Company incorporation in France

If you do business in France there may be a point that it makes sense to set up a local company. Then you need to know how to comply with local regulations and who can help you.

This article describes:

  • the most likely types of company to set up;
  • how you do this and who can help you;
  • a few important fiscal regulations.

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    Your legal entity in France

    France is one of Europe’s largest economies and an attractive destination for foreign businesses. Its strategic location, skilled workforce, and strong infrastructure make it ideal for international companies.

    Most Common Business Forms for Foreign Companies

    The most popular legal entity for foreign businesses in France is the Société à Responsabilité Limitée (SARL).

    • Similar to a limited liability company (LLC) in other jurisdictions.
    • Requires a minimum share capital of €1, making it accessible for small and medium businesses.
    • Shareholders’ liability is limited to their contributions.

    Another option is the Société par Actions Simplifiée (SAS), which offers greater flexibility in governance and is often chosen by larger businesses or startups.

    Setting Up a Company in France

    Setting up a SARL or SAS involves the following steps:

    1. Drafting and notarizing the company’s Articles of Association (Statuts).
    2. Depositing the share capital in a French bank account and obtaining a certificate of deposit.
    3. Registering the company with the Trade and Companies Register (Registre du Commerce et des Sociétés, RCS).
    4. Obtaining a SIRET number, which serves as the company’s unique identification number in France.

    Foreign nationals can act as directors (Gérant for SARL or Président for SAS). While residency in France is not mandatory, a French address for the company’s registered office is required.

    Taxation and Withholding Taxes

    French companies are subject to corporate income tax at rates ranging from 15% (for small profits up to €42,500) to 25% (standard rate for larger profits).

    Regarding dividends:

    • Dividends distributed to shareholders are subject to a 30% flat tax, known as the Prélèvement Forfaitaire Unique (PFU), which includes income tax and social charges.
    • France has an extensive double taxation treaty network to reduce withholding taxes for foreign shareholders.

    Service Providers for Company Incorporation

    These firms assist with incorporation, taxation, and compliance to ensure a smooth process for foreign entrepreneurs.

    Convince potential distributors

    A local consultant can find possible business partners, or you have identified them yourself. But how to convince them to market and sell your products or services?

    For this you need an export plan with a clear strategy and sufficient financial details.

    Get funding from banks & investors

    Entering a new market is an investment. Finding partners, contracts, translations and marketing costs money and you may need additional working capital.

    Only with a good plan with enough financial data you can convince banks and investors to fund you. We help you with the complete business case and documentation.