As in most countries of the European Union, in France the most common form of doing business is a limited liability company (LLC or the French abbreviation - SARL). This form is most acceptable not only because of the elementary design, but also due to the fact that the amount of the authorized capital in this case is no more than 1 euro, being purely symbolic. This significant advantage of French law makes doing business in France the most attractive in comparison with many other European countries.
Company in France
It is possible to register a company in France within two weeks. By the way, in France you can register a company, the name of which will be similar to the name of an existing company. True, you need to be prepared for the fact that the latter can file a lawsuit demanding to change the name of the company. A prerequisite is the presence of a registered address in France. To do this, you need to submit documents of title to real estate to the registering authority, for example, a lease agreement.
Main types of companies:
Limited Liability Company (SARL).
The most popular form of doing business (as in Russia). Ideal for small and medium businesses. The minimum authorized capital for a French LLC is only 1 euro. When writing the Civil Code of the Russian Federation, its compilers took French legislation as a basis. That is why there is so much in common between the civil law of this country and Russia. For example, the number of LLC founders both in Russia and in France ranges from one to fifty. All shares have equal voting rights at meetings. But the number of votes depends on the number of shares owned by the owner.
As already mentioned, the management is carried out by the managers of the company, who may or may not have its shares. It is permissible that the manager is not a resident of the country. Managers are elected and removed by the shareholders' meeting. Their terms of reference are outlined in the constituent documents.
LLC must maintain its own accounting department. As for the audit, it is not mandatory for those companies with less than 50 employees, a turnover of less than three million euros, and the net assets do not exceed one and a half million euros. Otherwise, an audit is a prerequisite for the activities of the LLC.
As for the taxation issue, it is not easy to bear the tax burden in France. Thus, the corporate tax rate is 37%. But there are exceptions to every rule, therefore, preferential taxation conditions are provided for some types of companies. So a special tax regime is provided for companies registered before December 31, 2001 in free economic zones. For example, in Corsica or 44 regions in the mainland and dependent territories.