In France there are multiple types of legal entity structures, such as:

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• Société A Responsabilité Limitée (SARL) Private Limited Company.

• Société par Actions Simplifiée (SAS) Simplified Joint Stock Company.

• Societe Anonyme (SA) Public limited company.

 

Private Limited Company / SARL​

All Limited Companies (SARL) must file accounts once a year with Greffe de Tribunal de Commerce and the French Tax Authorities. This must be done within 4 months of the company year end. These should be prepared by a Registered Accounting Firm. A Commissaire aux Comptes (Audit) will not be required unless you meet certain levels; an example of this is a turnover exceeding €3,100,000. The minimum share capital required is EUR 1.

 

Simplified Joint Stock Company / SAS​

This type of company is the best choice for foreign companies starting in the French market. The great advantage of a SAS is that it can appoint a corporate director and can be held, without any problem, by a corporate shareholder. This is particularly beneficial if the parent company is located outside the EU. You can also set up a stock-option plan with this type of company. The minimum share capital required is

EUR 1.

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Public Limited Company / SA​

This type of company is the best choice if you want to float your company on the stock market in France. The minimum share capital required is EUR 1.

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On formation of a company a bank account must be maintained.

 

After the formation the company must register for Corporation tax, VAT and Payroll taxes.

 

Corporation Tax:​ Taxable profits are taxed at 33.33%. A company can have a 15% corporate tax rate on profits up to EUR 38,120 providing they comply with the following:

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• The company must be trading.

• At least 75% of the capital must be owned by individuals.

• Share capital must be completely paid.

• Turnover must be less than € 7.63 million.

 

VAT:​ All French businesses must charge customers VAT on the sale of all goods and services at a rate of 20%. All businesses must register for VAT except if the turnover is under €30,000. A reduced VAT rate of 10% or 5.5% may apply to certain goods and services. A company needs to register for VAT if its turnover from the sale of goods exceeds €75,000 or if its turnover from the provision of services exceeds €37,500. VAT returns are generally made on a bi-monthly basis.