official journal de Monaco. The formalities with these offices and others have to be completed for one to get permission to start a business.
We can also help you get on your feet and grow roots in Monaco by putting you in touch with important local connections necessary for the successful operation of a business. We can connect you to the best bankers, employment agencies, accountants and auditors, estate agents, insurance firms, lawyers, and, electricity and telephone operators.