11 December 2020
If you are interested in business in Monaco, you have heard of the specific company set-up process that Monaco has put in place with the act 1144 almost 30 years ago, requiring an authorisation delivered by the Government after a lengthy application process. You also have heard of the terms “activités réglementées” (regulated activities) and “activités suffisamment représentées” (oversupplied activities): did you get the difference ? Here is what these expressions stand for and what they mean concretely.
The Principality has set a list of activities that are regulated, for which the law gives either (1) prerequisites to access the sector – or the profession – or (2) rules to conduct the business. In the first case, these criteria usually focus on the managing partner’s or business owner’s curriculum vitae (diplomas and/or experience), even though sometimes more criteria may exist, such as financial abilities – high social capital for financial activities, specific banking guarantees for real estate agents. In the latter, we are talking about the general rules one has to respect when operating a business – such as hygiene measures for a restaurant, an activity that does not require the owner to be a chef but rather to have a clean and safe place to cook and serve food.
“Activités suffisamment représentées”
In some areas, the Government believes that competition reached such a level that it might hurt the overall sector of activity, hence a part of the economy. When this occurs, they list the sector onto the category of oversupplied activities ; in other words, this means that the Government is not keen on delivering any new authorisations.
This is the case for a lot of activities. Do not try to find an updated list online, there is not. The measure is made to preserve some sectors of activities and the decisions are taken during Councils of Ministers.
Experts in the field know very well which businesses fall within this category, even though we can never forecast the upcoming decisions of the Government. Theoretically, one “open” sector today might be considered oversupplied tomorrow. Practically, we can expect some sectors to be “closed” anytime soon when we know well the local ecosystem.
That being said, if you have a project in an oversupplied sector – such as cleaning services or concierge services – you still have an option. According to a general rule established by the Government, you can have an authorisation in an oversupplied business if you purchase – partially or totally – an existing company of the same kind that was set up more than 10 years ago.
Furthermore, some sectors are both “regulated” and “oversupplied”, such as :
– real estate agencies, for which the number of competitors is around 140, and for which the law requires a specific background and some financial abilities ;
– construction, overwhelmed sector of activity, necessitating a strong curriculum vitae as well since the introduction of the sovereign ordinance 7135, dated 2nd of October 2018.
First step in your business project is to get the right information from reliable advisors ; contact us.