12 April 2021
Internationally acknowledged as a fair and important principle, the necessity of a stable establishment applies to Monaco-based companies as well. In fact, the Principality monitors the business environment to make sure that every company respects this rule, thus showing the world the Place is not a tax heaven for offshore companies.
All businesses, whatever their form and activity, must prove they have a stable establishment. In other words, it means an address, in Monaco, where the businesses can receive mails and perform their activities. Without an appropriate address, there is no way the Government can deliver a business permit.
There are various options :
1) At home.
A sole trader or the managing partner of a company can use their own apartment as a head office, contingent upon the owner’s approval and three other conditions : no client visit, no employee and no storage of products.
2) Business centres.
To date, there is a bit more than a dozen business centres offering open spaces and private offices. Whereas the State regulates the prices of shared offices, the private offices can be rented out according to the business centre’s pricing strategy.
There are various offices available in town, in what we call the private sector. The public sector, meaning state-owned premises, is specifically made to host companies owned and managed by Monegasque citizens. Another important detail is the possibility for companies to share an office, shall the owner agree and the space be appropriately divided.
4) Brick and mortar stores.
Restaurants, retailers, beauty salons and several other activities need such premises.
Other criteria must be taken into account, such as the impossibility for a construction company to be domiciled at home since it supposedly can have employees and store tools or machinery, which are strictly forbidden in an apartment.
Joint stock companies (SAMs) require a minimum of 25 sq. mt. excluding corridors, kitchen, bathroom and other non-working areas.
Commercial premises of some streets are also protected by a series of rules aiming at forbidding agencies such as banks, real estate brokers, insurance companies, among others, to settle their offices in such places (unless they replace an existing agency).
More rules apply according to the nature of the business, in all four options explained above.
A whole system made and maintained by a State willing to preserve the economic fabric and its players.