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Opening a business in France

Opening a business in France

Updated on Monday 17th July 2017

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France is the largest country in the European Union and the third largest country in Europe. The country has been at the heart of European history and it is one of the top locations in Europe to open a business
A major economic power, France attracts foreign investors worldwide. France’s capital city, Paris, is a renewed cultural and business center, full of history and various business opportunities for entrepreneurs. Our lawyers in France are ready to walk you through the steps required for opening a business in one of the most powerful countries in the world.
Our French lawyers invite you to watch a comprehensive video about company formation in France

Opening a business in France

France encourages foreign direct investments and the procedure of opening a company in France is straightforward and very accessible due to the online company registration option. By using the online procedure, entrepreneurs avoid the bureaucratic relation with the public authorities (tax authorities, the social security agencies, the Commercial Court etc.). Thus, the entire procedure of opening a company in France doesn't take longer than seven days. If you need legal assistance for the incorporation procedure, you may call our French lawyers.

Reasons to invest in France

France is one of the most influential countries in the European Union and in the world, having great cultural, economic, military and political powers. The country is home to some of the largest companies in the world and many prestigious businesses originate in France or have been influenced by French culture. France has a mixed economy, comprising private enterprises and state properties. The French State governs some important business sectors such as: telecommunications, railways, energy and aerospace. France's main trading partners for imports and exports are: Germany, UK, USA, Spain, Italy, Belgium and the Netherlands.
An entrepreneur willing to open a company in France must be aware that France also offers a special attention to the education sector, having a highly centralized educational system and constantly investing in the formation of the future employees. Moreover, when it comes to educational programs for foreign students, France is considered the fourth most popular destination in the world.
Some of the most developed business sectors in France are the agricultural sector, the country being a large producer of agricultural products, and the the tourism sector - France is among the top tourist destinations in the world. Its popular cities, popular sites and other attractions make tourism a very profitable business sector. 

Hiring personnel in France

The French Labor Code governs the relationship between the employer and the employee. Employees have an online registration option in France. The procedure is simple and the employer must ensure that the employee obtains a pre-hiring declaration. Employees in France must be registered with the social security services. The employer must also register with the labor inspection and for the supplementary retirement funds, no later than three months after the business has been set up.

French holding companies 

Another option for those interested in opening a company in France is the holding company, which offers many advantages, especially from a fiscal point of view. Being a member state of the European Union, France follows the regulations of the EU’s Parent-Subsidiary directive. Thus, when a French holding company is controlling more than 10% of a subsidiary for more than one year, the dividends remitted by the EU subsidiary are free from taxation. However, on the basis of numerous double tax treaties signed by France with other countries, tax exemption can be applied in order to avoid the withholding taxes on dividends and also the companies can be exempt from paying corporate taxes, when the subsidiary is not in an EU country.
For more information about opening a company in France, please contact our law firm in France. We can provide a wide range of legal services, personalized according to your specific business needs in this country and also in other European states, such as Spain


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