Set up Company in France
The Company formation procedure in France is usually based on some document gathering and other procedures such as drafting the articles of association, the specimen signatures, affidavits and other special forms, as well as performing public notary procedures and certified translations. Usually, a French registered office is also required for company formation in France in order to have a mailing address to communicate to the partners and French authorities. Opening a bank account and hiring a local accountant are also required for setting up a company in France.
TYPES OF COMPANIES
- Société A ResponsabilitéLimitée (S.A.R.L. - limited liability company) – Since 2003, there is no minimum share capital for setting up a limited liability company in France. It is only required to have at least two partners and a maximum of 100 for the company formation in France to be valid.
- Société par Actions Simplifiées (S.A.S - simple Joint Stock company) – A registered office and a minimum share capital of 37,000 EUR are the main requirements for this type of company’s incorporation in France.
- SociétéAnonyme (S.A.- Joint Stock company)–For setting up this type of company in France, it is necessary to provide a minimum share capital of 37,000 EUR. Half of this amount has to be paid prior to company registration in France. It is also compulsory to have at least seven shareholders, a managing board and a supervisory board for company formation in France.
- French Branch, Subsidiary or Representative Office – This type of structure can represent either a separate entity in France or an extension of the parent company.
COMPANY INCORPORATION PROCEDURE IN FRANCE
Company incorporation in France is rather simple as long as the requirements of the law are met. The registered address of the French company can be the manager’s home, a rented address or a specialized company can provide an address. Foreign directors of a company in France must obtain a Foreign Trader’s Card.
Company registration in France is followed by the registration for VAT purposes if the law requires so. It is not mandatory for all companies to register for VAT in France, but those who must do so must submit an application form after company registration with the Centre de Formalites des Entreprises. This institution will issue a certificate of company registration in France and it will also inform the local tax authorities about the newly set up company in France.
After company registration in France, a business is ready to start its activity and hire some employees. Internet websites may be quite helpful for recruiting personnel in France and recruitment agencies might also be useful in order to find well-trained employees. An employer has to pay rather g=high salaries since the average monthly wage for an employee is over 3,200 EUR.
ECONOMIC OVERVIEW IN FRANCE
France is one of the most powerful countries in terms of economy, especially due to its size and location, as well as the membership in many European organizations. Besides, it is one of the most industrialized countries in the world. Anyhow, French economy is characterized by a large industrial base, important agricultural resources and a highly trained workforce.
Foreign investments in France are very popular and the government encourages entrepreneurs to come to France. As a matter of fact, there are over 20,000 foreign companies in France at the moment, considering that many statistics situated France as the first destination for foreign investment in many classifications. In 2010, there have been 782 new foreign company formation projects in France, according to the Invest in France Agency, most of the capital being absorbed by Paris.
The main industries in France are aerospace, tourism, industrial machinery, automotive, pharmaceuticals, food and beverages, printing. The private sector is well-developed in France.
Partners: Company Registration Turkey