Company Registration in France: Eligibility & Benefits

Ashish M. Shaji

19 Jan, 2021

France is one of the largest markets in the European Union. It is one of the preferred locations of entrepreneurs to do business. In case you are planning to register your company abroad, France is a country which should be in your list. In this article we shall provide you with information on Company Registration in France.

Significance of registering your company in France

As stated above France is one of the largest market and precisely 2^nd largest when it comes to European Union. It is also the 4^th largest recipient of foreign investment in Europe. It may also be noted that the rules and regulations, rights and obligations and state aid are same for all companies in France, doesn’t matter if they are French or a foreign company.

France is a country where young people prefer to opt public sector instead of starting their own business. Therefore France is more suitable for foreign investors to make the investment and start business. The government there has realized the fact that there needs to be greater incentives to employees and encourage a vibrant economy.

As a matter of fact France is one of the friendliest countries in all of Europe to be open to foreign investors, so it may not be a bad place for an entrepreneur to kick start their business abroad.

Company Registration in France: Eligibility & Requirements

For company registration in France, the following is the eligibility and requirements:

• The object for which the company is formed should be accompanied with a description;
• The name of the shareholders, address proof and their passports are required;
• Directors’ name and their passport copy is required;
• Information regarding the allotment of shares in the company is to be provided;
• A sole trader doesn’t need minimum share capital;
• Partnership also doesn’t need minimum share capital; and
• A joint stock company requires minimum share capital of 37,000 Euros.

Business structure in France

Before you go for company registration in France, you should be aware of the business structure in France. The following are some of the common types of Business structure in France:

• Limited Liability Company (SARL)

Limited Liability Company^[1] is incorporated in France quite commonly. In this structure, liability is limited to only a limited number of structures. For this form of company the minimum capital requirement is 1 Euro.

• Joint Stock Company/Public Limited Company

Large or medium sized companies prefer this form of company. This requires more founders and it is required to have board of directors and should comply with auditing requirements. As stated above, a joint stock company requires minimum share capital of 37,000 Euros.

• Simplified Joint Stock Company

This form of company is similar to Joint Stock Company however it may be noted that there is no need of minimum share capital. There should be at least 2 partners and they can organize the operation of the company.

• Single member limited liability company (EURL)

It’s a particular category of Limited Liability Company with one member. It differs in taxation aspect otherwise its very similar to Limited Liability Company.

• General Partnership SNC

This is formed with two associates who are held jointly or severally liable for the debts and obligations of the entity. Other forms of partnerships in France are professional partnership or professional partnership with limited liability.

Procedure of Company Registration in France

The procedure of registering your company in France is specified below:

• Firstly, the name of the company should be checked on the website of Institute National de la Propriete Industrielle. If such name is unique, a certificate of reservation is issued by INPI and the entity can proceed further.
• The next step includes, opening bank account for the company and deposit the initial capital.
• For performing business in France, the Company should be registered at the Centre de Formalites des Enterprises in France. It’s a single regulatory body for tax authorities, statistics, social security and health insurance. 
• The applicant should file the request for registration and then submit articles of association, bank certificate specifying the capital deposit. Also submit proof that the specific gazette has received notification about the establishment of new company, structure of proposed company and its object, address of the managing board.
• The  Centre de Formalites des Enterprises on receiving the application, sends the necessary information to every office and authority and enters the company in the Register Nationale des Enterprise.
• Eventually the company receives SIRENE (Systeme Informatique pour le Repertoire des Enterprises), SIRET and NAF (Nomenclature des Activities Francaises) number.

Benefits of Company Registration in France

 There are numerous benefits of registering your company in France. We have specified such benefits below:

• Availability of business form

One of the primary benefits of company incorporation in France is the high availability of various business forms suitable for all types of activities.

• Quick Incorporation

The registration process in France is real quick. The only procedure that takes time is the opening of corporate bank account.

• Low share capital

France has one of the lowest share capital requirements in Eurpoe of 1 Euro.

• Lower Taxes

From 2020, the corporate tax is set to be lower from the present 33% to 28%. France also has a low company registration fee.

• Powerful economy

Who would not be a part of the powerful economy. France is a powerful economy in the world. It provides various investment opportunities to entrepreneurs and also access to EU funds. 

• Success rate

Around 29 leading business of the world are established in France and enjoy high success rate.

Conclusion

Read our article:Company Incorporation Procedure in France