Registration of company in France S.A.R.L.

France is situated in Western Europe. The country is washed by the Mediterranean Sea from the south, and by the Atlantic Ocean - from the west and from the north. The mountain ranges are represented by the Pyrenees and the Alps.

France is divided into 26 regions, of which 21 are in Europe, one is on the island of Corsica, and four are outside the continent (Martinique, Guadeloupe, French Guiana, Reunion). At the same time, France owns several overseas administrative-territorial entities (French Polynesia, New Caledonia, etc.)

The population of France, excluding overseas territories, is 62 million people.

Today, registration of companies in France is becoming more and more prestigious. The most cost-efficient spheres are the sale of alcohol, the provision of computer services, the establishment of supermarkets.

Businessmen infrequently make major deals with real estate and establish industrial enterprises.

Restaurant business and tourism are also promising directions for international business in France.

Forms of doing business

The most popular forms of companies among foreign entrepreneurs are the following:

- Limited Liability Company (SARL);
- Anonymous company (SA).

SA company registration in France. Basic provisions

• The company should consist of at least 7 founders and 7 shareholders.
• Minimum authorized capital is € 37,000. 1/5 of the amount should be paid at the time of registration. The remaining amount can be paid during the next five years.
• The company can consist of two or three departments: the meeting of shareholders, the governing body (board and directorate), and the supervisory board. In turn, the governing body shall consist of at least 3 people. And if there is the supervisory board, there can be 1 person in the governing body, provided that the company's capital is not more than € 37,000. The maximum number is 12 participants (in case when the supervisory board consists of 5 members).
• Both natural persons and legal entities can be shareholders and participants of the governing body, all of whom shall be shareholders.
• The governing body is appointed by the Supervisory Board, and the latter elects the Chairman President. And if the company's capital is € 72,000 or more, then two general managers (directors) are appointed.
• The law does not stipulate distinct division of functions between the managers and the general meeting.
• The general meeting of participants of the company shall be held at least once a year. It addresses the most important issues related to the company's activities.
• The company can not be engaged in banking and insurance activities. The enterprises for which the law provides for another organizational and legal form can not be established in the form of joint-stock companies (for example, the only possible form for the investment company is the joint-stock company).
• In order to declare public offering for shares, it is necessary to have the authorized capital of at least € 225,000, and for private companies which do not declare public offering - € 37,000.
• The company can have nominal manager, and he can be resident of one of the EU countries or non-resident with the merchant's card.
• In order to contribute the charter capital on behalf of the founder, it is necessary to open account with the bank.
• After the registration of the company in France, the authorized capital can be used in accordance with the will of the founders.
• It will take from 1 to 1.5 months to buy or register company in France.
• The company shall be registered in the Commercial Register.
• All foreigners (with the exception of the EU citizens) shall have the appropriate work permit in order to work as directors or managers of the companies in France.

Registration of SARL company in France

• One director of any nationality is required.
• Only one shareholder of any nationality is required.
• Shareholders can be natural persons or legal entities.
• Required Authorized Capital is only € 1.
• After registration of business in France is completed and when the certificate of registration is issued, the percentage of shares of each shareholder can be determined.
• SARL usually becomes private entity, that means that shares are divided only between existing shareholders upon their consent. When transferring shares to third parties, all shareholders shall also give their consent.

SARL registration procedure:

1. Putting on the Commercial and Industrial Register;
2. Inclusion in the National List of Enterprises and Institutions;
3. Obtaining the taxpayer identification number;
4. Obtaining the certificate of compulsory health insurance, for the payment of maternity benefits and old-age insurance for certain professions;
5. Inclusion in the family benefits system;
6. In case of employment of the workforce, the application is submitted to the Labor and Employment Inspection;
7. Publishing the information regarding the name and main characteristics of the company in the Official Bulletin of Civil and Commercial Announcements of France;
8. Obtaining the legal address of the company.

Documents required for the formation of SARL company in France:

• Information about the founder (founders): full name, date and place of birth, place of registration, copies of passports;
• Charter of SARL (in 2 copies);
• The document that confirms the appointment of the manager (unless it is specified in the Charter);
• Copy of the manager's passport;
• Application for registration of the business in France;
• Statement of the manager with confirmation of absence of his previous criminal record;
• Receipt for payment of state fee.

Bookkeeping of SARL in France

SARL company is the best choice for small and medium-sized businesses.

Only companies with authorized capital exceeding € 232 500 shall be audited. Also, audit is not mandatory if:
- there are less than 50 employees in the workforce;
- the turnover does not exceed 3 million euros;
- the net assets equals to not more than 1.5 million euros.

Taxes in LLC in France

Corporate tax equals to 37%.

Other taxes in France.

- Corporate tax (income tax) is 33.3%. Additional rates are 3.3% and 5%, it applies to companies with the income over 763 000 euros and annual turnover of more than 250 million euros.

- Tax on allocations from the branch (25%) is not charged if the parent company is the resident of the European Union.

- Incoming dividends. 95% of income from dividends can be exempted from the tax, if the share participation equals to not less than 5% during 2 years and more.

- Capital gains tax. In standard cases, it is charged at the corporate tax rate.

- The royalty tax is 33.3%.

- Tax on dividends:
- 0%, if the amount is paid to the legal entity in the taxpayer’s status in the European Union;
- 30%, if the amount is paid to non-EU residents.

The standard VAT rate is 23%.

The newly established enterprises engaged in industrial and commercial activities receive tax concession period for payment of income tax. Full exemption is during the first 2 years, 75% - for the third year, 50% - for the 4th, 25% - for the 5th year.

Carry-forward of losses for 3 years backwards or 5 years frontwards is permitted.

The most significant benefits are provided for enterprises which investments:

• Increase employment in the country;
• Increase export turnover outside the EU;
• Increase efficiency in the sphere of manufacturing industry;
• Introduce new technologies;
• Have positive impact on saving energy and raw materials;
  Promote import substitution.

We will register ready made company in France for you within the shortest time possible. It has never been easier to buy company in France. Registration of business in France is one of the simplest and cheapest ways to start a legitimate international business. Registration of companies in France is one of the main directions of our work.