Top Five Things to Think About When Creating a Company in France

Regardless of whether you monitor a company or are completely new to the business world, there are several steps you must take with the government before you can legally begin conducting your business activity. Fortunately, professional French legal services are available to guide you through every step of your journey.

We have put together a list of the top five things to consider when registering a company in France:

• You Must Confirm Your Eligibility

You must be an EU citizen or have a residence permit before you can even begin the process of registering your company in France. You will be unable to begin the registration process without either of these. Before you register your business, you must also ensure that you have the recognized qualifications required for your professions, such as accounting certificates or medical experience. Checking your eligibility should be your top priority.

• You Must Select A Structure

You can register your business as a sole trader, also known as a 'enterprise individuelle,' or as a company, also known as a'societey.' The decision you make will have an impact on your tax regime and our tax law firm will help you in this process. If you only intend to work for yourself and complete solo projects, registering as a sole trader is appropriate. If you intend to hire employees and expand your business, you should incorporate a societe such SAS or SARL. Please notethat changing your structure will be difficult later on.

• Your name must be distinct

You must ensure that another organization does not use the name you are considering for your business, so you must check for copyright. Check your company name at the French Patent and Trademark Office, the INPI, and the Commercial Court Registry. If your preferred option is already in use, you must choose another. Without a distinctive name, you may find yourself embroiled in a protracted legal battle. Keep in mind that you don't have the right to any taken name, even if it's yours.

• Corporate income taxes in France

The French corporate income tax is based on the principle of territoriality, which means that tax liability requires a nexus between the income and the French territory. For tax purposes, the Republic of France consists of the metropolitan and overseas departments.

The standard corporate income tax rate is 27,5% for companies whose turnover is at least 250 million Euros and 26,5% for companies whose turnover is less than 250 million euros. The rate should be reduced to 25% by 2022.

Small and medium-sized enterprises are subject to corporate income tax at a reduced rate of 15% on the first EUR 38,120 of profits and at the standard rate on any excess.

• You Can Seek Professional Legal Assistance

While registering a company in France is relatively complex, our law firm can provide you with a great deal of peace of mind. We are indeed specialized in assisting non French individual who want to start a business in France. We will assist you to make the registration process less stressful.

Please contact us if you need legal or tax advice on starting a new business in France, or if you need general French legal services to help you with your relocation.