Doing Business in Monaco
Principality of Monaco - AP Images
Facts and Figures (from the Embassy of Monaco in the United States)
Monaco has come a long way since its economic beginnings. A few words on the economic history of the Principality might help to understand its exceptional development into a dynamic, experienced and diversified economic entity.
In 1850, leisure tourism, along with the Monte Carlo Casino, represented the Principality's main economic activity. After the creation of the casino and the "Société des Bains de Mer" (SBM) at the end of the nineteenth century, three factories were set up in the Principality: a flourmill, a brewery and a chocolate factory. In 1906, the State financed and completed the first land reclamation area in Fontvieille.
Today, the direct and indirect effects of tourist activities on the Monegasque economy are put at 11%, with tourism and the hotel industry now overtaken by financial activities and international trade.
Even more surprisingly, gaming revenue from the "Société des Bains de Mer" casinos represents a mere 6% of the State's resources, while the value added tax revenues represent more than 45%.
During the twentieth century, the Princes have always used skillful judgment to equip the country and have foreseen the challenges of the future with great clarity. From a small State on the Mediterranean coast, Monaco has become an important banking center and a major destination for business tourism, whilst creating a dynamic, innovative, competitive and top-quality economic entity.
A rich source of company know-how
The Principality of Monaco generated a 16.4 billion euro turnover in 2008 thanks to over 5,000 companies and more than 44,500 jobs in the private sector.
With its pacific territorial expansion policy, its cosmopolitan population and economic structure made up of small and medium sized companies, highly profitable businesses and high-rise industrial workshops, Monaco’s economic reality sets the example for originality and ingeniousness.
125 nationalities in 2 km²
Monaco has an exceptional multicultural population of over 31,000 inhabitants, according to the 2008 census. This rich concentration of cultures and know-how creates unusual entrepreneurial energy. Monaco makes a large contribution to the wealth of neighboring regions, especially in regards to employment for over 30,000 French and 3,500 Italian nationals who come to work in the Principality every day.
A dense and unexpected industrial structure
In an astonishing way, Monaco has encouraged the development of industries which have been able to adapt to local constraints: located right in the center of urban areas, manufacturing workshops are constructed in high-rise buildings. Furthermore, major international companies have set up their research centers here.
This industry covers a very wide range of sectors: printing, cosmetology, pharmaceutics, chemicals, plastic processing industries (automobile equipment, mechanical and electronic components), building materials, household appliances, etc.
Highly profitable businesses
The development of service businesses in the Principality were first and foremost linked with banking and financial operations. Today, we are witnessing a general increase in high-level services, such as management consultancies and professional firms. We are in particular seeing growth in the shipping business with nearly 200 companies. This sector includes shipping brokers and agents, chartering companies, international transporters, cruise lines and marine surveyors. The development of the Hercule port is bound to speed up this growth.
Furthermore, the Principality has a high-quality telecommunications infrastructure. Alongside traditional operator services, Monaco Telecom is developing activities which are turned towards international markets and new technologies. With such excellent infrastructures, we can expect the fast development of services linked to the new economy.
- Goverment of Monaco
For forms and online submissions, practical information (headings appearing in the left section) concerning : building permits, business taxation, government aid, industrial property, international formalities, liquidations and sales, request to transfer an office or head office open annex premises, social security and accounting obligations, trade and industry register
the main legal texts applicable (available on-line on www.legimonaco.mc) administrative services, entities, specialised organisations - Monaco Chamber of Commerce: Services to Foreign Companies