Establish a Company in the Financial Sector in France
Establish a Company in the Financial Sector in FranceUpdated on Tuesday 23rd May 2017
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Foreign enterprisers interested in starting a business in France can choose the financial industry because of the large variety of branches they can choose from. Also, the legislation is friendly to both local and foreign investors interested in this sector. Our lawyers in France can offer full information on the legislation and licensing requirements related to the financial sector.
Starting a financial business in France
An enterpriser must first comply with the Commercial Law when establishing a company in the French financial sector by choosing and registering a type of structure approved by this law. Secondly, the specific legislation related to the financial industry must be complied with, such as Law No. 2003-706 on Financial Security and the Banking Act.
Our attorneys in France can assist with the company registration procedure.
Types of financial companies in France
As mentioned above, the financial sector in France is made up of various branches. Another advantage of this industry is that each sector is very well regulated and has specific provisions related to the licenses it must obtain. The following types of financial institutions are regulated in France:
- - credit companies;
- - money exchange companies;
- - payment institutions;
- - investment services companies;
- - holding companies establish for financial purposes;
- - microfinancing companies;
- - insurance and reinsurance companies;
- - audit companies;
- - electronic money companies.
The latter has recently been introduced in the legislation.
Licenses for the financial industry in France
After registering the structure used to provide financial services and selecting the type of activities it will undertake, the French company must apply for a special license and must also have a specific share capital in order to start operating. The minimum amount required to open a credit institution is 5 million euros.
The licenses issued for financial companies in France are categorized into:
- - banking licenses;
- - insurance licenses.
No matter the type of financial institution one will open in France, it must be authorized by the National Bank in the case of credit companies and by the Registrar of Insurers in the case of insurance and reinsurance businesses.
For assistance in starting a financial business, please contact our law firm in France.