What You Need to Know About Establishing a Company in France

The French economy is one of the largest in Europe and the world. The French economy is the 3rd largest in Europe and the 7th largest in the world. France ranks 32nd in the ease of doing business index.

The advantages of establishing a company in France are that it is easier to establish a company compared to G20 countries, the time required to establish a company is short, France has easy access to the entire European market due to its membership in the European Union, the consumer market is large in France, and there is a highly skilled workforce. Having a large economy, doing business and establishing a company being easier than in other countries, and the variety of business areas lead to France being preferred by foreign investors.

What Types of Companies Can Be Established in France?

The types of companies that can be established in France are listed below.

• Private limited company: This is the most common type of company in France, which can be established with a minimum capital of 1 euro and at least one shareholder.
• Public limited company: It is a type of company that must be established with at least 7 members. A public limited company is a suitable type of company for large businesses.
• Simplified joint stock company: A type of company with a minimum capital of 37,000 euros. A simplified joint stock company is established with at least one shareholder and is managed by one manager.
• General partnership company: It is a type of company that can be established with at least two partners and does not require minimum capital.
• Limited partnership company: It is established with two partners: a general partner who does not provide capital and a limited partner who provides capital.
• Freelance companies: A type of company that helps freelancers carry out their activities in a more professional way.
• Limited liability sole proprietorship: A type of company that can be established without requiring a minimum wage, but does not protect the founder’s personal assets in case the company suffers a loss.

How to Establish a Company in France?

In order to establish a company in France, it is necessary to have a residence permit or to be an EU citizen. People who want to establish a company in France in any sector should first check whether the name they find appropriate for their company has been taken. The name check for a company to be established in France is done online and free of charge through the Institut National de la Propriété Industrielle (INPI). People who will establish a company in France must register their company name and logo in the INPI system for protection purposes.

In order to establish a company in France, financial support can be obtained from French banks. French banks provide start-up loans called Prêt à la Création d’Entreprise (PCE) or business loans called Prêts Bancaires aux Entreprises (PBE) and loans of up to 7,000 euros to those who want to establish a company in any sector.

One of the steps in establishing a company in France is registering the company. In France, companies are registered through the Centre de Formalités des Entreprises (CFE) or online at www.guichet-entreprises.fr. Proof of address, a valid ID such as a passport, residence card, and proof that the applicant’s spouse understands the responsibility are the documents required to register a company in France.

After the company registration in France, a 9-digit business number called SIREN is given. The SIREN number is proof that the company to be established in France is registered.

What are the documents required to establish a company in France?

The documents required to establish a company in France are a residence address, passport, ID or residence card and spouse consent. An EDF invoice and a rental contract are required as proof of address to establish a company in France.

In France, spousal consent is required for individuals wishing to establish a company; spousal consent demonstrates that the spouse understands the responsibility of establishing the company.

How Much Does It Cost to Form a Company in France?

The cost of establishing a company in France varies depending on the type of company to be established.

The costs of establishing a company in France by type are given in the table below.

The costs required to set up a company in France are labor, facility costs, public costs such as electricity and communications, transportation and corporate taxes. Other start-up costs required to set up a company in France include minimum capital, notary fees, taxes and other ancillary costs. Compared to other EU countries, the costs of setting up a company in France are lower.

What are the French Tax Rates for Companies?

French tax rates for companies vary depending on the type of tax. The taxes that a company established in France must pay are; 33.3% corporate tax applied to the business’s global income, 3.3% social contribution share taken for corporate tax paid over 763,000 euros, 10.7% special tax taken if the established company’s turnover is over 250 million euros, value added tax, which is reduced in certain cases but is generally taken at a standard rate of 20%, and withholding taxes taken at different rates depending on the agreements made by France.

In France, taxes have been made mandatory for companies to pay and may vary from year to year. The corporate tax rate in France, which is 33.3%, will be reduced to 28% as of 2022.

What Are the Major Business Sectors in France?

The major business sectors in France are listed below.

• Car
• Machine
• Chemical substances
• Textile
• Tourism
• Aircraft manufacturing
• Food processing
• Metallurgy (Materials science)
• Electrical/electronics
• Fashion
• Cosmetic

What Are the Largest Companies in France?

The largest companies in France vary by sector. The largest airline company in France is Air France. Batorama, Voyagesdoc, CroisiEurope are the most popular French tour companies. The largest oil company in France is Vermilion.

France is a developed country in the fields of export and import. The presence of large ports in the Mediterranean region of France allows it to do overseas trade and transportation. The largest company among French cargo companies is Bourbon Offshore Surf. The largest company among French shipping companies is CMA CGM Group.

France is an important country in terms of fashion and cosmetics sectors. The largest cosmetics companies in France are the world-famous Yves Rocher and L’Oréal Paris brands. The largest of the many famous fashion companies in France are Louis Vuitton, Chanel, and Hermés.

What are the Turkish Companies in France?

Turkish companies in France are Doğuş Holding, Eczacıbaşı, Özler Plastik, Kökler Yatırım Holding, Orhan Holding and Airties. Operating in many sectors, Doğuş Holding invests in the shipbuilding sector in France and provides employment for 200 people.

Working in the automotive and packaging sectors, Özler Plastik has invested in an automotive equipment production facility in France, employing 120 people. Airties, a Turkish company working in the wireless network field, has an innovation center in France.

Can Turkish Citizens Establish a Company in France?

Turkish citizens can establish a company in France. In order for citizens of the Republic of Turkey to establish a company in France, they must have a residence card, a long-term EU residence card, a 10-year Algerian residence card, a private and family life residence card, or a residence card stating that they are an entrepreneur or an employee in any profession in France.

In order for a Turkish citizen with another legal status to establish a company in France, he/she must obtain a temporary residence permit that allows him/her to work freely in the province where he/she is located, after proving its viability.

Can I Get a Residence Permit by Establishing a Company in France?

Yes, you can get a residence permit by establishing a company in France. France grants a talent visa to freelancers who want to start a business and can help develop the French economy; this visa is also known as the French talent passport. In order to get a talent visa, the duration of stay in France must be more than 3 months and an investment of at least 30,000 euros must be made in the company to be established and to get residence in France.

People who apply for a French talent visa have the right to stay in France for 4 years from the date of arrival. People who receive a French talent visa can also bring their family members to France. Spouses and children who are 18 years old of age of people who receive a French talent visa can have a work visa.

Qualified and highly paid employees can also obtain a French talent visa. Highly qualified employees who apply for a French talent visa must have an employment contract that covers a period of more than one year and the salary must be 1.5 times the annual average salary determined by the French Immigration Minister. Those working in private and public research or higher education institutions must have an employment contract of no more than four years and have completed the required level of education in order to obtain a French talent visa. Those working in an international company and authorized to work in an institution in France must earn 1.8 times the minimum wage in France in order to obtain a French talent visa.

People working in the field of art and literature can also get a French talent passport. In order to get a French talent visa, people who will work as freelance artists must stay in France for at least 3 months.