Setting up a business
Setting up a business in Monaco
Monaco companies are often created through a limited company with a minimum share capital of 15.000 euros. Such type of limited company is called “SARL” which stands for “Société à Responsabilité Limitée”. This is the most common type of business entity in Monaco.
Another type of company which is commonly used in Monaco to set up a business is the so-called “SAM” which stands for “Société Anonyme Monegasque”. The minimum share capital of a SAM is 150.000 euros.
The creation of any business in Monaco either through a SARL or a SAM must be specifically authorised by the Government.
The authorization process may take up to 3 months, starting from the date the complete application is filed. For large investments and significant businesses, setting-up a SAM is preferable than a SARL (see hereafter, “SAM vs. SARL: Pros & Cons”).
Another option in order to set up a business in Monaco is by registering as a sole entrepreneurship. As for the SARL and the SAM, the sole entrepreneurship must be specifically authorized by the Government. The authorization process may take up to 3 months.
SAM vs. SARL: Pros & Cons
The main advantage of setting up a SARL rather than a SAM is the low minimum share capital. Indeed, as stated, the minimum share capital of a SARL is only 15.000 euros whereas the SAM must have a share capital of at least 150.000 euros.
On the other hand, a SAM is more interesting than a SARL when it comes to welcoming new shareholders willing to invest in the company. Indeed, new shareholders in a SAM are not required to be specifically authorised by the Government whereas any new shareholder in a SARL must prepare and file a detailed application with the Government in order to be authorised as a shareholder. Such an authorisation process may take up to 3 months.
In order to avoid such a time-consuming and uncertain authorisation process, a SAM is thus preferable for company founders and entrepreneurs who plan to raise funds and welcome new shareholders.