Conditions for Registering a Company in France
To register a company in France, applicants need a strong business plan and relevant experience owning a company in their home country. The applicant must fully own the company shares. Initial investment in France ranges from €1 to €40,000 depending on the company type, granting a 2 to 4-year renewable residence permit.
Registration fees range from €1,000 to €5,000, with additional government fees around €2,000. Banks in France may offer loans for company setup.
For detailed advice and free consultation about immigration to France, contact Malekpour Immigration Institute’s experts.
Types of Company Registration in France
To register a company in France, you must be familiar with its types and definitions. The types of company registration in France are as follows:
| Company Type in France | Description |
|---|---|
| French Public Limited Company (Société Anonyme – SA) | Requires at least 7 shareholders who can be individuals or legal entities. Minimum initial capital is €37,000. Capital is divided into shares, and shareholders have limited liability proportional to their shares. |
| French Limited Liability Company (Société à Responsabilité Limitée – SARL) | Must be formed by at least 2 shareholders and no more than 100 individuals or legal entities. No minimum capital required. Recommended for small and medium-sized companies in France. |
| Simplified Joint-Stock Company (Société par Actions Simplifiée – SAS) | Similar to a private limited company but more flexible. Requires only 2 partners to form. The company president must be appointed by shareholders. |
| French Sole Proprietorship (Entreprise Individuelle) | Suitable for a single founder establishing a company. The founder is fully responsible for all debts and obligations. No initial capital required. |
| Commercial Partnership (Société en Nom Collectif – SNC) | Requires at least 2 partners. Partners have unlimited liability for the company’s debts up to their personal assets. No minimum capital required. Business activities must be conducted under the partnership’s trade name. |
Conditions for Company Registration in France
To obtain residence in France through company registration, the business plan must be approved by the relevant authorities in France and must meet the needs of the investment market.
French company registration laws require applicants to have prior experience in their home country and full ownership of company shares, proving a key role in the business. Initial capital ranges from €1 to €40,000 based on company type. Once approved, applicants receive a 2 to 4-year residence permit.
Advantages of Company Registration in France
The advantages and positive features of Company Registration in France are as follows:
- Residency in France granted for 2 to 4 years
- Includes dependent children under 18
- No need to apply in-person in France
- Live in Europe year-round
- Eligible to apply for permanent residence after 5 years
- Access to low-interest loans for public sectors
Steps for Registering a Company in France
If you intend to migrate to France through company registration, you should know that the steps and procedures for registering a company in France are as follows:
- You should always start by creating a business plan. This allows you to clarify your vision for the business and means you can accurately present how your operation will work to investors. You must consider who your market and customers will be, how much money you will invest, what business you have, and the amount of money you expect to make and spend in the coming years.
- Next, you must choose the type of company for your business. Types of companies are described in the relevant discourse. Then, you must approve your regulations either with a registered company representative or a lawyer.
- Next, you will need a business bank account. So, when you arrange a meeting with the bank manager (the introduction of the bank account is arranged by representatives of the formed company), you must be prepared to go through your business plan and answer questions related to your company.
- To open a business bank account in France, you need to deposit a minimum of 4,000 euros in share capital into the account. (The law states that the minimum is 1 euro, but no bank will actually set up your account with such a small amount).
- Next, you need to publish a notice in a reputable newspaper such as Le Parisien at the website address www.leparisien.fr or Les Echos.
- Here, your application must receive all official confirmations from French government departments such as the tax administration and the official services center.
- Upon receiving an incorporation certificate code, you will be given a registered number which is your company’s identification number and must be written on all official documents and invoices. With the entry of this code, your bank manager can activate your business bank account, and your funds will be released from their blocked state. You will also receive a letter from the tax office with a VAT number and contact details for your tax officer.
- You must designate a French professional accountant known as a “certified expert.” They are legally obligated to keep you updated on all tax laws and are legally responsible for the good faith of your accounts. They can also assist you with tax payments and payroll.
Documents Required for Company Registration in France
The necessary documents for Company Registration in France usually consist of:
- Bank certificate of deposit of share capital
- Power of attorney
- Certificate of no criminal record
- Articles of association
- Identification documents of shareholders and directors
- Certificate of registered office address
- Payment of capital
Company Registration Costs in France
For registering a company in France, there are several different costs that should be considered. Below, we will examine the costs of governmental registration, annual accounting, accounting per payslip, and company registration costs:
| Expense Description | Cost Range |
|---|---|
| Government Registration Fees | €2,000 |
| Annual Company Accounting Fees | €2,000 to €3,000 |
| Accounting Fee per Payslip | €25 |
| Company Registration Fees | Approximately €1,000 to €5,000 |
Minimum Capital for Company Registration in France
The minimum capital for registering a company in France varies depending on the type of company. For a limited liability company (SARL), the minimum capital is 1 euro; however, for a simplified joint-stock company (SAS), a minimum capital of 1 euro is also acceptable, although for a joint-stock company (SA), a minimum capital of 37,000 euros is needed.
Best Cities in France for Company Registration
The best cities in France for company registration depend on factors such as market access, financial and economic infrastructures, operational costs, and business opportunities. Some of the best cities for company registration include:
- Paris: The capital of France and the country’s economic center, with access to international markets and advanced financial networks, is the first choice for large businesses and startups.
- Lyon: France’s second largest city with a focus on technology, innovation and bio-industries, particularly suitable for tech startups and scientific research.
- Marseille: As France’s largest port, Marseille is a good hub for businesses related to trade and transportation.
- Toulouse: The center of the aerospace and technology industry in the south of France, ideal for technology and engineering-related companies.
- Nantes: An innovation and entrepreneurship center in the west of France with lower operating costs than Paris and high growth potential.
These cities, due to their advanced infrastructures, strong business connections, and supportive opportunities for startup visa in France and new businesses, are among the best options for registering a company in France.
Corporate Taxes in France
A resident company with French revenue is subject to corporate income tax (CIT) in France. Whether your business needs to pay corporate tax in France depends on its turnover and structure. Corporate tax rates in France have decreased in recent years, making starting a business in France more financially attractive. Depending on the type of business you have in France, there are various corporate tax programs:
If your company is an SARL (French limited liability company), you can choose to be taxed under the personal income tax system during the first five years of business if it is a small business or a specific type of family business. Otherwise, you pay tax through French corporate tax.
If you are a sole trader (individual ownership in France or EI), then you and your business are a legal entity. As a result, you automatically pay tax based on the personal income tax system (Impôts sur le Revenu) or the micro-enterprise regulations or régime du reel.
Loans for Company Registration in France
In France, banks and financial institutions may offer loans specifically for company registration and establishment. These loans can be referred to as “business loans” or “corporate loans” and generally include the following:
- Loan for initial investment
- Loan for investment in a project
- Loan for purchase of property and equipment
- Loan for investment in technology
- Loan for establishment of a French company by a foreigner
Registering a Company in France and Obtaining Residency
To register a company in France and obtain residency in France through company registration, you must first prepare a complete and justifiable business plan. After the plan is approved by the embassy, you need to apply for a short-term visa and enter France.
Then, start the company registration process by preparing the necessary documents and paying registration fees. After starting business activities, you can apply for a long-term residency, which is extendable. With continued successful business operations, conditions may be met to obtain permanent residency.
Dependent Visa for Company Registration in France
The dependent visa for company registration in France allows family members (spouse and children under 18 years) of entrepreneurs intending to register a company in France to obtain temporary residency. This visa is usually issued for a period of 1 to 4 years and is extendable.
To receive this visa, the entrepreneur must demonstrate that they meet the necessary conditions for establishing a company and have sufficient financial resources to support themselves and their family. Family members can live in France during their stay, and after some time, they may also be able to obtain work or study permits.
Disadvantages of Registering a Company in France
Registering a company in France has many advantages, but there are also some disadvantages that must be considered:
- High taxes: Corporate taxes and value-added tax (VAT) in France are relatively high and can create additional costs for businesses.
- Registration and administrative costs: The costs associated with registering a company, legal advice fees, and government registrations can be overwhelming for some entrepreneurs.
- Complicated process: The process of registering a company in France can be complex and time-consuming, especially for foreign entrepreneurs who are not familiar with local laws and regulations.
- Intense competition: The French market is competitive and companies must compete with large, well-known competitors in various industries, which can be challenging for startups.
- Labor constraints: Hiring employees in France can be challenging, as there are strict labor laws and can create problems for employers.
Important Points for Company Registration in France
To immigrate through company registration in France, the applicant needs to prepare the required documents and consult with a specialist lawyer for this process. Before proceeding, it is essential to thoroughly examine and analyze the circumstances in France and analyze the overall conditions of this country based on statistics and figures.
It is necessary to understand that due to some disputes that arise in international relations between countries, investors may suffer in the host country. Therefore, it is important to consult with international law experts before taking action to minimize the chances of failure and error.
Malekpour Institute’s Services for Company Registration in France
Due to the difficulty of opening an account in France, registering a company is nearly impossible. Therefore, if you intend to obtain residency through company registration, we recommend considering countries such as Austria and Canada. The Malekpour Immigration Institute can provide you with advice regarding company registration in France or residency in France through company registration and guide you. You can contact the institute’s phone numbers and benefit from our initial free consultation.
Frequently Asked Questions About Company Registration in France
- Can a foreigner register a company in France?
If you want to set up a company in France, you have 2 options: you can apply for a temporary residence card that specifies entrepreneur/professional. You can apply for a multi-year residence card known as the talent passport: business creator.
- How can I register a business in France?
CFE acts as a shop for registering businesses in France. Here, you will register your business and receive a unique registration number (SIREN). This number is vital for all formal business transactions.
- How much does it cost to open a company in France?
The cost of starting a company in France is approximately 3,600 euros. The cost for online registration of your company starts from 550 euros. A lawyer or professional accountant can handle the entire process of registering a company in France.
- How long does it take to register a company in France?
Within two weeks, a French limited liability company can be formed with one director and one shareholder, who may be of any nationality. The minimum paid-up capital required is 1 euro. The workforce in France is considered one of the most educated, productive, and innovative in the world.
Conclusion:
Registering a company in France requires an initial investment of around €4,000 and the ability to pay a monthly salary of at least €2,000. After completing the process and document approval, applicants receive a 3-year residence permit. For more details on company registration and obtaining French residency, contact Malekpour Immigration Institute for a free phone consultation or leave your questions in the comments below.
