Company Formation In France

Forming A Company in France

1. Business Entities

There are several types of business entities in France, including: the French Limited Liability Company (most popular amongst entrepreneurs), the Simplified Joint-Stock Company, the French Publicly-Limited Company, the European Stock Corporation, the Branch, and the Representative Office.

2. Limited Liability Company

A French limited liability company can be successfully incorporated within a two week period, requiring one director and one shareholder who can be of any nationality. There is also a very low minimum share capital of 1 euro. A benefit is that clients will do not have to travel to France in order to complete company formation engagement.

3. A Great Base

Via reports.weforum.org

A great base for European Union manufacturing. French roadways and railways are ranked at second and fourth best in the world. Electricty used for industrial purposes costs an average of 0.15 euro per kWh, which is the second lowest in Western Europe

4. Great Source of Funding

•Foreign entrepreneurs who incorporate their company in France will be able to obtain loans which have an interest rate of approximately 2.2% annually. This is the lowest figure since 2002. Also companies which have less than 250 employees and 50 million euro in annual revenue can benefit from a public guarantee scheme focusing on loans financing, the design and development of new products and services, and also R&D investments.

5. Tax

The standard corporate tax in France is 33%, however there are numerous government enticements, including: SMEs benefit from a minimized corporate tax rate of 15% of net profits up to 38,120 euros. In addition to this, they are also exempted from an additional corporate tax surcharge of 1.1%, which is paid by large companies

6. Government Incentives

Via healyconsultants.com

Businesses who decide to invest in priority areas are eligible to receive incentives such as 100% corporate tax exemption for up to seven years, reduced social security contributions, and grants of up to 15,000 euro per job created for projects with more than 25 employees.

7. Corporate Banking

Via healyconsultants.com

There is a competitive and mature banking system present in France, with the banking system being dominated by four French corporations, including BMP Paribas, Societe Generale, Credit Agricole, and BPCE. All of these four corporations are included in the 10 largest European banking groups.

8. Legal Protection

Via healyconsultants.com

There are several intellectual property protection benefits which provide legal protection for foreign entrepreneurs, such as reduced patent registration and translation costs in other EU countries due to beneficial unified patent registration procedures.