Company Incorporation in France
France is an advanced and industrialized country, in Western Europe. one of the most visited countries in the world and its cultural influence is widely recognized. It has the 5th largest economy in the world and the 2nd largest in the Eurozone. France was slower than many of its EU counterparts to embrace a truly liberal business culture, and it has aggressively sought to attract foreign direct investment. This has resulted in what is now a very simple and straightforward process to register a company in France.
What is the best way to register a French company?
There is no fixed pattern for company registration in France. Options range from opening a small representative office – a bureau de liaison – to acquiring an existing company or setting up a new business from scratch. A SARL (Limited Company) or SAS (Simplified Joint Stock Company) are the most popular for overseas clients.
What are the requirements for a SARL company (Limited Company)?
• The minimum share capital is €1 however banks prefer the company to have at least 4000 € share capital.
• The minimum number of shareholders is one (also called a EURL Company)
• Shareholders are liable up to the limit of their capital contribution
• Accounts must be audited in line with statutory requirements
• Top managers have more onerous tax and security rules than SA managers
What is a SAS company?
The Societé Par Actions Simplifieé (Simplified Stock Company) is a relatively new type of entity in France. It is a vehicle for creating a joint venture between a French company and a foreign partner. Previously, French companies had found it difficult to enter into joint-venture relationships with foreign companies because of the rigidity of French corporate law. However, SAS companies are increasingly finding favor with foreign investors considering France company formation, particularly in the USA, who wish to set up business in France.
What are the requirements for a SAS company?
• the minimum share capital is €1 but banks prefer the company to have at least 4000 € share capital
• the company must have at least one shareholder and director
• shareholders are liable up to the limit of their capital contribution
• there is no need for a board of directors
What is an SCI Company in France?
An SCI is similar to that of a private limited company, which has been incorporated. However, it also has a registered office/property in France which can either be rented out professionally or freely available for its shareholders; this is because it is the shares of the SCI that own the property. These shareholders own the property relative to their proportion of shares declared in the company statutes and can be resident or non-resident in France. The shareholders are liable for the debts of the SCI and if there are two (the minimum number necessary) each is responsible for 50%. It is by the collective decision of all shareholders that decisions are made concerning the SCI.
France company benefits
• Great investment climate, its capital, Paris, is a significant financial center and leader in venture capital.
• Its government invests heavily in technology for innovation.
• Industrial powerhouse in manufacturing.
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