Company Registration in France
                     
COMPANY 
REGISTRATION IN 
FRANCE
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Company formation in France
France is the 2nd largest market in the European Union. It 
is the 5th largest economy in the world and the 4th largest 
recipient of foreign investment in Europe. France is an 
excellent country for the entrepreneurs to start their 
business. The rules, regulations, rights, obligations and 
available State Aid in France are the same for all 
companies whether they are French or a foreign company.
Also, France is not a country renowned for a high level of 
entrepreneurial spirit or as a free enterprise economy. 
Young people there prefer to go to public sector rather than 
starting their own business. This makes France a more 
suitable country for foreigners to make the investment and 
start a new business by foreign entrepreneurs. The 
government of France has woken up to the fact that it 
needs to provide greater incentives to employees and 
encourage a more vibrant economy. It has either reduced 
or eliminated altogether many of the bureaucratic hurdles 
to setting up a business in France.
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Advantages of Company Formation in France
Registering a company in France is the most suitable opportunity 
for entrepreneurs willing to expand their business globally, as 
France has the fifth largest economy in the world. It is known for 
its best labor productivity. Its per capita income from the goods 
and service sector is deemed to be one of the highest in Europe.
• It has the second largest population density in Europe and it 
has an excellent purchasing power.
• France has a competitive market that offers exciting business 
opportunities to foreign investors.
• It has a qualified and productive workforce.
• France has the most well designed and efficient transport 
networks in the world providing a fast and reliable way to 
transport and deliver goods.
• It is located in the heart of Europe and shares its borders with 
a number of European countries. This offers the 
foreignorganizations a great opportunity to sell their products 
in the European Market.
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Business Structures in France
Limited Liability Company (SARL):
The most common type of company that is 
incorporated in France is the limited liability company. 
This structure is popular mainly because of the liability 
which is limited only to a number of contributions. The 
minimum capital requirements for Limited Liability 
Company are 1 EUR.
Joint-stock Company/Public Limited Company (SA):
This type of business structure is preferred by medium 
or large companies. It requires more founders. It is 
required to have a board of directors and must comply 
with requirements for auditing. The minimum share 
capital requirement to start your business as a Joint 
Stock Company is 37,000 EUR.
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Simplified joint stock company (SAS):
The simplified joint stock company is similar to a Joint-stock 
company but there is no requirement large minimum share 
capital. It must have at least two partners and the partners can 
freely organize the operation of the company.
Single-member limited liability company 
(EURL):
It is a particular category of Limited Liability Company (SARL) with 
only one member. It is very similar to the limited liability company 
but differs in taxation aspect.
General partnership (SNC):
It is formed with at least two associates who are jointly and 
severally liable for the debts and obligations of the entity. Other 
types of partnerships in France include the professional 
partnership or the professional partnership with limited liability.
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Company formation procedure in France?
The first step for registering a company in France is to verify if the chosen 
name is available or not. The name of the company is required to be checked 
on the Institute National de la Propriety Industrially (INPI) website. If the 
proposed name is unique, a certificate of reservation is issued by INPI and 
the entity can proceed with the further of the operations.
Once the certificate of reservation of name is issued, the next step is to open 
a bank account for the company and deposit the initial capital required for 
incorporation. 
To perform business in France the company is required to be registered at the 
Centre de Formalités des Entreprises (CFE) in France which is a single 
regulatory body for statistics, tax authorities, social security, labor and health 
insurance.
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In order to get the company registered, the applicant is required to file a 
request for registration, followed by submitting the articles of association, the 
bank certificate stating the capital deposit, a proof that the specific Gazette 
has received a notification regarding the establishment of the new company, 
the structure of the proposed entity and its purposes, the addresses of the 
managing board and 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. Finally, the company 
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 the company incorporation process in France is 
buying the special accounting book from Commercial Court or authorized 
stores. After complying with all the procedure, the company is good to start 
its business.
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The following documents need to 
be considered for starting a 
business in France:
 
1. the personal information of the shareholders (their 
names, addresses, residency are required);
2. information about the directors of the company 
(at least one director must be appointed);
3. the company’s Articles of Association which must 
be drafted in French and authenticated by a public 
notary;
4. proof of the company’s legal address in France 
(this is a mandatory requirement no matter the 
type of structure chosen);
    
all the documents submitted by foreign individuals or 
companies must be translated and notarized.
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 Procedure of starting a business in 
France
 
France encourages foreign direct investments 
and the procedure of opening a company in 
France is straightforward and very accessible 
due to the online company registration option. 
By using the online procedure, entrepreneurs 
avoid the bureaucratic relation with the public 
authorities (tax authorities, the social security 
agencies, the Commercial Court etc.). Thus, the 
entire procedure of starting a business in France 
doesn't take longer than seven days. If you 
need legal assistance for the incorporation 
procedure, you may call our French lawyers.
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 Types of companies in France
 
According to Commercial Law in France, the following 
types of entities are available for registration in France:
 
1.  the sole trader, which is the simplest business form 
available for single enterprisers in this country;
2. the private limited liability company which take 
several forms, one of the most employed one being 
the simplified limited liability company for self-
employed professionals;
3. the unipersonal limited liability company which is 
characterized by the fact that it has one shareholder;
4. the joint stock company, also known as the public 
limited liability company;
5. the simplified public limited liability company which 
is preferred by foreign companies interested in the 
French market;
6. the partnership which implies having at least two 
members called partners.
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 Share capital requirements for 
starting a business in France
 
Foreign investor who want to start businesses in 
France must comply with the following share 
capital requirements imposed by the law:
 
•  the sole trader needs no minimum share 
capital;
•  the partnership does not require a minimum 
share capital;
• there is no minimum share capital imposed on 
the private limited liability company;
• the unipersonal limited liability company 
requires no minimum share capital;
• the joint stock company requires a minimum 
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 Business registration numbers in 
France
 
Our attorneys in France can help foreign 
investors who want to register any of the types 
of companies above. The SIRET and SIREN 
numbers are two of the main identifiers of a 
company in France. The SIREN number is issued 
upon the registration of the business with the 
Trade Register and is made of 9 digits. The SIRET 
number is made of the SIREN number to which 5 
digits are added. The last 5 digits represent the 
geographical location of the company in France. 
Another 5 digit code issued to a French company 
is the APE – it designates the main object of 
activity of the business.
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 Business licensing for companies in France
 
The last step which will enable a French company to conduct business activities is obtaining 
special licenses and permits. While the general licenses are issued by the municipality, other 
special licenses are issued by specific authorities. Foreign investors should also know that 
depending on the type of company they want to open, they need to register with different 
authorities, as it follows:
1.  if the company will complete commercial activities, it must register with the Chamber of 
Commerce and Industry;
2. if the business will complete a specific trade or craft, it must register with the Chamber of 
Craftsmen;
3. in the case of sole trader completing liberal professions, registration with URSSAF is 
required;
4. for those operating in agriculture, registration with the Chamber of Agriculture is required;
5. financial companies must register with the Central Bank and/or the Financial Supervisory 
Authority.
Other activities can also require obtaining other licenses or undergoing specific inspections. 
It is best to consult with our lawyers in France on the licenses and permits needed for your 
business, in accordance with the activities you plan on undertaking here.
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Start-up costs in France
 
On average, it is relatively easy to start a business in France 
in terms of costs and time, compared to the other G20 
countries. Cost components include:
    -labour,
    -facility costs,
    -transport,
    -utility costs (electricity, telecommunications, and others),
    - corporate tax.
Other start-up costs in France can include taxes for 
mandatory procedures, notary fees, the minimum share 
capital and auxiliary costs. On average, the time needed to 
start a business in France is 7 days,  much lower than the G20 
average. Our law firm in France can provide detailed 
information about all necessary start-up costs, depending on 
the type of company you choose to set up in France.
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 French holding companies 
 
Another option for those interested in starting a business in 
France is the holding company which offers many advantages, 
especially from a fiscal point of view. Being a member state of 
the European Union, France follows the regulations of the EU’s 
Parent-Subsidiary directive. Thus, when a French holding 
company is controlling more than 10% of a subsidiary for 
more than one year, the dividends remitted by the EU 
subsidiary are free from taxation. However, on the basis of 
numerous double tax treaties signed by France with other 
countries, tax exemption can be applied in order to avoid the 
withholding taxes on dividends and also the companies can be 
exempt from paying corporate taxes, when the subsidiary is 
not in an EU country.
 
For more information about starting a business in France, 
please contact our law firm in France. We can provide a wide 
range of legal services, personalized according to your specific 
business needs in this country and also in other European 
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 Reasons to invest in France 
France is one of the most influential countries in the European 
Union and in the world, having great cultural, economic, military 
and political powers. The country is home to some of the largest 
companies in the world and many prestigious businesses 
originate in France or have been influenced by French culture. 
France has a mixed economy, comprising private enterprises 
and state properties. The French State governs some important 
business sectors such as: telecommunications, railways, energy 
and aerospace. France's main trading partners for imports and 
exports are: Germany, UK, USA, Spain, Italy, Belgium and the 
Netherlands.
An entrepreneur willing to start a business in France must be 
aware that France also offers a special attention to the 
education sector, having a highly centralized educational 
system and constantly investing in the formation of the future 
employees. Moreover, when it comes to educational programs 
for foreign students, France is considered the fourth most 
popular destination in the world.
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The French economy is not only appreciated, but also sustained by a 
series of real aspects that are in most of the cases considered by 
foreign investors:
 
• As a global economic power, France is the second-largest market with more than 67 
million consumers.
• There are more than 29 leading businesses established in France and that enjoy high 
success.
• Banking, insurance and the luxury goods market are powerful in France.
• Around USD 2,762 billion is the registered GDP in France this year.
• There are more than 28,000 foreign capital companies registered in France.
• Around 1,323 foreign investment projects have been accepted in 2018 in France.
• According to the 2018 Global Competitiveness Report, France ranks 8th out of 137 
worldwide economies.
• The well-developed infrastructure and the strategic geographic location eases the 
business path with international investors in France.
• France has numerous European partners, the country being among the founders of the 
European Union.
• Paris, the capital of France is a leading global financial center with 4 French banks among 
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THANK    YOU
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