Types of companies in France
- Limited liability company(SARL)
- Responsibility
- Minimum capital
- Min. number of shareholders
- Generally, recommended for
- Limited liability company(SARL)
- Limited
1€
1
SMEs
- Private limited liability company (EURL)
- Limited
7,500 €
1 (max. 100)
SMEs
- Public limited company (SA)
- Limited
37,000 €
7
Big companies
- Joint-stock company(SAS)
- Limited
1 €
1
Joint venture
- Sole proprietorship(EI)
- Unlimited
No
1
Sole trader
- Partnership (SNC)
- Unlimited
No
2
SMEs
- Private company limited by shares (SCA)
- Variable
No
2
SMEs
- Civil company (SC)
- Unlimited
No
2
- Generally, recommended for
Corporate tax rate in France
In France corporate tax rate in 2019 is at:
- 28% for the taxable income bracket between 0 and 500 000 €,
- 31% for amounts above.
In the coming year the rate should decrease to become a ‘’flat’’ rate at 28% in 2020 and at 26,6% in 2021.
However those rates are lower for companies with a turnover under 7,63 millions € and with a capital completely redistributed and held by a natural person at 75%.
Reduced rates are at:
- 15% for the taxable income bracket between 0 and 38 120 €,
- 28% for the bracket between 38 120 and 500 000 €,
- Normal rate for the next income.
Questions
Why should I incorporate my company in France?
- In France there are very competitive international companies in promising fields such as aerospace, pharmaceutical industry, luxury, agribusiness or mass distribution.
- Workforce is effective and qualified.
- Infrastructures and public services are effective.
- The country is an agricultural power at a global scale.
- The average propensity to save is high.
Which difficulties can be encountered in France?
- Private and public debts are high.
- There is not enough exporting companies, which leads to a loss of competitiveness.
- Range level decrease, there are not enough innovations.
- Unemployment rate is very high for young & older people.
Which are the cultural specificities of the world of work in France?
- Being 15 minutes late is acceptable.
- Professional and private lives are separated and balanced.
- When greeting, you must shake hands or kiss.
- Hierarchy is important.
Which are the most attractive cities in France to incorporate my company?
Paris, Marseille, Lyon or Lille are very attractive cities to incorporate your company.
