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.

    Travel to France for a better impression

    The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.

    With Trip.com you can compare flights and also book your hotel.

    Hotellook compares different hotel sites so you always have the best rate.

    Localrent connects you to national rental car providers per country.

    Frequently asked questions

    As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in France importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.