We offer competent, efficient, and reliable services to help investors with remote company formation in France.
Many years of experience allow us to provide our clients with optimal processes for setting up a company in France: In compliance with French laws, without the implementation of French managing directors on site and with a legal and compliant verification of the company capital, it is guaranteed that the company formation can be implemented in the quickest possible time. Also, the required documents for the operation of the company can be successfully applied for, such as commercial register, VAT identification number (abbreviated: VAT number ), and customs number.
Opening a bank account for a company in France has always been a relatively difficult task. More specifically, when the legal entity did not reside in France or could not come to France for a visa during the Covid19 pandemic, it was nearly impossible to register a company in France and open a bank account.
The advantage we have is that we have extensive and reliable resources for opening bank accounts in France and maintaining good relationships with many local French banks. This allows us to offer our clients a variety of options for opening bank accounts that fulfill all relevant settlement functions, and realize the subsequent activation of the French corporate tax system and tax reporting functions.
Why should a company be established in France?
Being the seventh largest economy in the world and the most important member of the European Union, France is a world leader in nuclear energy, aerospace, medicine and pharmaceuticals, and luxury goods. There are also several industrial cluster areas: Grenoble, the “Silicon Valley of Europe”, with great capacities in the field of research and development, new energy technologies, and biotechnologies. BurgundyFranche-Comté is a major industrial city with an industrial chain in the hydrogen and electric vehicle industry. As well as the aerospace industry clusters in the South of France. China is the largest Asian investor in France with investments in the Transportation, electrical equipment, automotive, and luxury goods sectors.
Compared to other European countries, the administrative procedures for setting up a business in France are relatively simple, and authorities such as the commercial court and the tax office are closely linked. When setting up a company, for example, the VAT identification number can be applied for and issued at the same time. In terms of the time required to set up a business and obtain important documents, this is extremely efficient.
When it comes to tax policy, during the last few years the French government has introduced tax breaks for SMEs to encourage the development of startups and SMEs. That is why France attracts investments not only from multinationals but also from small and medium-sized enterprises from all over the world.
When it comes to human resources, there is a high level of acceptance from the French government towards foreign professionals compared to other European countries, making it more efficient, convenient, and practical for Chinese companies in sending their employees to Europe through France.
What are the particularities to be taken into account when setting up a French company?
Choice of legal form/capital company form
A very popular choice among foreign investors is the SAS, i.e.: Simplified Joint Stock Company, which accounts for almost 70% of all French companies on the market. A SAS consists of one or more shareholders, who may be either natural persons or legal entities.
legal persons. The shareholders are liable to a limited extent with their capital contribution, and the company itself is liable for the debts of the company with all its assets. This allows corporate risks to be minimized. At the same time, in comparison to other legal forms, SAS has a higher flexibility for the transfer of equity capital and hiring of personnel. Also with the operating cost, it offers advantages opposite a SA (corporation) or a SARL (a company with limited liability).
Share capital
In France, the share capital of a company is small. In principle, 1 Euro is sufficient for the foundation of a company in France. We are happy to advise our clients on the subject of minimum share capital. The factors to be considered are The type and scope of the business, the chances of success in the registration and capital audit, and the operating costs of the company in the first year. At least 50% of the registered capital can actually be paid in. However, it should be noted that if 100% of the registered capital is not paid up, a company cannot take advantage of the tax benefits offered by the French government.
Recruitment
In the legal form of SAS, there must be a managing director. The president is also the legal person of the company. The managing director or managing director not only represents the company but also manages the business. The managing director can be a natural or legal person of any nationality. It is not mandatory to appoint a local French managing director or shareholder.
Tax advantages
With a maximum rate of 25%, the corporate income tax rate in France is in the lower middle range in Europe. For companies with an annual profit of fewer than 38,200 euros, the corporate income tax can even be as low as 15%. Since 2018, this has also been one of the most important measures in France to reduce the burden on companies and promote the development of small and medium-sized enterprises. In addition, from January 2022, goods imported through French customs will automatically be subject to the postponed import VAT accounting policy, and importers will not have to pay import VAT during customs clearance.
Bank accounts
Bank accounts can be opened 100% remotely by French companies. Since we know the business policies of many branches and online banks in France, we can recommend suitable banks. In doing so, we choose a bank where no local manager needs to be hired or local notary certifications are required to open a corporate account. Thus, depending on the type and size of the business, we can provide you with a 100% remote account opening.
HR management
French companies usually hire their employees on permanent contracts, fixed-term contracts, internship contracts, or alternating employment contracts. They may include special provisions such as non-competition clauses in their employment contracts, depending on the position. Employment relationships can be terminated in different ways; there are three termination procedures in France, but employers also have to fulfill corresponding obligations under labor law, such as severance pay for employees.
Meet our experts in business establishment and structuring
Chen Shi
Co-Founder & Managing Director
Grenoble, France
Lili Fan
Business Development Manager
Grenoble, France
Process of company creation in France (remote)
We offer competent, efficient and reliable services to help investors with remote company formation in France.
Preparations on the customer side
If a French company is established with a natural person as a partner, only the alternative company name of the registered company, a passport, and identity card of the partner and the legal person need to be provided or presented. In addition, our clients should fill out a checklist for us and provide us with the most important information about the shareholder, director, and business.
Our support for preparations
We will be happy to help you prepare all the documents in advance. These are: Verification of the registered company name, business scope, shareholder structure, share capital, articles of association, power of attorney, proof of capital, publication of company information, selection of company address, and renting of addresses.
Capital audit
In the capital audit process, we recommend a capital audit method based on the amount of registered capital, the type of capital injection and the deadline for company registration.
Submission of the documents to the commercial court
After we have prepared all the documents required for the business registration, we will submit the documents to the Commercial Court for approval. At the same time, the French tax authority will carry out the tax number approval. We monitor the progress of the approval process.
Trade license, VAT identification number, and customs number.
Usually, it does not take long to issue the trade license at the Commercial Court and to apply for the tax number at the Tax Office. The two numbers (trade license and VAT number) can be issued at the same time. After receiving the trade license, we apply for the EORI customs number for our clients.
Opening of French business accounts
After receiving the trade license, we assist our clients in opening a bank account. According to the business scope and billing needs on the customer side, the appropriate account is selected.