ARTIERI & ROHMER (Law Offices): "Setting up in Monaco means entering an ecosystem"

Between regulated access, compliance obligations and a specific social framework, creating and running a business in Monaco requires a proper understanding of the local legal framework. Arthur Rohmer, Managing Partner of the legal advisory firm Artieri & Rohmer Law Offices, looks back at the main questions put to him by entrepreneurs wishing to establish themselves in the Principality.

When entrepreneurs wish to set up in Monaco, what are the first legal questions they ask you?

The first question frequently concerns the incorporation of the company and the choice of corporate form. In Monaco, the carrying on of an economic activity is regulated: for non-Monegasques, it is necessary to obtain government authorisation after filing an application with the Direction du Développement Économique. This application notably includes a presentation of the project and a business plan, in which the entrepreneur must set out the development prospects of the activity. The issue of business premises also arises very early, since it is necessary to justify the establishment of the activity and the right to occupy the premises. The statutory review period is a maximum of 45 days, calculated from the notification that the application is admissible. For applications involving a regulated activity (banks, financial companies, etc.), this is supplemented by the licensing procedure before the competent supervisory authority, the timing of which is independent.

Can this authorisation system be perceived as a constraint?

This system may appear restrictive, but it constitutes an economic filter that greatly enhances the value of authorised activities. In a very limited territory, the authorities also seek to ensure that the economic offering corresponds to demand. Setting up in Monaco means entering an ecosystem.

Are there sectors in which it is more difficult to establish oneself?

Yes. Certain activities are reserved for Monegasque nationals: this is the case, for example, for doctors, architects and notaries, for whom Monegasque nationality is a condition of access. Other activities are considered to be sufficiently represented — that is to say, the sector is considered saturated in view of the needs of the local market: this is an evolving notion which currently concerns, for example, concierge services or general building companies.

From a tax perspective, what are the main elements that attract entrepreneurs?

The main attraction is simple: the Principality has no personal income tax, no wealth tax, and no property tax or housing tax. For an entrepreneur who resides and carries on business in Monaco, this is a considerable difference compared with neighbouring tax regimes. Moreover, Monaco levies no withholding tax on distributed dividends, whether paid to residents or non-residents. The applicable taxation then depends on the country of residence of the beneficiary. As regards commercial companies, where more than 75% of turnover is generated in the Principality, they are, subject to exceptions, not liable to corporate income tax.

Do lower payroll charges also constitute a key argument for setting up in Monaco?

Not as a key argument. In practice, the truly structuring factors are rather legal and political stability, security, quality of life… The first questions most often concern the recruitment procedure, which involves putting together an employer file with the Direction du Travail, or the choice between the status of corporate officer and employee.

Does national preference remain an important principle?

Yes, it is an essential principle of constitutional value. Article 25 of the Constitution expressly provides that priority is given to Monegasques for access to public and private employment. This principle is then implemented by statute, which organises a strict order of priority in hiring.

Are there other particularities of Monegasque employment law?

Monegasque employment law presents several notable particularities. To mention only a few: it is structured by special statutes, and not by a unified labour code. Save in particular situations, the employment contract may in principle be terminated unilaterally and without cause by either party on the basis of Article 6 of Law No. 729. It should also be noted, for startups, that employee incentive mechanisms remain underdeveloped in the Principality.

The employment contract has recently evolved with the introduction of mutual termination. What does this change?

Yes. Mutual termination, introduced by Law No. 1.583 of 2 December 2025, now offers employers and employees on permanent contracts a mode of amicable separation, but within a regulated framework: a written agreement compliant with an official template, a withdrawal period and administrative approval. It therefore remains a useful opening, but not a logic of deregulation.

Has remote work developed in the Principality?

Remote work (télétravail) has developed but remains tightly regulated. It may not exceed two-thirds of the employee’s weekly working time, which often corresponds, without this being an absolute rule, to three days in a five-day week. Implementation of the arrangement requires the preparation of a framework document submitted to the Direction du Travail for compliance review, as well as an amendment to the individual employment contract. Cross-border remote working is conditional upon the existence of bilateral social security agreements, concluded with France and with Italy.

Have the new international anti-money laundering obligations had an impact on economic activity?

Yes. International anti-money laundering obligations have strengthened compliance requirements in Monaco, with higher expectations regarding the identification of beneficial owners, knowledge of the origin of funds, due diligence, suspicious transaction reports and targeted financial sanctions. For economic operators, this above all means more formality, traceability and compliance costs, particularly in exposed sectors. It is not a constraint but a condition of international credibility and of safeguarding Monaco’s standing.

By Cess Camatte - Monaco Economie