Company Registration in France

Start your corporate journey in France the 2nd largest European economy. Take your first step towards registration and register your dream company today with Enterslice. Get a seamless service and empower your Business with our expertise.

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Company Registration in France

France is known for its economy, the 5th largest in the world and 2nd largest in the Eurozone. Despite adopting a more liberal corporate culture later than many of its EU competitors, France has actively pursued foreign direct investment with notable success. Therefore, now France attracts entrepreneurs and investors from all over the globe to speed up the market. If you want to start your Business in France and are looking for a way in, then Enterslice is what you need. Enterslice helps you register your Business on the French mainland, bringing your dream to life.

Overview of the Service

Registering your company in France is an effective way of expanding the Business to the French mainland. To bring that up, you certainly do not need to be a French Citizen. Any foreign national can register or set up a company in France either as an LLC (Limited Liability Company) or Incorporation (Inc) by following the due procedure. Today, entrepreneurs seeking to take their Businesses to a global level are eager to set up a company in France. However, it may not be as simple as one may think. Given the multi-dimensional nature of the registration process, one needs to be aware of the registration process and other related requirements.

How Enterslice makes incorporation easier

Cost Effective

Our assigned officer for your task provides cost-effective solutions for your startups and also assists in optimising the plan of action that suits your Business operations.

Expert Guidance

You will be assigned a dedicated Project officer who will provide expert guidance and support to help you make informed financial decisions concerning company registration in France.

Flexibility

Our offerings include flexible packages that can be tailored to meet your specific needs and Business goals at your discretion.

Challenges in Comapny Registartion In France

Heavy Taxes

France indeed offers a high range of sales in its markets to foreign Companies, but it also comes with heavy taxes of 65% on net profits, which includes corporate taxes of 25%, VAT of 20%, employer's social security of 41% of total salaries, wealth taxes up to 1.5% on gross net worth, property tax of 13%, fuel tax of 24%, etc.

Language Barrier

It is expected that the company incorporation process will be a bit difficult owing to the fact that more than 50% of its population speaks French and does not speak any foreign language. The government necessary papers are in French, and all the contracts must be written in French.

Complex Taxation System

Because of the regional language preference, the French taxation system becomes complicated to understand well, especially if you are an alien to French. Therefore, even the resident Companies hire lawyers and professionals for assistance in process navigation to cut down on tax burdens.

Expensive Staffing

The French employment rate is a minimum of 10 %, which makes it hard to find a suitable and qualified workforce for operations. There are positions for expatriates to fulfil the requirements, making the staffing process even more expensive.

Types of Companies In France

The limited liability company [Société à Responsabilité Limitée or SARL]

The most typical company structure in France is SARL. In order to open a type of Business in France, two or more partners—who may be individuals or legal entities—are required, with a maximum of 100 partners. For the matter of Capital for shares, it is not required. Instead, the partners decide this, and it will rely on the activity, the activity's scale, and the Business's capital needs. That is to say, the manager and/or founding partners may bear personal responsibility if this initial capital does not align with these guidelines. Moreover, these capital contributions can be made using cash or any asset possessing monetary value.

Additionally, at the time of the company's incorporation, a minimum of 20% of cash contributions must be made available. Despite being variable, this capital must stay within the minimum and maximum limits specified in the company's statutes; as a result, it cannot be reduced without obtaining legal notice or amending the bylaws.

How does it operate?

  • There is a difference in responsibilities between the two categories of partners, which are supervisors and essential colleagues. Unless there is a breakdown at the company's administrative level, associates' and managers' liability is restricted to the amount of their respective contributions. Your personal belongings can be subject to liabilities at the moment of the company's breakdown.
  • One or more designated managers, either from the partners or an outsider, must be in charge of running SARL. The company's bylaws outline their appointment and authority, giving them complete decision-making authority when no legal restrictions apply.
  • Partners gather for an Ordinary General Assembly (AGM) at least once a year to discuss ordinary decisions and the annual approval. And when altering anything from the statutes, an Extraordinary General Meeting (AGE) must be summoned.
  • Lastly, corporation tax is levied on the company's profits. If the Business is run by a family (parents, siblings, spouses, and so on), income tax can also come into the picture.

The one-person” limited liability company (“Entreprise unipersonnelle à responsabilité limitée” or EURL)

When it comes to company registration, EURL is among the most popular form of company structure in France. With a few exceptions, it is governed by the same regulations as a traditional limited liability company since it is to be established as a public limited company by a single partner. Moreover, to start a Business, you need at least one partner, either an individual or a group, along with whom you decide the minimum money required based on the activity's size, nature, and capital needs of the company. That is to say; the personal level manager may have accountability if this initial money does not align with these limits. These capital contributions may be made through money transfers or other assets with a monetary value. A minimum of twenty per cent of the monetary contributions must have been made available at the time of the company's constitution. For registration of an EURL, the preparation of statutes is required compulsorily.

How does it operate?

  • Unless the partner is the manager and has engaged in tax fraud or a management error, their culpability is restricted to the amount of their contributions.
  • In addition, this organisation needs to designate one or more managers to undertake the administrative tasks. These people must be individuals; they could be the only partner or a third. The company's statutes outline their appointment and authority; unless legal constraints exist, they have complete discretion over these decisions.
  • There are no taxes at the societal level. Instead, the corporation is free to decide over the imposition of corporation tax or partner income tax.

The simplified joint stock company (“Société par Action Simplifiée” or SAS)

In France, establishing various company forms requires the presence of one or more partners, legal or natural, where a maximum of two partners is allowed. The minimum capital is determined at the partners' discretion and is contingent upon the Business's size, activity, and capital needs. Nonetheless, cash contributions must be made at least half as much at the time of the merger.

How does it operate?

  • An SAS is not permitted to sell its shares for public sale or to allow trading on a regulated exchange. It may, however, make offers of financial securities if those offers are made only to asset management firms operating on behalf of third parties or to qualified investors acting under its name.
  • The two categories of partners [the head and the essential associates] differ in accountability. Simple members' liability is capped according to the amount of their contributions. However, if the company misbehaves, the superior may personally address the matter.
  • Irrespective of a natural or legal person, a single chairman leads a simplified joint stock company. The bylaws of this corporation must designate the first president. The partners in the statutes freely choose the terms of joining and departing the company. But important decisions, like changing capital and approving accounts, must be made as a group at the unanimous decision or vote.
  • Unless the company has more than 50 workers, a balance of more than €4 million, or a turnover of more than €8 million, the appointment of an auditorium is not necessary.
  • It costs €39.42 to register a Simplified Corporation with the Commercial Registry of Companies (RCE). The average cost of registering in the Business Directory (DM) is €130, depending on the category in which it is included. When the SAS is established, a legal advertisement with an average value of €230 [which varies depending on the department] is published.

The public limited company (“Société Anonyme” or SA)

They are typically connected to significant enterprises where various people come together, whether natural or formed. Here, your ownership stake is determined by the money you invest in the Business. Although there is no upper limit on the number of partners, publicly traded Companies must have a minimum of two or seven with a minimum share capital of €37000, and at least half of such amount needs to be paid in at the time of incorporation.

How does it operate?

  • The two categories of partners—shareholders and directors—are distinguished regarding responsibilities. In the event of corporate wrongdoing, directors may take personal action, although shareholder liability is restricted to the amount of their contributions.
  • A CEO, President, and Board of Directors create a SA. However, a Board of Directors and a Supervisory Board may also be in charge.
  • A Public Limited Company is run by a Board of Directors of three to eighteen shareholders under a typical organisational structure. This council sets the rules governing Business activity. The chairman of the board of directors, or the executive director nominated by this board in the event of a vacancy, shall assume responsibility for making administrative decisions for the firm and represent it in meetings and discussions with other parties.
  • Ordinary General Assembly (AGO) and Extraordinary General Assembly (AGE) are the two meeting formats with no set frequency for things to occur. At the yearly General Meeting (AGM), which takes place at least once a year, regular decisions are made, and a majority of votes decide upon the annual approval of the accounts. More radical subjects are discussed in an EGM, such as bylaw modifications that require a two-thirds majority vote.
  • The appointment of an auditorium is unnecessary until the balance exceeds € 4 million, the turnover exceeds € 8 million, or the company employs more than 50 people.
  • A Limited Company must pay € 39.42 to register in the Commercial Business Register (CER). If this is included, the average cost of writing in the Business Directory (DM) is 130 €. The publication charge for a legal notice, which varies depending on the department involved and averages €230, must be paid by the publicly traded company.

General partnership (“Société en nom collectif” or SNC)

Due to each partner's joint and unlimited liability for their personal property and the company's debts, they are less common than the other forms. An SNC is explicitly designed for initiatives involving individuals who are acquainted and confident with one another, as even between partners, shares cannot be sold without their consent and despite any provision to the contrary in the association's articles of association. A minimum of two partners, singular or collective, are needed to form an SNC; the maximum number allowed by law is not specified. All of these need to possess the qualities of traders, and minors may participate in this partnership with permission from the high court president or the guardian judge. For the matter of share capital, there is no minimum restriction. Instead, the partners can set it based on the company's size, activity, and capital needs.

How does it operate?

  • One or more managers, who may be partners or outsiders, oversee an SNC. All partners are deemed managers if the bylaws have not previously specified otherwise. The manager or managers of the company have complete authority to act on the company's behalf, barring any legal restrictions.
  • Unless otherwise specified by the statutes, the partners convene in a general assembly at least once a year to make all decisions. But some choices, including removing the associate management, transferring the shares, and renaming the Business SAS, must be made by unanimous vote.
  • Unless the company has more than 50 workers, a balance of more than €4 million, or a turnover of more than €8 million, the appointment of an auditorium is not necessary
  • A Partnership Company can register for free with the Commercial Registry of Companies (RCE). At the moment of incorporation, the only cost partners need to be concerned about is the publication of a legal notice in the Official Journal of Commercial Associations and Foundations. The typical cost of this publication is €44, or €150 if it is longer than 1,000 characters.
  • Lastly, regarding the taxes involved, each partner pays their income tax under the industrial and commercial profits group, whereas, for Business operations, corporation tax must be paid.

Necessary Papers Required for Registration

Company necessary paper: Charter of the SARL, Memorandum of Association (notarised), Articles of Association (notarised), Board Resolution (If required), Publication of the decision to open the company in the National Gazette

Applications: Application Form for Registration and Fees, Application forms issued by the Trade Registrar.

Members’ related details: Company founders’ information [address, visa, passports, etc.], Company's shareholders Identification necessary paper [translated and notarised], Company Manager's information [Identification papers, appointment letters], Manager appointment necessary paper, a statement supporting non-criminal convictions for Manager.

Commitment to Excellence

At Enterslice, we're committed to giving our customers excellent service and ensuring that their financial needs are satisfied precisely and accurately. Our group of committed experts goes above and beyond to produce outstanding outcomes. Our top goal is to make sure you're satisfied. Therefore, we work hard to surpass your expectations by addressing your needs and worries and offering individualised solutions. We appreciate your trust and put in great effort to ensure you're delighted.

Benefits of Company Registration in France

Simple registration process

The process of registering a company in France is relatively simple compared to other European countries as it is the only country favouring the operation of the private sector by offering perks and incentives rather than promoting setting up the Business itself.

Startup Perks and Incentives

The French government offers a range of benefits and incentives to support Business expansion in their country. The French government has ratified agreements such as the TRIPS Agreement, which offers strong protection for intellectual property rights belonging to third parties to safeguard its intellectual property.

Adequate Infrastructure

The French Government offers sufficient services and infrastructure for projects, including energy, roads, railroads, ports, and other areas, making the French mainland more attractive to entrepreneurs and investors from all over the globe to enter the French market.

Skilled Workforce

The French workforce is famous all over the globe for being one of the best-skilled workforces among the other European Countries. This offers a more attractive market environment for entrepreneurs and Businessmen to start or expand their Businesses.

Biggest Economy

With 65 million consumers and a yearly GDP of up to one trillion, France is the second-biggest consumer market in the EU. Moreover, with 83 million tourists coming here yearly, the tourism industry is also growing exponentially. Additionally, France is the world's largest exporter of pharmaceuticals and the second-largest exporter of food and drink, making France one of the biggest economies in Europe and the world.

Intellectual Property Protection

The intellectual property rights of foreign nationals are substantially protected by accords such as the TRIPS Agreement, which France has ratified. Moreover, a standard patent registration procedure that provides increased protection for patents in France company registration is also available to all enterprises operating in France. Additionally, it offers worldwide patent protection, which made the World Economic Forum ranks France the 12th most efficient nation in the world for patent registration. Adding to the core, the French government has a rigorous program for investigating intellectual property infringement cases. If found, they impose fines of up to 7,500 euros on those who break the law.

Low-Interest Loan

Public Sector France offers low-interest loans, another reason to enter the French Business market. Up to EUR 1.5 million in low-interest loans could be provided for research and development initiatives by Businesses with fewer than 250 employees, generating less than EUR 50 million in revenue annually, and having been in the company for three years or longer. For non-listed resident Businesses or enterprises, options for equity investments are allowed because all French enterprises receive credit insurance at a modest expense.

Tax Incentives

The French government offers a range of other programs and tax benefits for Business owners worldwide, like the low-interest rates on loans, which can be as low as 2 percent. Moreover, Businesses will not be required to pay corporation taxes for seven years if their investments are made in sectors that the French government has identified as priorities, while the net tax rate may be lowered to 9% if investments are made in specific areas, the tax rate for corporate entities in France may reach up to 34%. The government also provides additional social security benefits.

FDI Friendly

France has surpassed the United Kingdom to become the most sought-after location for foreign direct investment. In 2020, France attracted about 1,000 foreign direct investment (FDI) projects, with the most significant investment going toward software and IT projects. This makes the French market even more attractive for Businessmen, investors, or entrepreneurs to invest in the market or start/expand their Businesses.

Company Incorporation Advisory

Enterslice offers a wide range of services, including company incorporation advisory services. With the help of a team of experts, we ensure that your needs are met and requirements complied with, as customer satisfaction is our ultimate goal. Company Incorporation Advisory includes the process of understanding and creating a plan of action for successfully bringing the company to the state of incorporation by understanding the local and respective regulations. Understanding the laws allows the team to serve the requirement plan for the successful incorporation process in any of the states in France, as the rules and structure differ from state to state and even city to city.

Why Choose Enterslice?

Researchers have found that organisations adapting to the changing canvas of market practices and trends have better results than traditional and old approaches. Complying with the recent technological trends in the French industry, Enterslice focused on emerging start-up Companies and brought innovation to their traditional Chartered Accountants and legal profession services, disrupting traditional Chartered Accountants practice mechanisms and lawyers.

Eligibility Criteria for Company Incorporation

Information on Key Executives

All key information about the executives should be provided while registering your company in France. Such information includes information on the shareholders' names, registered addresses, and other relevant information expressing details of the shareholders, such as Visa information.

Information on Directors

Directors’ information must include their name, address, Identification necessary papers, Visa information, etc.

Minimum Capital

For company registration in France, one has to satisfy the minimum capital requirement. If the applicant registers for a French LLC or a Simplified Joint Stock Company, the minimum capital varies from €1 to €37,000, one-fifth of which will be paid at registration time.

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Compnay Registration Process

Structure and Name Selection

The first steps begin with the structure selection for the Business comprising what kind of company will be registered. Once the structure is selected, it is time to choose the company's name. The name must be checked on the Website of (the French Patent and Trademark Office) (INPI) and the Commercial Court Registry, which must not conflict with another company name.

Business Account opening

The next step comes with opening a bank account for the Business operation with the Regional Bank of France to deposit the company’s share capital. Numerous banks, such as Societe Generale, BNP Paribas, and HSBC, provide financial services for Businesses. It is advised that you evaluate the services provided by each bank before choosing one.

Register Company

Once the account is opened at the bank, it is time to sign up at the Centre de Formalités des Entreprises to get company registration in France when opening a corporate bank account. This organisation takes care of all other tax and Business-related obligations.

Legal Notice for Announcement

The next step comprises the legal announcement to be made by the applicant in the local newspaper, JAL Announces Legales. This method is necessary to formally and publicly disclose this company's operations to the Business community. These particulars will be made accessible to the Register National des Enterprise as soon as you and the Centre de Formalités des Entreprises receive the Paper works. The company will then be assigned SIRENE, NAF (Nomenclature of Activities in France), and SIRET (System Informatique for the Repertoire of Enterprises) numbers.

Tax structure for Incorporated Companies

Corporate Tax

Almost 33.33% of corporate tax is payable in France, which applies to all the Businesses established there. Companies investing in the priority sectors are exempted from corporate tax payments for seven years.

VAT:

A 20% VAT levied in France is basically an indirect charge to all the Businesses established there.

Withholding Tax

Another tax in France is withholding tax, which is charged on all dividends. It is charged at 25% on all Businesses distributing dividends.

Frequently Asked Questions

The best form of Business to choose for company registration in France would be a French LLC, as this Business structure provides the benefits related to limited liability. Apart from this, professionals use the Business to start an entrepreneurship venture.

Incorporating a company in France usually takes up to two weeks, but in certain circumstances, it takes more than two weeks.

Either a director or manager does not need to be a French national, nor must one be a resident of France; even an entity can also be appointed as a director.

No, you do not need to visit the French company registry to incorporate your company, as the registration process is carried out entirely online.

A French Public Limited Company (SA) needs to have a minimum of three directors, which can extend up to a maximum of seven directors, where directors need not be French Nationals.

Yes, for company incorporation in France, there is a minimum capital requirement that varies as per the type of company structure being chosen for the registration, beginning from as minimum as €1 for a French LLC or a Simplified Joint Stock Company extending to €37,000 for forming a French Public Limited Company (SA).

Yes, French Companies are allowed to appoint foreign nationals as their employees owing to the successful compliance with the French Labour Code and Immigration.

France indeed offers a high range of sales in its markets to foreign Companies, but it also comes with heavy taxes of 65% on net profits, which includes corporate taxes of 25%, VAT of 20%, employer's social security of 41% of total salaries, wealth taxes up to 1.5% on gross net worth, property tax of 13%, fuel tax of 24%, etc.

France has many benefits for incorporating a company in France as it is one of the biggest economies in the world, and the FDI attractors make the French market top the list of countries suitable to start a Business. Moreover, the tax incentives, infrastructure, and start-up incentives make the company easier.

Apart from the capital, the amount you need to register your company in France varies as per the nature and activities of your Business. You will have to either write in the RCS (Commerce and Companies Register) or the RM (Jobs Register) where it will cost about € 40 and for the RM, the fee goes up to € 130 

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