In here, you will find the information all required prior to register your company in France.
France is known to have fairly considerable tax on the profits that the company receives via trade operations. Its value is about 34%, and tax authorities do not accept financial transactions with those companies located offshore known to public. In the meantime, it is possible to benefit from advantages and image component that the founder gets when the company is registered there. As an option, it may be buying-up of trademarks and their subsequent content.
Among those aspects that should be given attention when registering a company in France, the following should be primarily focused:
- The lowest value of the statutory fund shall be 2 Euro. Although, banks require a larger amount for these purposes in fact. As a rule, the amount approximates 8000 Euro, and half of the amount shall be paid as a must;
- The presence of at least one director is binding;
- If the non-resident of EU acts as the director, SARL formation within the French jurisdiction requires submission of application by all non-residents for the state permit;
- All French companies are required to keep regulatory accounting books certified at the registration chamber. The accountant shall be responsible to store them.
Companies in France and their application
On registering SARL for trading operations, pay attention to such specific details:
- It is not time consuming to register a company in France;
- A package of registered companies with VAT number is available;
- The rate of the authorized capital starts from 2 Euro. However, banks require matchlessly larger sum. Normally, they speak about 8000 Euro where 4000 Euro should be paid out;
- The company should have at least one director. However, most companies have two directors at once that make it possible to considerably simplify the matter with complicated deductions on social insurance. In the case of a sole director, social insurance payments shall be mandatory since the date of company incorporation;
- You can open an account with one of local banks remotely without visiting it;
- When a non-resident of the EU is appointed as the director, all non-residents shall be required to apply for the issuance of state permit. Otherwise, SARL registration is impossible. Submission of the police clearance certificate shall be binding. It should be received no later than 3 months before it is submitted. To translate it into French, you may apply to services of a sworn translator; you can have the list at any French consulates around the world.
Taxes under the French law
Among tax deductions, the following shall be particularly noteworthy in France:
Corporate tax, charged on the profit earned by the enterprise – rated at 33.3%. The additional rates of 5% and 3.3% may be used; they are suitable if the profit amounts to 763000 Euro or more with the turnover of 250 mln Euro throughout the year. If the parent company is the EU resident, branches are not subject to 25% taxes;
Incoming dividends are subject to exemption against such deductions on 95% income in case of equity participation of 5% or more for the period of longer than 2 years. That is, the rate of taxable tax shall be 1.8%. In case of failure to comply with the provision, a standard rate is used relevant for the corporate fee;
The tax on capital increase – as a rule, it fully complies with the rate of income tax. However, 90% of income may be exempted from deductions in case of equity for 12 months or longer. In such a case the rate of taxable fee equals 3.61%.
There is also a withholding tax that includes such fees as follow:
For royalty – the rate reaches 33.3% with likelihood to decrease based on provisions of the Double Taxation Agreement or in compliance with recommendations of the EU Directive;
On dividends – the rate of 0% is applicable for payments to legal entities being tax payers to EU. The rate of 30% applies in case of payments to non-residents with the possibility to reduce based on provisions of Double Taxation Agreement;
On interest payments – in case of payment to legal entities, the rate is often 0%;
On the value added value – typical rate for domestic sales amounts to 19%.
Double taxation agreements are signed by France with over 100 countries in the world.
If you decide to register a company in France, our specialists are at your disposal!