Company registration in France: Legal aspects and advice

Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.

To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.

If you plan to start a business in Europe, France is an excellent choice for registering your company.

The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in France, and is ready to share its results and help you choose the right jurisdiction.

What are the main advantages of incorporating a company (business) in France?

1.Promising location and access to the European market

France is located in the center of Western Europe, making it an ideal place for businesses oriented towards the European market. It shares borders with six countries and has access to the Atlantic Ocean and the Mediterranean Sea, facilitating land and maritime transport and international trade. Additionally, as a member of the EU, France provides companies with access to the Single European Market, which includes over 500 million consumers, allowing free trade without customs barriers.

2. Economic stability

France is the seventh-largest economy in the world by nominal GDP and the tenth-largest by GDP based on purchasing power parity (PPP), which demonstrates its significant economic influence on a global scale. The country is famous for its high resilience to global economic shocks, creating a reliable environment for long-term planning and business development. The stability and predictability of French economic policy foster a favorable environment for entrepreneurship, attracting substantial investment flows.

3. Supportive innovative environment for startups

France actively supports the development of innovation and high technologies through funding programs, tax incentives, and research institutions. This creates favorable conditions for startups and companies that develop new products. Tax benefits for innovation expenses and the 10% IP-box regime encourage investment in research. The world-renowned startup campus Station F in Paris provides access to resources and a network of contacts, fostering business growth. With these attractive incentives, France creates a favorable environment for innovation and technological progress.

4.? Convenient registration process

France has implemented an online business registration system that significantly simplifies and speeds up the process of creating companies. This system allows entrepreneurs to register their activities through a user-friendly web portal, reducing paperwork and saving time. Users can fill out the necessary documents, submit applications, and receive registration confirmation online, making the process more accessible and straightforward. Additionally, online registration ensures integration with other government services, facilitating access to the required licenses and permits.

5. Highly skilled workers

France has a well-developed education system with numerous universities and specialized training institutions, preparing highly qualified professionals in various fields, including engineering, information technology, business, and science. This provides businesses with access to talented professionals ready to implement innovations and participate in the development of new technologies. The high level of training and diversity of specializations contribute to the formation of competitive teams, which, in turn, enhances the productivity and efficiency of companies.

6. Strong international cooperation

France is an active participant in international cooperation, making it an important player on the global stage. As a member of G7 and G20, the country has a significant influence on shaping economic and political directions at the international level. France’s strong diplomatic network enables it to negotiate favorable agreements and foster economic development in Europe. Additionally, France actively supports international aid and development programs, highlighting its commitment to collaboration with other countries.

How to register a company in France and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process
• Preparation and filing of the package of documents

Step 2. Company registration

• Verification of the company name at the Register of trade and companies
• Opening a corporate bank account in France
• Incorporating the company’s data into the Register of trade and companies (Center de Formalités des Entreprises)
• Obtaining the Certificate of incorporation, Memorandum and Articles of Association
• VAT registration

Requirements for registering a company in France on the example of a Limited Liability Company (LLC) / Société à Responsibilité Limitée (SARL):

• Shareholders: at least one shareholder.
• Director: at least one director.
• Company Secretary: not required.
• Minimum Share Capital: €1.
• Legal Address: a company must have a registered office address in France.
• Liability: it is limited to the amount of shares respectively held by shareholders.
• Accounting: yes.

What do you have to know about taxes when registering a company in France?

Corporate income tax (CIT):

• The basic CIT rate is 25%.

Personal income tax (PIT):

• The PIT rate is progressive:up to €11,294 – 0%;from €11,295 to €28,797 – 11%;from €28,798 to €82,341 – 30%;from €82,342 to €177,106 – 41%;only €177,106 – 45%.

Value-added tax (VAT):

• The standard VAT rate is 20% which is applicable to most goods and services not covered by reduced rates.
• Reduced VAT rates:10% applies to unprocessed agricultural products, renovation of housing raising standards, social housing, firewood, passenger transport;5.5% applies to food products, books, electricity, gas;2.1% applies to medicines covered by state refund, sale of live animals for slaughter, some cultural events, some press publications;0% applies to intra-community and international transport, except road and inland waterway transport.

For readers

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in France. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.

By choosing our company formation service in France, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in France and pave the way for your business success!

Our contacts

If you want to become our client or partner, feel free to contact us at [email protected].

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We also invite you to visit our website: https://manimama.eu/.

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.