Company Registration in France

France is a major economic powerhouse in Europe and an attractive destination for entrepreneurs, startups, and multinational corporations. With access to the European Union, a skilled workforce, strong infrastructure, and a pro-business ecosystem, France offers a strategic advantage for companies looking to expand or start operations in Europe.

Registering a company in France allows businesses to tap into a vast consumer market and benefit from a wide range of tax incentives, government grants, and international trade agreements. The French business climate encourages innovation and foreign investment, making it an ideal destination for new ventures.

Types of Business Entities for Company Registration in France

Choosing the right business structure is essential for legal, tax, and operational purposes. Below are the most common types of business entities in France:

1. Société à Responsabilité Limitée (SARL) – Private Limited Company

• Most popular structure for small and medium-sized businesses.

• Requires 1–100 shareholders.

• Shareholders' liability is limited to their contributions.

2. Société par Actions Simplifiée (SAS) – Simplified Joint Stock Company

• Flexible structure ideal for startups and joint ventures.

• Requires at least one shareholder.

• Offers freedom in management structure and shareholding terms.

3. Société Anonyme (SA) – Public Limited Company

• Suitable for large businesses planning to go public.

• Requires a minimum of 2 shareholders and €37,000 in share capital.

• Must have a board of directors and a statutory auditor.

4. Entreprise Individuelle (EI) – Sole Proprietorship

• Owned and operated by one individual.

• Unlimited personal liability.

• Simple to set up and manage.

5. Branch Office (Succursale)

• An extension of a foreign company.

• Not a separate legal entity.

• The parent company is fully liable for the branch's operations.

6. Representative Office (Bureau de Liaison)

• Set up for non-commercial purposes like market research.

• Cannot carry out business or generate revenue in France.

Eligibility Criteria for Company Registration in France

To register a company in France, both residents and non-residents must meet specific legal and regulatory criteria. Below are the key eligibility requirements:

 1. Shareholders and Directors

• A minimum of one shareholder is required (can be an individual or legal entity).

• At least one director must be appointed.

• Shareholders and directors can be foreign nationals; there is no nationality or residency requirement.

 2. Minimum Capital Requirement

• SARL: No minimum capital requirement (can be as low as €1).

• SAS: No minimum capital legally required, but often set based on business needs.

• SA: Minimum capital of €37,000, with at least 50% paid at incorporation.

 3. Registered Business Address

• Must have a physical address in France to serve as the company’s registered office.

• Virtual offices are acceptable if compliant with French regulations.

 4. Bank Account for Capital Deposit

• Must open a French bank account to deposit share capital before registration.

• A certificate of deposit (attestation de dépôt) is required.

 5. Articles of Association

• Founding members must draft and sign the company’s articles of association.

 6. Compliance with Sector-Specific Regulations

• Certain businesses (e.g., finance, healthcare, real estate) may require specific licenses or approvals before operating.

Procedure for Company Registration in France

Registering a company in France involves several formal steps to ensure legal compliance. Below is a step-by-step guide to the process:

Step 1: Choose a Legal Structure

• Select the most suitable type of entity (e.g., SARL, SAS, SA) based on your business model and goals.

Step 2: Draft the Articles of Association 

• Outline company objectives, management structure, shareholding details, and operational rules.

Step 3: Deposit Share Capital

• Open a French bank account and deposit the required share capital.

• Obtain a certificate of deposit from the bank.

Step 4: Publish a Legal Notice

• Publish a notice of incorporation in an approved French legal journal (Journal d’Annonces Légales).

Step 5: File for Registration

• Submit all required documents to the Centre de Formalités des Entreprises (CFE) or online via the INPI portal.

• The documents include:

  • Articles of Association

  • Bank certificate

  • Identity documents of directors/shareholders

  • Proof of registered address

  • Legal notice publication certificate

Step 6: Obtain Certificate of Incorporation

• Once approved, you’ll receive the K-bis extract, which is the official certificate of company registration in France.

Step 7: Register for Taxes and Social Security

• Register with the French tax authorities (Service des Impôts des Entreprises) and social security bodies if employing staff.

Various Taxes Applicable to Registered Companies in France

Companies registered in France are subject to a range of national and local taxes. Below is an overview of the key taxes:

 1. Corporate Income Tax (Impôt sur les Sociétés)

• Standard rate: 25% (as of 2024).

• Lower rate of 15% on the first €42,500 of profits for small companies (subject to conditions).

 2. Value Added Tax (VAT / TVA)

• Standard rate: 20%

• Reduced rates: 5.5% and 10% (applicable to certain goods and services)

• Businesses must register for VAT if their turnover exceeds the threshold.

 3. Local Economic Contribution (CET)

• Includes:

  • Cotisation Foncière des Entreprises (CFE): Based on the value of business premises.

  • Cotisation sur la Valeur Ajoutée des Entreprises (CVAE): Applies if turnover exceeds €500,000.

 4. Social Security Contributions

• Employer contributions can range from 25% to 42% of gross salaries.

• Required if the company hires employees in France.

 5. Dividend Withholding Tax

• 30% flat rate on dividends paid to individuals.

• Reduced rates may apply under double taxation treaties for foreign shareholders.

Documents Required for Company Registration in France

To register a company in France, certain legal and administrative documents must be prepared and submitted. Here’s a comprehensive list:

 1. Articles of Association

• Official document outlining the rules governing the company’s operations, shareholding, and management.

 2. Proof of Identity

• Passport or national ID for all shareholders and directors.

• For corporate shareholders: Certificate of Incorporation and legal representative's ID.

 3. Proof of Registered Office Address

• Rental agreement, property deed, or a domiciliation contract confirming the business address in France.

 4. Bank Certificate (Attestation de Dépôt de Fonds)

• Issued by a French bank as proof of capital deposit for companies with share capital.

 5. Declaration of Non-Conviction

• Signed declaration from each director confirming they have not been convicted of any criminal offense or disqualified from directorship.

 6. Proof of Publication

• A certificate confirming the legal notice of incorporation has been published in a Journal d’Annonces Légales.

 7. Director’s Consent to Act

• A signed document from each director stating their willingness to serve in the role.

Benefits of Company Registration in France

France offers a dynamic and investor-friendly environment, making it an excellent choice for both local and international entrepreneurs. Here are the top benefits of registering a company in France:

 1. Access to the EU Market

• Direct access to the European Union's single market, comprising over 440 million consumers.

 2. Business-Friendly Reforms

• France has implemented numerous pro-business reforms in taxation, labor laws, and digital services to attract foreign investors.

 3. Global Trade Hub

• Strategically located with excellent infrastructure—high-speed rail, major ports, and international airports connecting Europe, Asia, and Africa.

 4. Skilled Workforce

• A highly educated and productive labor force with expertise across various industries including tech, finance, and manufacturing.

 5. Government Support & Incentives

• Availability of grants, tax credits, and subsidies, especially in innovation, research & development, and green energy sectors.

 6. Competitive Corporate Tax Rate

• Gradual reduction in corporate tax (now at 25%) to enhance France’s global competitiveness.

 7. Strong Legal and Financial Systems

• Transparent legal environment based on civil law.

• Well-regulated banking and finance systems for secure operations.

Why Choose YKG GLOBAL for Company Registration in France?

At YKG GLOBAL, we simplify your entry into the French business landscape with expert guidance, complete compliance, and reliable end-to-end support.

 1. Local Expertise with Global Reach

• Our experienced consultants understand French corporate law, taxation, and regulatory procedures—ensuring smooth incorporation and setup.

 2. End-to-End Registration Support

• We manage the entire process, including name reservation, article drafting, legal announcements, and tax registrations—so you can focus on your business.

 3. Customized Business Solutions

• Whether you're a startup, investor, or multinational, we tailor our services to match your industry, goals, and entity type.

 4. Strong Banking & Legal Network

• Partnerships with reputed banks, legal firms, and notaries in France to help you open bank accounts, deposit capital, and stay compliant.

 5. Ongoing Compliance & Advisory

• Post-registration support for annual filings, VAT, payroll, audits, and regulatory updates—ensuring your business stays on track.

 6. Multilingual Support

• English, French, and other language support for ease of communication with international clients.