A Société à Responsabilité Limitée (SARL), or Limited Liability Company, is one of the most common and versatile corporate structures used for commercial activities in the Principality of Monaco. This legal form is particularly well-suited for small to medium-sized enterprises (SMEs) due to its flexibility and the protection it offers its partners.
Key Corporate Characteristics
- Limited Liability: A defining feature of the SARL is that the liability of its partners is limited to the amount of their capital contributions. This separates the personal assets of the partners from the company’s debts and obligations, providing a significant level of financial security.
- Commercial Purpose: The SARL is designed exclusively for commercial, industrial, or artisanal activities. It cannot be used for liberal professions or non-trading activities, which are subject to different legal forms.
- Capital and Ownership: The minimum share capital for a Monegasque SARL is €15,000, which must be fully paid up and deposited in a local bank account upon incorporation. The company must have a minimum of two partners, who can be natural persons or legal entities, and there is no maximum number of partners.
- Management and Governance: An SARL is managed by one or more gérants (managers), who must be natural persons. The manager(s) can be a partner or a third party and must reside in or near Monaco. The manager is granted extensive powers to act on the company’s behalf.
- Incorporation and Regulation: The formation of an SARL in Monaco is subject to government authorization. The application process involves submitting a comprehensive dossier and is overseen by the Direction de l’Expansion Economique. Once authorized, the company must be registered with the Trade and Industry Registry, obtain a Statistical Identification Number (NIS), and comply with various administrative and tax obligations, including the publication of its articles of association in the Journal de Monaco.
- Taxation: Monaco has a favorable tax environment. Companies earning at least 75% of their turnover within the Principality are generally exempt from corporate tax. Additionally, newly incorporated companies benefit from a two-year corporate tax exemption.
Business Scope
In the Principality of Monaco as well as abroad, with the exclusion of all regulated activities: the import, export, international trade, wholesale purchase and sale of products in merino wool and sheepskins, and products in other natural fibers and non-exotic skins, carpets and decoration, clothing and shoes, as well as online sales.
Address of the registered office
Boulevard d’Italie Monte-Carlo Sun 98000 MONACO
