In our FAQs, we give a basic answer to a question Europe Incorporations’ clients and potentials often ask: “What are the essentials of creating a company in France?”
- Your valid identification documents.
- Draft your articles of incorporation.
- Publish incorporation in a local gazette.
- Open a bank account and get your share capital certificate.
- Get you a virtual office.
- File your application with the commercial tribunal.
- Follow up with any questions or corrections needed.
Those are indeed the essential formalities of incorporating a company in France. But they are not the process. The process is intricate and requires diligence to ensure correctness and completeness, as the authorities will deny your application for the slightest errors.
Behind the above answers, the forms to be filled out differ for each entity. For example, the required forms to create a single proprietorship EURL are more extensive than that of an unlimited member SAS joint stock company.
As a non-resident entrepreneur seeking to create a SARL, for example, you must name a local manager (even if in name only) in your articles of incorporation or a separate deed shortly thereafter.
At Europe Incorporations, we manage that for you and can even sub-contract to you, a member of our local professional staff, as your named manager.
Choice of LLC and Other Legal Structures
The choice of the corporate form is essential in creating a company in France. Unlike in the United States, where the corporate tax regime is paramount to choosing a legal entity structure, in France, the social security regime (payroll taxes, unemployment, retirement benefits, etc.) to which your company and its local managers and executive are subjected is equally important, because it can be costly, depending on your corporate type.
For all these reasons, choosing the right solutions partner to create your company in France is important. Otherwise, choosing any of the many“fly-by-nights” with cheap prices advertised could leave you to hang and dry after creation.
French Corporate Structures
France has at least ten corporate structures to fit all needs. At Europe Incorporations, our principal focus is the creation of limited liability forms (LLCs), SA, Branch, and Representative Offices. However, whichever type of corporate entity you need to be incorporated (including partnerships) in France, we will do it for you.
The following is a quick overview.
Limited Liability Companies (LLCs)
France’s foundational limited liability corporate entities are the SARL – a limited liability commercial company and its sole-proprietorship form, the EURL; the SAS is a limited liability joint stock company and its unipersonal/single-member form, the SASU.
Publicly-Traded Corporation – SA
The SA (Société Anonyme) is the corporate structure for larger publicly traded companies. This is the equivalent of the US’ “Inc” or the UK’s “PLC.” The SA is the bigger corporate structure for larger corporations, and its creation process is more intricate, requiring the aid of notaries and, in some cases, lawyers to ensure that the formalities are in the correct order.
Branch
The Branch (“Succursale“) is as it sounds. It is the branch of a local or foreign parent company and takes its characteristics from that parent company.
Representative Office
A Representative Office is an extension of a foreign parent company that establishes a presence in France to conduct market research, and promotional activities, introduce potential clients to the foreign parent company’s products and services, or other non-transactional operations. It cannot actively trade/conduct any sales activity.
General Partnerships
SCS (Société en Commandite Simple)
This is a restricted partnership with a maximum of two partners – one general and one silent. General partners (“Commandités”) have the status of traders. They control the direction and management of the company and have joint, unlimited, and indefinite liability for its debts.
Silent partners (Commanditaires) have no merchant status, and their liability is limited to the amount of contribution to the company’s share capital – from which they may receive dividends.
SCA (Société en Commandite par Actions)
This is a restricted partnership that may publicly trade on a stock exchange. Its initial share capital is similar to the SA – €37,000 or €225,000 if it trades its securities to the public. It allows a maximum of four partners – at least one general partner (Commandités) with merchant status who controls the direction and management of the company and has joint, unlimited, and indefinite liability for its debts.
Three silent/limited partners (Commanditaires) with non-merchant status have limited liability to their share capital investment amount. They may also receive dividends.
SNC (Société en nom Collectif)
This is a general commercial partnership with two partners (Commandités) with merchant status, who control the direction and management of the company and have joint, unlimited, and indefinite liability for its debts.
The Process
To start the process, you need to provide us with the following documents:
- A photocopy of the owner’s valid passport or identity card – recto/verso (front and back)
- A brief description of your intended business activity.
We suggest that getting a certified copy of your identification documents in order and ready to transmit to us should be your point of departure.
From a brief description of your intended business activity, Europe Incorporations will draft your articles of incorporation in English with a French version for you to sign. Before filing the documents, we also provide you a declaration (in French) of non-conviction of the owner(s) for your signature (with a translated English version for your understanding).
France prohibits people with criminal records from creating a company.
We then get you a local virtual office contract (domiciliation) with one of our local partners with a central Paris address. Proof of business address is required for creating a company in France.
We help you to open a bank account with one of our online banking partners to deposit your share capital and receive your share capital certificate of deposit (a requirement to file your company creation).
We publicize your company’s formation in a newspaper of legal announcements to secure the certificate of publication.
We then file your incorporation documents and follow the process through receipt of your KBIS package – your incorporation documents with your company’s relevant identification numbers.
Other Requirements
If applicable (for some legal forms), we may need to draft a separate deed appointing a manager if this is not delineated in the articles of incorporation. In rare cases where the intended business activity is regulated, this will require authorization from the appropriate local agency and will require submitting proof of qualifications to operate in the domain. This will add time to the process.
A power of attorney may be required for local legal representatives who do not sign the incorporation documents (i.e., Europe Incorporations if you need us to represent you in a broader scope).
Other requirements include mandatory insurances the moment operation commences.
GDPR Api
If you are selling into the European Union, including France, through a business website, you must be in compliance with the GDPR (General Data Protection Regulation).
See our in-depth GDPR article.
Timing
This is the essence of the process, give or take. We anticipate three weeks as the average time for incorporation. However, the timing can vary depending on local activities, such as holidays, strikes, etc.
As our mission extends well beyond company creations, you will be fully covered by allowing Europe Incorporations to create your company and manage your local accounting, employment, or payroll needs via our SaaS-based local solution partners in France.
If our entity descriptions, FAQs, and knowledge center fail to answer your questions adequately, we advise you to contact one of our experts, who will provide personalized and unlimited advice and guidance to get you to an optimum decision.
Whether creating your company or providing your transactional support services, our team of local experts in France – accountants, auditors, and human capital management and payroll specialists – will assume the burden and guide you along the way, from choosing and incorporating the most appropriate corporate type for your business to closing your books, issuing your fiscal declarations, paying your taxes, and ensuring that your business operates in compliance and free of risks.
Contact Europe Incorporations – by phone (+1646-238.9807 or +336.11.45.81.49) or by email at ([email protected] or [email protected]).
