(WIPO code: MC) (latest review October 2019)

by HAUTIER IP – European, French and Monegasque Patent & Trademark Attorneys, Monaco

General Information

Area

2,024 sq. km.

Population

30,727 (estimated July 2018).

Language

French.

Currency

Euro (EUR).

General Remarks

The principality of Monaco forms an enclave in the southeastern Mediterranean coast of France and has existed since the 10th century. Abolished in 1789 but re-established in 1814, the principality was given a constitution in 1911. Legislative power is vested in an elected National Council. Executive power rests with the high authority of the Prince. Nationals of Monaco and foreigners, except nationals of France who had not been residing in Monaco for five years before October 13, 1962, do not pay income tax.

The Government of Monaco wishes to develop the industrial activity of the principality. Priority is given to companies having a high added value, offering qualified employment with high salaries, and whose activity has no harmful effect.

The economic activity of the principality takes place along four main lines:
Industrial activity:
chemical, pharmaceutical and cosmetic industries, plastic material processing, electrical and electronic industries and mechanical precision engineering industries.
Tourist activity:
2,800 hotel rooms.
Tertiary activities:
banking and financial activities, establishment of head offices of international companies.
Real estate:
economy in the field of town planning.

Foreign investments in Monaco: foreign investments in industrial and commercial domains may consist in, either a profit-sharing in existing companies, or setting up the registered office or the administrative department of foreign companies, or the creation of a company. The constitution of companies is subject to a governmental authorization, either through a Notary Public of the principality in charge of the statutes of the company (Joint-stock companies) who will apply for the authorization, or by means of an application directly forwarded to his Exc. the Minister of State.
Taxes:
35% of companies’ profits when 25% or more of their turnover comes from activities directly or indirectly connected with foreign countries.