Monaco

Introduction

Depending on your company and role, if you are based in France then you may have responsibility for Monaco. Given Monaco's political status there are some complexities you should be aware of, in order to take into account and avoid potential issues with your business operations.

Nice is nice

Monaco is bordered by France to the north, east, and west. 

It is located along the French riviera.

Its nearest airport is Nice, in France.

Its official language is French.

However, Monaco is not part of France.

This bears repeating, because it could have a big impact on your business if you're not careful.

Monaco is not part of France. It is not part of the EU.

It is a sovereign city-state, similar to Vatican City. But instead of the Pope, Monaco is ruled by Prince Albert II.

Business Impact

It can be easy to overlook this fact, since Monaco is relatively small and isolated. But if you plan to do business there, the fact that Monaco is not part of France (or indeed the EU) can add friction to your operations:

• Legal - your business will need a dedicated Monaco legal entity, for which it will need a physical presence

• HR - to maintain the legal entity you'll need someone Monégasque (that's the word for a citizen of Monaco) on payroll to sign any paperwork. Also, any French staff performing business travel to Monaco require authorization from the government. In my experience the France HR team can obtain this with about a week's notice, so you need to plan ahead for any travel, even if it's just a day trip.

• Shipping & logistics - since Monaco is not part of the EU, anything you ship there needs to go through customs, even if you are shipping from France. If you don't include the correct customs information then your shipment could be potentially held up for weeks.

• IT - Monaco has its own country code (+377) and ISP (Monaco Telecom). In general, French operators such as Orange and SFR don't have service in Monaco, so if you travel there frequently it might be worthwhile to invest in a local phone line. 

Conclusion

If you plan to do business in Monaco, or if you primarily do business in France but also cover Monaco, being aware of the complexities associated with its political status can help you to proactively head of any potential issues.

For more information here is the website of the Embassy of Monaco in Washington, DC.

And, for more insights about doing business in France, don't hesitate to get in contact.

Au revoir !