No business may be established in the Principality of Monaco without prior authorization from the Government. That rule applies to every form of entity and to every sole trader, and it is the first thing to understand about setting up here.
The most common vehicle is the Société à Responsabilité Limitée (SARL), a limited liability company with a minimum share capital of 15,000 euros. Larger investments and regulated activities generally call for a Société Anonyme Monégasque (SAM), a joint stock company with a minimum share capital of 150,000 euros. Unlike the SARL, where a transfer of shares to an outside party is subject to authorization, SAM shares may be sold and transferred freely, which makes the SAM better suited to bringing in new shareholders and to passing on the business.
Operating as a sole trader, as a natural person, is also possible, subject to the same specific government authorization.
The authorization
Regulated financial activities require, in addition, a license from the Financial Activities Supervisory Commission (CCAF).
The full authorization regime is set out on our Monegasque framework page.
The Monegasque framework