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Company Registration in France

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What is Company formation in France?

France is the 2nd largest market in the European Union. It is the 5th largest economy in the world and the 4thlargest recipient of foreign investment in Europe.

France is an excellent country for the entrepreneurs to start their business. The rules, regulations, rights, obligations and available State Aid in France are the same for all companies whether they are French or a foreign company.

Also, France is not a country renowned for a high level of entrepreneurial spirit or as a free enterprise economy. Young people there prefer to go to public sector rather than starting their own business. This makes France a more suitable country for foreigners to make the investment and start a new business by foreign entrepreneurs.

The government of France has woken up to the fact that it needs to provide greater incentives to employees and encourage a more vibrant economy.

It has either reduced or eliminated altogether many of the bureaucratic hurdles to setting up a business in France.

Advantages of Company Formation in France

Registering a company in France is the most suitable opportunity for entrepreneurs willing to expand their business globally, as France has the fifth largest economy in the world. It is known for its best labor productivity. Its per capita income from the goods and service sector is deemed to be one of the highest in Europe.

  • It has the second largest population density in Europe and it has an excellent purchasing power.
  • France has a competitive market that offers exciting business opportunities to foreign investors.
  • It has a qualified and productive workforce.
  • France has the most well designed and efficient transport networks in the world providing a fast and reliable way to transport and deliver goods.
  • It is located in the heart of Europe and shares its borders with a number of European countries. This offers the foreign organizations a great opportunity to sell their products in the European Market.

Business Structures in France

Limited Liability Company (SARL):

The most common type of company that is incorporated in France is the limited liability company. This structure is popular mainly because of the liability which is limited only to a number of contributions. The minimum capital requirements for Limited Liability Company are 1 EUR.

Joint-stock Company/Public Limited Company (SA):

This type of business structure is preferred by medium or large companies. It requires more founders. It is required to have a board of directors and must comply with requirements for auditing. The minimum share capital requirement to start your business as a Joint Stock Company is 37,000 EUR.

Simplified joint stock company (SAS):

The simplified joint stock company is similar to a Joint-stock company but there is no requirement large minimum share capital. It must have at least two partners and the partners can freely organize the operation of the company.

Single-member limited liability company (EURL):

It is a particular category of Limited Liability Company (SARL) with only one member. It is very similar to the limited liability company but differs in taxation aspect.

General partnership (SNC):

It is formed with at least two associates who are jointly and severally liable for the debts and obligations of the entity. Other types of partnerships in France include the professional partnership or the professional partnership with limited liability.

Company formation procedure in France?

The first step for registering a company in France is to verify if the chosen name is available or not. The name of the company is required to be checked on the Institute National de la Propriety Industrially (INPI) website. If the proposed name is unique, a certificate of reservation is issued by INPI and the entity can proceed with the further of the operations.

Once the certificate of reservation of name is issued, the next step is to open a bank account for the company and deposit the initial capital required for incorporation.

To perform business in France the company is required to be registered at the Centre de Formalités des Entreprises (CFE) in France which is a single regulatory body for statistics, tax authorities, social security, labor and health insurance.

In order to get the company registered, the applicant is required to file a request for registration, followed by submitting the articles of association, the bank certificate stating the capital deposit, a proof that the specific Gazette has received a notification regarding the establishment of the new company, the structure of the proposed entity and its purposes, the addresses of the managing board and the address chosen for the company.

The CFE after receiving the application sends the necessary information to every office and authority in order to get the company registered and enters the company in the Register Nationale des Enterprise. Finally, the company incorporated will receive the SIRENE (Systéme Informatique pour le Répertoire des Entreprises), SIRET (Systéme Informatique pour le Répertoire des Etablissements) and NAF (Nomenclature des Activities Francaises) numbers.

The last step in the company incorporation process in France is buying the special accounting book from Commercial Court or authorized stores.

After complying with all the procedure, the company is good to start its business.

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