Forming a SAM in Monaco: complete step-by-step guide

SAM Formation Overview

A SAM (Société Anonyme Monégasque) is the most prestigious and complex company structure in Monaco. Formation requires substantial capital, multiple shareholders, and adherence to strict governance standards. This guide outlines the complete formation process.

Capital Requirements

Minimum capital: €150,000 Contribution methods: Cash, real property, intellectual property, equipment Share types: Bearer shares or registered shares (minimum share value €30)

Capital must be fully subscribed before company registration. The contribution of capital must be documented through a notarized deed and deposited with an authorized custodian. Non-cash contributions require independent valuation by approved appraisers.

Shareholder Requirements

• Minimum 2 shareholders required at formation
• Shareholders may be individuals or legal entities
• No maximum shareholder limit
• Foreign investors permitted without restriction
• Beneficial ownership documentation required for regulatory compliance

Formation Steps

Step 1: Prepare Founding Documents

Prepare articles of incorporation (statuts) specifying:

• Company name and registered office
• Business purpose and scope
• Capital structure and share details
• Governance structure (board or supervisory board)
• Distribution policies and dividend procedures
• Modification procedures

Draft bylaws in French with technical legal terminology precise to Monaco law. Engagement of a notaire (public notary) is essential.

Step 2: Notarization and Registration

Submit articles to a Monaco notaire for review and authentication. The notaire verifies:

• Legality of proposed structure
• Proper formulation in French
• Compliance with capital requirements
• Shareholder identification and authorization

Obtain notarized incorporation document (acte de constitution).

Step 3: Capital Deposit

Deposit subscribed capital with:

• An authorized bank (Monegasque or international)
• A notaire holding account
• A licensed custodian

Obtain written confirmation (certificat de dépôt) confirming capital deposit.

Step 4: Register Company

Submit to Registre du Commerce et de l'Industrie (RCI):

• Notarized articles of incorporation
• Certificate of capital deposit
• Identification of founders, directors, and principal shareholders
• Declaration of business address
• Articles and bylaws (2 certified copies)

Registration fee: €150-300

Step 5: Publish Official Notice

Publication of company registration in Journal de Monaco officiel is mandatory. Notice includes:

• Company name and registration number
• Registered office address
• Capital amount and share structure
• Director names and powers
• Company purpose

Publication occurs automatically upon RCI registration.

Governance Structure Requirements

Board of Directors Model

• Minimum 2 directors
• Board chair designated with executive authority
• Directors may be individuals or legal entities
• Majority may be non-Monegasque

Supervisory Board Model (Dualistische Struktur)

• Supervisory board (3-8 members)
• Management board (1-5 members)
• Separation of oversight and execution

Directors serve terms defined in articles (typically 3-6 years) and are subject to removal by shareholder vote. Remuneration terms must be specified in incorporation documents.

Shareholder Assembly Requirements

Ordinary assembly:

• Held annually to approve financial statements
• Report on company activities during fiscal year
• Approve or modify compensation policies

Extraordinary assembly:

• Modification of articles of incorporation
• Approval of capital increases or decreases
• Authorization of business combinations or liquidation

Assemblies must be held in Monaco with proper notice (minimum 15 days advance notice).

Financial and Regulatory Obligations

• Annual financial audit (commissaire aux comptes) mandatory
• Quarterly financial statements submission to Public Finance Ministry
• Annual tax filing (corporate income tax approximately 33.33%)
• Maintain detailed shareholder register (registre des actionnaires)
• Comply with CCAF financial regulations
• International reporting for foreign shareholders (FATCA, CRS)

Timeline and Costs

Formation timeline: 30-45 days from document preparation to official registration

Estimated costs:

• Notaire fees: €3,000-8,000
• Registration and publication: €300-500
• Legal consultation: €2,000-5,000
• Bank or custodian deposit fees: €500-2,000

Key Considerations

Advantages:

• Prestige and institutional credibility
• Limited shareholder liability
• Extensive governance framework
• Suitable for institutional investors
• International recognition

Disadvantages:

• High capital requirement limits accessibility
• Complex governance and compliance obligations
• Substantial formation costs
• Ongoing audit and reporting burden
• Minimum 2 shareholder requirement

Professional Assistance

Formation of a SAM requires professional guidance. Engage:

• Notaire: For articles preparation and legal authentication
• Accountant/Audit firm: For capital deposit and financial compliance
• Business lawyer: For governance structure and regulations
• Corporate service provider: For ongoing compliance and administration

Official Resources

For current requirements and procedures, consult:

• monentreprise.gouv.mc - Business information portal
• Registre du Commerce et de l'Industrie - Company registration authority
• Journal de Monaco - Official publication requirements
• CCAF - Financial regulation details