French Company Registration
Service Description
| I. Advantages of registering a French company |
| France is one of the most developed countries with a liberal trade policy and has established very close relations with countries in the European Union and the United States, allowing French companies to sell their goods freely and conveniently in Europe and the United States. France is also China’s third largest trading partner in the EU, after Germany and the Netherlands. 2021 bilateral trade between France and China amounted to $549.749 billion, up 19.3% year-on-year, of which China exported $296.848 billion to France, up 15.9%, and imported $252.9 billion from France, up 23.5%, with a trade surplus of $43.948 billion. In the future, with the deepening of the Belt and Road construction, the scale of China-Europe trade will continue to grow, especially after the future China-Europe agreement is implemented, the market of both China and Europe will be more open, trade more free and convenient, and will be one of our most important markets in the future. Therefore, more and more sellers and enterprises are planning to deploy in the European market, especially after the implementation of EU VAT withholding policy on July 1, 2021, the number of enterprises deploying in Europe is obviously increasing and the pace is obviously accelerating. As a major member of the European Union, incorporation in France offers the following advantages: 1. Reduction of VAT burden on sales of goods in the EU As we all know, the VAT for non-EU e-commerce sellers is paid by the e-commerce platforms, i.e. non-EU e-commerce sellers are required to pay VAT based on the sales amount. However, if the seller is a company registered in an EU country, the VAT is paid in the same way, still self-reporting. Therefore, registering a French company will greatly reduce the tax burden on the sale of goods. 2. High international legal status Protected by the European Union, which facilitates the rapid enhancement of the brand image of companies and their products; 3. Beneficial for building international brands France is one of the most important member states of the European Union and has established very close ties with the EU countries and the US, allowing French companies to easily access the markets of developed countries in Europe and the US. In addition, France is one of the most economically developed countries in the world, with a strong trade and manufacturing sector, and a market economy with a free trade policy. The registration of a French company will help to enhance the brand image of the products and to promote the brand internationally. 4. Helps to reduce business costs and improve the competitive advantage of enterprises Some of the reasons for registering French companies are to control the supply chain in France and Europe, to reduce the intermediate pipeline and cost of procurement, and to increase the competitive advantage of the company, while others are to avoid trade barriers and high tariffs when exporting products to Europe. |
| II. Types of French companies |
| The types of French companies are roughly as follows:
1. Société civile immobilière (SCI) civil immovable company It is established by multiple promoters and is mainly engaged in the business of managing and leasing houses under construction or built, and the properties under management should be purchased, owned or built by themselves. The advantage of this type of company is that it can reasonably avoid estate tax, gift tax, etc. through the change of shareholders of the company, and there is no similar company in our country. 2. Société anonyme responsabilite limitée (SARL) Limited Liability Company French limited liability companies do not have a minimum registered capital and can invest in cash, in kind or in property. However, in-kind or industrial investments must be fully funded, while cash contributions need only be one-fifth funded (Article L223-7 of the Commercial Code), and the remainder may be funded in multiple tranches over a period of five years. The minimum number of partners is two and the maximum number of partners is 100. The partners are only liable for the amount of their capital contribution, which is similar to the limited liability company in China, and is the best choice for Chinese e-commerce companies to register a French company. 3. SARL à capital variable variable capital limited liability company A type of limited liability company, i.e., the registered capital can be increased or decreased at any time within the scope of the articles of incorporation without each amendment to the articles of incorporation, and other provisions are the same as those for ordinary limited liability companies. In China, the capital is based on the amount of registered capital, and each change is subject to the relevant procedures. 4. Société en nom collectif (SNC) Common Name Company A type of limited liability company with at least two partners and no minimum registered capital, but must contribute capital. The company is managed by professional managers and supervised by investors. The main characteristics are: closed, even if the transfer of shares between partners must be unanimously agreed by all partners. The partners share the risk of debt and it is difficult to withdraw the capital. A husband and wife can be partners in the same joint-name company at the same time, which is mainly a family company in France. 5. Société anonyme (SA) Co. The minimum registered capital of a French company limited by shares is €37,000, half of which must be paid in at the time of registration and the rest can be paid in 5 years. 3-5 managing directors are appointed and supervised by a board of directors. The company is only liable for the debt of the share capital, the shares are freely tradable, there is no restriction on withdrawal, and the company can attract social capital. A limited liability company differs from a limited liability company in that the former (SA) requires a minimum of seven shareholders, while the latter (SARL) can have only one shareholder. In addition, a limited liability company must have a financial auditor, while a limited liability company does not have a mandatory requirement. Lastly, a SA must have a board of directors and the company is headed by a chairman, while a SARL is headed by a professional manager who is not necessarily a shareholder. 6. Société par actions simplifiée (SAS) Simplified Co. In order to encourage entrepreneurship, the regulations of the Société Générale were adjusted to form a joint stock company suitable for small and medium-sized enterprises. The executive body, composed of 3-5 general managers, is appointed by the board of directors and is supervised by the board of directors. The company is only liable for the debt of the share capital and the shares are freely tradable with no restrictions on withdrawal. In France, only two shareholders or even one shareholder are required for a simplified company limited by shares, but a simplified company limited by shares cannot absorb social capital and is generally used for companies that will go public in the near future. 7. Société créée de fait de facto company At least two partners, no minimum registered capital limit; management of the company is the responsibility of all partners, each partner works for everyone in their own name; no business registration is required, no legal entity status. Each partner has unlimited liability, and in case of debt, he/she has to bear it with his/her own property, as well as joint and several liability, and may bear the debts of the partners. 8. Société en participation partnership At least two partners, no minimum registered capital limit; each partner has ownership of his or her share (to be cashed out upon dissolution), simple establishment, only a contract signed by the partners, no need for public notice and business registration and other procedures, but the company manager must be registered as an individual businessman in his or her own name, no legal person status. 9. Groupement d’intérêt économique (GIE) economic interest association The purpose of forming a consortium of economic interests is to facilitate and develop opportunities for the economic activities of the members of the consortium over a period of time, and to enhance or increase the results of their business activities. It is exactly the same as the partnership mentioned above, but the association itself does not generate profits or share profits. 10.Société Coopérative de Production (Scop) Labor Cooperation Company The most important feature is that the workers of the company are also the decision makers of the company. The employees of the company make up the majority of the partners and together they hold more than 51% of the company’s shares. The employees designate the leaders of the company, and the distribution of profits is also decided by them. 11. Société en Commandite par Action (SCA) A bicompany is a company consisting of more than one shareholder with unlimited liability and more than one shareholder with limited liability, where the shareholder with unlimited liability is jointly and severally liable for the debts of the company without limit and the shareholder with limited liability is liable for the debts of the company to the extent of his capital contribution. The minimum registered capital is €37,000 and, in the case of public shares, at least €225,000. 12. Agents commerciaux business agent According to Article L134-1 of the French Commercial Code, a commercial agent is a natural person who carries out work on his own and, because he is a delegate, carries out not a commercial activity but a civil activity with unlimited liability. There are business registration centers (CENTRE DE FORMALITES DES ENTREPRISES) all over France, and the registration of companies can be done at the business registration center where the company is located. |
| 3、Conditions for incorporation of French companies & required information |
| Conditions of incorporation of a French company
Compared to other EU member states, the requirements for registering a company in France are relatively simple, as long as you are at least 18 years old and have confirmed the name of the company can be registered and opened, specifically as follows: 1. Company Members The registration of a French company requires at least one legal person aged 18 years or older and a shareholder, who may be the same person. The legal person needs to be a natural person and the shareholder can be a natural person or a corporate company. There is no restriction on the nationality of the shareholder and the legal entity may be a resident of France with relevant identity documents (French nationality, permanent residence, family residence, business residence, etc.) or a person of non-national origin residing outside of France. 2. Legal secretary of the company (our company can provide) French companies require a legal secretary who is responsible for the receipt and transmission of company correspondence and daily maintenance of the company, and the legal secretary must be a natural person of French nationality or a corporation. 3. company registered address (our company can provide) The registered address of a French company must be located in France and must be a genuine and compliant one. The addresses provided by our company are all business addresses in the center of Paris, France, and can receive mail and provide secretarial services such as forwarding mail. It is important for companies to choose their registered address carefully to ensure that they can receive correspondence from the government or banks and that it is processed in a timely manner so as not to affect their business due to late processing of correspondence. 4. Registered capital of the company The minimum registered capital of a French company is €1. The minimum registered capital can be set according to the actual situation of the company, and there are also companies with a registered capital of €100. At present, the registered capital of SARL type of companies is not required to be paid, so you can either not open an account, or register first and then open an account. 5. Company Name The name of the French company can be in French or English, and cannot be the same or similar to the registered name. Some special words such as “bank”, “insurance”, “trust”, “foundation” and other sensitive industries require obtain the relevant license to register. 6. Articles of Incorporation (available from our company) French companies are required by law to have their own articles of incorporation, which are often required by the government and various commercial organizations for their business, and which we will issue to the company’s legal entity for signature at the time of registration.
Documents required for the registration of a French company To register a company in France, you are generally required to prepare the following information in advance: -Provide company name (English or French) -Provide details of the company’s scope of operations (Chinese can be provided and translated by our company) -Determine the registered capital and share allocation, the registered capital does not need to be paid up, the minimum is 1 Euro, there is no limit, if there are multiple shareholders, please do the share allocation in advance. -Provide scanned copies of passports of the company’s legal entity and shareholders, or the business license of the corporation if the shareholder is a corporation. -Provide a scanned copy of the company’s corporate address certificate (the address certificate can be a utility invoice issued within the last 3 months, which will be translated into French) -Fill out the company registration information form, including corporate information and shareholder information. The following information is required: the name of the corporation, the nationality of the corporation, the date of birth of the corporation, the place of birth of the corporation, the marital status of the corporation, the address of the corporation, and the names of the father and mother of the corporation. Information on shareholders: Name of the shareholder, date of birth, place of birth, and address of the shareholder. |
| Fourth, the process of incorporation in France |
| Compared to other EU member states, the registration process for French companies is relatively simple and the processing cycle is faster.
● Specifically: 1.Provide the information of registered French company 2. After verification of the name, prepare the signature file information for registration, the articles of incorporation, the contract for the registered address of the company and the certificate of no criminal record 3. Signed and submitted to the French Trade Office 4. Issuance of business license KBIS (about 5-7 working days to get the electronic license) 5. Apply for VAT number and EORI customs number (about 5-8 working days) 6. Open a bank account (if required) Overall, it takes about 14 working days to register a French company with VAT number, which is very efficient in EU member states and a good choice for customers who urgently need to open an account on Amazon and other e-commerce platforms in the EU.
Documents obtained after the incorporation of a French company: -Certificate of Incorporation KBIS -French Articles of Incorporation -Registered Address Contract -Address Company Invoice -Equity certificate -Press Statement -Company seal -VAT number -EORI Customs No. -Provides registered address in France -Provides statutory secretarial services |
