Company formation in France

• Minimum share capital is €2 but banks require more than this figure in order to set up an account. The traditional share capital has been €8,000 but a minimum amount could be deposited of around €4,000.
• Minimum number of directors is one.
• Non EU directors must  apply for the government authorization
• All French entities must now have regulatory books (Accounting, Stock, Minutes) that must be certified by Companies house. These books must be kept by the company or the accountant.
• Shelf Companies with VAT available. Ask now.

FRENCH LIMITED LIABILITY COMPANY (SARL) AS TRADING COMPANY

Key advantages:

• Fast incorporation and VAT registration process. Ask now
• Shelf Companies with VAT available. Ask now
• Minimum share capital is €2 but banks require more than this figure in order to set up an account. The traditional share capital has been €8,000 but a minimum amount could be deposited of around €4,000.
• Minimum number of directors is one. However, most people have two directors as this assists with the issue of "Social Security" payments. If the company has only one director the burden of these payments has to be incurred from day one of the company formation process.
• Bank account can be set up remotely.
• Non EU directors must  apply for the government authorization.

In case the company director is a person who is a non EU resident: all non EU residents are required to apply for the government authorization if they want to open a SARL in France.  This includes applying for an extract of criminal record (not less than 3 months old) which needs to be officially translated into French by a certified translator.  A list of translators can be obtained through the French Consulate in the country of residence.

Contact us for trading company package. Or ask for alternative application.

• CORPORATE INCOME TAX: 33.3%. Surtaxes of 3.3% and 5% apply additionally to companies with income over EUR 763.000 and turnover over EUR 250 mln. Branch remittance tax 25% can be avoided if the parent company is resident tax payer in EU.
• INCOMING DIVIDENВS. Participation exemption of 95% applies to dividend income with at least 5% holding over 2 years with effective rate of 1.8%. Otherwise Standard Corporate Tax rate applies.
• CAPITAL GAINS TAX (CGT) is normally at standard Corporate Tax rate. Although, 90% Participation Exemption applies if the shares are held for at least 2 years with effective rate 3.61%.
• WITHHOLDING TAX:
• ROYALTIES 33.3% paid to foreign companies, which can be reduced under tax treaty or EU Directive on Royalties.
  DIVIDENDS 0% paid to EU resident companies. 30% paid to Non-residents (this rate is subject to reduce under a tax treaty)
  INTERESTS 0% paid to foreign companies.
• BILATERAL TAX TREATIES with 100 countries including Hong-Kong, Singapore, Malta and Panama.
• VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 19.6%.

• Chose the structure that fits your business. Need help? Contact us.
• Contact us for Company Package Fees.
• Follow our Compliance Policy