
Establishing a civil company in Monaco (“société civile”) is an effective way to manage assets and streamline inheritance planning.
With Monaco’s flexible legal framework and global reputation for financial stability, this structure is an interesting option for individuals and families seeking to safeguard their wealth.
At Square Services, we specialise in the administration of civil companies (SCIs and SCPs) in Monaco, ensuring compliance and providing bespoke support for your unique needs.
This guide explores the benefits of civil companies in Monaco and the steps to establish one.
What is a civil company in Monaco?
A civil company in Monaco is a legal structure designed for non-commercial activities. Whether used for managing real estate or holding valuable assets such as art or investments, it provides a flexible and efficient solution for asset management.
Governed by Monaco’s Civil Code (Articles 1670–1711) and Law No. 797 of February 18, 1966, civil companies are valued for their flexibility and simplicity.
Key Features
Non-commercial purpose: These companies are strictly for civil activities, such as managing property portfolios or facilitating wealth transfer, and must not engage in trade.
Streamlined legal requirements: Unlike commercial entities, civil companies require no prior approval from Monegasque authorities or publication in the Journal de Monaco.
Flexible ownership: At least two partners are required, who can be either individuals or legal entities, offering versatility for families and investors.
Proportional liability: Partners are liable for debts only in proportion to their ownership share.
Practical applications of a civil company in Monaco
Civil companies are widely used in Monaco for:
Real Estate Holdings: Managing properties in Monaco or in France under a unified ownership structure.
Wealth Management: Holding assets such as art collections, financial investments, or luxury vehicles.
Unique benefits of a civil company in Monaco
A civil company in Monaco offers a range of benefits including:
1. Streamlined asset management
One of the primary advantages of a civil company in Monaco is its ability to consolidate ownership of various assets under a single legal entity, offering better control and protection compared to direct ownership.
2. Estate planning
Civil companies are useful estate planning tools as they allow for a structured transfer of ownership through shares, avoiding the complications of indivision among heirs. They can also help mitigate inheritance tax.
3. Specific administration requirements
Civil companies benefit from very specific administrative and reporting obligations:
Publicity requirements: Unlike commercial entities, civil companies are not required to publish their creation in the Journal de Monaco.
Accounts: civil companies are required to keep accounts.
Compliance: A Monaco registered civil company must define and designate a person responsible for basic information on the legal person and information on beneficial owners of a Monegasque civil company.
Square Services is specialised in the administration of Monaco civil companies and can ensure compliance both in terms of accountancy and information collection and storage.
4. Asset protection with a civil company
Civil companies provide a layer of protection and control that direct ownership cannot offer:
Structured decision-making: The Articles of Association allow shareholders to define specific rules for managing the company, such as limiting or expanding the powers of the manager.
Dispute avoidance: By clearly outlining the rights and responsibilities of all partners, a civil company helps prevent conflicts, especially in multi-generational family setups.
Reduced risk of co-ownership deadlock: Unlike joint ownership arrangements, a civil company provides mechanisms to avoid gridlocks in decision-making, ensuring efficient asset management.
“Today, Monegasque SCIs and SCPs face new transparency requirements, marking the end of an era when these entities could be created and left unchecked. Diligence and compliance are not just expectations—they are essential." - Fred Mege
This information is for reference only. It is not intended to provide tax or legal advice and should not be relied upon as such.
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