Lease management

Lease management is a way of operating a business based on a lease agreement granted by the owner of the business to a natural or legal person.

The lease management agreement is governed by the

A lease management agreement is a fixed-term contract - it cannot be renewed automatically.

There are no conditions for the duration of operations as regards the owner of the business. Therefore, a person inheriting a business and who cannot operate it may immediately grant a lease management agreement.

There are no conditions regarding the duration of the business. A newly created business can be placed under lease management.

The lessee must have commercial capacity.

Official business permit is required for persons of foreign nationality. If lease management is granted to a legal person, the regulations applying to the legal form chosen must be complied with. ##### LIEN INTERNE VIDE See the information sheets on setting up a business. LIEN INTERNE VIDE #####

A lease management agreement must be drawn up either as an official deed by a Monegasque notary, or as a privately-signed deed registered with the Department of Tax Services of the Principality.

The lease management agreement must be submitted with the application for business permit or declaration of business activity.

The lease management agreement must include the following obligatory notices:

• First names and surnames of the lessor and the lessee-manager
• Domicile of the lessee-manager or address for service in Monaco, if they are resident abroad
• Nature of the business
• Registered office of the business
• Duration of the agreement
• Indication of payment of surety, stating the amount, or absence of payment

When business authorisation is notified or when the certificate of deposit of a new business declaration has been issued, notice of lease management of the business must be published in the Journal de Monaco.

Said publication is in the form of a listing giving, apart from the mandatory items to be included in lease management agreements, described above, notice to the lessors' creditors that they must express opposition regarding sums to be paid by the lessee-manager within 10 days following the last listing published.

Publication of notice of lease management is a prerequisite for the entry of the lessee-manager on the Trade and Industry Registry and the amendment of the business owner's registration.

They must post a notice on the premises in a clearly visible manner, to the effect that the business is operated under lease management.

Such notice must also appear on commercial correspondence.

The lessee-manager may not in any way change the purpose of the business, except by express written authorisation from the lessor.

They cannot sublet or pass on lease management to any third party.

The lessor must provide the lessee with peaceful enjoyment of the premises and may not require any payments provided for under the agreement to be made prior to expiry of the period allowed for opposition to be expressed.
Upon expiry of the lease management agreement, the lessor must publish notice of said expiry in the Journal de Monaco within 15 days.

To be published twice, seven days apart, and to include the following:

• First names and surnames of the lessor and the lessee-manager
• Domicile of the lessee-manager or address for service in Monaco, if they are resident abroad
• Nature of the business
• Registered office of the business
• Date at which the agreement ended
• Notice to creditors requiring them to express any opposition within 10 days following the second notice, in respect of sums to be paid by the lessor or the lessee to their co-contracting party, subject to not being able to take action against other payments made

Notice of lease management coming to an end is required in support of the application for the lessee-manager to be removed from the Trade & Industry Registry and the application to amend or cancel the business owner's registration.

When lease management begins, any lessee-manager that makes the payments provided for in the agreement before expiry of the period allowed for opposition to be expressed or notwithstanding said opposition shall not be released from their obligations with regard to third parties.
Upon expiry of lease management, a lessee-manager or lessor making payments to their co-contracting party prior to expiry of the period allowed for opposition or notwithstanding said opposition shall not be released from their obligations with regard to third parties.