What We Do
For this matter contact
- Michelle
- +33 67 863 9466
- info@sigtax.com
- 50 Rue de Londres, 75008 Paris
Why Choose Our Services for Your French Company Formation
We excel in guiding entrepreneurs through the intricate legal and bureaucratic steps of starting a company in France. We aim to streamline this process, ensuring it's quick, clear, and easy for our clients.
Taxation for French Companies
Understanding the tax landscape in France is essential for businesses, as tax obligations are closely tied to the company's structure. In France, various tax regimes are tailored to different types of businesses, each with specific rules and rates.
The corporate tax rate in France is standardized, but smaller companies can take advantage of reduced rates on their initial profits. In contrast, sole traders and partnerships are subject to a different set of tax rules. Navigating these diverse tax regimes is crucial for both optimizing tax liabilities and ensuring compliance with French tax laws
Ideal for small businesses, offering simplified taxes and lower rates under micro-BIC for commerce and micro-BNC for professional services. It is subject to turnover limits.
This applies to businesses with €82,000 - €818,000 turnover, necessitating detailed accounting but allowing more tax deductions and exemptions.
For large businesses exceeding €818,000 in turnover. It requires in-depth accounting and adherence to strict tax rules but provides significant tax deductions and exemptions.
The standard rate is 25%, with a reduced rate of 15% for the first €38,120 of profits for smaller businesses.
Available for start-up costs, R&D, charitable donations, and specific investments.
Standard rate at 20%, with reduced rates for some goods and services; VAT registration thresholds apply
As there are currently significant differences in tax rates perceived at cantonal level, choosing a canton for the Swiss company registration is an important element especially for tax planning. Find out more about company registration in France.
Types of companies incorporated in France
Ideal for small to medium-sized businesses, SARLs offer limited liability and are managed by a Gérant. They feature a closed share transfer system, ensuring controlled ownership.
Designed for solo entrepreneurs, EIs offer full control, while EIRLs provide individual entrepreneurs with limited liability, separating personal and business finances.
For larger ventures requiring at least two shareholders and minimum capital. Managed by a Board of Directors, suitable for significant business operations and potential public listing.
Known for flexibility and no minimum capital requirement, SAS is adaptable for small and large businesses, with easier share transfer mechanisms.
A partnership with joint, unlimited liability for debts, requiring at least two partners. Decisions are made unanimously by the partners, and taxation is on a personal basis.
This structure includes general partners with unlimited liability and limited partners whose liability is capped at their investment. It's a rare form in the current economy.
Similar to an SCS but with a minimum capital requirement and the ability to raise public funds. General partners handle management.
A single-shareholder limited liability structure. The shareholder's liability is limited to contributions, and the company can opt for personal income tax under certain conditions.
Steps for company formation
- Choose an appropriate business structure (like EURL, SARL, SAS).
- Register the company's by-laws.
- Register at the relevant business category center (CFE, CMA, CA).
- Open a business bank account and deposit the share capital.
- Publish a legal announcement of your company in a newspaper.
- Submit necessary incorporation documents to various administrations.
- Establish a registered office for the company.
- Decide on the financial year-end for the company.
- Finalize the formation process, which typically takes 3 to 4 weeks.
Why Open a Company in France?
- France's economy is varied and thriving, suitable for different business sectors.
- The country offers competitive tax rates with incentives for diverse businesses.
- France has advanced transport, communication, and technology systems.
- The government's pro-business stance and skilled workforce are beneficial.
- France's numerous double taxation treaties are attractive for multinational operations.
