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France - DOING BUSINESS


Local business incentives


The French Government Agency for International Investment is the primary source of information for investment incentive matters.
New businesses, for instance specialised in industrial, commercial or craft sectors can benefit from a temporary profits tax exemption. They can also be exempted from Professional and Property and Land tax for 2 years. Research and Development companies can benefit from tax credit attributable on income tax or company tax. Regional aids are granted, in regional bonus, to new businesses with less than 12 months of activity and creating a minimum number of jobs drawn up by the Regional council. The National Agency of Valuation of Research (ANVAR) provides with financial support to innovative plans, transfers of technology, for young or independent inventors. New businesses (less than one year of activity or in the process of setting-up) can be subsidised up to 50% of their expenses. The agency for New business start-up (APCE) provides with information and advice to set up or take over a business.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
The "entreprise individuelle" is a Sole Proprietorship.   1 person   No notion of capital.   The entrepreneur is liable for the company debts on his personal assets.   None   No  
La Societe ? responsabilite limitee (SARL) is a Private Limited Company   Minimum 2 partners. Maximum 50 partners.   A minimum of 7,500 € is required but only 20% must be released at the incorporation and the rest within 5 years   Liability is limited to the amount contributed.   About 420 €   Yes  
The EURL is Sole Proprietorship Private Limited Company   1 person   A minimum of 7,500 € is required but only 20% must be released at the set-up and the remainder within 5 years   Liability is limited to the amount contributed.   About 420 €   Yes  
La Societe Anonyme (SA) is a Public Limited Company   Minimum 7 shareholders   Minimum 37,000 € and release of at least 50% at the set up and the remainder within 5 years.   Liability is limited to the amount contributed.   About 420 €   Yes  
La Societe civile par actions simplifiée is a joint-stock company simplified.   1 person, personal or professional body   Minimum 37,000 € and release of at least 50% at the set up and the remainder within 5 years.   Liability is limited to the amount contributed.     Yes  
La Societe en Nom Collectif (SNC) is a General Partnership.   Minimum 2 partners.   No minimum capital.   Partners' liability is several and indefinite.     No  
La Societe en Commandite par actions is a Partnership Limited by Shares   Two types of partners: active partners and sleeping partners.   No minimum capital.   Active partners' liability is indefinite and several.
Liability of sleeping partners is limited to the amount contributed.   		  N/A  
Civil Company.   Minimum 2 partners.   No minimum capital.   Members are jointly liable for social debts.     No  


Registration and licensing procedures


To set up a business in France, certain formalities are required. Concerning the drawing up of status, a search for anteriority with the INPI is advised to check that the company's registered name is not being used.


Legal framework


The Trade code, the Civil code, the General Tax code control company creation.


Foreign exchange control


No limitation on repatriation of capitals or profits, however an authorization from the Bank of France is required.


Regulations concerning equity investment


A majority holding interest in the capital of a local company by a foreign investor is legal in France.  


FDI inflows in France




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 49035   42498   24318   8 / 196
Sources : UNCTAD Database FDI/TNC


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Last modified in December 2003
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