COMPANY FORMATION IN FRANCE
France has a relatively high corporate tax rate for trading income (approx. 34%) and the tax authorities do not tolerate France company transactions related to companies from traditional tax havens. Nevertheless, a France company’s prestigious status can be used to your advantage, for example, to purchase and hold brand names.
French company key features
Minimum share capital is €2 but banks require more than this figure in order to set up an account.
The traditional share capital has been €8,000 but a minimum amount could be deposited of around €4,000.
All French entities must now have regulatory books (Accounting, Stock, Minutes) that must be certified by Companies house. These books must be kept by the company or the accountant.
Non EU directors must apply for the government authorizatio
Minimum 1 member of the board required
Popular applications with French companies
FRENCH LIMITED LIABILITY COMPANY (SARL) AS TRADING COMPANY
Fast incorporation and VAT registration process.
Shelf Companies with VAT available
Bank account can be set up remotely.
French company taxation
CORPORATE INCOME TAX: 33.3%. Surtaxes of 3.3% and 5% apply additionally to companies with income over EUR 763.000 and turnover over EUR 250 mln.
Branch remittance tax 25% can be avoided if the parent company is resident tax payer in EU.
INCOMING DIVIDENВS. Participation exemption of 95% applies to dividend income with at least 5% holding over 2 years with effective rate of 1.8%. Otherwise Standard Corporate Tax rate applies.
CAPITAL GAINS TAX (CGT) is normally at standard Corporate Tax rate. Although, 90% Participation Exemption applies if the shares are held for
at least 2 years with effective rate 3.61%.
ROYALTIES 33.3% paid to foreign companies, which can be reduced under tax treaty or EU Directive on Royalties.
DIVIDENDS 0% paid to EU resident companies. 30% paid to Non-residents (this rate is subject to reduce under a tax treaty)
INTERESTS 0% paid to foreign companies.
VALUE ADDED TAX (VAT). EU VAT regime. Standard rate for inland sales is 19.60%.
How to register a company in France?
- Choose a structure, what is appropriate for your business. Need help? Contact us.
- To find out more, please contact us.