How To Register a Company in France

Register a Company in France

France is the third-largest economy In Europe and in terms of Gross Domestic Product, it is the sixth-largest in the world. It is located at the west side of Europe and is well known for its wine, fashion, and gourmet cuisines. France is also involved in major exports of cars, pharmaceuticals, gas turbines, and so on.

Tourism is one of France’s main sources of income as it is one of the most visited places in the world.

France provides a pro-business environment, a sophisticated financial market, and a highly developed workforce. This is what makes the country an attractive place to set up a company.

Basically, To register a company in France, it is open to everyone, even if you are not a citizen under the European Union. To open a business in France as a foreigner, it is necessary to have a registered address. This could be a virtual address, not necessarily a building.

Are you an entrepreneur looking to start a company in France. Here are ways for how to register a company in France.

 This is the first step in company registration. It is considered necessary to draft out a business plan when planning to open a business in France. The business plan gives a clear insight to what kind of business you are going into. This is what you present to your potential investors and the French bank manager.

You will also need to consider who your customers will be, the share capital to be invested by each of the shareholders and as well your general income for the next few years.

A company legal structure is simply the kind of company you are operating. This will determine how much of your personal assets will be used in the company. You must decide on the right company structure that suits your business.

These are the most common structures in France.

-Sole proprietorship. This type of structure is owned and run by a single individual as a limited liability single shareholder company. It can be opened with a little capital investment as low as €10. Also, the owner’s liability is limited to the investment capital.

-Limited liability company. It is applicable to both small and medium sized businesses. This legal structure is easy to incorporate, operate and manage. It requires at least one director to be appointed. The director is given the responsibility of managing the company.

Similarly, a board of directors can also be set up as the minimum number of directors is one. The minimum capital to be deposited in the company back account is €4000. You can decide to deposit more than this depending on the share capital. The deposited amount is known as a “working capital” and can be taken out anytime.

-Société Anonyme. This is a legal structure used by large companies that have a lot of shareholders. This structure is designed to help fundraising by encouraging new investors to contribute to the share capital. The Société Anonyme is applicable for businesses who have the potential for investment, expansion and more profits.

The minimum share capital starts from €37,000. However, this is considered one of the most difficult types of companies to start because of the elaborate registration process.

After deciding on the company’s structure, register your by-laws. The registration can be done using  either an affordable company formation agent or with a lawyer.

The company by-laws include what products you will see and what services you will be providing.

However, businesses in France are divided into different categories and these categories all have their own registration centers based on the area you wish to set up a business. They are;

-Agriculture

-Freelance profession. This is simply an independent individual providing services for people and companies

-Commercial or industrial. This includes retail such as shops and factories, food such as restaurants and services such as import and export.

-Trades and artisan. This includes arts and crafts, building and manual trade and also certain types of manufacturing.

Before your company name is approved, you must check for the availability of the name you have choosen by the French Patent and Trademark office and the Commercial Court Registry.

Your company name should be unique to only your company. It can be characterized by numbers , alphabets and symbols as long as it relates to your business. If your company is available, then you are required to register it and apply for a certificate of uniqueness. This will prevent other companies from using your name.

The next step is to establish a company bank account. This can be done remotely if the company’s owners are not in the country. You will need to provide some documentation such as proof of identification (passport), proof of residence (visa) and proof of company address.

You will also need to go through your business plan and answer questions relating to your business with the bank manager. In this process, it is advisable to be clear and straightforward when being interviewed about your company by the bank manager.

After you have successfully opened a bank account, you must then go ahead and deposit the share capital into the account. This is known as a working capital and can be taken out of the account at any time for use.

Your share capital will be unblocked as soon as the bank manager receives the certificate of your new company. This process takes about two weeks.

This simply means announcing your new company to the press. You can decide to publish an announcement in an authorized newspaper. This procedure is done to formally and publicly introduce your company into the business world. It is also an avenue for advertising and marketing of the company to potential buyers and investors.

To incorporate your company, you will need to provide some documentation such as a certified copy of each shareholder/director’s passport, and two utility bills that are less than six months to prove the address of the shareholders/ directors.

These documents are then sent to the appropriate administrations such as the National Institute of Statistics and Economics Studies (INSEE ), which will register your company with the national business directory. Your document will also be sent to the tax office.

This is to ensure that the company is paying the right pension and labour payments.

Once your documents have gone to all the appropriate governmental departments, your application will receive all the official stamps that formalize your company incorporation.

After receiving the certificate of incorporation, you will receive a unique 14-digit registered number – which comprises of SIRET and SIREN numbers – which is your company identification number. This should be written on all official documents, invoices, and websites.

The SIRET is your 9-digit SIREN number plus a 5-digit code specific to your company.

Once you receive your certificate of incorporation, your bank manager can activate your business bank account and your share capital will be unblocked.

You will also receive a letter from the tax office with a Value Added Tax (VAT) number.

To avoid difficulties with the French tax man, it is advisable to appoint a French accountant. They are appointed to keep you up to date with all tax laws and are legally held accountable for the good standing of your company’s account. The accountant can also help with VAT returns and payrolls.

With many new businesses created yearly, France remains one of the most profitable countries for entrepreneurs who wish to set up a company.