Introduction to Register a Company in France

France is the 5th largest economy in the world and the 2nd largest in the Eurozone. Although France was slower than many of its EU counterparts to embrace a truly liberal business culture it has aggressively sought to attract foreign direct investment – with considerable success. This has resulted in what is now a very simple and straightforward process to register a company in France, although local advice is essential in order to ensure compliance with legal and financial regulations.

What is the best way to register a French company?

There is no fixed pattern for company registration in France. Options range from opening a small representative office – a bureau de liaison – through to acquiring an existing company or setting up a new business from scratch. A SARL (Limited Company) or SAS (Simplified Joint Stock Company) are the most popular for overseas clients.

What is the most common type of French company incorporation?

There are four main kinds of French company incorporation:

• business corporation – Societé Anonyme (SA)
• limited company – SARL
• simplified stock corporation – SAS (most common)
• SCI – Societe Civile Immobiliere

What are the requirements for an SA company?

• The minimum share capital is €37,000
• the company must have at least seven shareholders
• shareholders are liable up to the limit of their capital contribution
• accounts must be audited in line with statutory requirements
• top managers are treated as employees for tax and social security purposes

What are the requirements for a SARL company?

• the minimum share capital is €1 however banks prefer the company to have at least 4000 € share capital.
• the minimum number of shareholders is one (also called a EURL Company)
• shareholders are liable up to the limit of their capital contribution
• accounts must be audited in line with statutory requirements
• top managers have more onerous tax and security rules than SA managers

What is an SAS company?

The Societé Par Actions Simplifieé (Simplified Stock Company) is a relatively new type of entity in France. It is a vehicle for creating a joint venture between a French company and a foreign partner. Previously, French companies had found it difficult to enter into joint-venture relationships with foreign companies because of the rigidity of French corporate law. However, SAS companies are increasingly finding favour with foreign investors considering France company formation, particularly in the USA, who wish to set up business in France.

What are the requirements for an SAS company?

• the minimum share capital is €1 but banks prefer the company to have at least 4000 € share capital
• the company must have at least one shareholder and director
• shareholders are liable up to the limit of their capital contribution
• there is no need for a board of directors