Seller Success

Why register a French company?

If you want to apply for a company in the EU, preferably in the Eurozone, France must be the first recommendation.

The process of setting up a company in France is simple, takes a short time, and costs less than other EU countries.

Types of French company registration

1. Auto entrepreneur / Auto-entreprise form

This is the simplest form of company, a bit like self-employed. It is suitable for entrepreneurs who have ideas and actively try.

Features: The number of people in the company is 1, and the identity cannot be transferred; it is not applicable to TVA invoices, TVA cannot be brought, and TVA cannot be refunded for purchases; tax is low and simple; exceeding a certain turnover (CA) needs to be converted to other company forms; The tax form is IR.

2. EIRL

Individual limited liability enterprises are suitable for personal businesses and small businesses.

Features: The number of people in the company is 1, which must be a natural person; there can be no shareholders; personal property and company property are separated, and tax declaration is required, which will increase certain accounting fees; the tax declaration form is IR;

*Note: Cannot have shareholders. If it is impossible to raise funds or sell part of the shares, if you want to convert to another form of company, you must start a new company. The disadvantage is that the newly opened company has no bilan and has not made any declarations. Such a new company does not have an advantage when negotiating business with other companies.

3. EURL

A single-person limited liability company, also called SARL unipersonnelle, is actually a form beginning with SA. When there is a second shareholder, the company form is automatically converted to SARL.

Features: The number of shares in the company is 1 person, either natural person or legal person; there can also be a second shareholder, but it will be automatically converted into SARL; the tax declaration form is IR/IS.

4. SARL

A limited liability company is suitable for multiple partners to invest in a company.

Features: Number of shares in the company: 2-100 people, either natural or legal person; must have shareholders; tax return form is IR/IS.

5. SAS(U)

The simple joint stock company is suitable for small companies and small businesses, and also suitable for large companies and projects.

Features: Number of shares in the company: 1 person to unlimited, natural or legal person, must have shareholders; tax declaration form is IR/IS.

Summarize:

For the registration forms of the above French companies, the first choice for Chinese outbound registration is: SAS(U) form and SARL form. The main advantages of these two forms are that there are few restrictions on shareholders, the form of tax declaration can be freely chosen, and the operating cost is low.

Information required for French company registration

Registration conditions for registering a French company:

1. Regarding directors:

• A limited liability company (SARL) must appoint at least 1 director, and the articles of association determine the number of directors.

• A joint stock company (SA) must appoint at least 3 directors, and the articles of association determine the number of directors, but the maximum number shall not exceed 48.

a. The term of office of directors shall be determined by the articles of association, but the term of office of directors appointed by the general meeting of shareholders shall not exceed 6 years; the term of office of directors appointed by the articles of association shall not exceed 3 years;

b. The board of directors elects a chairman from among its members, and the chairman must be a natural person, otherwise the appointment is invalid; c. The term of office of the chairman shall not exceed the term of his directorship and the chairman may be re-elected.

2. Regarding shareholders:

• A limited liability company (SARL) must appoint at least 1 shareholder, and the number of shareholders cannot exceed 50; the company's shares must be subscribed in kind or in cash, and shareholders must subscribe for all shares and have paid in full.

• A joint stock company (SA) must appoint at least 7 shareholders, and the company's shares must be fully subscribed, but shares without par value cannot be issued.

• Any natural person or legal person with any nationality and any residence can be a shareholder.

• The natural person must be over 18 years old.

3. About the name:

• The company name of the limited liability company (SARL) is not protected by law if it is the same as the existing French registered company name.

a. The company name should avoid completely foreign nouns, and France cannot be added to the company name;

b. The company shall use general terms in French;

c. The names of one or several shareholders must be added to the company name;

d. The word "Limited Liability Company" or its initial letter "S, A, R, L," must be added at the beginning or end of the company name, and the registered capital of the company must be indicated.

• Company name of the company limited by shares (SA):

a. The form of the company and the registered capital of the company must be indicated at the beginning or at the end;

b. The company should use French general terms.

The company name may contain the names of one or several shareholders.

4. About the registered address:

• Must be a real address located in France.

• The registered address must be stated in the articles of association of the company.

• If the registered place of the company is a collective contract house, the house lease contract and the registered envelope notifying the housing management committee should be submitted.

• The registered address of the company should have supporting documents. If the temporary registered place of the company is the residence of the manager, no legal proof is required.

French company establishment process:

1
Fill in the power of attorney
2
Sign the agreement
3
Deliver the company establishment fund
4
Company name registration and approval
5
Lease French address
6
Notarization of shareholder and director information
7
Apply for registration
8
15-20 working days for completion.

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