Specific structures

The Principality of Monaco allows the creation of certain specific structures, namely administrative offices, branches or agencies, or lease management agreements.

Administrative offices

A foreign company may wish to set up administrative offices in the Principality of Monaco.

These consist of a permanent establishment providing services exclusively to the foreign company or the group to which it belongs. Activities may include management, coordination or control.

Such a structure has no separate corporate entity.

An administrative license is required to set up administrative offices. The license is granted for a limited period, but may be renewed on application.

Administrative offices are subject to specific tax treatment, since their taxation is based solely on their operating costs.

Branches/agencies

The branch or agency system is another means for a foreign company to set up operations in Monaco.

It is the method most commonly employed by banks.

An authorisation from the Minister of State is necessary, and the branch or agency must be registered on the Register of Trade and Industry.

The structure must also be represented by a responsible agent.

Trusts

The constitution or transfer of trusts in Monaco is reserved for those individuals permitted under their own national legislation to set up trusts.

The trust is governed by Law no. 214 of 27 February 1936. It must be created by authentic deed and must comply with the national law to which it is subject.

Only individuals appearing on a special list, drawn up by the First President of the Court of Appeal, are permitted to act as trustees in the case of trusts set up in Monaco.

Lease management

This is an agreement entered into by the owner of a business and a lease manager, also known as a general manager.

This type of agreement is subject to the provisions of Law no. 546 of 26 June 1951 published in the Journal de Monaco official gazette.

Under the terms of this agreement, the owner leases the operation of the business to a manager, who may be a private individual or a corporate entity.

The general manager must be duly licensed by the Minister of State to operate this business.

The general manager is required to display, in a prominent position on the business premises, the information that the business is operated under lease management.

The general manager may not sub-lease or transfer the benefit of the agreement to any third party.