Monaco

The Principality of Monaco is a small country located in the very south of France, on the shores of the Ligurian Sea. Its only land border is with France. It is one of the smallest in terms of area in the world.
Due to its location, Monaco has a mild climate. Winters are fairly warm and summers are sunny and dry. The sun shines here for about 10 months of the year. The state is known for its casino in Monte Carlo and the track in the Formula One championship, the Monaco Grand Prix. Important sectors of the economy of such a small state include plastics production, transport and clothing manufacturing.

The state language is French and the official currency is the euro.
Monaco has an active foreign policy aimed at international integration and cooperation in all spheres of life. Monaco is a member of international organisations: the Council of Europe, UNESCO, WHO, WTO, etc. It is not a member of the EU, but has close economic ties with the union.
A pleasant climate, beautiful scenery, high economic and social indicators and a flexible tax policy make Monaco very attractive to international businessmen.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company in the Principality, it is definitely worth noting:

  1. Flexible tax policies
  2. Advantageous geographical location
  3. No corporation tax
  4. High level of GDP
  5. Broad prospects for high profits
  6. Tax exemption for the first two years
  7. A strong and stable economy
  8. Availability of a large number of highly qualified specialists

Type of legal entity:

Under current legislation in the Principality, it is possible to register your business in the following legal forms:

SARL Limited Liability Company (LLC)

One of the most popular forms of company with a share capital of 15 thousand euros, which can conduct commercial activities and has at least two founders. Deposit amounts limit the liability of the persons who are the founders of the companies.

a joint stock company (SAM)

The number of founders starts from two and the minimum capital is 150 thousand euros.
The organisation's Board of Directors manages its activities. The amounts contributed by the company's founders limit their liability.

Features of company incorporation:

Based on an analysis of the current legislation regulating business entities, the following can be said regarding the specifics of the company registration procedure:

  1. A director is compulsory: it must be an individual from the Principality.
  2. The company is required to open an account with a local bank.
  3. One of the legal requirements is to have a real office and staff in Monaco.
  4. Tax on share capital at a rate of - 1% must be paid when registering a business
  5. The company is required to submit annual reports from the balance sheet, record profit and loss, carry out audits and keep copies of the financial statements.
  6. If the opening of a company in Monaco is successful, the founders receive an official certificate, which is certified by a notary. It should be noted that it will be necessary to publish information regarding the new registered company in the Journal de Monaco.

Features regarding the payment of taxes and fees

Any company in Monaco is exempt from paying tax for the first two years of operation.

The main principle of Monaco's fiscal system is the total absence of direct taxation. There is an exception to this principle:

Companies earning more than 25% of their turnover outside the Principality and companies, the activities of which consist of income from patents and literary or artistic property rights are taxed at 33.33% on profits.

The Principality of Monaco has participated in the automatic exchange of information (CRS) since 2017. The basic VAT rate of 20%, which applies to most transactions involving the sale of goods and provision of services.

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