<\/span><\/h2>\nFrench law divides enterprise models through 2 different categories: civil company and commercial company.<\/p>\n
Civil company<\/strong><\/p>\nA civil company is a type of enterprise which can only do non-commercial activities. \u00a0These are considered non-commercial activities: liberal activities (such as a lawyer), agriculture, real estate construction, and management, etc. Among them, the more suitable for foreign investments are:<\/p>\n
\nReal estate civil company;<\/li>\n Construction\u2013selling civil company.<\/li>\n<\/ul>\nCommercial company<\/strong><\/p>\nAs for commercial companies, \u00a0French legislation provides a large number of enterprise models to adapt to investor\u2019s needs:<\/p>\n
\nSole Proprietorship;<\/li>\n Partnership;<\/li>\n Single-member limited liability company;<\/li>\n Limited Liability Company;<\/li>\n Single-member simplified joint stock company;<\/li>\n Simplified joint stock company;<\/li>\n Joint stock company.<\/li>\n<\/ol>\nSpecific<\/strong><\/p>\n\nBranch Office<\/strong>: A foreign company can open a branch office An extension of a foreign company in France, not a separate legal entity.<\/li>\nRepresentative Office<\/strong>: Used for non-commercial activities like market research; it does not conduct business operations.<\/li>\n<\/ul>\nLimited Liability Companies and Simplified Joint Stock Companies are models compatible with foreign investor’s needs. Since its reform in 2009, the Simplified Joint Stock Company has become increasingly popular due to its flexible structure, which can be tailored to investor\u2019s expectations. It also offers limited liability protection for shareholders, providing significant freedom in governance and operations, making it particularly appealing to foreign entrepreneurs seeking adaptability and risk protection.<\/p>\nSource: Insee<\/figcaption><\/figure>\n<\/span>3. Choosing the location for the operation headquarters of enterprises, and the location of the investment project<\/span><\/h2>\nTo establish a company in France, investors are required to have a registered headquarters within the country, as this is a mandatory legal requirement. France offers a wide range of options for selecting a company headquarters, providing flexibility to investors:<\/p>\n
\nOption 1: Home Address<\/strong><\/li>\n<\/ul>\nA business can be domiciled at the owner’s residence, commonly used by micro-enterprises. This cost-free option requires no dedicated commercial space but compromises confidentiality, as the address appears on official documents. The lease or property rules must allow professional use, and landlords must be notified. Temporary domiciliation (up to 5 years) requires legal declaration.<\/p>\n
\nOption 2: Rented Commercial Space<\/strong><\/li>\n<\/ul>\nLeasing a commercial property separates business and personal life but incurs higher costs. While rental expenses impact cash flow, savings on local business taxes (CFE) may offset costs, depending on the location. A formal lease agreement must comply with French commercial lease laws.<\/p>\n
\nOption 3: Coworking Space or Business Incubator<\/strong><\/li>\n<\/ul>\nCoworking spaces and business incubators offer domiciliation services and additional professional amenities, ideal for startups or freelancers. These cost-effective options foster networking but may not suit all businesses, particularly those needing a formal image.<\/p>\n
\nOption 4: Domiciliation Company<\/strong><\/li>\n<\/ul>\nDomiciliation companies provide business addresses and services like mail forwarding and virtual offices. This option offers flexibility, strategic locations, and potential tax benefits but involves ongoing costs. Contracts must comply with legal requirements and last at least three months.<\/p>\n
Note:<\/p>\n
\n\n\nDepending on the location, there might be a local urban plan that a commune enacted and that restricts the number or the sector of activities that can be done in an area. For example, there are some areas that are restricted to agriculture activities only.<\/li>\n When choosing the location of the operating headquarters or the investment project, the company must comply with the environmental law.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/span>4. Regulations on charter capital<\/span><\/h2>\nAfter establishing an enterprise in France, investors will receive a certificate of incorporation (K-bis extract<\/strong>). It corresponds to the Company ID card. This document contains a lot of information, notably the charter capital.<\/p>\nWhen creating a company, investors can contribute to the charter capital through assets or industry. Assets are defined either as cash or in-kind contributions. However, industry involves making one’s skills available to the company: their work, experience, expertise, reputation, etc. The associates must outline this contribution in the articles of association.<\/p>\n
Note:<\/strong> <\/span>A shareholder cannot receive a salary for his industry contribution.<\/em><\/p>\n<\/span>5. Legal representative of enterprises in France<\/span><\/h2>\nA legal representative is an individual responsible for managing a company. They represent the company to third parties and make decisions essential to day-to-day operations within the powers expressly granted to them by the company.<\/p>\n
French regulations do not require the legal representative of a company to be in France. However, company articles of association may stipulate that the legal representative must reside in France. To act as a legal representative of a French company, an individual must have the right to work in France and receive a salary from the company. Therefore, a foreign individual must comply with French regulations to work in France. To work in France, a foreigner must hold a residence permit or visa that authorizes employment. In this case, the relevant visa\/residence permit is the one with the mention “Talent: Legal Representative”.<\/p>\n
The requirements for the legal representative mentioned above are not necessary for foreign associates. They can freely have their residency abroad. Indeed, through their status, a shareholder may be eligible to have a Talent residence permit with the mention corresponding to their situation.<\/p>\n
Note:<\/span> <\/strong>France does not distinguish between a foreign shareholder and a domestic shareholder, except in certain regulated sectors such as media, defense, and energy. As a result, a foreigner can hold 100% ownership of a company.<\/em><\/p>\n
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