Updated: Feb 20
The advantages of transferring your residence to Principality of Monaco, Montecarlo.
“Transferring your residence to a low tax environment is one of the few remaining legal solution to minimize taxes”
To establish your company or yourself in Principality of Monaco, can guarantee multiple advantages but what legal entity should you chose and how do you become a resident?
Forms of business in Monaco
In Monaco, like most places in the world, there are several forms of business based on the limitation of the liability also defined like sole trader (individual company) or private limited liability company.
More specifically in Monaco you can choose between the following form of business:
Société Anonyme Monégasque (S.A.M)
Société a Responabilité limitée (S.A.R.L.)
Société en Commandite Simple (S.C.S)
Société en Nom Collectif (S.N.C.)
The SNC is a sole trader company. It is definitely faster, easier, simpler and also cheaper to establish a SNC in Monaco. This form of business is the preferred one by new entrepreneurs when they start up a new venture because they are on their own and have a very few expenses per year. However, this form is also considered the riskiest way to conduct a business especially in consideration of the unlimited liability and the entrepreneur's personal asset responsibility.
The SCS is a corporate entity in the middle between the sole trader and limited liability. As matter of the fact only the Commandite associates have an unlimited liability and they are also responsible with their own assets.
The SARL is the most common business tool in the world, also well known as SRL in Italy and France, as LTD in UK and as INC. or LLC in North of America for instance. This type of form requires at least two partners involved and a minimum capital of 15,000 Euro. The liability is limited to the capital of the company.
Finally the SAM, which is the equivalent of the SPA in Italy, is the most expensive (a minimum capital of 30,000 Euro) but it is also the best type of form which can be used for holding structures and that can guarantee the anonymity of the shareholders.
Especially for cross-border business, a tax optimized structure should be considered as a valid and smart tool to legally reduce taxes.
“The principality of Monaco does not know a personal income tax, wealth tax or capital gains”
If you have a company which sells or distributes goods and/or services in more than just one country, then you have realistic opportunities to be eligible to transfer your commercial office to Monaco and benefit from all the tax related advantages offered by this country.
"Unlike what people think, Monaco became a white list country since 2014"
In the light of recent political commitments made by Andorra, Liechtenstein and Monaco to implement the OECD ( Organization for the cooperation and economic development) standards of transparency and effective exchange of information and the timetable set for the implementation, the OECD’s Committee on Fiscal Affairs has decided to remove all three jurisdictions from its Uncooperative Tax Havens.
Monaco is a safe and beautiful city where you can establish your business but also where you can live and enjoy the beauty of the country from its beaches to its gardens to the architecture and the luxury goods. This is the glamorous city-state on the French Riviera with more than 38,300, it is home to a glitzy annual yacht and luxury car show and where an estimated 1 in 3 people is a millionaire.