This country around the world is primarily known for its gambling establishments and the tourism industry (which includes the annual Formula 1 race). Attractiveness for travelers due to the location of the country, which is adjacent to France and overlooks the Ligurian Sea. But for business owners, the main reason that makes Monaco an attractive place is a favorable investment climate that fosters local business development.
Benefits of registering a company in Monaco.
Thanks to membership in the European Union (as well as a number of other international associations) and the implementation of effective financial policies within the country, the principality brought the economy to the top of the world ranking. Neighborhood with France played a key role in shaping legislation for the business sector. The difference between local business and French business lies in the simplified tax burden. The rest of the regulations of Monaco and France – are almost identical.
Among the advantages of Monaco as a place for business registration are the following advantages:
• Location of the principality. Being practically in the center of the European Union, Monaco is bordered by advanced economies. And this contributes to the effective development of international business for companies registered in the territory of the principality. Also, the geography and location of Monaco facilitates logistics, which helps to reduce the costs of relevant transport operations.
• Low tax burden. The Government of Monaco is interested in maximizing foreign investment in the country. Therefore, appropriate amendments to the Tax Code of the Principality were adopted, regulating the reduced burden on business facilities to stimulate their growth and development.
• Monaco has no exchange controls. Due to this, companies do not need to fear government interference in business. The elimination of government control over foreign exchange operations contributed to the growth of the economy and the impossibility of the emergence of a black market for currency exchange at a lower rate.
• The state guarantees investors and business owners the protection of their confidential data from third parties.
• Persons who have invested in the economy of Monaco can expect to receive a residence permit (this legal rule also applies to the family of the company’s owner).
• Development of research potential. By this indicator, Monaco is included in the list of leading countries in the world. The development of innovative technologies and their introduction into all spheres of the life of the principality contributes to the improvement of the economic component and the investment climate.
• Monaco has a visa-free regime applicable to Schengen parties.
• Individuals are exempt from income tax.
• Annual fees abolished.
• The calendar year coincides with the tax year, which greatly facilitates the preparation of reporting.
• Capital gains are exempt.
Company registration procedure in Monaco.
This operation, in comparison with a number of countries of the European Union, is not overly complex. But for the successful completion of all stages of the applicant requires a scrupulous observance of the requirements of the current legislation of Monaco and the following steps:
• The candidate submits an application to the registration chamber.
• With the assistance of a local lawyer (lawyers from other countries are not allowed to perform this operation) a package of papers on the establishment of the enterprise is prepared.
• The prepared package of papers is certified by a notary.
• Funds are deposited in an account registered with one of the local banks.
• The candidate pays the registration fee.
• The composition of the company’s management is determined.
• Articles of association and other papers are submitted to designated regulatory authorities.
• The official publication of the principality publishes a notice on the opening of the company.
The term of registration of an enterprise in Monaco does not exceed 1 month. Within 60 days after the opening of the company, the General Meeting of Shareholders is required. The company is also obliged to register the official office space.
Need a company in Monaco – contact us!
The lawyers of our agency are experts in the field of international financial law. We will prepare the necessary papers for you, monitor the progress of all stages of company registration procedures and provide full support and protection of the client’s interests.
For further advice regarding the opening of enterprises in Monaco and local laws, please contact us at the contacts listed on the website.