Financial and regulatory compliance obligations
France offers businesses a transparent and secure accounting, regulatory and compliance framework. This structured environment, tailored to the size of firms, guarantees the reliability of financial information and investor confidence.
In summary
- France offers a transparent, stable and secure accounting and regulatory framework, aligned with European and international standards.
- Every business established in France must maintain regular, accurate and reliable accounting records, tailored to its size.
- Simplified systems exist for micro-enterprises, small businesses and certain mid-sized companies.
- Large companies and groups are subject to stricter obligations (forecasting, consolidation, compliance).
- France imposes clear rules regarding governance, anti-corruption, transparency of influence and personal data protection (GDPR).
An environment based on transparency and legal certainty
France offers investors an economic environment built on reliable financial information, corporate responsibility and legal certainty.
Businesses established in France operate within a structured regulatory framework that guarantees:
- Accurate financial information.
- Responsible governance.
- A high level of compliance with European and international standards.
These rules, applied proportionally to the size and activity of businesses, strengthen the confidence of economic partners, investors and authorities, while providing a predictable and stable environment for establishment and development projects.
What are the accounting obligations for businesses in France?
Every subsidiary or business entity established in France is subject to French accounting rules for maintaining regular, accurate and reliable accounts, regardless of whether it is a member of an international group.
Aim: To guarantee financial transparency and the reliability of information provided to economic partners and authorities.
Accounting can be done internally or entrusted to a chartered accountant registered with a professional body, a solution frequently chosen by foreign groups to ensure compliance with local standards.
The company must, in particular:
- Record all transactions related to its business in France chronologically (purchases, sales, receipts, payments).
- Issue and retain invoices that comply with French regulations.
- Conduct an inventory at least once a year to verify the existence and value of assets and liabilities at the end of the fiscal year.
- Prepare annual financial statements at the end of each fiscal year (balance sheet, income statement, notes to the financial statements).
- Maintain a bank account in France.
- Retain all accounting documents for at least 10 years.
Accounting entries must be kept in French. Accounting documents may be prepared in euros. They include, in particular:
- The journal.
- The general ledger.
- The annual financial statements.
- Supporting documents (invoices, purchase orders, delivery or receipt documents).
This framework, aligned with European standards, is compatible with the reporting requirements of international groups, while ensuring compliance with French law.
Are there simplified accounting requirements depending on a company’s size?
French law distinguishes between several types of business (micro, small, medium and large) based on financial and workforce criteria.
Simplified accounting: Which businesses does it apply to?
French regulations provide for simplified accounting systems, to adapt the requirements to the size and level of activity of businesses.
Under certain conditions, the following may benefit from simplified accounting:
- Micro-enterprises not exceeding two of the following thresholds:
- €450,000 total assets.
- €900,000 net revenues.
- 10 employees on average.
- Small businesses not exceeding at least two of the following thresholds:
- €7.5 million total assets.
- €15 million net revenues.
- 50 employees on average.
- Mid-sized companies not exceeding at least two of the following thresholds:
- €25 million total assets.
- €50 million net revenues.
- 250 employees on average.
These businesses can therefore record their receivables and payables only at the end of the fiscal year and present simplified annual accounts (balance sheet and income statement).
Depending on their category, some companies may benefit from a simplified presentation of their accounts and, in certain cases, request confidentiality for certain filed documents. In this case, the auditor’s report is not made public.
Exceptions
These relief measures do not apply to certain categories of businesses, such as banks and insurance companies, as well as listed companies.
What are the obligations in terms of the filing of accounts and the retention of documents?
Companies established in France must file their annual accounts with the clerk of the commercial court each year, in accordance with legal publication requirements.
This can be done online, in person, or on paper, depending on the circumstances.
Businesses must retain their documents to ensure that transactions can be traced and to allow for potential audits.
Main minimum retention period:
- Accounting documents: 10 years after the end of the fiscal year.
- Tax documents: Six years.
- Social and legal documents: Three to five years.
- Civil and commercial documents: Two to five years, with exceptions for contracts concerning the purchase/sale of real estate (30 years) or electronic contracts with consumers (10 years).
- Personnel-related documents: One to five years.
Documents must be kept in a reliable, accessible and secure manner, including in electronic format.
What increased obligations are there for large corporates and groups?
Companies with 300 or more employees and at least €18 million in revenues must prepare financial forecasts, which must be updated every six months.
Groups of companies may be required to draw up consolidated financial statements and a consolidated management report when their size and structure warrant it.
Groups exceeding at least two of the following thresholds must prepare consolidated financial statements, accompanied by a consolidated management report:
- €30 million in total assets.
- €60 million in revenues.
- 250 employees.
These documents provide a comprehensive overview of the group’s financial position.
What are the compliance and governance obligations for businesses in France?
Depending on their size, activity and organization, businesses may be subject to specific obligations, including:
- Publication of a non-financial performance statement.
- Compliance with the duty of vigilance.
- Rules regarding the responsibility and loyalty of directors.
- Application of internal control requirements.Implementation of internal control procedures, particularly financial ones.
What are the obligations regarding business integrity?
Over the last 10 years, France has strengthened its system for combating corruption and breaches of probity.
H3: Sapin II Act: Who does it apply to?
Large businesses (more than 500 employees and more than €100 million in revenues) must implement an anti-corruption system consisting of eight measures:
- Risk mapping.
- Anti-corruption code of conduct.
- Training for vulnerable employees.
- Third-party integrity assessment.
- Internal whistleblowing system.
- Anti-corruption accounting controls.
- Internal anti-corruption controls.
- Disciplinary sanctions regime.
Businesses below these thresholds are not legally required to implement anti-corruption measures, but have a strategic interest in deploying them, particularly to meet the requirements of their partners.
Dedicated public support
The French Anti-Corruption Agency (AFA) supports businesses and publishes practical guides, for example, on managing gifts and invitations.
What are the transparency rules for foreign investors?
Any activity aimed at influencing a public decision on behalf of a non-EU foreign entity is regulated by law. Organizations acting on behalf of a foreign client must:
- Register with the High Authority for Transparency in Public Life (HATVP).
- Declare their activities in a public register.
This system contributes to an ethical, secure and predictable business environment.
Further information
What are the obligations regarding governance and personal data protection?
Governance practices are based on reference codes developed by representative business organizations (notably AFEP-MEDEF and Middlenext).
Listed companies, for their part, must adhere to the “comply or explain” principle: apply the rules to which businesses voluntarily submit or explain any differences.
The GDPR applies to any business processing personal data in France or the European Union. Any information relating to an identified or identifiable natural person is considered personal data.
Businesses must, in particular:
- Process data lawfully, fairly and transparently.
- Collect only the necessary data.
- Guarantee their security.
- Respect the rights of data subjects.
Depending on the circumstances, they may be required to:
- Identify the personal data they collect and process and clearly define its purposes and legal basis.
- Maintain a record of processing activities.
- Appoint a Data Protection Officer (DPO).
- Implement appropriate technical and organizational measures.
- Notify the relevant authorities of data breaches.
With globalization and the rise of technology, data transfers outside of France are increasing. When these transfers involve countries outside the European Union and the European Economic Area, they are authorized provided that a sufficient level of protection is guaranteed, governed by appropriate legal instruments.
Getting support with compliance
The CNIL supports businesses, particularly SMEs and subsidiaries of foreign groups, by providing practical guides and educational tools to facilitate GDPR compliance.
At a glance
This page explains the financial and regulatory compliance obligations applicable to companies in France. It is based on institutional sources such as the AFA, the HATVP, the CNIL and Business France. It presents information covering accounting obligations, the filing of annual accounts, governance, anti-corruption, transparency and data protection. It uses the example of a foreign company seeking to understand the compliance framework before or after setting up in France.