Monaco Company Formation

Opening a company in Monaco

Why start a company in Monaco? What are the advantages in the state of Monaco?
Monaco, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

Monaco is a principality and is part of the French Riviera. The tiny country is in southern Europe.

The local currency is the Euro (EUR), and the living in the country.

Monaco is a perfect place for investments and business expansion, especially in the field of tourism.

The process of opening a company in Monaco
Opening a company in Monaco begins with the signing of a notarial power of attorney to open a company by a local agent. The document was then sent with a courier urgently to Monaco to be handled by a local Monegasque notary. After several processes in Monaco, the customer is required to sign the application for registration in the commercial register, and again send the document to Monaco. At this stage the company already exists legally and can start business activities.

local director
In order to establish a company in Monaco, a local director is required with whom it will be possible to open a bank account, register with the tax authority, etc. We can help you with this requirement.

In Monaco there is no need for a local shareholder. Moreover, in Monaco you also do not need any European citizenship to open a company. That means you can open a Monegasque company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. A foreigner can be a director.

Opening a bank account in Monaco - current account for the company
Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country.

However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are internet banks in Europe that would be happy to have your company in Monaco as a client.

Equity Capital
In order to open the company, a minimum deposit of equity capital of 15,000 euros is required.

In Monaco, it is required to make an actual deposit of the aforementioned amount of equity capital. At the time of opening the company, a bank account must be opened, and a deposit must be made to the account to prove that the money existed at the time the company was established.

After opening the bank account and depositing the equity capital, the company is opened and a company charter is issued from the commercial register (this is the Mongolian certificate of incorporation).

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company in VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

Tax in Monaco
In Monaco, the corporate tax in Monaco in general is 0%. However, there are some cases where corporation tax will be levied.
For sales to the local Mongaski market, the VAT is 20%.

Questions and answers
Question: Is it necessary to physically fly to Monaco to open a company in Monaco?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Monaco. The entire process of opening the company and in most cases also the company's bank account, are carried out remotely without setting foot on Monaco soil.

Question: Who provides the local address for the company in the new Monaco?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Monaco?
Answer: We will connect you with a local accountant.

Question: If I want to come to Monaco to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for the company in your new Monaco.

Question: What type of company in Monaco should I open?
Answer: In Monaco there are two types of companies:
The first type is a limited liability company ("SARL"). This is the LLC.
SARL companies are considered more flexible in terms of organizational structure and easier to operate on a daily basis. They are suitable for investments of different scopes.
The minimum equity capital of the SARL company is 12,500 euros as mentioned above.
At least two shareholders are required, but it is possible to have one director.

The second type is a "joint stock company", that's how I imagine it can be translated into Hebrew. In English this type is called Société Anonyme Monégasque and in Monaco it is called SAM.
SAM companies are generally designed for large-scale investments. As a result, they are less flexible from a legal point of view and much more formal in terms of organizational structure and day-to-day operations. On the other hand, they are great for raising capital, because their shares can be issued on the Warsaw Stock Exchange, and they can issue securities of various types.

In the SAM company, the minimum equity capital is 150,000 euros, and at least two shareholders and two directors are required.

Foreign investors usually choose SARL companies, i.e. companies of the first type, unless their business requires the company to be of the SAM type (for example, if it is planned to establish a new bank or an insurance company).

Question: Do you need a European passport to open a company in Monaco?
Answer: There is no need for a European passport. We can open a company in Monaco for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Monaco?
Answer: The process of opening the company, including signing the power of attorney and sending it, is about 3 months. These are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Monaco for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Monaco for a person with American citizenship or a person living in the USA.

On the face of it, it seems trivial that a person with ties to the USA could open a company in Monaco, but we assure you that this is not the case. Today, all banks in Monaco without exception refuse to open an account for a new Mongasque company if its owner has any ties to the USA. Therefore, we are probably the only ones, and certainly one of the few in Monaco, who know how to open a company in Monaco for a person with American citizenship or who lives in the USA.

Question: How much does it cost to open a company in Monaco?
Answer: Click here and get in touch and get a current quote without obligation!