What It Means to Set Up a Company in France
Setting up a company in France means creating a legal entity in France — typically an SAS, an SARL, an SA, a branch or a société civile — listed with the commercial court, the fiscal administration and the social security body, and compliant with national accounting and labour law from day one. The administrative work is well defined but operationally compressed: most obligations cluster within the first 90 days, involve several distinct authorities and have no shared interface.
There are no general restrictions on overseas ownership and no director residency rule. Sector-specific screening under Investissements étrangers en France (IEF) applies to defence, energy, critical infrastructure and certain technology sectors, but is rarely relevant outside those industries.
Choosing where to start a venture, what form to adopt and how to organise the holding entity should be settled before any filing. A misaligned setting up — wrong entity, wrong shareholding, wrong TVA status — is the most common source of compliance error in the first two years of a business in France.
Choosing the Right Structure
The four standard options for cross-border investors are:
- SAS (Société par Actions Simplifiée) — the dominant choice for foreign-owned subsidiaries. Minimum capital €1, no residency rule, fully flexible governance, several share classes available. Standard for PE-backed, VC-backed and group subsidiaries.
- SARL (Société à Responsabilité Limitée) — limited liability company. Minimum €1 paid-in funds, 1 to 100 associates, standardised governance. Best suited to small operations and family businesses.
- SA (Société Anonyme) — limited company with capability to be listed on a regulated market. Minimum paid-in funds €37,000, board mandatory. Used for listed groups and very large operations.
- Branch (succursale) — extension of the parent with no independent legal personality. Faster to register, no minimum paid-in funds, but the parent is fully liable for the branch’s commitments.
A subsidiary protects the parent’s balance sheet; a branch does not. For all but short-term market entry, a subsidiary is the standard route.
Simplified Forms: Micro-Entreprise and Sole Proprietorship
For an individual entrepreneur and very small operations, the micro-entreprise regime offers a simplified pathway with reduced reporting. It is straightforward to register online via the guichet unique, suits a sole proprietorship and applies a flat-rate social and fiscal regime. It is not, however, suitable for foreign-owned subsidiaries, equity-funded ventures or any business that intends to scale. The simplified status is also poorly aligned with the reporting expectations of cross-border investors.
Article-Level Form Choice
At the article-by-article level of the statutes, key trade-offs are: the article on share transfers (free vs. pre-emption rights); the article on governance (president alone or board); the article on the auditor (whether a commissaire aux comptes is appointed from day one); and the article on profit allocation. The right answers depend on the project’s industry, its funding direction and any shareholders’ agreement. We work alongside local counsel on each article that drives material rights.
In France vs. Internationally: How Setting Up Compares
In France, the regulatory framework is detailed but predictable. A company is constituted by filing statutes with the INPI, after which the entity receives a SIREN identification number through INSEE. Fiscal registration, social security affiliation and TVA enrolment follow as separate steps. There is no “one-stop shop”: each authority has its own forms and timelines.
The international comparison varies depending on country and across countries:
- United Kingdom — a limited company can be incorporated online via Companies House in under 24 hours; the equivalent setting up in France, end to end, requires six to eight weeks.
- United States — the LLC and corporation patterns are state-level; an EIN (employer identification number) is required for federal taxation purposes; overseas ownership is generally unrestricted.
- Italy — the S.r.l. is the equivalent of an SARL but requires notarial deeds, which formation in France does not.
- Germany — the GmbH requires €25,000 of paid-in funds, against €1 for the equivalent French vehicle.
The price tag in France is more administrative than in the UK or the United States, but the all-in cost of an incorporation is moderate and the regulatory infrastructure is reliable. Compared with Italy, the work is faster and less notary-bound. Compared with Germany, the paid-in requirement is far lower.
What Our Setup Service Covers
When we are engaged to establish an entity in France, the engagement typically includes:
- Form selection — the SAS vs branch trade-off, with fiscal, governance and group-consolidation considerations
- Drafting of statutes (articles of association) in collaboration with counsel, or coordination with the client’s existing counsel
- Capital deposit at a credit institution and certification of the funds
- Filing of the papers with the Greffe du Tribunal de Commerce and publication of the official notice
- SIREN, SIRET and APE code assignment through the INSEE process
- TVA affiliation with the DGFiP, including intra-EU enrolment where applicable
- URSSAF affiliation ahead of first-employee hiring
- Opening of a bank account — coordination and follow-through; in practice the slowest step
- PCG-aligned accounting setup — chart of accounts, opening balances, ERP configuration
- Statutory audit assessment — confirmation of whether the company exceeds the Code de commerce thresholds
- Corporate secretarial framework — initial register, board organisation, statutory filings calendar
Who Engages Interexco
We are most often engaged by:
- Cross-border groups establishing a subsidiary in France to support a new commercial presence, a manufacturing site or a regional headquarters
- An entrepreneur building an operation from scratch, often founder-led, in a wide range of industries from technology to hospitality
- Private equity funds and family offices forming a holding for an acquisition or an investment vehicle, working closely with their deal teams and investors
- Real estate investors building an entity (often an SCI) to acquire or develop property and associated assets
- In-house counsel of overseas groups outsourcing the operational setup to a regulated firm while retaining legal work in-house or with their preferred external counsel
For each of these engagements, Interexco operates as a single regulated point of contact across selection, filing, banking, accounting and audit — replacing the patchwork of providers that typically slows down a first-time market entry.
Why This Matters: The Regulatory Landscape in France
The legal foundations for entity establishment in France are found in the Code de commerce, the Code civil, the Code général des impôts (CGI) and the Code du travail. Annual accounts must follow the Plan Comptable Général (PCG) maintained by the Autorité des Normes Comptables (ANC). Fiscal obligations are filed with the DGFiP. Social contributions are collected by URSSAF, with complementary pension contributions handled through AGIRC-ARRCO. Personal records must comply with the Loi Informatique et Libertés under the supervision of the CNIL.
Three verifiable benchmarks for any business plan:
- French corporate tax (IS): 25% standard rate (DGFiP, 2025); a reduced 15% rate applies on the first €42,500 of taxable profit for qualifying SMEs.
- Statutory audit thresholds were reset by Décret n° 2024-152 of 28 February 2024, transposing EU Directive 2023/2775: a commissaire aux comptes must be appointed where the company exceeds two of three thresholds — bilan ≥ €5M, CA HT ≥ €10M, ≥ 50 employees — on two consecutive financial years. Subsidiaries within a group are subject to lower thresholds (€2.5M / €5M / 25 employees).
- TVA standard rate: 20% (CGI, art. 278). Reduced rates of 10%, 5.5% and 2.1% apply to specific categories.
Two additional points to keep in mind for any incorporation in 2026:
- E-invoicing rollout — mandatory receipt of structured electronic invoices from September 2026 for large enterprises, with full issuing duties extended to all SMEs by September 2027 (Loi de finances 2024). Any new entity should be configured on a compliant footing from day one.
- CSRD transposition — Ordonnance n° 2023-1142 of 6 December 2023 extends sustainability reporting requirements to a broader population of companies; group subsidiaries should consult the new criteria.
Once the documentation is complete, the Greffe filing itself typically takes 10 to 20 business days. The realistic operational timeline — paid-in funds lodging, bank account opening, URSSAF affiliation, TVA enrolment and accounting setup — is six to eight weeks for a working entity.
Documents and Requirements to Form a Company in France
The papers required to register an entity vary by chosen form, but the main core of supporting documents is consistent and the typical list of documents includes:
- Statutes (articles of association) drafted in the local language and signed by the associates
- Bank certificate of funds from the credit institution holding the contribution
- Proof of address — lease, domiciliation contract or owner’s authorisation, indicating the precise location of the office
- Director identification — passport copy and proof of address based on a recent utility bill or equivalent
- Beneficial ownership declaration (registre des bénéficiaires effectifs)
- Official notice publication in an authorised journal of legal advertising
- M0 form (or the dematerialised equivalent on the guichet unique) and the supporting administrative document
The Chamber of Commerce, the CFE (Centre de Formalités des Entreprises in its historical CFE role, now consolidated into the guichet unique), the Greffe and the fiscal administration each have specific requirements. A misfiled requirement at any stage will delay registering the entity by several weeks. The advertising notice must include the corporate purpose, the address and the directors’ identification — this published notice is the main source of rework when its wording is off. Where the activity calls for one, the relevant licence or sector authorisation should be obtained before commercial operations begin.
Overseas investors should consult an experienced firm early. The expense of correcting an inappropriate setup after the filing — restating the statutes, reorganising associates, reissuing the legal publication — significantly exceeds the cost of professional advice at the outset.
Bank Account and KYC
A bank account in France is required for the paid-in funds and for the entity’s operating life. In practice, opening it is the longest and least predictable step. Banks now ensure full KYC reviews on directors, associates and the beneficial owners — and for foreign-owned entities, KYC paperwork is typically deeper, including the parent’s identification details. Interexco coordinates with several partner banks in Paris so the funds can be lodged and the certificate issued in time for the Greffe filing.
How to Choose the Right Form for Your Venture
The choice between the available legal vehicles depends on five practical factors:
- Shareholding — does the project involve a single foreign parent, several investors, a holding entity, a partnership or a sole proprietorship?
- Governance — flexible (SAS) versus standardised (SARL); board pattern (SA); none (branch).
- Paid-in contribution — €1 minimum for limited-liability vehicles, €37,000 for the SA.
- Fiscal regime — corporation taxation (IS) by default for incorporated entities; the branch is taxed in France on locally sourced profits.
- Audit duties — automatic appointment of a commissaire aux comptes where thresholds are met, or where an incorporated entity is controlled by another company on a permanent footing.
Where the project is part of a broader cross-border roadmap — equity funding, market access, acquisition vehicle, joint enterprise — the choice should be coordinated with the group’s existing legal and fiscal framework. Interexco coordinates these aspects with foreign counsel, banks and the project’s investors so the chosen form is consistent across jurisdictions. The right answer is not always the most popular one; it is the one aligned with the project’s industry, governance and funding strategy.
Risk Management and Common Setup Errors
The most common errors when starting a business in France — observed across our client base of foreign entrepreneurs and groups — include the following types:
- Wrong entity — choosing a tightly framed limited-liability company where flexibility is needed, or a branch where balance-sheet protection is needed
- Insufficient share contribution — the €1 statutory minimum is admissible, but banks, suppliers and landlords expect more on a working basis
- Misaligned TVA enrolment — failing to apply for intra-EU TVA when imports or EU sales are planned
- Late URSSAF affiliation — leading to penalties on the first salary cycle
- Non-compliant accounting setup — using a non-PCG chart of accounts, which then has to be restated
- Missing beneficial ownership declaration — a recurring source of administrative rejection
- No statutory audit assessment — a commissaire aux comptes should be appointed at the outset where thresholds are foreseeably met
- Underestimated employment obligations — local employment rules, collective bargaining agreements and the Code du travail are dense and complex; foreign HR teams routinely underestimate them
Each of these errors is straightforward to avoid with proper coordination at the outset. They are far harder — and significantly more expensive — to correct afterwards.
Benefits of Working With a Regulated Firm
Engaging Interexco for entity establishment offers a number of practical benefits:
- A single regulated point of contact across selection, filing, accounting and audit
- A multilingual team working in English, French, Italian, Spanish and Russian — essential for cross-border projects
- Compliance from day one with the PCG, the CGI, the Code de commerce and the Code du travail
- Audit-ready records from the outset, ensuring no retrofitting if the company crosses statutory thresholds
- A professional accountancy framework that supports investors, lenders and group consolidation reporting
- Coordinated relationships with banks, notaries and counsel
- Practical assistance on insurance, social protection (national health and complementary cover), AGIRC-ARRCO pension affiliation, sector permits and the licence or license that some activities require before the first invoice can be issued
We conduct each engagement on a structured timetable. Success depends on early alignment between associates, counsel and the accounting team — and on disciplined coordination with each authority involved.
Industries Served
We support entity establishment across most sectors of the French economy: technology and software, life sciences, hospitality and food service, professional services, real estate, manufacturing, logistics and distribution, retail and e-commerce. Each industry has its own permits, collective bargaining agreements, regulations and fiscal rules — for example, hospitality is subject to collective agreements specific to the sector and to permits at the local prefecture and the regional chamber. For activities requiring physical equipment or specialised plant — manufacturing, food service, logistics — additional certifications may apply. Our role is to ensure the company is configured on the right industry footing from day one.
For overseas groups in marketing, technology or B2B services, our role typically extends beyond the initial filing: payroll for the first employees, fiscal filings, monthly bookkeeping, statutory year-end. The goals are continuity and reliability — not a one-off transaction.
Bottom Line: When This Setup Is the Right Choice
The practical conclusion: a fully compliant entity is the right approach when the overseas investor intends to operate in France on a sustained commercial footing — to employ people, to sign contracts under French law, to hold property assets, to invoice EU customers in their own name, or to receive public grants or regional grants (most grants and most public sources of capital require a French legal form to be eligible, and some regional grants are conditioned on locally registered employment).
For most entrepreneurs and cross-border groups, the SAS remains the preferred form: flexible governance, no minimum-capital constraint, no residency rule for directors and a fiscal regime fully aligned with a typical group structure. Where the project is part of a longer-term investment roadmap, the entity should be designed with the audit threshold, the operating expenses and the medium-term reporting requirement in view. The status of the directors, the status of the office and the status of the company — both fiscal status and social status — should be confirmed before the first invoice. Each status decision carries downstream consequences.
To help clients understand the framework, we provide a structured guide outlining the steps, the documents required, the timeline, the funds to be lodged and the fees. A clear estimate of the all-in price and timetable is provided on a fixed basis once the engagement scope is defined.
Frequently Asked Questions
How long does it take to set up a company in France? The Greffe filing typically completes in 10 to 20 business days once documentation is ready. The realistic operational timeline — covering the paid-in lodging, bank account opening, TVA enrolment, URSSAF affiliation and accounting setup — is six to eight weeks for a working entity. Sector-specific authorisations or permits may extend this.
What is the minimum capital to set up a company in France? The minimum share contribution depends on the chosen form. SAS and SARL: €1. SA: €37,000, of which at least 50% must be lodged at the time of incorporation. A société civile is constituted without statutory minimum. In practice, foreign-owned subsidiaries capitalise above the minimum to support banking relationships and creditor expectations.
Do I need to be resident in France to set up a French company? No. There is no residency requirement for the directors or associates of an SAS or an SARL. Overseas individuals and entities can fully own and manage a French company. Certain regulated sectors are subject to screening under Investissements étrangers en France, but general commercial activity is outside that perimeter. Non-EU directors who intend to live in France may need a long-stay visa or a passeport talent permit; the visa application is handled separately from the entity formation, with its own fees, a separate month-to-month timeline and its own supporting paperwork.
What is the difference between a branch and a subsidiary in France? A branch (succursale) is an extension of the parent without independent legal personality; the parent is fully liable for its commitments. A subsidiary is a separate locally incorporated entity (typically an SAS) whose liability is, in principle, limited to its paid-in contribution. For sustained operations, a subsidiary is the standard route. A branch is sometimes appropriate for short-term market access, but rarely for a permanent presence.
Is a statutory auditor required from incorporation in France? Not from day one. A commissaire aux comptes must be appointed when the company exceeds two of three thresholds set by the Code de commerce (Décret n° 2024-152 of 28 February 2024): bilan ≥ €5M, CA HT ≥ €10M, ≥ 50 employees on two consecutive years. Lower thresholds apply to controlled subsidiaries (€2.5M, €5M, 25 employees). Listed companies and certain corporate-controlled structures of this joint-stock type are audited regardless of size.
Can a foreigner register a business in France online? Yes. The guichet unique operated by INPI allows online registering of an entity in France. The platform centralises the M0 form, the official advertising notice, the beneficial ownership declaration and the transmission to the Greffe. However, the underlying papers — statutes, bank certificate, address proof — must still be prepared offline, and a local bank account is typically required before the file can be submitted.
How much does it cost to set up a company in France? Official filing fees are modest — typically a few hundred euros for the Greffe, the advertising notice and the beneficial ownership declaration. Professional fees — covering statutes drafting, notary or legal counsel, accounting setup and bank account opening — are scoped per mandate and quoted on a fixed-fee basis after initial scoping, reflecting the chosen form and complexity.
What support does Interexco offer after the company is set up? We deliver ongoing accounting, payroll, fiscal filings and statutory audit through dedicated engagements. The team supports the entity’s first financial year — opening balances, monthly bookkeeping, TVA returns, payroll for the first employees, year-end accounts and statutory audit where applicable. Many clients also engage us on a recurring basis to ensure compliance year on year.
Where can I learn more about each entity form? The official sources to learn more are the guichet unique portal (INPI), the website of the Ordre des Experts-Comptables and the public administration (DGFiP). For a tailored discussion of your plans — industry, structure, governance, employment, key risks — contact our setup team for an opening conversation.
Speak With Our Setup Team
If you plan to start a business in France — a new subsidiary, an acquisition vehicle, a real estate holding or a build-out from an existing branch — contact one of our chartered accountants about your structure, timetable and target operating date. We work in English, French, Italian, Spanish and Russian, and routinely coordinate with foreign legal counsel, group CFOs, deal teams and investors across Europe and North America. With over 40 years of experience supporting foreign entrants, our team understands the specific needs of cross-border groups and entrepreneurs starting up in France.
