Company formation in France

Before deciding to set up a new company in France, read the information below to understand the characteristics of a Limited Liability Company (LLC) / (Société à Responsibilité Limitée (SARL):

Shareholders: at least one shareholder.

Director: at least one director.

Company Secretary: not required.

Minimum Share Capital: €1.

Legal Address: a company must have a registered office address in France.

Liability: it is limited to the amount of shares respectively held by shareholders.

Accounting: yes.

The basic CIT rate is 25%.

The PIT rate is progressive:

• up to €11,294 - 0%;
• from €11,295 to €28,797 - 11%;
• from €28,798 to €82,341 - 30%;
• from €82,342 to €177,106 - 41%;
• only €177,106 - 45%.

The standard VAT rate is 20% which is applicable to most goods and services not covered by reduced rates.

Reduced VAT rates:

• 10% applies to unprocessed agricultural products, renovation of housing raising standards, social housing, firewood, passenger transport;
• 5.5% applies to food products, books, electricity, gas;
• 2.1% applies to medicines covered by state refund, sale of live animals for slaughter, some cultural events, some press publications;
• 0% applies to intra-community and international transport, except road and inland waterway transport.

Double taxation avoidance agreements in France: Albania, Algeria, Andorra, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Cape Verde, Chile, China, Colombia, Congo, Croatia, Cyprus, Czech Republic, Denmark, Dominica, Ecuador, Egypt, Estonia, Ethiopia, Finland, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kosovo, Kuwait, Kyrgyzstan, Laos, Latvia, Lebanon, Lesotho, Libya, Liechtenstein, Lithuania, Luxembourg, Macedonia, Madagascar, Malawi, Malaysia, Mali, Malta, Mauritius, Mexico, Moldova, Monaco, Mongolia, Montenegro, Morocco, Mozambique, Namibia, Netherlands, New Zealand, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, San Marino, Saudi Arabia, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sudan, Sweden, Switzerland, Syria, Taiwan, Tajikistan, Tanzania, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Zambia, Zimbabwe.