Company formation in France

Forming a company in France involves several critical steps, from choosing the right business structure to registering with the appropriate authorities. LYS Legal assists with all these tasks, ensuring that the necessary documents are filed, legal requirements are met, and deadlines are adhered to. The steps involved in the company formation process typically include:

• Choosing the Business Structure: The first step in forming a company in France is selecting the appropriate legal structure. The most commonly used structure is a SARL.
• Drafting the Articles of Association: LYS Legal will help draft and review the company’s articles of association, which define the governance and operational structure of your business. This document is essential to the incorporation process and must comply with French law.
• Registering with the French Trade Register: Every company in France must be registered with the French Trade Register (Registre du Commerce et des Sociétés). LYS Legal ensures that all documents are properly submitted, including the articles of association, proof of capital deposit, and necessary certificates.
• Opening a Bank Account: A crucial step in forming a company in France is opening a corporate bank account. LYS Legal can guide you through this process, helping you meet the bank’s requirements and secure the necessary certificate of capital deposit.
• Obtaining a Registered Office: French law requires every company to have a registered office or legal address in France. LYS Legal offers advice on choosing a registered address or can provide virtual office services to meet this requirement.
• Compliance with Accounting and Tax Regulations: Once the company is formed, LYS Legal ensures that you remain compliant with French accounting and tax laws. They provide ongoing support with bookkeeping, payroll, and preparing annual financial statements.

Key Considerations in Company Formation

When forming a company in France, several legal and practical considerations need to be addressed. LYS Legal will assist you in navigating these issues, ensuring that your company is properly set up and compliant with local regulations.

• Share Capital Requirements: Depending on the type of company you wish to establish, different minimum capital requirements apply. For example, a SARL requires only EUR 1, while an SA requires at least EUR 37,000 in share capital. LYS Legal will help you determine the best capital structure for your business.
• Appointing a Statutory Auditor: Certain business entities, such as SA or larger SAS companies, are required to appoint a statutory auditor to review financial statements. LYS Legal can advise on whether your company needs an auditor and assist with the appointment process.
• Employment Law and Employee Relations: If your company plans to hire employees, LYS Legal will ensure that you comply with French labor laws, including drafting employment contracts and assisting with social security registration.
• Corporate Governance: Establishing sound corporate governance practices is critical for business success. LYS Legal will assist you in setting up a board of directors, holding annual meetings, and complying with reporting requirements.

Branch Office or Subsidiary Formation

Foreign businesses looking to expand into France can choose between setting up a branch office or a subsidiary. Each option has its own advantages, and LYS Legal can help you determine which is best suited to your business needs.

• Branch Office: A branch office operates as an extension of the parent company and is subject to the same liabilities. The registration process involves appointing a local representative and obtaining a legal address. LYS Legal will handle the registration with the French Trade Register and tax authorities, ensuring compliance with French law.
• Subsidiary: A subsidiary is a separate legal entity from the parent company, often formed as a SARL or SA. This option allows for greater independence and liability protection. LYS Legal will guide you through the incorporation process, including the registration of the subsidiary and the appointment of directors.

Taxation and Compliance

Starting a business in France involves navigating a complex tax system, which includes corporate tax, VAT, social contributions, and other levies. LYS Legal’s partners ensures that your company is fully compliant with French tax regulations, helping you to minimize your tax liabilities and take advantage of any available tax incentives.

• Corporate Tax: The standard corporate tax rate in France is 25%. Our partner helps businesses optimize their tax position and ensures timely payment of corporate taxes.
• VAT Registration: VAT in France is levied at a standard rate of 20%, with reduced rates available for specific goods and services. Our partners will assist with VAT registration and ensure compliance with filing obligations.
• Withholding Taxes: Our partners will advise on withholding taxes applicable to dividend, interest, and royalty payments, ensuring that you comply with both French law and any relevant double tax treaties.

Why company formation in France is easy with LYS Legal

With us setting up a company in France becomes a straightforward process, even for foreign businesses and individuals. We provide comprehensive support, from selecting the right business structure to ensuring ongoing compliance with French laws. Whether you’re forming a limited liability company, a joint-stock corporation, or a branch office, our experience and dedication to client success make them the ideal partner for your company formation needs in France.