E.B.C. Corporation: Offshore Company Formation, Banking & Financial Planning

Monaco was admitted as the 183rd full member of the United Nations in May 1993. This membership has forcefully underlined Monaco's stability both politically and economically, which together with its security, commercial flexibility, sophisticated infrastructure and geographic location has provided the background on which the reputation of the Principality has been built and is maintained.

Monaco has its own legal system, Law Courts and Appeal Court, and while its law is largely but not entirely based on the French Code Civil, the legal system in Monaco is distinct from that in France and more welcoming to foreigners.

• The tax system relies on indirect taxes. VAT is imposed on the same bases and rates (5.5% reduced rate and 19.6% standard rate) as in France.
• There is no personal income tax, however, French nationals who transferred their domicile to Monaco after 13 October, 1957 are subject to French income tax.
• Monégasque businesses engaged in industrial or commercial activity and deriving more than 25% of their turnover outside Monaco are subject to corporate profits tax at 33.33%.
• Inheritance and transfer taxes are levied on goods located within Monaco irrespective of the domicile, residence or nationality of the deceased or the donor. The rate of tax, which is charged on the market value of the assets, varies between 0% and 16% depending on the closeness of the relationship between the deceased and the heir.

There is a complete customs and monetary union with France by convention since 1963. Through its treaties with France, Monaco indirectly obtains most of the benefits of EU membership whilst remaining outside of the EU. At the same time, the Bank of France continues to regulate the Monaco banking system further reinforcing its security.

There are no exchange controls.

The Euro is the legal tender of the Principality.

Monaco is active in the international fight against money laundering and terrorism and the Government agency S.I.C.C.F.I.N., (Service d' Information et de Controle sur les Circuits Financiers), was set up in August 1993 to monitor the activities of financial companies in the Principality. S.I.C.C.F.I.N.'s role is in tune with the traditional approach in Monaco of providing a secure and stable environment for investment while not compromising confidentiality. A number of laws have been passed to combat money-laundering and the financing of terrorism.

Administration of Trusts and Companies in Monaco
In the context of the offshore world, Monaco is something of an anomaly – a tax haven for private individuals with the majority of its residents living in the Principality on a tax-free basis, but not an "offshore" jurisdiction in the usual sense since most companies incorporated in the Principality are subject to local corporation tax. Monaco is, however, an ideal business centre from which to administer foreign offshore trusts and companies.

Monaco - The advantages

• Secure and politically stable.
• No income tax, capital gains tax, or wealth tax for non-French resident individuals.
• Foreign offshore companies, when managed and administered by a fully authorised Monégasque management company, are not subject to Monégasque corporation tax.
• No concept of "mind and management" dictating residency for tax purposes.
• Five double taxation agreements.
• No central registry of foreign offshore companies.
• Confidentiality of the banking system.
• Located in mainland Europe, Monaco enjoys easy access to and from all parts of the world through the international airport of Nice, a 6 minute helicopter ride away.
• Monaco's long history and legal system has always protected the discretion and confidentiality of business interests in the Principality including advisory services and management companies.

Our fees will vary depending on the complexity and nature of the work that we undertake on behalf of our clients. Where possible, we aim to agree fees in advance with clients prior to the acceptance of any assignment. All fees and charges are confirmed by way of quotation or contract. In circumstances where this is not possible we will continually advise our clients of any additional costs that will be incurred.

Our fees and charges fall into the following areas:

• Set up Fees – Fees for establishing trusts, companies, or other corporate entities.
• Annual Fees – Accountancy services, provision of corporate statutory services, directors, trustees, secretarial etc.
• Government Fees – Filing fees upon incorporation, stamp duty, annual taxes, etc.
• Management Fees – Fees that are agreed with you before to commencing any assignment. These fees are usually based on time but can also be at a fixed rate.
• Advisory Fees – Fees that are agreed with you before to commencing any assignment. These fees are usually based on time but can also be at a fixed rate.

Please contact us for a free quotation.

• Legal – We will act within the law, our licensing obligations and any other regulations.
• Compete fairly – Compete vigorously but fairly in our markets, being honest and trustworthy in all our dealings.
• Inducements – Not offer or accept gifts, hospitality or other inducements which encourage or reward a decision, or engage in any form of bribery.
• Conflicts – Avoid or declare conflicts of interest that may lead (or be seen to lead) to divided personal loyalties.
• Commitments – Ensure others have confidence in the commitments we make on behalf of EBC, and that agreements are suitably authorised.
• Risks – Assess and manage risks to our business.
• Assets – Protect our brand, physical, financial and intellectual assets.
• Information – Protect the confidentiality of company, employee and customer information.
• Communication – Be truthful, helpful and accurate in our communications.
• Diversity – Treat all individuals fairly and impartially, without prejudice, and never tolerate harassment in any form.
• Health and Safety – Care for the health and safety of each other, our products and our operations.
• Environment – Minimise the potential harmful effects of our activities on the environment.