Company registration in France and obtaining residency
Registration of a French company is one of the cases that do not lead to residence. The relevant institutions must approve the business plan of a person who wants to obtain this French residence permit. The business plan must be related to the needs of the investment market in France. At the same time, that person requires to have relevant experience in one’s country. This applicant must own all the shares and also prove that one has a privileged position in this company. The company must be able to pay a minimum wage of 2,000 euros per month. The applicant requires an initial capital of around 4,000 euros to register a company. It will be given to the applicant after confirmation of the documents and during the process of a 3-year residence.
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Topics reviewed in this article:
- Registering a company in France and different types of companies
- Registration of a company in France and the required expenses
- Registering a company in France and its advantages
- Steps of registering a company in France
- Registering a company in France and a business plan
Registering a company in France and different types of companies
To register a company in France, you must be aware of its types and definitions. The types of French company registrations are as follows:
| French Joint Stock Company (Social Anonymity – SA) | At least seven shareholders are required to set up the company in France. The founders can be real or legal entities, and their initial capital is 37,000 euros, which is divided into shares. Shareholders have limited liability for their shares. |
| French limited liability company (société a repababilité limitée – SARL) | At least two shareholders are required. Up to 100 real and legal persons can form SARL in France. The applicants do not need a minimum capital. This structure is usually recommended for small and medium-sized companies established in France. |
| Simple joint stock company (société paractions simplified – SAS) | It is similar to a private limited company but more flexible. It requires only two partners to set up. Shareholders must choose the chairman of this company. |
| French sole ownership (entreprise individualuelle) | When only one founder decides to start a company in France, private property is the best choice. The founder is fully responsible for all debts and obligations. One does not need any initial capital to form this type of company in France. |
| Business Partnership (Société en nom Collection) | At least two partners are required to form a company as far as a partnership is concerned. The partners are responsible for the obligations and debts of the partnership to the extent of their assets. They do not require minimum capital. The business activities of the partners must be carried out under the same brand. |
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Registration of a company in France and the required expenses
It is necessary to know about the cost of company registration in France. The living expenses depend on your lifestyle and the place that you plan to live. The cost of food depends on whether you shop at a chain store in an out-of-town supermarket such as Carrefour or at a local grocery store, which is more expensive. Although there is no problem in making some major purchases in the supermarket, one of the good pleasures in France is the markets of this country. The following table shows the essential average monthly living expenses:
| Rent | 800 to 1,200 dollars |
| Electricity | 48 dollars |
| Food | 600 dollars |
| Telephone fee | 21 dollars |
| Heating/ stove | 59 dollars |
| Internet | 32 dollars |
| Transportation | 175 dollars |
| Mobile app | 20 dollars |
| Coffee/ Baguette | 80 dollars |
| Movie tickets | 19 dollars |
| Insurance | 29 dollars |
| Monthly fee | 2,083 to 2,483 dollars |
Registering a company in France and its advantages
The positive features of registering a French company are as follows:
- A person is allowed to stay in France for three years.
- Dependent children under 25 and parents over 65 can be included in this type of residence.
- No need to stay in this country (no presence requirement)
- You no longer need to travel to this country to apply.
- Opportunity to live in Europe for the whole year.
- Opportunity to apply for permanent residence after five year
Steps of registering a company in France
The steps for registering a company in France are as follows:
| Step 1: Business plan | You have to always start by creating a business plan. It allows you to clarify your vision for your business, which means you can show investors exactly how you work. You must consider who your market and customers will be, how much money you will invest, what your business is, and how much money you want and spend over the next few years. |
| Step 2: Regulations and structure | You need to choose the type of company for your business. The different types of companies were described before. Then, you have to approve your bylaws either with a registered company representative or a lawyer. |
| Step 3: Commercial bank account | You will need a commercial bank account. So, you will be prepared to go through your business plan and answer questions about your company when you arrange a meeting with the bank manager (the representatives of the company introduce the bank account). |
| Step 4: Deposit Capital | You must deposit at least 4,000 euros in joint capital to open a commercial bank account in France. The minimum amount of money for opening an account is 1 euro, but no bank will set up your account with such a small amount. |
| Step 5: Legal advertisement | One needs to publish an announcement in a reputable newspaper such as Le Parisien or Les Echos. |
| Step 6: Merge | Here, your application must receive all official approvals from French government agencies such as the tax office and the official service center. |
| Step 7: Registration | You will obtain a registered number (your company identification number) after receiving the merger certificate code. It must be written on all official documents and invoices. By entering this code, your bank manager can activate your commercial bank account and unblock the capital. You will also receive a letter from the tax office with the VAT number and contact details of the tax officer. |
| Step 8: Hire an Accountant | You need to hire a French professional accountant called a “qualified expert.” This person is legally obligated to keep you up to date with all tax laws and is legally responsible for the integrity of your accounts. This person can also help you with tax and salary returns. |
Registering a company in France and a business plan
A business plan for company registration in France is as follows:
- Overview of the individual job.
- Descriptions of the person or persons who want to do business, including their qualifications, skills, experience, and goals.
- A description of the product (s) or service (s) and how they are presented. A market study includes relevant trends, actual or potential demands, current or possible future opportunities, and descriptions of current and potential competition.
- The individual’s business strategy, for example, market positioning, pricing policy, marketing plan, communication methods, etc.
- Financial statements include initial capital, sources of additional credit, potential profit margins, breakpoint, and a three-year cash flow forecast.
- The plan attachment must contain all relevant documents, such as written financial support, letters of recommendation, expert opinions, and necessary permits.
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