Restrictions to setting up a business
There are three different entity forms available when deciding to set up a business in France.
- An SAS will be subject to French tax laws, such as corporate tax, VAT and CET. There is no share capital needed and you can have as many shareholders as you want. The SAS has its own bylaws and therefore is more flexible than a branch.
- The branch is a type of French entity. Branches have to use the by-laws of the parent company. This is a secondary establishment, opened by a parent company abroad, to facilitate the geographical extension of its activities and its relations with customers.
- In order for non-resident employers to hire someone in France, a liaison office is required. There cannot be any commercial activity carried out through this structure, making it useful for employing people in marketing, research or IT.
The new individual business statute entered into force. This major change is accompanied by new requirements for mandatory entries in business documents.
Business documents are documents issued by the company and relating to its business relationship with its customers or partners.
This may include:
- Purchase and delivery orders
- Tariffs and advertising material
For individual entrepreneurs, the new status is accompanied by a new mandatory entry in business documents. Thus, the name of the contractor must now be preceded or followed by the individual contractor
Failure to do so will result in a fine for contraventions of class. The amount of this fine can be up to €750.
If you wish to find out more, do not hesitate to contact us via telephone +33 (0) 1 53 93 94 20 or by mail at [email protected]. Our team of experts will happily assist you with any queries you might have.
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