Company registration in France

Since 1992, Feod Group has been providing a wide range of immigration, corporate and legal services in France and other EU countries, in the UK and the USA
The company has French corporate lawyers and solicitors

Offices:

Cyprus

USA

Ukraine

✓ Assistance in opening a French bank account
✓ Advice on corporate and personal taxes
✓ Support in obtaining a French residence permit for an entrepreneur and his family
✓ Recommendations on documents confirming the source of funds

Registration of a company in France

France is characterized by a modern business culture, developed financial markets and reliable protection of intellectual property, so the country is very attractive from an investment point of view.

At the same time, France is one of the largest recipients of foreign direct investment among the countries of the Organization for Economic Cooperation and Development (OECD), more than 28,000 companies with foreign capital are registered in the country.

All this is confirmed by the growing number of foreign entrepreneurs who come to relocate a business or open a new company in France.

Advantages of opening a company and doing business in France

⇒ Strong economy

France is the second largest economy in Europe and one of the top 10 largest economies in the world.

⇒ World class infrastructure

The country is known for its developed infrastructure, which includes seaports, high-speed passenger rail, an extensive road network, and efficient international air service.

⇒ Access to a multi-million market

France includes one of the largest markets in Europe with access to the single European market.

⇒ Technology and innovation

Technology plays an important role in the French economy, and the government is investing heavily in research and development, creating a favorable foundation for innovation. Paris has the highest concentration of startups in Europe.

⇒ Skilled workforce

France has an educated population, top-notch universities and one of the most skilled workforces in Europe.

⇒ State support for business and investment

The French government is implementing legislative changes to continue attracting foreign business and investment to the country. For example:

incentive for R&D companies to benefit from a 30% tax break on expenses incurred during the year.
introduction of a special residence permit immediately for 4 years under the Passport Talent program for businessmen, innovators, investors and other applicants.
France has also signed over 90 bilateral double tax treaties.

⇒ Country for business and life

France is not only an important destination for business, but also one of the most famous countries in the world for moving and living with the whole family.

How to register a company in France

If you have made the decision to open your company in France, the first thing you need to decide is what type of business structure and tax regime is right for your business.

The type of legal structure depends on what type of business you want to start, whether you want to run the business solely, the expected turnover, whether it is more profitable for you to pay taxes through income tax or income tax, and so on.

Main types of companies in France:

– EURL (entreprise unipersonnelle a responsabilité limitée)

EURL is a hybrid limited liability company, owned by one person and managed as a limited liability company with one shareholder.

– SARL (Société à Responsibilité Limitée)

SARL is similar to a limited liability company and is one of the most versatile forms of business in France.

Recommended for small and medium companies and suitable for most activities in France such as trade, manufacturing, information technology, tourism, etc.

SARL also provides for low company registration fees and no capital requirements.

The minimum authorized capital has been reduced to 1 euro, but be aware that a French bank will not take you seriously if a foreigner tries to open a business with such an amount.

– SAS (Societe Par Actions Simplifieé)

It is a simplified joint stock company suitable for a joint venture between a French company and a foreign partner.

SAS requires a president and one shareholder, or may appoint a CEO who will be given powers similar to those of a president.

Procedure for registering a company in France

Depending on the type of company, the registration procedure and the required steps may differ. Below are the main requirements and procedures for registering a limited liability company in France – SARL.

• Obtain a French tax number – SPI (Simplification des Procedures d’Imposition).

• Registration of company name
The company name must be verified on the website of the National Institute of Industrial Property (INPI) and if the name is unique, a reservation certificate is issued accordingly.

• Registered address of the company in France
Requires an office or other facility that can be used as a registered business address. There are no special requirements for the legal address of the company, but it must be a physical location where correspondence can be received.

• Signing of the Memorandum and Articles of Association
The constituent documents for opening a company in France must contain complete information about the beneficiaries, directors, the scope of the company, legal address and the chosen legal form.

• Opening a corporate bank account in France
The minimum authorized capital must be deposited in a bank account and an appropriate certificate must be issued indicating the amount.
Opening a corporate bank account is one of the longest procedures when registering a company, since regardless of the chosen bank, it is necessary to prepare a package of documents and pass the due diligence procedure.

• Registering a company with the Center de Formalités des Entreprises (CFE) in France.
The CFE is the one-stop shop for statistics, tax authorities, social security, labor and health insurance.

• Publication of information about the new company
It is necessary to publish an advertisement in a newspaper (Le Parisien or Les Echos) or in a business publication in order to officially and publicly introduce your company.

• Obtaining a certificate of registration – “Extrait Kbis”

• SIREN, SIRET and APE numbers
— SIREN is a unique identification number that is proof of business registration in France. It is used by all government and official institutions.
– The SIRET number refers to your business location and consists of the SIREN number and a 5-digit institution identification number.
– APE code (Activite Principale de l’Entreprise) or NAF code – identifies the main activity of your business. Every business in France is classified using these codes, which consist of four numbers and a letter.

To avoid mistakes when registering your company in France, contact Feod Group specialists!
To calculate the cost of registering a company in France, please send us a request.

Taxes for companies in France

Under French law, a legal entity will be tax resident in France if it is registered in France and/or operates in France.

The corporate tax year is usually the same as the calendar year, however, certain types of taxes (eg VAT) may be filed for each fiscal quarter.

Taxes in France

Corporate tax in France

For the fiscal year open from January 1, 2022, the French authorities have reduced the existing progressive corporate tax scale to 25% for all businesses.

Smaller companies will still be able to take advantage of a reduced rate of 15% on their first €38,120 of profit.

Value Added Tax – VAT (Taxe sur la valeur ajoutée – TVA)

The standard VAT rate in France is 20%. For some goods and services, lower rates of 10% and 5.5% are also possible.

The threshold for registration with TVA is 34,400 euros for businesses providing services and 85,800 euros for commercial activities. If your turnover is less and does not need to be charged TVA, then your invoices must state that TVA is not applicable.

Payroll Tax

The standard payroll tax rate is 4.25%, but higher rates apply to gross individual wages above certain thresholds:

8.5% for wages in the range of EUR 8,020 to EUR 16,013.

13.6% for wages over EUR 16,013.

Income tax

Income tax is levied on such forms of companies as:

– individual entrepreneur (auto-entrepreneur),

– individual entrepreneur with limited liability (EIRL)

– limited liability company with a single member (EURL)

Registration of a company in France - FAQ

How to open your business in France?

In order to open your company in France and conduct business, you must select a suitable type of the company, obtain an identification number, open a bank account, have a legal address for the company, register the company with government agencies, and you must also have a legal permit to live and work in France.

Can a foreigner open a company in France?

Yes, a foreigner who is not a resident of France or the European Union has the right to register a company in France.

Is it necessary to open a corporate bank account in France?

Yes, in order to register a company and conduct business in France, you will need to open a corporate bank account

How long does it take to register a company in France?

There is no standard time frame for the company registration process.

However, our French solicitors and corporate lawyers act as quickly as possible to provide our clients with an efficient and fast procedure.

Why clients choose Feod Group

Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.

Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.

We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.

Article author

Anastasia Taran Head of Corporate Services
Ukraine

In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...