Setting Up a Company in France

 
Form and fees

Company Types in France

This form of company corresponds to a limited liability company (Société A Responsabilité Limitée). The minimum share capital is €1, and it must be founded by at least two partners.
This form of company corresponds to a joint-stock company (Société Anonyme). The minimum share capital is €37,000.
This form of company corresponds to a simplified joint-stock company (Société par actions simplifiée). The minimum share capital is €37,000.
This form of company corresponds to a limited partnership (Société en commandite simple). It must be founded by at least two partners.

Taxation in France

Income tax is charged at 33%
The standard VAT rate is 20%, with reduced rates of 10%, 5.5% and 2.1% applying to certain categories of goods.
Dividend tax is charged at 30%, and tax on royalties at 33%.
Annual fees for the companies register and the registered office.

Form and fees

Starting a Business in France

France is one of Europe’s largest economies and an important market for consumer goods, services, technology and luxury products. Its size, infrastructure and central location make it attractive to businesses looking to expand within the EU. However, French company law, tax and employment rules are detailed, so careful preparation is essential before you start.

Choosing the Right Company Form

France offers several corporate forms, each suited to different needs. The SARL is a traditional limited liability company often used by smaller businesses, while the SAS has become very popular thanks to the flexibility it gives shareholders in organising management and decision-making. Single-shareholder versions of both forms also exist. The SA is generally used by larger companies. The right choice depends on the number of shareholders, plans for raising capital and the desired level of flexibility.

Steps to Formation

  • Drafting the articles of association
  • Depositing the share capital with a bank or other authorised institution
  • Publishing a legal notice announcing the formation
  • Registering the company through the official one-stop business portal
  • Declaring beneficial owners

Registered Office

A French company must have a registered office in France. Many foreign entrepreneurs use a domiciliation service, which provides an address and handles mail. The address should be reliable, as it is where official correspondence will be sent.

Tax and Social Charges

French companies are subject to corporate income tax, VAT and various local taxes and contributions. Social security charges on salaries can be significant and should be factored into business plans. Rates and rules are revised periodically, so it is important to check the current position before making decisions.

Language and Administration

Most dealings with French authorities take place in French, and documents from abroad usually need official translation. Having local support can make administration much smoother.

Planning for the Long Term

Ongoing obligations include bookkeeping, annual accounts, tax returns and, in some cases, filing accounts publicly.

If you are considering a company in France, contact eTuls. We can help you choose the right legal form, coordinate formation and support you with accounting and compliance.