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Opening a company in France

France is a major European economy that has attracted many foreign companies to settle in. France offers a variety of company structures and enjoys a strong international trade network and advanced infrastructure. At the same time, France encourages foreign talents to develop in France. By setting up a company, they can obtain immigration status and enjoy local benefits, killing two birds with one stone.

Main types of French companies:

1. Limited Liability Company (Société à Responsabilité Limitée, SARL)

• Suitable for small and medium-sized enterprises, shareholders bear limited liability.

• A minimum of 2 shareholders and a maximum of 50 shareholders are required, and the capital is determined by the shareholders’ contributions.

2. Joint Stock Company (Société Anonyme, SA)

• Suitable for large enterprises that can issue stocks publicly in the market.

• Requires at least 7 shareholders and a minimum registered capital of €50,000.

3. Simplified Joint Stock Company (SAS)

• A flexible form of joint stock company with no limit on the number of shareholders.

• Suitable for innovative and medium-sized companies, especially start-ups and international branches.

4. Sole Proprietorship (Entreprise Individuelle, EI)

• Suitable for small businesses, owned and operated by individuals.

Advantages of establishing a French company:

• Global trade hub: As a member of the European Union, France provides businesses with a bridge to European markets.

• Efficient infrastructure: France has an advanced transportation and logistics network that facilitates international trade.

• Attractive tax policy: France offers tax incentives for innovation and start-ups.

Requirements for establishing a company:

1. Company shareholders and directors

• A French company requires at least one shareholder and one director. The director can be a foreigner and does not need to reside in France.

2. Registered capital

• The minimum registered capital for different company types varies. SARL has no minimum capital requirement, while SA requires 50,000 Euros.

3. French registered address

• The company must have a registered office address in France.

4. Company Secretary

• French law does not require a company secretary, but a company may choose to set one up to handle day-to-day compliance matters.

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