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.
Limited Liability Company Société à Responsabilité Limitée (S.A.R.L) in France
Limited liability company SARL is the most common company type in France. The minimum capital requirement for opening a limited company is 1 Euro, at least two shareholders (real person or legal entity) are needed to open the company, and one director is required. Establishing a company in France under the SARL structure is suitable for small and medium-sized enterprises seeking flexibility and limited liability protection.
The SARL model also benefits from relatively simple reporting obligations and lower administrative costs compared to other structures.
Joint Stock Company SA – Société Anonye in France
Joint Stock Company SA in France is set up by at least 7 shareholders (individuals or legal entities), and a minimum capital of 37,000 Euros is required for an SA – joint stock company. The company is run by a board of directors, and an independent auditor and annual general meeting of shareholders are required.
Establishing a company in France as an SA is a common choice for larger businesses aiming to raise capital through public offerings or private investment.
This form is ideal for enterprises that plan to operate at scale or enter regulated sectors where transparency and formal governance are essential.
Simplified Joint Stock Company (Société par actions simplifiée – S.A.S.) in France
Simplified Joint Stock Company in France is set up by one shareholder and one director is needed. Minimum capital requirement is 1 Euro for opening SAS company in France. Foreign companies that aim to create a joint venture with French companies prefer to set up SAS company. Shareholders are liable up to the limit of their capital contribution. Establishing a company in France as an SAS offers significant operational flexibility and is ideal for strategic partnerships and joint ventures.
Taxation in France
Corporate Income Tax rate in France
Corporate Income Tax rate in France is 33.33%.
The corporate income tax rate will be reduced from 33.33% to 28% by 2020. This reduction makes establishing a company in France more attractive for international investors aiming to benefit from lower corporate taxation over time.
Additionally, France offers tax credits for research and development (R&D), which can significantly reduce the effective tax burden for innovative companies.
VAT – Value Added Tax in France
The standard VAT rate is 20% in France, and reduced rates are 10%, 5.5%, and 2.1%. Investors considering establishing a company in France should take these rates into account when planning pricing strategies and cross-border operations.
Companies engaged in international trade may also benefit from intra-EU VAT simplifications and export exemptions.
Conclusion
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.
Contact ÖzbekCPA today to receive tailored guidance and professional support for your company formation journey in France.
