How to Register a Sole Proprietorship (Entreprise Individuelle) in Monaco

Monaco is known for being one of the world’s most attractive places to do business, and setting up as an independent contractor here is surprisingly straightforward. A sole proprietorship—called “entreprise individuelle”—is the simplest way to start working for yourself.

The process isn’t free of paperwork, especially when it comes to permits and official documentation, but it’s less bureaucratic than in many other countries. The biggest challenge is that you’ll need to handle everything personally, including unlimited liability.

The benefits, however, are hard to overlook. There’s no personal income tax for residents, no capital requirement to get started, and you gain the flexibility to run your business independently. For freelancers and consultants, this structure often provides the easiest entry point into Monaco’s thriving economy.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Monaco?

In Monaco, a sole proprietorship is officially called Entreprise individuelle. It may also be referred to as a sole trader, self-employed worker, or independent contractor. These terms all describe the same business model in which one person runs a business on their own without creating a separate company.

How does a sole proprietorship (Entreprise individuelle) work in Monaco?

Entreprise individuelle vs. other business structures in Monaco

Monaco offers several business structures, but the main alternative is the Société à Responsabilité Limitée (SARL), a limited liability company.

Step-by-step: How to register a sole proprietorship in Monaco

Step 1: Check your eligibility

Non-Monegasque nationals need to apply for a business permit from the Minister of State. Eligibility depends on professional reputation, qualifications, and whether your activity requires additional authorisation.

Step 2: Choose your business name

You can operate under your own name or register a trade name. If needed, the Business Development Agency (through the Monaco Business Office portal) offers guidance and access to forms/

Step 3: Gather required documents

You'll need to compile:

• Application for a permit to carry out business activity
• Personal information form
• Government-issued ID or passport; residence permit (if applicable)
• Birth certificate
• Proof of business address
• A valid criminal record extract

Step 4: Register with the Business Development Agency and RCI

Submit the application and documents to the Direction de l’Expansion Économique (DEE) for business authorisation. Once you have that, register with the RCI within one month via the official form: P1 Demande d’inscription au RCI (07-2025).

Step 5: Pay registration fees and contributions

The registration fee is €55. There may be additional costs, such as certificates or postage. Payment can be made by cheque, cash, or bank card.

Step 6: Complete post-registration obligations

Once registered with the Trade and Industry Registry (RCI), you will receive your registration number. Your details are automatically shared with the tax office and social security funds so you can be set up for VAT and contributions if needed.

You must keep your information up to date by declaring any changes—such as a new address, activity, or trade name—within one month. Sole proprietors are also required to issue invoices that include their RCI number, business details, client details, and VAT information where applicable. Invoices must be numbered in order and copies kept for your records.

Financial and tax obligations for sole proprietors in Monaco

You are responsible for:

• Corporate income tax: Monaco does not levy personal income tax on residents. However, sole proprietors may fall under corporate income tax if more than 25% of their revenue comes from outside Monaco. The current rate is 25% on taxable profits. Filing is done annually with the Direction des Services Fiscaux.
• VAT (TVA): The standard VAT rate is 20%, with reduced rates of 10%, 5.5%, and 2.1% for specific goods and services. VAT registration is mandatory if your activity is subject to VAT (which most commercial, industrial, and professional activities carried out in Monaco are). Returns are usually filed quarterly through the tax office.
• Social security contributions: Sole proprietors must register with Monaco’s social insurance schemes (CAMTI and CARTI) for healthcare and retirement coverage. Contributions are paid quarterly at fixed rates, not as a percentage of income. In 2025, the minimum is about €6,550 per year, and the maximum is about €13,060 per year, depending on the pension class chosen.
• Record-keeping: You must keep accurate records of all invoices, receipts, and accounts. Documentation must be retained for at least 10 years, as authorities can request access during audits.
• Invoicing: Every invoice must include your RCI registration number, business and client details, date, description of goods or services, and applicable VAT. Invoices must be numbered sequentially and stored for your records.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an entreprise individuelle in Monaco?
There is no minimum capital requirement, making it accessible and cost-effective.

Do entreprises individuelles need to register for VAT?
Yes. Most business activities in Monaco are subject to VAT, which follows the French VAT system. The standard rate is 20%, with reduced rates for certain goods and services. Unless your activity falls under a specific exemption (such as some medical, educational, or financial services), you must register with the Tax Department and file regular VAT returns.

How much are the standard registration fees?
The basic registration fee is €55; additional costs may apply for certificates, postage, or modifications.

Can an entreprise individuelle hire employees?
Yes, hiring is possible, but note that liability is unlimited, and employment obligations (social contributions, insurance) apply.

How long does it take to register as an entreprise individuelle in Monaco?
Permit approval varies; it can take 2-4 weeks, with a maximum of three months. RCI registration must follow within one month after authorisation.

Can foreign nationals register as an entreprise individuelle in Monaco?
Yes, non-residents can register, but they must obtain a business permit and possibly a residence card or work permit, depending on activity.

Do entreprises individuelles need a separate business bank account?
Not strictly required, but opening a business bank account is highly recommended to keep personal and business finances distinct.

What happens if I stop working as an entreprise individuelle?
You must declare cessation of activity and deregister from both the RCI and NIS registries via official forms and notify the tax and social security authorities.

Are there any government incentives or reduced rates for new entreprises individuelles?
While general state aid and business support are available via the Business Development Agency, specific incentives for sole proprietors should be explored through official channels.

Can I use Deel as an entreprise individuelle to get paid by international clients?
Yes. Deel enables Ent. individuelles and freelancers to receive global payments in multiple currencies with low fees and transparent exchange rates.

Does Deel generate compliant invoices for entreprises individuelles?
Absolutely. Deel automatically generates legally compliant invoices that align with Monaco’s requirements and support simplified record-keeping.

Can Deel help me with taxes as a sole proprietor in Monaco?
Yes. Deel provides downloadable tax reports and payment records to assist you in filing returns. While not a substitute for an accountant, Deel streamlines compliance and bookkeeping.

Does Deel offer contracts for freelancers and entreprises individuelles?
Yes. Deel offers local-law-compliant contract templates, so you can work safely with clients.

Can I access benefits through Deel as an entreprise individuelle?
Yes. Deel offers optional benefits such as health insurance, retirement savings plans, and other perks typically reserved for employees—providing additional security for independent professionals.