Business Setup in France | Company Formation in Paris

Business Setup in France - Company Formation in Paris#

Creating a company in France is a major decision with lasting consequences on your personal liability, tax position and take-home pay. Choosing the right legal form, determining share capital, selecting the correct tax and social regime — each of these choices directly affects your net salary, social cover and tax bill. Hayot Expertise has helped more than 200 entrepreneurs incorporate and operate in France over the past decade. Our added value is a fully integrated approach that covers tax, social and accounting considerations from day one, so your structure is optimised before it trades its first euro.

SASU vs EURL: the key choice for a solo founder#

SASU (Single-member simplified joint-stock company):

• The president has employee-equivalent status: high URSSAF contributions but better social cover (unemployment excluded)
• Dividends subject to the 31.4% flat tax (no social charges on dividends)
• Minimum capital: €1, but 50% must be paid up at incorporation
• Extremely flexible by statute: ideal for bringing in investors later

EURL (Single-member limited liability company):

• The manager is a self-employed worker (TNS): lower social charges (~45% of net vs ~80% for SASU) but less comprehensive cover
• Profit taxed under income tax by default (IS option available)
• Dividends above 10% of share capital are subject to social charges
• 20% of capital must be paid up at incorporation, the balance within 5 years

Read more: SASU vs EURL: full comparison 2026

When you incorporate with partners, the decisive difference is usually governance, not tax. A SAS gives you near-total freedom to design the articles of association: approval clauses, pre-emption rights, exclusion clauses, tiered voting and a clean path to bringing in investors later — which is why most startups and growth projects pick it. A SARL offers a more standardised, more rigid framework that some family partnerships find reassuring, and a majority manager keeps self-employed (TNS) status with lighter social charges.

In both cases the quality of the articles is what protects you. We avoid generic templates and draft clauses aligned with the real project — distribution of power, exit terms, share transfers, deadlock protection and a shareholders' agreement (pacte d'associés) where the situation calls for one.

Share capital is freely set in the articles of association (minimum €1 for SAS/SASU and SARL/EURL). Several considerations guide the optimal amount:

• Credibility: symbolic capital of €1 sends a negative signal to some commercial partners and banks
• EURL dividend optimisation: under an IS-registered EURL, dividends not exceeding 10% of capital are exempt from social charges — higher capital expands this threshold
• Reduced IS rate: to benefit from the 15% reduced rate on the first €42,500 of profit, capital must be fully paid up and at least 75% held by individuals
• Bank lending: substantial capital reassures banks when applying for an overdraft or loan

Since 1 January 2023, all incorporation, modification and cessation formalities are centralised on the guichet-entreprises.fr portal (managed by INPI). The main steps:

1. Drafting and signing the articles of association by all shareholders
2. Capital deposit certificate from a bank or notary
3. Legal notice publication in an authorised legal gazette (JAL)
4. Online filing on the single window: documents, forms, payment of fees
5. SIREN/SIRET assignment by INSEE and entry in the Trade Register (RCS) or RNCS
6. Activation of the impots.gouv.fr professional account and VAT registration if applicable

We handle the entire process, from drafting the articles to receiving your Kbis.

Step 1: Strategic meeting (free)#

Analysis of your project, your objectives (income, growth, eventual sale) and your personal situation (tax, social, property). We provide a personalised recommendation note at the end.

Step 2: Financial simulation and structure selection#

We calculate your projected net income under each scenario (SASU, EURL, micro) for your target turnover, factoring in corporate tax, social charges and the flat tax.

Step 3: Articles of association and legal formalities#

Our articles are drafted to measure (non-dilution clauses, exit provisions, approval clauses for multi-partner projects). We manage the legal notice, INPI filing and follow-up through to Kbis receipt.

Step 4: Accounting and digital setup#

• Pennylane configuration (bank connection, invoice templates)
• Chart of accounts tailored to your sector
• Two-hour training on the tool
• First VAT return handled

Step 5: Post-incorporation support#

• Health insurance and director income protection selection
• Business bank account opening (partner bank referrals)
• First payslip if the director takes a salary
• First social declarations (URSSAF, SSI)

The quality of a company formation is judged on the arbitrages made before the first invoice. Two of them matter most.

Corporate tax (IS) vs income tax (IR). Corporate tax usually fits founders who want to capitalise, reinvest or fine-tune how they pay themselves; eligible SMEs benefit from the reduced 15% rate on the first €42,500 of profit, provided the capital is fully paid up and at least 75% is held by individuals. Income tax can still suit certain loss-making launches or very specific structures. We never treat this as an administrative box to tick — we tie it to your forecast, your lifestyle and your distribution strategy.

Salary vs dividends. This is prepared before incorporation, not patched a year later. The right structure lets you balance director pay, dividends, social cover and the cash retained in the company. That is precisely why we run a costed simulation upfront rather than correcting course twelve months in.

"Setting up a company" often hides a broader need: financing the launch. For a bank loan, an honour loan (prêt d'honneur), investors or simply visibility over year one, you need a credible forecast. We build your projected P&L, cash-flow plan and financing plan, keep them consistent with your business model and director pay, and help you size your first investments. Founders settling in France should also check eligibility for ACRE — a partial exemption from social charges in the first year — and for regional start-up grants.

Most delays come from an incomplete file. For a French incorporation we typically ask for: ID for each director, proof of registered office, the capital split and identity of each shareholder, the precise activity carried out, the chosen company name and corporate purpose, the capital-deposit certificate, and the relevant tax and VAT options. Where the project involves a fundraising, bank financing or a buy-out, we add a forecast and business-plan layer so the structure stays consistent with the financial file. On the registered office: a symbolic home address works to start, but we discuss domiciliation early so your registered seat fits your brand image and practical organisation.

With a clean, well-prepared file, registration through the INPI single window typically completes in 3 to 5 business days. Three things drive the timeline: how quickly the articles are validated, the availability of the supporting documents and the capital deposit, and the absence of errors in the filing. A simple solo project moves fast; a multi-partner setup with a shareholders' agreement, an in-kind contribution or a regulated activity takes longer. Our role is to remove the back-and-forth and avoid the rejections that add weeks.

You do not need to be a French resident or hold a specific visa to own or direct a French company — non-residents can be shareholders and directors of a SAS or SARL. A few points deserve attention. Opening the company bank account and depositing the share capital is the step where foreign founders most often get stuck, so we introduce you to banks comfortable with non-resident files (and to fully online deposits via a notary or partner bank). If you draw a director's salary, your French social affiliation and any totalisation agreement with your home country need checking. And if you relocate to France yourself, the impatriate regime (régime des impatriés) can exempt part of your income for up to eight years. We handle the French side end to end and coordinate with your home-country advisers.

Compare our accounting packages on our pricing page.

Our company-formation support is especially useful for:

• consultants and freelancers ready to move out of the micro-entreprise regime;
• regulated professionals setting up their practice — see our liberal professions page;
• startups and digital projects that need a scalable structure — see our tech startups page;
• founders who want to anticipate a holding structure from the outset;
• foreign founders and groups establishing a French entity, who need bilingual articles and joined-up tax, payroll and reporting.

1. Choosing a legal form without a simulation. A popular structure is not necessarily the right one — look at net income, cash and social cover, not fashion.
2. Copying generic articles of association. A poorly drafted clause can block a share sale, a partner's entry or a conflictual exit.
3. Underestimating post-incorporation obligations. VAT, the professional bank account, the accounting setup, director pay and the first filings all need to be anticipated.
4. Neglecting the forecast. A company can be correctly registered yet badly funded in its first months.
5. Optimising only the formation cost. Saving €200 at incorporation matters far less than avoiding an unfavourable structure that costs you for years.

Case 1 — independent consultant, SASU vs EURL. A B2B consultant targeting recurring revenue and weighing salary against dividends often hesitates between the two. We model net take-home income, social cost, the cash retained in the company and future flexibility. In many files the answer depends less on the legal form itself than on the level of pay actually targeted.

Case 2 — three co-founders with growth ambitions. For a company set up by three people with a possible future fundraising, registration is the easy part. The priority is solid governance, exit clauses, a sensible balance of power and a coherent tax framework — a textbook case where a well-structured SAS prevents future tension.

Case 3 — foreign founder launching a French SAS. A UK-based founder opening a French operation needs more than a Kbis: bilingual articles, a workable capital-deposit route for a non-resident, the right VAT registration, and a first payslip if they take a salary. We run the formation in English, coordinate with their home accountant and hand over a structure that is ready to invoice and to report to the parent.

• A global view: tax, social, accounting and legal work together from day one.
• A chartered-accounting firm, not a pure formalities agent — we design the structure for real operations, not just to obtain a Kbis.
• A digital approach: Pennylane, smooth processes and the option of fully remote support.
• Paris 8 roots: in-person meetings at 58 rue de Monceau for founders who want a local firm.
• Continuity after launch: the same team can run your bookkeeping, director pay and the tax arbitrages that follow.