REGISTRATION OF COMPANY IN FRANCE

France is situated in Western Europe. The country is washed by the Mediterranean Sea from the south, and by the Atlantic Ocean - from the west and from the north. The mountain ranges are represented by the Pyrenees and the Alps.

France is divided into 26 regions, of which 21 are in Europe, one is on the island of Corsica, and four are outside the continent (Martinique, Guadeloupe, French Guiana, Reunion). At the same time, France owns several overseas administrative-territorial entities (French Polynesia, New Caledonia, etc.)

France is one of the most powerful countries in terms of economy, especially due to its size and location, as well as the membership in many European organizations, which make it a key jurisdiction for starting companies. Besides, it is one of the most industrialized countries in the world. Anyhow, the French economy is characterized by a large industrial base, important agricultural resources, and a highly trained workforce.

Today, the registration of companies in France is becoming more and more prestigious. The most cost-efficient spheres are the sale of alcohol, the provision of computer services, the establishment of supermarkets.

Businessmen infrequently make major deals with real estate and establish industrial enterprises. Restaurant business and tourism are also promising directions for international business in France.

The company formation procedure in France is usually based on document gathering and other procedures such as drafting the articles of association, specimen signatures, affidavits, and other special forms, as well as performing public notary procedures and certified translations. Usually, a French registered office is also required for starting a company in France in order to have a mailing address to communicate with the partners and French authorities. Opening a bank account and hiring a local accountant is also required for setting up a company in France.

Opening a company is a big leap forward for many would-be entrepreneurs, but the jump doesn’t need to be so daunting if you’re armed with the right information. Opening companies in France is what we do every day, so you can trust our information to be up-to-date and correct, as we really know our French business!

Types of business entities in France

SA company registration in France. Basic provisions

• The company should consist of at least 7 founders and 7 shareholders.
• The minimum authorized capital is € 37,000. 1/5 of the amount should be paid at the time of registration. The remaining amount can be paid during the next five years.
• The company can consist of two or three departments: the meeting of shareholders, the governing body (board and directorate), and the supervisory board. In turn, the governing body shall consist of at least 3 people. And if there is a supervisory board, there can be 1 person in the governing body, provided that the company's capital is not more than € 37,000. The maximum number is 12 participants (in the case when the supervisory board consists of 5 members).
• Both natural persons and legal entities can be shareholders and participants of the governing body, all of whom shall be shareholders.
• The governing body is appointed by the Supervisory Board, and the latter elects the Chairman President. And if the company's capital is € 72,000 or more, then two general managers (directors) are appointed.
• The law does not stipulate a distinct division of functions between the managers and the general meeting.
• The general meeting of participants of the company shall be held at least once a year. It addresses the most important issues related to the company's activities.
• The company cannot be engaged in banking and insurance activities. The enterprises for which the law provides for another organizational and legal form cannot be established in the form of joint-stock companies (for example, the only possible form for the investment company is the joint-stock company).
• In order to declare public offering for shares, it is necessary to have the authorized capital of at least € 225,000, and for private companies which do not declare public offering - € 37,000.
• The company can have a nominal manager, and he can be a resident of one of the EU countries or a non-resident with the merchant's card.
• In order to contribute the charter capital on behalf of the founder, it is necessary to open an account with the bank.
• After the registration of the company in France, the authorized capital can be used in accordance with the will of the founders.
• It will take from 1 to 1.5 months to buy or register a company in France.
• The company shall be registered in the Commercial Register.
• All foreigners (with the exception of the EU citizens) shall have the appropriate work permit in order to work as directors or managers of the companies in France.

Registration of SARL company in France

• One director of any nationality is required.
• Only one shareholder of any nationality is required.
• Shareholders can be natural persons or legal entities.
• Required Authorized Capital is only € 1.
• After registration of business in France is completed and when the certificate of registration is issued, the percentage of shares of each shareholder can be determined.
• SARL usually becomes a private entity, which means that shares are divided only between existing shareholders upon their consent. When transferring shares to third parties, all shareholders shall also give their consent.

SARL registration procedure:

1. Putting on the Commercial and Industrial Register;
2. Inclusion in the National List of Enterprises and Institutions;
3. Obtaining the taxpayer identification number;
4. Obtaining the certificate of compulsory health insurance, for the payment of maternity benefits and old-age insurance for certain professions;
5. Inclusion in the family benefits system;
6. In case of employment of the workforce, the application is submitted to the Labor and Employment Inspection;
7. Publishing the information regarding the name and main characteristics of the company in the Official Bulletin of Civil and Commercial Announcements of France;
8. Obtaining the legal address of the company.

Documents required for the formation of SARL company in France:

• Information about the founder (founders): full name, date, and place of birth, place of registration, copies of passports;
• Charter of SARL (in 2 copies);
• The document that confirms the appointment of the manager (unless it is specified in the Charter);
• Copy of the manager's passport;
• Application for registration of the business in France;
• Statement of the manager with confirmation of the absence of his previous criminal record;
• Receipt for payment of state fee.

7 steps to registering your French company

Step 1 Confirm Your Details:

The first key questions:
1.1 Company Name:
Confirm your company name. In France your company name does not have to be unique but, if you plan to trademark your company name, it will be necessary to check if this is available.
1.2 Activity:
A brief description of your company’s main activity in France, so that the commercial court can assign an activation code in order to check if this activity is regulated or not.
1.3 Directors:
Appoint your Company Director(s).  In French Company Law there are no restrictions on the nationality or residency for Directors and Shareholders therefore you do not need to appoint a Director who lives in France or has French citizenship.
1.4 Company Address:
The commercial courts will need proof of address of your company in France such as an office lease or business address contract signed by your company.

Step 2 Set & Transfer Your Company Capital:

Confirmation of all company shareholders (individuals or companies) and their respective shares and capital value. You require a minimum of one company shareholder and there is no minimum share or capital value although the capital should cover your initial setups and investments.

Each shareholder then needs to transfer their capital into a Share Capital Account and the commercial courts require evidence of your Capital Share Account and Certificate prior to registering any French company.

Step 3 Write Your Incorporation Documents:

Arrange for a legal practitioner to author all company documents such as Memorandum & Articles of Association; Minutes of the First Board Meeting and Directors Nomination; Ultimate Beneficiary Owners Declaration; and miscellaneous documents.  Directors and Shareholders will then need to follow signature instructions. In most cases, electronic signatures are accepted.

Step 4 Submit Your Dossier to The Commercial Court:

In most cases, this stage can be done online.

Step 5 Issue Your Company Registration Certificate & VAT number:

If all documentation is submitted correctly, the commercial court will issue the Company Registration Certificate (KBis) with your Company Registration Number (SIREN number) in as little as 24 hours. This document is your Ready to Trade License.  Your VAT number is issued by post the tax office within two or three weeks of receipt of your KBis.

Step 6 Open A Corporate Bank Account:

Starting a business in France means opening a business bank account in France. If you are not a French resident, trying to open a bank account in France can be a complicated process.  Once the bank account is opened the company capital is released and credited to the company bank account.

Step 7 Appoint a Chartered Accountant:

Upon registration, French accounting laws dictate that bookkeeping and filing obligations (VAT, annual reports) commence as soon as the new company is registered, regardless of how many transactions you initially undertake.

The most significant benefits are provided for enterprises with investments:

• Increase employment in the country;
• Increase export turnover outside the EU;
• Increase efficiency in the sphere of manufacturing industry;
• Introduce new technologies;
• Have a positive impact on saving energy and raw materials;
  Promote import substitution.

Company formation costs in France

 The following costs need to be considered upon the incorporation of a company in France

 the company registration fee imposed by the French Trade Register is approximately 65 EUR;

the virtual office cost is approximately 30 EUR per month - we remind foreign investors that the virtual office can be used as a registered address for the company;

minimum share capital requirements: there are no such requirements for opening a limited liability company in France;

the company formation fee: our fee starts at approximately 1,000 EUR, and our services can be personalized in accordance with the clients' requests;

accounting services: you can benefit from such services for your company in France at prices starting at around 90 EUR per month.

Frequently asked questions on company incorporation in France

Those who want to open companies in France usually have many questions, however, the most frequent are:

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

There isn’t a standard timeframe for the registration process of a company, however, our agents move as fast as possible in order to ensure our clients benefit from a swift procedure.

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

It is not. As a matter of fact, France is one of the friendliest European countries when it comes to openness towards foreign investors.

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

There are no specific requirements related to the nationality or residency of company directors in France.

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

The bank opening process in France requires the presence of a company representative, so your presence will be required.

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

You can benefit from these agreements as long as France has signed such a treaty with your home country; however, France offers many tax deductions and exemptions to foreign investors.

The main industries in France are aerospace, tourism, industrial machinery, automotive, pharmaceuticals, food and beverages, printing. The private sector is well-developed in France. A recent report issued by Ernst Young places Paris in 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.