FAQs
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Frequently Asked Questions
- A short description of your intended business activities for your articles of incorporation.
- Valid national identity documents - government-issued passport or national identity document.
- A bank account with initial share capital investment deposited (€4,000 recommended).
- A declaration/attestation of non-criminal background (furnished for you to sign).
- Europe Incorporations works with online banking partners to open your account. We domicile your company locally with an excellent central Paris (virtual office) address and draft your articles of incorporation and statement of acts to be performed by your company.
- France has some ten corporate entity structures to suit all occasions. Europe Incorporations will advise our clients and create any legal form they desire. However, our core focus is the four primary limited liability companies (LLCs) - EURL, SARL, SASU, and SAS.
- The SARL and SAS are the foundation corporate entities that require at least two persons to form.
- The EURL and SASU are single-person (legal or physical) entities.
- Other differences relate primarily to future scalability as your company grows and the applicable taxation and social charges regimes.
- For EU nationals: a copy of a valid passport or a copy, recto-verso (both sides), of national ID.
- For foreigners who are non-EU nationals: a certified/notarized copy of a valid passport or a certified/notarized copy, recto-verso, of national ID.
- For foreign nationals living in France or relocating to France: a copy, recto-verso, of a French residency permit (carte de residence or carte de séjour) or the receipt of a valid residency permit application listing your address.
- France bars owning or managing a company if you have any criminal background. It requires a sworn/notarized statement of non-criminal conviction to be the owner, manager, shareholder, or director.
- Europe Incorporation will provide you with the declaration. You only have to sign it.
- Proof of French address via a rental agreement, deed, utility bills, and fix-line telephone bill (mobile lines are not accepted) within three months.
- If you have a place of establishment in France, you do not need domiciling. But as you are outside France and just starting the process, you need an established business address.
- Therefore, Europe Incorporations partners with local French virtual office vendors to offer you a virtual office with a Paris address, a local telephone number, mail forwarding, and other services at low monthly rates with a year contract.
- This can be a permanent or temporary solution to get your company registered/incorporated while you establish your permanent place of business.
- Any adult over age 18, as long as you are not a national of the European Unions’ sanctioned or banned list of countries.
- With the EURL, SARL, SAS, and SASU, there are no restrictions on the nationality of owners, managers, directors, or shareholders.
- In some cases, there may be a requirement to appoint a local French national as manager, even nominally, but that depends on the circumstances. Europe Incorporations will advise you accordingly.
- Timing depends on your documents being ready. Getting us your paperwork will likely take longer than our incorporation process.
- Opening your bank account is the most demanding part of the process.
- Europe Incorporations may take up to two to three weeks from your bank account opening to get you incorporated.
- VAT registration, if required, is with the Customs authorities and may take an additional ten days.
- In general, there is none, except where the name is already taken or is so widespread as to apply to other businesses in a sector.
- Europe Incorporations recommend that you provide us with two alternative names. We will check the name availability and advise you accordingly.
- There are none, as long as they are not already registered. Europe Incorporations will also check for trademark and patent registration availability
- Average employees and turnover thresholds determine the requirement for auditors in France.
- If two of the following three thresholds are met at the end of a financial year, you must appoint an auditor for your financial declarations.
- The average number of employees is 50 or more.
- Balance sheet total of €4 million or more.
- Turnover excluding tax is €8 million or more.
- If two of the following three thresholds are met at the end of a financial year, you are required to appoint an auditor for your financial declarations
- Average number of employees is 50 or more.
- Balance sheet total of €4 million or more.
- Turnover excluding tax is €8 million or more.
- Incorporating your entity in France starts with opening a bank account and depositing your share capital. The bank certificate of share capital deposit is required to file the articles of incorporation.
- A nominal share capital of €1 is required for the limited liability entities, but don’t be fooled. No French bank will open a non-resident account to start a business with €1.
- Based on experience, Europe Incorporations recommend a minimum of €4,000 share capital deposit for a bank to look credibly at your application. We will guide you through the process.
- Once we complete the incorporation and provide the bank with your SIREN number, the bank will unblock your share capital with an opened business account.
- The amount and value allocated to (contributed by) each shareholder is defined in your articles of incorporation and is at the discretion of owners and shareholders.
- You need to describe your business activity. The French commercial court requires this to assign your business an activity code.
- You must list your company's ultimate beneficiaries - owners, shareholders, directors, and managers.
- You need to list the complete contact information (address, email, telephone numbers) for all involved, including, if any, local legal representatives.
- Your share capital certificate declaring your initial share capital investment along with the details of your bank (name and address of bank)
- Europe Incorporation will write your articles of incorporation and ensure that it includes all required sections and details for successful filing.
- As required, you may need a power of attorney for local representatives to act on your behalf.
- Electronic signatures are accepted.
- Your certificate of incorporation is called the Extrait Kbis. It is your ready-to-do-business package and includes the following company identification numbers:
- A 9-digit SIREN number - your company’s identification number in France. France requires that the SIREN number be displayed on all invoices, official documents, and your company’s French website.
- A 5-digit NIC number - for internal classification.
- A 14-digit SIRET number, which is your company’s internal identification. This is a combination of the SIREN number and a NIC
- A 13-digit VAT number (optional), which starts with “FR” plus a 2-digit process code plus the SIREN
- An EORI number (optional), which is the French customs identification number for import/export goods internationally
- Europe Incorporations will file your company formation documents and follow the process through completion.
- No, but highly recommended. Both depend on your type of business activities and the threshold of your turnover.
- Europe Incorporations recommends an EORI number because it is your customs identification number for shipment into and intra-Europe.
- You must get a VAT number if you have an annual turnover of €34,000 or greater.
- VAT rates vary across the Union. The standard rate for most goods and services sold in France is 20%, though there are three other reduced-rate categories (10%, 5.5%, and 2.1%) where applicable.
- Europe Incorporations provides separate VAT services to simplify your VAT filings, payments, and refunds across the European Union.
- In France, VAT filings are generally monthly or quarterly.
- In France, different tax classes and regimes apply to different incorporation forms. In general, the corporate tax rate is 25%.
- Tax abatements include 100% tax relief in the first year of business and 50% in the second for new companies. Losses are allowed to be carried forward for six years.
- Other tax credits are also available, depending on the circumstances.
- Europe Incorporations will advise you of applicable differences, small-company exceptions, tax abatements, and credits in helping you to choose the appropriate form of company formation.
- For example, small companies may benefit from a reduced rate of 15% on their first €38,120 of profits.
- There is also a “micro-enterprise” regime for entrepreneurs with small turnovers to opt for taxation under a flat tax structure where they are allowed a fixed deduction threshold from which taxes are levied on the remaining profits.
- Europe Incorporations will collaborate with you for all your local compliance and statutory requirements, including VAT filings and payments, and periodic statutory declarations, where applicable.
- In addition to our company formations services, we provide local French bookkeeping and accounting services done in accordance with French general acceptable accounting principles (GAAP) through our local CPA partners.
- We also partner with local commercial law firms that will handle any legal or statutory issues in front of the commercial courts.
- Once you engage Europe Incorporations’ services with a summary description of your intended business activities, we will draft your articles of incorporation within 24-48 hours.
- At the same time, we will guide you through opening a bank account and depositing your initial share capital investment with one of our online banking partners, which might take a few business days, depending on your ability to provide your identification documents and any follow-ups. (Note: It is infinitely difficult for non-established foreign individuals and entities to open a business account with a traditional French bank).
- Upon receipt of your share capital deposit certificate, we will send you the finalized articles of incorporation and declaration of non-criminality for you to sign.
- Your incorporation documents are then filed and published in a local legal gazette - the last part of the process required.
Europe Incorporations then follows your company creation application through receipt of your KBIS package.
