Company registration in France: how to organize business properly?

France is a country in Western Europe. Jurisdiction is divided into 26 regions, 21 of which are located in Europe, one on the island of Corsica and 4 outside the continent. The population of the country is about 62 million people. It is profitable to open a company in France in 2020. To find out more about the features of opening a company, please contact our experts at IT-OFFSHORE.

Features of opening a company SA

Before buying a firm in France, it is recommended to get acquainted with the most popular legal forms. To open a SA, a number of requirements must be met. In total, the company must have at least 7 founders and shareholders.

The smallest share capital is 37 thousand euros. Both individuals and legal entities are entitled to be shareholders and members of the administrative board, they must own shares.

A meeting of the company's members must be held at least once a year. Issues related to the functioning of the company are discussed in this meeting. It is allowed to appoint a nominal manager, whose position may be held by a resident of an EU state or a non-resident.

In order for the founder to contribute the share capital, an account must be opened with a financial institution. Registration of a company in France of this kind takes up to 6 weeks on average. You must register the company in the Commercial Registry. Foreigners holding the positions of directors and managers must obtain a work permit.

The nuances of opening a SARL

To open a company, you will need one director of any nationality as well as one shareholder, who may be an individual or a legal entity.  There is also a requirement to have a share capital of at least 1 Euro.

To incorporate the company you will need to collect a number of documents. Information about the founders - name, place of birth, residence, etc. - is necessary to have for the application. It will be necessary to prepare 2 copies of the SARL charter.

It is important to collect documentation that confirms the appointment of the manager, a copy of passport, application for registration of the company, proof of criminal record and proof of payment of state fees. Most often SARL is opened when planning small and medium businesses.

Taxation

For LLC, the corporate fee is 37%. The tariff rate for profit is 33.3%. In case of a large annual turnover and high profit, additional rates are applied.

The tariff on capital growth is usually taken at the corporate rate. A zero dividend rate applies if the amount is paid to a company that has EU payer status. If the funds are paid to non-EU residents, the tariff rate is 30%. The standard rate for value-added tariff is 23%.

Benefits are provided to some companies. These include companies that offer jobs, promote exports to non-EU countries, introduce innovations, and lead to the substitution of imported goods.