Shipping Industry

International shipping groups have traditionally been welcome in Monaco. Monaco looks with a benevolent eye on any application for the formation of a company which is going to operate in the shipping management field, and actively promotes itself as an international shipping centre.

Monaco does not encourage "brass plate" operations and there is no legislation permitting companies to be incorporated in Monaco without being fiscally resident. Actual substance is needed to form a Monegasque company or branch in the form of premises and personnel.

Groups with international operations such as shipping, often include companies based in low tax jurisdictions. Due to the Principalitys attitude towards the management and control of foreign companies these groups can benefit from a limited burden of tax placed on a management centre in Monaco without incurring profit tax on the underlying international operations.

If the group is properly structured, Monaco can be an attractive location in which to base international headquarters, particularly given the European location, developed business culture, good travel connections, security and, of course, the climate.

The owners of the business should also consider whether they could benefit from being resident in Monaco to make the most of the personal income tax regime as well as the location.