Company Registration and Formation in France

Posted by Enterslice on February 2nd, 2018

France,as one of the world’s largest economies and an admirable country for the entrepreneurs to establish their business. There will be no administrative restrictions on Foreign Investment in France.

Business Structure:

The seeking investor can invest in any one of the following forms of Business Structure in order to fulfill their requirement:

Limited Liability Company(SARL): It is the most commonly used type of company Registration in France. The liability is limited only to a number of contributions.

The key features are:

1.  The initial capital must be mentioned, in the articles of association by each legal entity;
2.  At least two individuals or corporate bodies, with 1 Euro as a minimum share capital is required;
3. Directors must be individuals and appointed by the shareholders in their general meeting;
4. Appointment of an auditor, is necessary in the following two conditions: it has more than 50 employees, a net turnover over 3.1 million EUR or a total balance sheet over 1.55 million EUR;

2. Joint Stock Company/ Public Limited Company(SA):This type of Companies, mainly suited for medium or large companies. 

The Key Features are:

1. Minimum Seven members, either Individuals or corporate bodies but at least one member is an individual;
2. The minimum share capital of this business is 37,000 EUR;
3. Appointment of auditor should be mandatory;
4. The management is assured by a board of directors, with three to 18 members who is appointed by the company, in the general meeting of the shareholders.

3. Simplified Joint Stock Company(SAS):This type of Companies, is similar to Joint Stock Companies. It provides its shareholders an easy and fast registration. 

The key features are:

1. For incorporation, only two shareholders are required;
2. The minimum share capital for a French SAS is 37,000 euro;
3. It must register with the French Trade Register;
4. Single -member limited liability company (EURL)-This type of Companies, is a fusion of a limited liability company and a partnership which doesn’t require a minimum share capital.

5. General Partnership (SNC)-  This type of Companies, is formed by at least two partners who are jointly and severally liable for the debts and obligations of the entity.

Procedure for the incorporation of Companies in France:

• The company Incorporation in France must be checked on the Institut National de la Propriété Industrielle (INPI) website for availability. If it is unique, then a certificate of reservation will be issued and entity will proceed for further operations.
• After that, Bank account will be opened in which initial capital required for incorporation will be deposited
• For Performing business, it is a mandatory requirement for an entity, to get itself registered with Centre de Formalités des Entreprises (CFE) in France. It is a single body for statistics, tax authorities, social security, labor and health insurance.   
• The applicant has to apply for incorporation, by filling a request followed by the following documents:

1. the articles of association;
2. the bank certificate stating the capital deposit;
3. a proof that the specific Gazette has received a notification regarding the establishment of the new company;
4. the structure of the proposed entity and its purposes;
5. the addresses of the managing board; 
6. the address chosen for the company;

• The CFE after receiving the application, sends the necessary information to every office and authority in order to get the company registered and enters the company in the Register Nationale des Enterprise.
• Once, the company is incorporated will receive the SIRENE (Systéme Informatique pour le Répertoire des Entreprises), SIRET (Systéme Informatique pour le Répertoire des Etablissements) and NAF (Nomenclature des Activities Francaises) numbers.
• The last step, in process of incorporation is buying the special accounting book from Commercial Court or authorized stores;

Detail information is provided on our website www.enterslice.com