Benefits of registering the company
When registering a company in France, you should consider the advantages that can have an impact on doing business:
Good geographical location
Favourable tax regime: France systematically reduces corporate tax
Double taxation Treaty with the Russian Federation
No taxes on dividends for EU residents
Focus on attracting external investment, simplification of the company registration procedure
Leader (along with the United States and Germany) in the number of business innovations: annually ranked in the TOP States in the number of registered patents
One of the most attractive EU countries for doing business according to the criteria of personnel qualification, availability of resources, state support and utility prices
Favourable conditions for business immigration and obtaining a residence permit
Types of companies
Limited liability company
Is the most popular form of registration among foreign entrepreneurs, suitable for small and medium-sized businesses with small investments. SARL can be established by both legal entities and individuals. All you need is one shareholder and one Director. The size of the authorised capital of SARL is from 1 Euro, although in reality banks require an order of magnitude larger amount for these purposes.
Joint stock company
This form is suitable for large businesses. SA consists of at least seven partners (individuals or legal entities), a Supervisory Board, and an administrative Board. The size of the authorised capital of SA from 37 thousand euros. At the institution, you must pay half of the remaining amount within 5 years.
Limited liability company with a single member
This is a limited liability company with a single participant: one shareholder. If the number of shareholders increases, the company will become SARL (LLC). The owner of EURL is responsible for conducting financial and economic activities with his personal fortune or property, so EURL is more often chosen for a small family business.
Simplified joint-stock company
This form perfectly matches large divisions of large corporations. One shareholder is enough to work, the maximum is not set. Members can be both individuals and legal entities. The size of the authorised capital is determined by the shareholders, there are no special requirements.
This form combines several equal partners who are responsible for SNC’s debts and profits. Financial and economic activity is guaranteed by all property and all material resources of the partners. There are no minimum capital requirements.
Corporate tax in France ranges from 28% to 33.3%.
Taxes in France in 2020 are calculated at the following rates: 31% – the standard rate for companies with a turnover of up to 250 million euros; 28% – reduced rate (applied to the first 500 thousand euros of profit received); 33.3% – increased rate for French companies with an annual turnover of 250 million euros.
Important! The French government plans to review and reduce tax rates to 25% by 2022.
The standard VAT rate in France is 20%.
The reduced rate can be 5.5% or 10%, and the preferential rate of 2.1% applies to periodicals and companies that produce and sell medicines with compensation from the French social security system.
Tax on dividends and royalties: 0% if the amount is paid to a legal entity that is an EU taxpayer; 30% if the amount is paid to non-EU residents. The tax can be reduced on the basis of a double taxation Treaty. It also plans to reduce the rate to 25% by 2022.
Resolution on the appointment of a managing Director or Director
Information about the beneficiary, founders, Manager Charter
Confirmation of the Manager’s appointment
Application to the registration chamber
Receipt for payment of state duty
The package of documents varies depending on the field of activity and the OPF.
Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in France.