Written by FirmEU
Imagine starting your entrepreneurship in a country that is known for plenty of benefits and a welcoming environment for business persons. Yes, we are talking about France. It is a country situated in Western Europe and is divided into 26 regions; luckily, each of its parts is known to stand on top for trade and (e)-commerce. This is the reason that people from all over the world come to France with a wish to incorporate their business companies.
It is believed that starting a business in France is much easier than in the other G20 countries. The good news is that the procedure to open a company is much simpler, and it costs you the least. Also, the president of this country welcomes all the business people with open arms for company incorporation and is even ready to fund their business startups. We can say that everything is ideal but what is the registration process, and why register a business in France?
Let’s start a mini-debate on this topic before you indulge yourself in the early business errands. Read till the end and say goodbye to all your queries about starting a business in France.
If you are a European Union national, a Swiss national, or a French Higher education graduate, you can register your new business for free in France. You just have to follow a simple procedure and start earning at once. Whereas, if you are a foreigner or a national of another country, you must apply for APS. APS is a temporary residency permit that allows foreigners to stay in France and start their businesses as well.
If one has APS, he can stay in France for up to one year after graduation, and during this time, you can freely work on your projects.
However, if one’s APS expires, one must apply for a temporary freelance-entrepreneur residency permit. And after getting that, you have permission to conduct all professional activities, including induction of a company.
If you are thinking of starting your business in France, you won’t regret working in such a pro-business environment. You can get a highly educated workforce; luckily, the financial market is also doing great. This means you can start your business in this culture-enriched and economically strong country with a blindfold. But what is the procedure that you need to follow to set up a company in France? Let’s talk about the process in a stepwise manner.
It is evident that an economically well-developed and marked-oriented country always remains beneficial for business owners and entrepreneurs. There are plenty of benefits of incorporating a company in France. Here we are going to mention a few of them.
The most common types of companies we can incorporate in France
Advantages and Disadvantages of formation of a company in France
| Advantages | Disadvantages |
| – Pro-business environment – You get a chance to work with a highly educated workforce – Central location for trade and commerce – The most visited country in the world means chances to get more sales annually – Europe’s 2nd largest consumer market – You can apply for low-interest loans – Strong intellectual property protection laws are highly beneficial – Road, railways, and ports infrastructure are so good that transferring goods becomes easier France has relatively lower VAT than other European countries like Hungary | – High employment cost – Language barriers – Different business norms – Strict regulatory laws – Complexity in labor laws – Making budget forecasts and financial plans may get complicated for new entrepreneurs |
Incorporation or setting up a company in a country like France is quite a difficult task, especially for the one who has the least experience in the business. It demands hard work, determination and sound knowledge, and exposure to the facts as well. But only setting up a company is not the end; after that, you also have to put a lot of struggle to get your company registration. As only a registered company is likely to get maximum exposure and, in turn, will get a good turnover.
So, do you have any idea regarding company formation in France? If yes, then you must be familiar with the hardships and hurdles you face with company registration in any country. So why not consult an expert like Firm EU and make this journey as smooth as butter?
Well, let’s look at some steps you need to follow to complete your company formation in France.
First of all, you have to confirm your company name. Make sure that the name you choose is in synchronization with the services you will provide.
Now you have to write a brief description of your services. Based on this description court will assign an activation code to your company.
Commercial courts ask about your company address and the directors of your company. So it is advised to gather all the proofs of your company surroundings that you will present at the time of registration.
Now comes the time to share and set your company capital between all the shareholders. Get evidence and a certificate for the capital share account that you will present in court.
After this, you have to hire a legal practitioner to author all the legal documents, including the Memorandum and the articles of association.
Finally, submit your dossier to the commercial court. This procedure can be done online and in person both.
Once you have submitted all documentation correctly, you will be assigned a registration certificate and the VAT number in minimal time. The full-time court will likely take for the whole procedure around only 24 hours.
After getting the registration certificate now, it’s on you to open a corporate bank and appoint a chartered accountant. Make sure that everything complies with French law and order, and you will never face any difficulty.
The corporate income tax and VAT rate in France
It is a general rule in France that all company owners will have to pay 26.5% tax on the annual profit. And if your company has a turnover of more than 250 million Euros or more, you have to pay 27.5% annually.
France implies IFRS standards on all the activities you undergo to record your financial statements. International Financial Reporting Standards are a rule book that determines how you should experience and report all accounting events.
Thinking about incorporating your business in an unknown and well-developed country sounds impressive, but when it comes to the hurdles and difficulties, people often withdraw their plans. Being a businessman, remember that regulations and evolution in the business landscape are standard, and no business remains static. Especially in the starting days, you will have to give your days and nights to your business to achieve your dreams.
We recommend you seek help for registration, taxation, and other legal issues from a well-organized service provider like Firm EU. We assure you that you won’t regret your choice, and you will be able to achieve your goals without stuffing your head into legal battles for your company setup.
Want to learn more about France & the company incorporation process? Take a look at the FirmEU – France page!
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