The moment of official creation of a company always generates some nervousness on the part of the entrepreneurs. Due to the lack of information or due to the high bureaucratic processing required, many end up not even risking their business. The good news is that in France this process of opening a company is cheap, it takes little and the necessary steps are few. Therefore, this country is one of the most affordable in Europe both for French entrepreneurs or for foreign entrepreneurs.

The formalities of starting a business in France are considered simple. In other words, the entrepreneur only has to go to a single entity, the Corporate Formalities Center (CFE). Here, the cost of the registration application varies depending on the type of business to be opened and all associated processing takes approximately 4.5 days.

Entrepreneur nationality

It is only necessary that the entrepreneur be a European citizen or have a residence permit. In addition, qualifications or diplomas recognized in France may be required for some specific activities.

Type of business

The entrepreneur first needs to identify what type of business he is and in which category he fits. Business in France is divided into 5 categories, each of which has its own place of registration. The entrepreneur has to register his future company in the correct place and notify it of any changes. The categories are:

• Commercial or industrial (cafe, shop or factory, for example);
• Business / artisan (construction, crafts, manufacturing, for example);
• Independent professional or freelancer (dentist, writer, programmer, for example);
• Commercial agent (sales on behalf of another company, for example);
• Agricultural.

Another step it has to take before requesting the company's registration is to verify that the profession to practice is regulated by the French government. Some professions such as veterinarians, hairdressers, accountants are regulated and the individual's registration is mandatory as well as evidence that he has the necessary qualifications. You can check through the APCE website which are the sectors regulated by the French government.

In addition, it is necessary to verify that the name of your company is no longer being used by another, through the National Institute of Industrial Property (INPI) the entrepreneur can do it online and free of charge and, if desired, register the name company as a trademark, thus ensuring protection.

Company opening

As already mentioned, the Center for Corporate Formalities (CFE) is the only point of contact that the entrepreneur needs to establish to create his company, and the registration request can be sent physically or online. This will inform entrepreneurs on company creation regulations, will provide mandatory completion forms and then bring all documents together and transmit the request to the responsible agencies.

After completion of the company's registration, the National Institute of Statistics and Economic Studies (Insee) will send 3 identifications to the entrepreneur: Siren, Siret and APE. The first consists of 9 unique numbers that represents the official proof that the company is registered and this identification will be used by all government and official bodies when referring to the company. SIRET consists of a number of 9 digits representing the business site and lastly, the APA consists of 4 digits and a letter that represents the main activity of the business.

An asset that the French government presents in terms of entrepreneurship is the fact that banks are obliged to provide financial support to all new businesses. More specifically, a loan of up to €7,000. Another particularity is that ACCRE offers financial support to people who are unemployed or who are about to become unemployed and who want to create their own business, reducing social fees for up to three years.

necessary documentation

All companies need to be registered in order to start operating. Thus, The documents required to apply for the opening of the company are:

• proof of address;
• Identification (valid passport or residence card)
• Proof that your spouse comprises the responsibility if you apply.
• Finally, it may also be necessary to deposit funds at the notary or bank, write the statutes to the company, elect a CEO and publish a warning of incorporation into a legal newspaper.

Fees and taxes

After the company's registration process was successfully completed, it is necessary for the entrepreneur to understand his obligations on the French government through taxes. Here are the most common taxes:

Income tax

Rate applied to personal gains, whether they are employed from a company or on their own, whose value varies from not applicable to gains of up to 9 964 € and 45% for gains exceeding 156 244 €.

corporate rate

Some types of companies have to pay this tax, and the amount also depends on their capital structure. A rate of 28% is set for taxable profits of up to €500,000 and 31% for profits of greater value.

Social Security

It is necessary to make social security contributions through salary. There is a 40-45% fee for employers and a 20-25% fee for employees.

Value Added Tax (VAT)

Defined as a 20% rate however, there are reduced rates of 10% for hotels, restaurants, public transport and cultural and sporting events, 5.5% for food and books and 2.1% for newspapers.