Monaco is an exceptionally attractive place to do business. The country is known for its simplified company registration procedures and transparency of the process. A limited liability company (SARL) is the most common organizational form of legal entity in Monaco.

Benefits of Doing Business in Monaco

One of the main advantages of Monaco is its tax regime. Monaco is not a classic offshore jurisdiction, but its tax regime can be called a “tax haven.” Personal income tax (PIT) is absent, and corporate income tax is also not levied. However, there is an exception – companies of any type that carry out commercial or industrial activities on the territory of the Principality are subject to a tax rate of 25%, if at least 25% of their turnover comes from operations outside Monaco.

In addition, new companies can be exempted from income tax on profits earned during the first two years, and partial taxation of only profits for the following three years.

The Principality of Monaco also has an attractive geographical location and developed gambling and innovative technology industries. This makes Monaco an excellent place for investors who, in addition to the banking and finance sectors, wish to develop small and medium-sized companies in areas such as consulting, shipping, tourism, fashion, leisure, or industry, intellectual property, and others.

What about cryptocurrencies?

Monaco is considered a jurisdiction favorable for conducting business in the field of cryptocurrencies, as the country has adopted the Law on the Digital Principality, which regulates the status of cryptocurrencies and taxation of operations with them. The sale of cryptocurrencies is not taxed in Monaco thanks to the Tax Haven regime, which presents a significant advantage for business.

The cryptocurrency legislative base of Monaco consists of the following main rules:

• Law on the Digital Principality No. 1.383 of 08.02.2011;
• Law amending the Law on the Digital Principality No. 1.482 of 17.12.2019;
• Law on Token Offerings No. 1.491 of 23.06.2020;
• Law No. 1.528 of 07.07.2022, amending various digital provisions and regulating the activities of service providers in relation to digital assets or cryptocurrencies;
• other regulatory legal acts.

Development of modern technologies in the Principality of Monaco

It is worth noting the important role of gambling in Monaco. Currently, there are 4 land-based casinos operating legally in the country: Casino de Monte-Carlo, Casino Café de Paris, Sun Casino, and Monte-Carlo Bay Casino. All of these establishments are located in Monte Carlo.

As for online gambling, it is currently not regulated by the government and residents of the country visit virtual casino platforms of foreign operators.

Monaco pays due attention to promoting and developing new technologies. In 2017, an incubator for startups called MONACOTECH was created in the Principality, which provides an opportunity for project promoters and investors who want to develop innovative enterprises to interact and produce a high-quality final product.

More information about MONACOTECH can be found here and here.

Also, in 2021, another incubator called Monaco Boost was created in the Principality, whose main goal is to accelerate the process of creating and developing businesses.

Conclusions

The Principality of Monaco is an excellent place for investors who want to develop their business and maximize profits. Thanks to its tax haven, stable economy, openness to foreign businesses, and friendly regulation, Monaco has created a favorable environment for business development, including small and medium-sized companies.

Manimama legal & growth agency can help its clients realize their business ideas in Monaco by providing legal services for company registration and assistance in obtaining the necessary regulatory documents for conducting crypto and other high-risk businesses.

Additionally, thanks to its knowledge and experience, Manimama can help its clients maximize profits and reduce tax obligations while complying with all legislative requirements of the Principality of Monaco.

Do not miss the opportunity to register your company in one of the most attractive tax regimes in the world and start your business in Monaco with the help of Manimama. Our specialists will assist you at every step of this process, so you can maximize your potential and achieve success. Contact us today and begin your path to prosperity in Monaco.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.

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