The procedure for setting up a company in France
Setting up a company in France involves complying with several formalities after choosing its legal form: drafting the articles of association, depositing the capital, publishing the legal notice and registering via the one-stop shop to obtain the Kbis extract.
In a nutshell
The main steps in setting up a company are:
- Define the project and choose the legal structure based on the number of partners, the desired level of liability and the development objectives.
- Draft the articles of association to establish the operating rules, the distribution of capital and rights, and the powers of the directors.
- Register the company by determining an official address.
- Deposit the share capital into an escrow account and obtain the certificate of deposit.
- Publish a legal notice to inform third parties of the company’s creation.
- Submit the registration application online via the one-stop shop to obtain the Kbis extract, the official document certifying the company’s legal existence.
Who can be a partner in a company?
A partner is a private individual or corporate entity who contributes capital to the company’s share capital upon its creation or during its existence.
What rights do partners have?
The rights of partners vary depending on the legal structure of the company and the provisions set out in its articles of association. However, they constitute a common foundation designed to guarantee their participation in the life and performance of the business.
- Right to profits: Participation in profits proportional to their contributions, with the possible payment of dividends.
- Voting rights: Participation in collective decisions as defined in the articles of association.
- Right to information: Access to the business’ accounts and documents.
- Liability: Limited or unlimited depending on the legal structure chosen.
In partnerships (e.g. SARL), the securities are called shares. In corporations (e.g. SAS), the holders of securities are called shareholders and own shares.
Who manages the company and what are their responsibilities?
The director legally represents the company and is responsible for its day-to-day operations.
Depending on the business structure, they may be:
- President (SAS, SASU).
- Director (SARL, EURL).
- Chairman of the Board and/or Chief Executive Officer (SA).
The director holds a corporate officer role. They are appointed by the partners or shareholders to act in the name and on behalf of the legal entity.
Their role is multifaceted:
- Representative: They legally bind the company in its dealings with third parties (clients, partners, government agencies).
- Executive: They ensure operational management and implement the strategy defined by the partners or relevant corporate bodies.
- Organizational: They ensure compliance with the company’s legal, tax, social and accounting obligations.
The scope of their powers is defined by law and the articles of association. In terms of third parties, their powers are generally broad to ensure the legal security of transactions.
The director is not an employee by virtue of their role. They may receive remuneration set by the competent body in accordance with the articles of association (often the shareholders’ meeting).
Depending on the business’ legal structure and the director’s situation, they fall under either the employee status or the self-employed status.
For further information, see our dedicated section.
Their civil or criminal liability may be invoked in the event of mismanagement or an offense.
What is share capital and how does it work?
Share capital corresponds to the total amount of contributions made by the shareholders when the company is formed.
It structures the distribution of rights (voting rights and financial rights) and constitutes a financial signal regarding the business’ economic credibility. Share capital can be a condition for certain operations (tenders, financing) and can be increased or decreased during the company’s existence, according to regulated procedures.
What types of contributions are possible?
- Cash contributions: Sums of money paid into a blocked account until registration.
- Contributions in kind: Tangible or intangible assets transferred to the company.
- Sweat equity: Skills or expertise (without being incorporated into the share capital).
The minimum amount varies depending on the legal structure:
- The share capital is freely determined in SARLs and SASs, with a minimum of €1.
- It is set at a minimum of €37,000 in public limited companies (SAs).
What are the key steps to creating a company?
Creating a company involves a series of legal, administrative and financial procedures. From structuring the project to registration, each step has specific requirements, determining the validity and security of the business structure. The sections below detail these different phases to facilitate understanding.
Before registering, it is essential to lay the foundations of the project:
- Develop a structured business plan (timeline, ambition, development prospects).
- Conduct market research to determine viability.
- Determine the nature of the activity (commercial, professional, craft, civil).
- Choose the number of partners and the director in accordance with the intended legal structure.
- Identify financing needs.
- Check whether the activity is regulated or subject to specific controls (foreign investment, competition law).
- Anticipate migration process if non-European directors relocate to France.
This phase is crucial for the legal and financial security of the project
A name, slogan or logo of a business can be protected as a trademark.
Applications are filed with the French National Institute of Industrial Property (INPI). Protection is valid for 10 years and is renewable.
Key points:
- Check availability before filing.
- Choose the relevant classes according to the Nice Classification (NCL). Each class corresponds to a specific business sector.
- Anticipate future activities: Protection only covers the selected classes.
- Indicative cost: Between €50 and €300 depending on the number of classes.
Guidance from an intellectual property consultant can ensure a smooth process.
Further information
The legal structure (SARL, SAS, SA, etc.) determines:
- The governance model.
- The liability of the shareholders.
- The social security status of the director.
- The procedures for transferring shares.
The articles of association constitute the founding document of the company. They define:
- The company’s purpose.
- The registered office.
- The share capital.
- The operating rules.
They are mandatory, public and enforceable against third parties.
If there are multiple shareholders, a shareholders’ agreement can supplement the articles of association. This confidential document outlines, in particular:
- The conditions for exiting the company.
- Specific rights.
- Dispute resolution.
The registered office is the company’s registered address, as stated in the articles of association. It determines the jurisdiction of government agencies and courts and must be confirmed before registration can be completed.
Possible options:
- Home address of the legal representative (subject to conditions, limited to five years).
- Commercial or professional premises (lease adapted to the business activity).
- Approved registered office provider.
- Coworking space or business incubator.
- Premises associated with a business.
Any subsequent transfer requires an amendment of the articles of association and the legal publication.
Depositing share capital is mandatory for commercial companies.
It involves:
- Opening an account in the name of the company being formed.
- Depositing the cash contributions.
- Obtaining a certificate of deposit.
The deposit can be made with a bank or a notary. The certificate is required to complete the registration process.
Note: To facilitate the account opening process, contact the parent company’s bank to find out if it has subsidiaries in France.
Certain activities require:
- Prior authorization (regulated activities).
- A review of foreign investment.
- Approval by competition authorities.
These checks must be carried out before registration. See our dedicated page.
Publishing a legal notice informs third parties of the main stages in a company’s life (creation, modification, structural operations, dissolution). It must be published in an authorized publication in the département where the business’ registered office is located.
The indicative cost for this varies between €120 and €200, depending on the legal structure and location.
Further information:
Registration is done online via the one-stop shop for business formalities, managed by the French National Institute of Industrial Property (INPI).
The application must include:
- Signed articles of association.
- Proof of registered address.
- Certificate of deposit of funds.
- Identity document belonging to the company director.
- Declaration of beneficial owners.
Additional documents may be required depending on the business activity.
Approximate cost of the formalities: €60, excluding the legal notice.
After validation:
- The company receives its Kbis extract (proof of registration).
- Legal existence becomes official.
The average processing time is two to three weeks if the application is complete.
Le guichet unique: The One-Stop Shop
Centralizing formalities through a single digital portal and providing a clear legal framework for the incorporation process ensures a secure, transparent and predictable environment for both domestic and international investors.