Legal & tax services
Our network is here to help you open a business in France. Get fast, confidential and free information on the existing business taxes and on the suitable legal structure to invest and register your company in France.
Find the most relevant legal & tax options :
Choose the right structure to open your company depending on your activity, the type of ownership wanted.
Legal structure
Find out more about the corporate, property taxes…and the possible tax credits and exemptions when you start a business in France.
Business taxes
Wages, social charges and other labor regulations for when your are setting up a business in France.
Social contributions
Information about the main types of contracts, probationary periods, recruitment processes...
Hiring staffMain types of limited liability companies in France :
Registering your company in France is a simple process that only takes 3.5 days on average. Your inclusion into the Company Register will allow you to receive a SIREN number (unique company identification number) that you will use for any interaction with public administration.
| Société A Responsabilité Limitée (SARL) | Société anonyme (SA) usual form (Board of directors) | Société par actions simplifiée (SAS) | |
|---|---|---|---|
| Main characteristics | At least one partner. Easy to set up and operate. |
Structured for “monitored delegation”. Public offerings permitted. |
At least one partner. Freedom of constitutional arrangements for relations with shareholders, management and the structure and to transfer capital. |
| Minimum Capital | No minimum | Minimum of €37,000 | No minimum |
| Contributions | Sweat equity permitted. | No sweat equity permitted. | Sweat equity permitted. |
| Liability of partners/shareholders | Limited to contributions, except in civil or criminal lawsuits | Limited to contributions, except in civil or criminal lawsuits | Limited to contributions, except in civil or criminal lawsuits |
| Tax system | Corporate tax or option of paying income tax (if company is less than five years old and has fewer than 50 employees) | Corporate tax or option of paying income tax (subject to certain conditions). | Corporate tax or option of paying income tax (subject to certain conditions). |
An intermediary step: the liaison office
As an intermediary step to set up your company in France, you can have a liaison office. This structure is not a separate legal entity. It serves for non-commercial operations only (prospection, promotion…). It is not a permanent establishment, but it may be reclassified as such.
Business Taxes in France
Similar to most of its E.U counterparts, the French tax system also offers very competitive measures to encourage the creation or takeover of a new business in France, by the mean of partial, total exemptions and various tax credit measures. France has also signed bilateral tax treaties with most of its economic partners to avoid double taxation.
| Base | Rate | Possible Tax credits and exemptions | |
| Large companies | 33,33% |
|
|
| SMEs | Up to €38,120 of earnings | 15,00% |
| Base | Rate | Possible Tax credits and exemptions | |
| Corporate Property contribution | Rental value of fixed assets subject to the property tax | Set annually by the municipalities |
|
| Business value-added contribution | Value-added generated by the company | 0.5 % to 1.5 % |
| Base | Rate | Possible Tax credits and exemptions | |
| All companies | Land registry rental value minus a 50% rebate for buildings and 20% for land | Set annually by local authorities |
|
| Base | Rate | |
| Standard rate | 20% | |
| Reduced rates, option 1 | Restaurants, hotels, public transport, newspapers and magazines and certain leisure activities | 10% |
| Reduced rates, option 2 | Food, books, construction and renovation of social housing and certain agricultural products | 5.5% |
| Base | Rate | Possible Tax credits and exemptions |
| Goods value +transport costs+ insurances (up to the arrival port of the E.U) | Uniform E.U customs regulations (rates vary depending on the nature of the goods; TARIC code) | Customs duty is only charged once when goods enter the French territory. No further customs duties inside the European Union |
Employers social contributions
Another important aspect to consider when you decide to invest in France and to register your business here are the employers’ social contributions.
Employers are also required to pay social taxes on their employees’ wages. Those taxes contribute to the payment of health insurance, solidarity, family benefits, unemployment allowances, complementary retirement plans and professional trainings.
Employers’ social charges represent between 25% and 42% of the gross salary of the employee. The Competitiveness and Employment Tax credit, introduced in 2013, amounts to 6% of gross annual payroll for all salaries up to 2.5 times the statutory national minimum wage. In some cases, employers may benefit from reduced social security contributions.
Hiring in France
Apart from temporary jobs advertized by the specialised agencies, there are two main types of employment contracts in France depending on your needs and the type of work to be done.
Fixed-term contract (contrat à durée déterminée – CDD)
Extra employees can be hired for a limited time to meet temporary needs.
Permanent contract (contrat à durée indéterminée – CDI)
The permanent contract is the regular form of working contract in France. The permanent contract can be concluded for a full time or a part time job.
Remuneration
- The statutory national minimum wage (SMIC), has been set at €9.76 (gross) per hour on January 1st, 2017.
- The contract may also provide for additional benefits and a profit-sharing scheme.
Probationary period
Probationary periods give employers a chance to evaluate an employee’s skills. Employers can terminate an employment contract during the probationary period without having to provide grounds or severance pay. The duration is either 2, 3 or 4 months depending on the profile of the employee and can be extended once.
Funding opportunities
There are several incentives for recruitment in France. Thus, if you decide to invest on the French market, your company may benefit from subsidized employment contracts, employment or training funding opportunities should it fulfill the necessary criteria.
By using our investor support service, you will confidentially and within 48 hours, receive comprehensive information on each item needed to set up your project in France.
