Set up Company in France

Types of business entities in France

• - The private limited liability company is the most common business form chosen by those interested in starting a company in France and it requires at least one shareholder and a minimum capital of 1 euro. The initial capital is stipulated in the articles of association by each legal entity. The liability of the entity’s members is limited to their contribution to the capital. The management is assured by individuals appointed by the general meeting of the shareholders. An auditor is necessary to be appointed if the company meets two of the following conditions: it has more than 50 employees, a net turnover over EUR3.1 million or a total balance sheet over EUR1.55 million.
• - An SA (societe anonime) is a form of business established for major businesses and must be formed by at least seven members, corporate bodies or individuals. It is mandatory that at least one member is an individual. The minimum share capital of this business is EUR37,000 (from which at least half must be deposited at registration and the other half in maximum five years). The management is assured by a board of directors with three to 18 members appointed by the highest instance in the company, the general meeting of the shareholders. Unlike the private limited liability companies, the appointment of a statutory auditor is mandatory. This is an important requirement for those who want to open a company in France. 
• - Another form of business is the French SAS (societe par actions simplifiees) formed by at least one member. There is a minimum share capital of EUR37,000 for this type of entity. The management of such company is assured by at least one director and the appointment of an auditor is mandatory only if one of the following conditions is met: the company has more than 20 employees, the pre-tax turnover exceeds two million euros or the total balance sheet exceeds one million EUR.
• - The SNC (societe en nom collectif) is a form of business formed by at least two partners with no minimum share capital. The particularity of this type of business is that the partners are liable in the extent of their personal assets for the entity’s liabilities. Our agents can offer more information to those who want to set up a company in France. 
• - The SCS (société en commandite simple) is formed by a general partner and a silent partner. The silent partner provides capital and it is considered liable only in extension of that capital. The general partner doesn’t provide any capital and he is considered liable even with its own assets for the entity’s liabilities. The major decisions are taken by the general partner, while the silent partner cannot take part in the management.
• - The SEL (société d'exercice libéral) is a rare form of business established by professionals in order to allow those to exercise their professional activity in the form of companies.
• - The EURL (entreprise unipersonnelle a responsabilité limitée) is a hybrid between a limited liability company and a partnership which doesn’t require a minimum share capital and with the personal assets of the owners not protected in case the company has outstanding debts.

How to open a company in France

Registering a branch office in France

• - finding a suitable place which will be the branch office’s legal address in France;
• - the parent company must appoint a representative who will oversee the branch office’s activities and keep in touch with the French authorities;
• - the branch office will be registered with the Trade Register as well as with the tax authorities;
• - if the parent company is registered in a country outside the EU, it must appoint a French resident as a representative.

• - the parent company’s memorandum and articles of association which must be translated;
• - a certificate of good standing issued by the Trade Register in the parent company’s home country;
• - the contract showing the legal address of the branch office in France;
• - information about the French branch office’s appointed representative.

The French company formation process of a subsidiary

Taxation of companies in France

• - the corporate tax which is levied at a rate of 33.3% on the world income of the business;
• - the social contribution which is applied at a rate of 3.3% for a corporate tax of more than 763,000 euros;
• - a special tax applied at a rate of 10.7% if the turnover of the company is above 250 million euros;
• - the value added tax which is levied at a standard rate of 20%, however, reduced rates apply to certain products;
• - withholding taxes which apply to dividend, interest and royalties payments which are levied at different tax rates depending on the double tax treaties signed by France.

Company formation costs in France

1. the company registration fee imposed by the French Trade Register is approximately EUR 65;
2. the virtual office cost is approximately EUR 30 per month - we remind foreign investors that the virtual office can be used as a registered address for the company;
3. minimum share capital requirements: EUR 1 for opening a limited liability company in France;
4. the company formation fee: our fee starts at approximately EUR 1,000 and our services can be personalized in accordance with the clients' requests;
5. accounting services: you can benefit from such services for your company in France at prices starting at around EUR 90 per month.

Frequently asked questions on company incorporation in France

1. How long does the company registration in France take?

2. Is it hard to open a company in France as a foreigner?

3. Do I need a local director for my company?

4. Can I open a bank account remotely for my company in France?

5. Can I benefit from France’s double tax agreements in order to reduce my taxes?

Economy overview in France

A recent report issued by Ernst & Young places Paris on the first position as the most appealing city in Europe for doing business. The consultancy company gathered data from 502 international business owners who came to the conclusion that Paris is more attractive than London in terms of doing business. London was until this year the favorite European capital of foreign investors.

This is the first time when Paris is voted as the most attractive city and capital in Europe for companies and businessmen to invest in. It should also be noted that Paris is currently home to the largest number of startups in Europe and one of the most appealing cities at the global level when it comes to innovation.

The World Bank announces France is one of the easiest countries in Europe to do business in thanks to the fast business incorporation procedure through the one-stop shop, how the Center of Formalities for Companies (CFE) is known.