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Holding Company in France

Updated on Wednesday 13th December 2017

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Holding-company-in-FranceFrance is a very appealing country from an investment point of view, as the growing number of foreign enterprisers coming to open companies here shows it. There are several types of companies one can establish in France, among which the limited liability company (SARL) and the simplified joint-stock corporation (SAS) are the most employed. The same types of structures can be used to set up a holding company in France. These are the best solutions for foreign large companies seeking to have established presences in France from a taxation point of view.

Our French company registration agents can assist foreign investors in setting up holding companies here.

How to set up a holding company in France

The French holding company only offers the possibility of owning shares in one or more companies, without carrying out any commercial operations. However, the registration process is the same as for any other type of company in France. The holding company must be registered with the French Trade Register based on the following documents:

  • -          the statutory documents, comprised of the Memorandum and Articles of Association,
  • -          an application form;
  • -          passport copies;
  • -          bank statement confirming the deposit of the share capital.

It must be known that a holding company registered under the form of a SARL or SAS will be allowed to receive dividend payment and will have voting rights in the shareholders’ meetings. There several additional requirements when opening a holding company in France under one of the form of a SARL company.

Requirements for French holding companies registered as SARL companies

According to the French Company Act, a SARL company must have:

  • -          maximum 100 shareholders;
  • -          a natural person as a company director.

Also, when reaching a total revenue of 3.1 million euros, the company must appoint an auditor.

Why open a holding company in France?

Holding companies are the most tax-efficient structures in France. Also, the shareholders of a holding company will have limited liability related to the company’s debts and obligations. The holding must not have many employees, as it main role is to oversee its subsidiaries.

For more reasons on why you should open a holding company, please feel free to contact our company incorporation consultants in France.

 

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