France Company Formation

France company formation allows global entrepreneurs access to one of the world's most important economies. France is politically and economically stable. According to 2011 Corruption Perceptions Index by Transparency International, France was ranked positively as the world's 25th least corrupt country. France has also been ranked 18th in terms of competitiveness, by the World Economic Forum in its Global Competitiveness Report 2011-2012.

100% foreign ownership is allowed for France company registration. A minimum of one director and one shareholders are required for France company formation using a limited liability company (SARL). They can be of any nationality and need not be resident in France. Corporate shareholders are permitted. Another single shareholder company option is an EURL (Sole Trader).

The minimum capital requirement for a limited liability company (SARL) is 1 € (US$1.33).

The Finance Act 2010 abolished the business tax (taxe professionnelle) for all firms from 1st January 2010. The reform has the main objective of making the corporate tax system simpler.

France has a wide network of double tax agreements with other countries, including China, India, Singapore, the UK and the US.

It is easy to open global corporate bank accounts to support France company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Following France company formation, it is necessary to submit an annual tax return and financial statements to the relevant authorities. An audit must be conducted i) for any SAS, for ii) SARL with high turnover or high benefits and iii) for SA with high turnover or high benefits.

Following France company formation, a register of directors and shareholders is available for viewing on a public register.

A minimum capital of 37,000 Euros (approximately US$52,300) is required for the formation of a SA (société anonyme). At least 50% must be paid-up prior to France company registration and must remain so for a minimum of 5 years. The minimum capital requirement for SARL is just 1 Euro.

Whilst French labour law is more flexible in recent years, it is important to be aware of complex French employment terms and conditions.

A French company is liable to pay a corporation tax of 33.33%. There is a reduced rate of 15% for SME companies applicable to benefits from 0 to EURO38,120. Above EURo38,121 the normal rate applies.

A French company is also required to register for value added tax (VAT), for which the standard rate is currently 19.6%.

France company formation is a relatively time consuming process. According to the World Bank's Doing Business 2011 Survey, France is the world's 26th easiest place to do business. Accounting and labour laws in particular can be complex.

France ranks poorly as the world's 64th freest economy, and scores at 50% in terms of investment freedom and capital flows according to the 2011 Index of Economic Freedom by The Heritage Foundation.

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