Forming a company in Monaco

Contributed by EBC Corporation SAM [www.ebc-trust.com]

Over the last few years there have been a number of important reforms which have brought about changes to the way companies can be set-up and expanded in Monaco.

Many businesses are opting for the SARL (Société à Responsibilité Limitée) structure which is ideal for small businesses, mainly because there has been a need to keep their cash to use as working capital. However dependant on your requirements you might need to opt for a SAM (Société Anonyme Monégasque) or a SCA (Société en Commandite par Actions).

For the purposes of this article I want to focus on the SARL. Its benefits include:

• Limited liability
• An entity that they could sell or attract additional shareholders if capital was needed to expand at a later date
• Greater acceptance with overseas trading partners bankers and suppliers being formed as a limited company
• Ease of operating and less management time taken up by compliance issues
• Ability to attract staff and employ them as they were covered by the local pension and social security schemes

How does the application process work?

There are various stages to the application process including the need to provide all information in both English and French, so the appointment of a representative that can provide all of these services is necessary.

The full requirements are not too labour intensive but it is important to be aware that documents required include a detailed 3 yr business plan, proof of Articles of Association, balance sheets and premises details.

Want to find out more?

• EBC can help advise you on the structure type best suited to your requirements.
• EBC are able to prepare, translate and file the application.
• EBC can attend to any matters arising from the application once authorisation has been obtained.
• EBC can assist with the various filing requirements to ensure your company meets its statutory obligations before it commences to trade.

For more information on Monaco Company formations, then please contact Richard MacLellan or visit our website.

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