Company registration in France
Setting up a business in France is advantageous because the country is considered to be one of the global leading economies. However, the process of company registration in France may encompass several complexities therefore an investor must seek professional assistance to get to know the regulatory framework in France. Here are the essential aspects as well as advantages or potential risks and procedures to be followed when planning to establish a company registration in France.
Advantages of opening a company and doing business in France
Establishing a business in France offers such key advantages:
- Streamlined Registration Process:
France provides more accessible conditions to register a company as compared to many countries of Europe, and it looks quite easy. Unlike many other countries, which are interested in creating new companies, the functioning of the private sector is in the spotlight in France while it is offered different benefits and privileges. - Startup Benefits and Incentives:
There are various benefits which the French government has put in place to support business development and expansion in the country. France has also confirmed agreements like the TRIPS that assure strong protection of intellectual property rights. - Well-Developed Infrastructure:
France has developed an adequate transport and utility network and services that can accommodate many types of projects in energy, transport systems, ports and many others. This well developed infrastructure makes France a preferred destination for entrepreneurs and investors who seek to launch their products in the France market.
How to register a company in France
Setting up a business in France is actually very easy but needs to plan and follow some legal formalities. The first procedure is to decide on the nature of the company that you would wish to register for your business. You will then again have to prepare a Memorandum of Association for the Company which describes the nature of business, management of the company, etc. Then, there appears the necessity to transfer the share capital into a French bank account and receive a certificate on the deposited amount. Once the article de capital is set you can incorporate your company with the French Commercial. Feel free to advise our specialists to gain a comprehensive understanding of the procedure of incorporation.
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Main types of companies in France:
- The limited liability company (Société à Responsabilité Limitée or SARL).
It is a widely known legal form of business, which has features of both partnerships and corporations. The type of business structure that it provides its shareholders with is the limited liability company, which informs that the shareholders’ other assets are not at risk when investing in the business. The SARL is especially recommended for small and medium companies enabling easy to manage and organized work on different levels of flexibility. - The one-person limited company in Franc(“Entreprise unipersonnelle à responsabilité limitée” or EURL).
Currently EURL is the most preferred form of company structure in France for registration out of all the company structures. Apart from a few differences, it is regulated under the same laws as a conventional SARL; it is in fact a public limited company formed by one partner while registered. - The simplified joint stock company (“Société par Action Simplifiée” or SAS).
The entity is known as the Simplified Joint Stock Company known in French as Société par Actions Simplifiée (SAS) and is considered as an efficient and contemporary form of business in France. It enables a broad autonomy on the enactment of bylaws that make it preferable for startups and businessmen who do not want the standard approach to governance and management of the company.
Procedure for registering a company in France
1) Choosing a Company Name. The chosen name must be unique and comply with French naming regulations.
2) Drafting Articles of Association. This document outlines the company’s purpose, management structure, and operational procedures.
3) Bank account opening. There you must deposit the required amount of share capital and obtain a certificate of deposit.
4) Making a legal announcement to the local newspaper to publicly disclose the company’s operation to the business community. It’s a necessary method to access the Register National des Enterprise and Centre de Formalités des Entreprises.
Taxes for companies in France
In France, corporate tax is set at nearly 33.33%, and this rate applies to all businesses operating within the country. However, companies that invest in priority sectors can benefit from a corporate tax exemption for a period of seven years. As for VAT – there is a 20% rate of charge to all the businesses established in France.
Why do clients choose Fintech Harbor Consulting?
Clients stand with Fintech Harbor Consulting because of specialization and focus on producing distinctive solutions when it comes to registration and operation of a company in various regions. Fintech Harbor Consulting therefore employs professional legal and financial experience of France to achieve compliance and effectiveness of business solutions.
