Setting up a Business in Monaco

Types of Companies that may be set up in Monaco:
- Sole traders
- General Partnerships (SNC)
- Limited Partnerships (SCS)
- Monegasque public limited companies (SAM) and partnership limited by shares (SCA)
- S.A.R.L (limited liability co.)

Foreign corporations may also establish a branch or administrative office in the Principality.
More information can be found at: www.gouv.mc

The practice of a commercial, craft or industrial activity or a service sector activity requires an authorization from the Principality of Monaco. The authorization is granted or refused according to the guarantees furnished by the applicant and the interest that the project presents for the economy of Monaco. In order to obtain an authorization to establish a business in Monaco, the applicant must request an application form from the Direction de l'Expansion Economique, and duly return the dossier to the same service. There are a variety of different legal forms possible for setting up an economic activity in the Principality.

Customs & Duties

Regulations concerning customs and currency exchange are the same in Monaco as in France. The two countries constitute a Customs Union creating complete freedom of trade. Although Monaco is tied to France within the framework of European Economic Community customs territory regulations, Monaco is not a member of the EEC.

Start up Support

Companies liable for corporate income tax that incur research and development expenditure may receive a tax credit equal to 50% of difference between their R & D expenditure for the year and their average expenditure over the two previous years, up to a defined maximum.

Employment

Any person or company wishing to hire personnel must receive an authorisation to hire and must register the personnel with the Social Security Compensation Fund (Caisse de Compensation des Services Sociaux - CCSS) and with the Independent Pension Fund (Caisse Autonome des Retraites - CAR). Benefits include:

- family subsidies for dependant children
- partial reimbursement of medical fees
- retirement pension

CCSS contribution rates:

- 16.15% of the gross salary to be paid by the employer-0,05% of the gross salary to be paid by the employee.

CAR Contribution Rates:

- 7.05% of the gross salary to be paid by the employer
- 6.15% of the gross salary to be paid by the employee

Additional contributions, similar to France, are also payable, such as unemployment insurance and in certain cases retirement pensions. On average the employer pays approximately 33% of gross salary paid.