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Routes to Market in Monaco

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Routes to Market in Monaco

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Monaco Routes to Market

So you've decided to expand your business in Monaco and researched your market. Now it's time to decide how you will register and expand a business in Monaco. What is the best, most viable option for your company, your products, and yourself? Which is the path of least resistance?

Here are your typical options when expanding a business into Monaco:

Sole Trader

This type of business can be set in Monaco up by one person and they are responsible for controlling, managing and has unlimited liability and debt. This means that their personal assets are at risk should any debt occur. They can use their name in the company title.

General Partnerships (Societe en nom Collectif)

This type of business can be started in Monaco up by two or more people, who work together for the common good of the company and are jointly responsible for the business. The company must include the names of the partners.

Limited Partnership (S.C.S Societe en Commandite Simple)

This type of company is started in Monaco up by two or more people, usually with one active partner and one sleeping partner. The active partner normally runs the company day to day while the sleeping partner gives finance to the business but does not have any management responsibility. The sleeping partner is only liable for company debts that involve their investment and do not have to return the interest earned.

Limited Company (S.A.R.L. Societe Responsabilite Limitee)

A minimum of EUR 15,000 must be the share capital, equally shared between the partners in order to register this type of business in Monaco. The liability of this company is limited to the contributions of its members. Shares are not freely transferable, transfer require the agreement of all the shareholders. The business must be registered with the Register of Commerce and Industry.

Monegasque Limited Company (S.A.M.) and Limited Partnership with Shares (S.C.A.)

This type of business is set up in Monaco by two or more associates and both these types of companies have to be established by a Notary. You will need to pay the following;

You will need to pay:

  • Registration duty

  • Fiscal stamp

  • 1% of the capital

  • 0.5% of the nominal shares and share certificates

  • Notary's fees, which are approximately 0.9% of the company's capital

  • The cost of officially announcing the company in the Journal de Monaco (8,07? exc. VAT per line), which is approximately 4,574 Euros

  • In the form of shares, the minimum capital is 150 000 Euros

  • Within 15 days of the company creation, the company's articles must be sent to the general registry

  • The company must be registered in the Commerce & Industry Register within 2 months of starting up

  • A non-trading company must be registered in the Non-Trading Company Register, within 2 months of starting up

Offshore Companies

An offshore company is a business where business owners and investors can set up a business outside its jurisdiction. Offshore companies are traditionally, but not exclusively, incorporated for lower fees and taxes. Business owners must abide the regulations of the offshore jurisdiction, and must not trade within the jurisdiction.

The benefits are vast. As aforesaid, reduced tax and fees are often big factors when considering offshore incorporation. A company may also choose and offshore location to:

  • Simplify set-up and maintenance - entrepreneurs may find bureaucracy and red tape less of an obstacle in offshore jurisdictions

  • Assume anonymity - the names of owners and directors are not for public record, and references to the company may only be made in its registered agent

  • Ensure legal protection - for instance, some jurisdictions favour corporate governance, meaning a company is only liable to offshore laws as opposed to those in its areas of operation

  • Protect assets - business owners may opt to arrange their assets and transactions in such a way that protects them from liability

Characteristics of an offshore company:

  • Memorandum and Articles of Association

  • Certificate of Incorporation

  • Registered Office/Agent

  • Shareholders / Members

  • Directors / Managers

  • Company secretary

  • Statutory Register

  • Bookkeeping

Branches and Agencies

Foreign companies can open branch offices in Monaco after obtaining administrative authorization. These branches must be registered in the Register of Commerce and Industry (RCI).

Licensing

Licensing in Monaco is the permission for someone else to use your intellectual property rights: either a patent, trademark, trade secret, or copyright. Different types of license include:

  • Non-Exclusive License - A non-exclusive license implies that your intellectual property rights can be awarded to more than one licensee.

  • Exclusive License - A little more complex because, although the license may not be exclusive to one licensee, it may be exclusive to a geographic location, a certain product, or limited area of use. For instance, you may grant a licensee exclusive use of the rights in France, yet grant another licensee its use in Germany.

  • Patent License - The allowance of another party to use your patented product, design or process.

  • Trademark License - Trademark licensing means permission is awarded to a licensee to sell a product or service. However, the licensor retains more control in order to ensure that quality is maintained. Quality control is in place to uphold the image of the brand / product / service / licensor, and therefore sustain customer confidence and satisfaction.

Franchising in Monaco

Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.

The benefits of franchising your business in Monaco include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.

Disadvantages of franchising a business in Monaco: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.

There are franchise opportunities throughout the world and this included Monaco. Researching the type of franchise you wish to do will help you to decide on the available opportunities.

Click here to Ask an Expert about Routes to Market in Monaco

Organisations that can assist with Routes to Market

  • > Business Consultancy Services.

    Do you need advice from an expert in your field, on the ground? Need help finding the best route to market for your product or service?

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