Incorporation - Types of Business Entities

There are different types of entities that can be incorporated in France are as mentioned below:

• Société à Responsabilité Limitée: have 2 and 50 shareholders and a managing director (gérant)
• Entreprise Unipersonelle à Responsabilité Limitée: a sole trader and has only one shareholder
• Société Anonyme: have a minimum of seven shareholders (there’s no maximum) and run by a board of directors
• Société par Actions Simplifiées: At least two shareholders and a minimum capital of €23,000
• Société par Actions Simplifiées Unipersonnelle: set up by a single person and minimum capital is €37,000 or €225,000
• Société Civile Professionelle: limited to certain regulated professions
• Société d’Exercice Libérale: which mimic the SARL, SAS, SA and SCA, for specific professions
• Société Civile: a non-commercial partnership
• Société en Nom Collectif: a general partnership
• Franchises: contract with the franchiser
• Partnerships: similar to a franchise contract, except that it isn’t standardized
• Bureau de Liaison: a representative office
• Branch: A branch office (succursale) of a larger company
• Subsidiary: set up by French company using standard business entities
• Location Gérance: the owner of a business rents his business
• Associations: a not-for-profit association

Time Frame for Incorporation of Company in France varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. YourGlobalPro estimates the time required for the process of Company formation in France can be completed in 6-10 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in France:

• Business-friendly environment
• Strong public facilities
• A legal framework in line with European standards
• Efficient IP protection regimes and s specific tax incentives for the creation, holding, disposal of rights therein.
• Investor free to open bank accounts and apply for loans in France

Tax Registration and Filing

The taxation in France on companies depends on the territorial principle. Foreign companies carrying on an activity in France are required to pay French corporate tax on their French-source profits. French companies carrying on a trade or business outside France are not taxed.

Double Tax Treaty

France has double taxation treaties with over 100 countries.

Trademark registration

The France law provides for trademark protection of IP, including words, names, letters, numerals, labels, designs, sounds and musical phrases. For trademark registration in France application needs to be made to Trademark Office. It takes approximately 4-6 months’ timeframe to complete the process of trademark registration in France. The protection is granted for whole French territory, including French Overseas Departments and Communities.

In France, a Trademark Registration is valid for 10 years from the application and can be renewed for further 10 years before expiration date.

YourGlobalPro professionals can assist you with the process of Trademark registration in France for your business. For assistance or advice in the matter of the trademark registration in France or intellectual property – please feel free to write or contact us.

Secretarial Compliance

• All companies Must have registered office
• The general meeting may not be held more than 6 months after the balance sheet date
• To prepare full financial statements including a balance sheet, an income statement and notes to the financial statements
• Small and medium sized companies/LLCs have option to file abbreviated financial statements with Registry of the Commercial Court
• In case of any alteration in the company details the same needs to be intimated to the Registry of the Commercial Court in prescribed application.

Accounting Services

In France, the Companies are required to prepare Accounting Statements in compliance with French GAAP, while public companies are required to publish IFRS accounts annually. All the Listed Companies are required to prepare a group financial statement in accordance with International Financial Reporting Standards (IFRS). And other companies or LLC to prepare their annual financial statements in accordance with accounting principles promulgated by the French Commercial Code and the General Accounting Chart (Plan Comptable Général; “French GAAP”).

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your France Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

All the France Companies and LLC must have an Annual audit on their statutory financial statements. Also, consolidated financial statements are also subject to an audit. Only Small private corporations/LLCs are exempt for audit of their annual accounts. Generally, the Auditors of the entity are appointed by the shareholders’ resolution or by the constitution of the entity, for period of six years.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals also provide auditing services as required by your business.

Banking

Bank Account opening in France involves a lot of paperwork. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professional can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in France.

Legal and Compliance

Below is the various France legal and compliance requirement to be followed by incorporated entities:

• Foreign direct investments in France, except in certain sensitive sectors, are only subject to an administrative declaration
• To file their financial statements at the Registry of the Commercial Court within 1 month after the annual general meeting
• To prepare a management report with requirement to listed company file
• Large and medium size company to prepare and file consolidated financial statements that also comprise a group management report and must have an audit on their statutory financial statements.
• Also, the consolidated financial statements are prepared according to the standards issued by the French Accounting Regulation Committee (CRC 99-02; “Consolidated French GAAP”)
• It is employer obligation to verify that the immigration rules are followed before hiring any employee and proceeds to do the relevant declaration formalities.

YourGlobalPro can assist you on France Legal and compliance related queries.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in France:

• Hiring of Any Employee must be declared to the local Social Security Authorities within an 8-day period preceding the start of the employment
• Employment contracts under French law are for an open-ended period and in writing in French Language
• In case more than 50 employees – the employer is required to file and send to the departmental director of labour, within the first eight days of each month a declaration of all the employment contracts entered.
• Monthly salary to be paid to the employees.
• the full working time is 35 hours per week
• new employee must undergo a medical examination before his/her hiring
• foreign employee comes from a country which is a member
• a work permit not required for the employee having nationality of the European Union (‘EU’), except Bulgarian and Romanian nationals; and/or of the European Economic Area (‘EEA’) or Swiss nationals
• An Employee is a non-EU national or a Bulgarian/Romanian national, he/she must have a permit authorising to work in France

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