A foreign company setting up in France has a choice of a number of business forms. The choice will be a key determinant of the success for doing business in France. While all the business forms require French book-keeping and all are subject to the same level of 33.83% corporate tax, there are significant differences.
The table below summarises the characteristics of the most common business forms and their respective advantages and disadvantages, that are used in France.
Min paid-in capital
Nb of shareholders
Shareholder liability
Management bodies
Statutory auditor
Advantages
Disadvantages
Branch office
N/A
N/A
N/A
Branch representatives appointed by the parent company
N/A
Easy to set up and/or close
Branch is not a separate legal entity
EURL or SARL = Société à responsabilité limitée
€7,500
1 to 50 individuals or legal entities
Limited to contributions
1 or more Managers (gérant)
Only if total assets>€1.5M, sales>€3M, staff>50
Most efficient for a single shareholder - the parent company, Simple management
Considered small by third parties.
SA = Société anonyme
€37,000
Minimum 7 individuals or legal entities
Limited to contributions
Board of directors (3-18), 1 chairman, 1 to several Managing Directors
Yes
For large companies, Higher condideration from third parties
Heavy management organisation statutory advisor is compulsory
