If you're thinking about international expansion, you might consider establishing a subsidiary. This process differs from country to country, but it's usually a lengthy process no matter where you go. At Globalization...
Read MoreIf you're thinking about international expansion, you might consider establishing a subsidiary. This process differs from country to country, but it's usually a lengthy process no matter where you go. At Globalization Partners, we help you forgo the subsidiary process by hiring your employees through our in-country entity in Monaco.
Reading Time: 3 minutes
If you’re thinking about international expansion, you might consider establishing a subsidiary. This process differs from country to country, but it’s usually a lengthy process no matter where you go. At Globalization Partners, we help you forgo the subsidiary process by hiring your employees through our in-country entity in Monaco.
When you set up a subsidiary, you need to consider the different business types and which one you’d like to be. In Monaco, the types are:
All companies must file with the Trade and Industry Registry. To register for a SAM, you need to publicize a series of documents in Journal de Monaco. These documents are:
For all other business types, you must submit your articles of association with the General Court Registry and publish it in the Journal de Monaco.
There are very few subsidiary laws to keep your entity legal within the country, and the requirements vary upon corporation type. You cannot establish a subsidiary without a registered office premise. Before you apply for your subsidiary, you should have a location.
You’re also legally required to have at least two directors and two shareholders for your entity, and none of them have to be residents. You need articles of association that detail how you will run your company and who has decision-making power within the subsidiary. You cannot legally run your business without tax registration.
When you set up your office, you have two months to complete your company registration.
Establishing your subsidiary requires both time and money. While you don’t need to be in the country to handle this process, it may be easier to interact with various agencies in person. Depending on the type of company you choose, registration could take anywhere from four to eight weeks. You’ll also need to wait for work permit approval, which takes about three months.
You need to consider your investment capital and if you can meet the legal minimums when you establish your entity. Registration comes with various expenses, including tax registration and bank account fees, and you may spend a few thousand euros.
When you set up a subsidiary, you have an entity that runs separately from your parent company. This way, you have separate liability, and your subsidiary can form its own company culture. The board of directors can make creative decisions while still benefiting your business as a whole.
While owning a subsidiary has its advantages, it’s not always realistic for companies. The process can be long and expensive, and if you’re eager to start your expansion, it slows you down. With Globalization Partners, you run your company through our entity. The liability is on us, and you can focus on building your company.
Get a jump start on your global expansion with Globalization Partners. Reach out to us today to learn more about our services.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
