France is one the leading countries in European Union in terms of economy, politics and military; as France is one of the biggest economics in the world it offers great investment opportunities for the entrepreneurs. Establishing a company in France is considered a strategic move for businesses looking to expand into the European market with access to strong infrastructure and skilled labor.
Country Overview
Official Name: French Republic (République française)
Capital: Paris
Population: Approximately 68 million (as of 2024)
Official Language: French
Religion: Secular state, but the majority of the population identifies as Roman Catholic
Climate: Temperate climate; oceanic in the north and Mediterranean in the south
Time Zone: UTC+01:00 (UTC+02:00 during daylight saving time)
Phone Code: +33
Currency: Euro (EUR)
Types of Companies in France
| Company Type | Description |
|---|---|
| Limited Liability Company (Société à Responsabilité Limitée – SARL) | The most common type of company in France. Requires at least two shareholders (individuals or legal entities) and one manager. Minimum capital is €1. Ideal for SMEs due to low administrative burden and simplified reporting. |
| Public Limited Company (Société Anonyme – SA) | Requires at least seven shareholders. Minimum capital is €37,000. Managed by a board of directors. Mandatory to appoint an independent auditor and hold annual general meetings. Suitable for large businesses planning IPOs or attracting external investment. |
| Simplified Joint Stock Company (Société par Actions Simplifiée – SAS) | Can be established with one shareholder and one manager. Minimum capital is €1. Offers great operational flexibility and is commonly used by foreign investors for joint ventures. Shareholders are liable only up to their capital contribution. |
Taxation in France
Corporate Income Tax rate in France
As of 2025, the standard corporate tax rate in France is 25%.
SMEs benefit from a reduced tax rate under specific conditions:
| Profit Level | Tax Rate |
|---|---|
| First EUR 42,500 in profit (if turnover < EUR 10M) | 15% |
| Profit above EUR 42,500 (standard rate) | 25% |
In addition, companies with annual revenue over EUR 1 billion are subject to a 3.3% social contribution tax. For 2025, certain temporary measures may impose higher rates for very large enterprises.
VAT Registration
In France, VAT registration is mandatory if your annual turnover exceeds EUR 85,800. For certain professions (e.g. liberal professions), the threshold is EUR 34,400.
Businesses may also register voluntarily for VAT to reclaim input VAT and improve business relations with suppliers.
Value Added Tax (VAT) Rates
| Rate Type | VAT Rate | Applicable Areas |
|---|---|---|
| Standard Rate | 20% | Most goods and services |
| Reduced Rate I | 10% | Restaurant services, accommodations, certain construction services |
| Reduced Rate II | 5.5% | Basic food, books, environmentally friendly products |
| Super Reduced Rate | 2.1% | Certain medicines, government-subsidized publications |
Establishing a company in France offers investors a gateway into one of Europe’s most dynamic and influential markets. With flexible company structures such as SARL, SA, and SAS, and low capital requirements, France accommodates both startups and large enterprises. Its strong legal infrastructure, skilled workforce, and access to EU markets make it an ideal jurisdiction for sustainable business growth.
In addition, France’s well-defined tax system, government incentives, and openness to foreign investment further support international entrepreneurs. Whether you’re looking to launch a joint venture, open a local subsidiary, or expand your global presence, establishing a company in France can help you achieve your strategic goals with long-term benefits.
For personalized guidance and professional support in the process of setting up a company in France, contact ÖzbekCPA.
