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Establish a Foundation in France

Updated on Wednesday 13th December 2017

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Establish-a-foundation-in-FranceFrance is an open country when it comes to foreign investments. Foreign citizens or companies can establish various types of companies for commercial or non-commercial purposes. The most common structures used for non-commercial purposes are associations and non-profit organizations, also known as foundations in France.

Our company formation consultants in France can offer information about how to set up foundations.

Legislation and types of foundations in France

The main legal framework providing for the establishment of foundations in France is the Associations Law which was enabled 1901. However, one should know that there are several types of foundations which can be set up in France and specific laws are enabled for these types of structures.

One can open the following types of French foundations:

  • -          sheltered foundations;
  • -          public utility foundations;
  • -          corporate foundations;
  • -          research foundations;
  • -          university foundations;
  • -          scientific cooperation foundations;
  • -          research foundations;
  • -          hospital foundations.

The only thing all foundations have in common is the they must be established for a public benefit scope. Out of these, only corporate foundations can carry out commercial activities, as they can be set up by French companies.

How to open a foundation in France

Sheltered and public utility foundations have no legal status in France, therefore they must not register with the Companies Registrar. Corporate foundations, on the other hand, are required to be recorded with the Trade Register in France. All types of French foundations are set up through a deed of establishment.

 Even if no minimum amount is required to open a non-profit foundation in France, in the case of public utility ones the capital generally accepted is 1 million euros. Corporate foundations can be set up for a limited period of time, which is 5 years, and must allocate at least 150,000 euros for their public programs for the whole timeframe.

Sheltered and public utility foundations are exempt from the corporate tax in France. For more advantages of setting up a foundation in France, please feel free to contact us. You can also rely on our company registration agents in France if you want to register other types of companies.

 

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