STARTING UP A BUSINESS IN MONACO: GENERAL CONDITIONS

Any new business activity/company in Monaco must obtain an authorisation issued by the Government.

In addition to this general license, certain activities are subject to specific rules.

Activities not subject to specific regulation

Artisanal, commercial, industrial and professional activities may be exercised subject to the licensing conditions laid down by Law no. 1.144 of 26 July 1991 regarding engagement in certain economic and legal activities.

The Government, represented by the Minister of State, issues the requisite license to engage in economic activity in the Principality of Monaco.

This license is limited to the activity declared: any change in the activity actually carried out requires an application for a new license.

If the activity engaged in is not subject to any specific regulation within the territory of Monaco, it is subject only to the general provisions of the above law.

Activities subject to specific regulation

In addition to the rules laid down by Law no. 1.144, certain economic activities are also subject to specific regulations.

The specific regulations require compliance with detailed conditions that may include nationality, the qualifications of the executives/directors, a requirement to adopt a particular form of business entity or a minimum amount of registered capital.

This specific license is granted by the Minister of State and/or a specific administrative authority.

Regulated activities include:

> Financial activities (portfolio management, stock brokerage, investment advice, creation and management of mutual funds),

> Banking and credit activities,

> Insurance,

> Activities engaged in by ministerial officers or under the monitoring of professional bodies, such as the professions of notary, bailiff, barrister, architect or chartered accountant,

> Medical, paramedical and pharmaceutical activities,

> The professions of estate agent, property management agent, co-ownership property management agent,

> The manufacture and sale of works made from precious metals,

> Private personal and property security activities.

The entrepreneur may choose to engage in an activity in his/her own name, under the form of a sole-trader, or in the form of a corporate entity.

There are several forms of corporate entities:

• Monegasque public stock corporation (Société Anonyme Monégasque, or S.A.M.)
• Limited liability company (Société à Responsabilité Limitée, or S.A.R.L.)
• Limited partnership (Société en Commandite Simple, or S.C.S.)
• General partnership (Société en Nom Collectif, or S.N.C.)
• Specific structures (Commercial agency, Professional independent artist etc.)
• Civil companies or non-trading companies (Société Civile Particulière or SCP) which do not carry out any business but are merely limited to managing their own assets, and for which the above authorization process is not required.

The relative simplicity of company law in Monaco leaves scope for a degree of contractual freedom.

Depending on the form of corporate entity chosen, however, certain obligations may apply.

Our team would be pleased to assist you with setting-up your business in Monaco.