Monaco Business
Business strategy in Monaco
Self-employed / Autonomous
A single individual with full control, management and unlimited liability for the business and its debts can set up this type of company in Monaco. This means that, should the business accumulate debts, the self-employed person’s personal assets could be at risk. A self-employed person may register their business under their own name.
Collaboration
In Monaco, two or more people working together for the good of the business as a whole, sharing responsibility for the business, may set up this type of company. The names of the partners must appear in the company name.
Partnership SCS Limited (Société Coopérative Sociale)
In Monaco, two or more people can create this type of partnership, often with a sponsor and an active partner. Typically, the dormant partner finances the business but has no managerial responsibilities, while the active partner oversees the day-to-day operations of the business. The dormant partner is not required to return any interest accrued; they are only liable for the commercial debts relating to their investments.
SCA (Société en Commandite par Actions) and SAM (Société Anonyme Monégasque)
These two types of company can be founded in Monaco by two or more people. A notary must certify the incorporation of these companies. The costs and payments required for incorporation include:
Registration tax
Tax stamp
1% of share capital
0.5% of share certificates and registered shares
Notary’s fees, representing approximately 0.9% of the company’s capital
Formal announcement tax in the Journal de Monaco, approximately 4,574 euros (or approximately 8.07 euros per line excluding VAT)
Minimum share capital of 150,000 euros
In addition :
Documents must be filed with the General Register within 15 days of formation.
The company must register with the Trade and Industry Registry within two months of commencing operations.
Within two months of its formation, a company must be entered as ‘inactive’ in the register of ‘Inactive’ companies.
Offshore companies
An offshore company is a business incorporated outside the legal jurisdiction of the entrepreneur. Traditionally, but not always, offshore companies are set up to reduce taxes and charges. Entrepreneurs must comply with the rules of the chosen offshore jurisdiction and avoid conducting business within that jurisdiction.
Advantages of offshore companies :
Simplification of processes: In offshore jurisdictions, bureaucracy may not be an obstacle to entrepreneurs’ activities.
Anonymity: The company’s registered agent is the only person to refer to it, and the identities of the directors and owners are not made public.
Legal protection: The company’s liability is limited by the rules of the offshore jurisdiction rather than the laws of the industry.
Asset protection: Company owners can set up operations and transactions to protect them from debt.
Features of an offshore company:
Articles of Association
Certificate of incorporation
Registered office / agent
Partners / shareholders
Managers and directors
Company secretary
Register of Acts
Accounting
Subsidiaries and Organisations
With administrative approval, international companies can open branches in Monaco. The Trade and Industry Register (RCI) requires these subsidiaries to be registered.
Licences
A licence is an authorisation granted to a person in Monaco to use intellectual property rights, such as trade secrets, patents, trademarks or copyright. There are several types of licence:
Non-exclusive licence: Intellectual property rights may be granted to several licensees.
Exclusive licence: This licence may be exclusive for a product, a geographical area or a limited use, even if it is not unique to a licensee.
Patent licence: Authorisation to use a patented product or design process.
Trademark licence: Allows the licensee to market and sell goods and services while maintaining quality control by the licensor to preserve the reputation of the brand.
Franchising in Monaco
Franchising is an agreement in which a commercial name, product, method, philosophy, brand, etc., is granted in exchange for a share of the franchise profits. The business model is granted to a franchisee who establishes and controls the affiliated outlet.
Advantages of franchising in Monaco :
Greater independence: The franchisee has significant responsibility.
Reduced costs: Fewer overheads and lower costs, with potentially higher profits.
Rapid expansion: Opportunity for rapid growth and brand building.
Potential disadvantages:
Underperforming franchisees: Problems can include inferior franchisees, undervalued profits, and disappointing performance.
Franchising options are available in Monaco and around the world. It is important to conduct thorough research to choose the type of franchise that best suits your goals and expectations.
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