Doing Business in San Marino

San Marino offers a favorable business environment with competitive tax rates, a stable political system, and strategic location within Europe. This guide covers key aspects of establishing and operating a business in San Marino.

Business Environment

San Marino is a small but prosperous microstate with a GDP per capita comparable to the wealthiest European countries. Key advantages include:

• Corporate tax rate of 17% (no minimum tax)
• No wealth tax or inheritance tax
• Strategic location surrounded by Italy
• Stable currency (EUR)
• Well-developed banking sector

Available Business Structures

Limited Liability Company (S.r.l.)

The S.r.l. is the most common business structure for small to medium-sized enterprises.

• Minimum Share Capital: €1 (no minimum requirement for some types)
• Shareholders: Minimum 1, no maximum
• Directors: Minimum 1
• Liability: Limited to share capital

Joint-Stock Company (S.p.A.)

Suitable for larger enterprises and public offerings.

• Minimum Share Capital: €120,000
• Shareholders: Minimum 2
• Directors: Minimum 3
• Audit Requirements: Annual audit required

Branch of a Foreign Company

Foreign companies may establish a branch in San Marino.

• Registration: Foreign company registration certificate required
• Local Representative: Must appoint a local representative
• Liability: Branch is not a separate legal entity

Registration Procedure

1. Name Reservation: Reserve the company name with the Companies Register
2. Company Registration: File the articles of incorporation and required documents
3. Tax Registration: Register with the tax authorities for a tax identification number
4. Social Security Registration: Register with the SSD
5. IVA Registration: Register for IVA if turnover exceeds €40,000

Costs and Timeline

• Company Registration: Approximately €1,500-3,000
• Notarial Fees: €500-1,000
• Processing Time: 2-4 weeks for full registration

Ongoing Compliance

• Annual Return: Must be filed with the Companies Register
• Tax Returns: Annual CIT return due by June 30
• PAYE Returns: Monthly withholding returns
• Social Security Returns: Monthly contribution declarations
• IVA Returns: Monthly or quarterly

Banking and Finance

San Marino has a well-developed banking sector. Opening a business bank account requires:

• Company registration documents
• Identification of directors and shareholders
• Proof of registered address
• Business plan (for certain account types)