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Relocating by forming a company in Monaco
Obviously, there are a few shortcuts as well; maybe some would refer to them as administration holes. One of these makes the process way longer, but it can significantly reduce your initial relocation costs.
For example, if you are employed in Monaco then you do not need the big starting fund to open a bank account. Therefore, in most cases, those who are employed do not necessarily have high net-worth assets.
In the case that a Monaco-based company employs you, you do not need to pay a deposit to open a bank account. As an employee, you will be able to relocate to the Principality of Monaco without any financial conditions or bank confirmation of your personal assets value. Therefore, you can open your Monaco bank account with zero euro.
However, if you are wealthy enough you do not want to be employed.
And here is the hole you can take advantage of: once you successfully apply to form a business corporation, or even just to form an administration office for your existing business, you can be eligible for residency. For example, many people gain residency by forming a limited liability company (S.A.R.L.)
To form a S.A.R.L. you can do it for less than 20.000 Euro (S.A.R.L. needs only 15.000 Euro as base capital). Once you are accepted you can use the base capital freely. So, sometimes it is more beneficial to form a company and to employ yourself.
Of course, it requires more administration and a longer approval time, and it is not easy to be approved. It depends on the value that your business can bring to the Principality of Monaco.
However, at the end of the day, no matter which way you relocate to the Principality of Monaco, once your residence permit is accepted, you can enjoy all the benefits of the Principality, including, but not limited to, the no income tax benefit.
But there is another advantage to forming a company in Monaco, which attracts the millionaires as well.
Living in Monaco without depositing a relatively large sum is a highly significant difference, and many people, even with a strong financial background, consider the option to be employed. Understandably, if you have significant wealth and prestige, you do not want to be employed by any other company.
One of the most common solutions for high net worth individuals is to set up their own family office and to be employed in it. Financially, it has many benefits, because once your new company has been accepted, you can use the base capital freely. In many cases, it is more beneficial to form a company and to employ oneself. As the population census highlights, almost 90% of residents who work are employed in the Principality.
Of course, everything depends on your time schedule, since by having sufficient funds to live in Monaco, you are ensured a temporary residence permit the same day you open your bank account. Opening a family office or any other business form in Monaco requires more administration and longer approval times, which can take up to 6 months.
What is important to realise is that even if the Monégasque law allows you to have multiple options in which to receive a Monaco residence permit, you should never forget that maintaining a certain quality of living in the Principality requires a certain minimum level of wealth.
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