Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean. It is often referred to as L’Hexagone ("The Hexagon") because of the geometric shape of its territory. It is bordered (clockwise from the north) by Belgium, Luxembourg, Germany, Switzerland, Italy, Monaco, Spain and Andorra. France's overseas departments and collectivities also share land borders with Brazil and Suriname (bordering French Guiana), and the Netherlands Antilles (bordering Saint-Martin). France is linked to the United Kingdom by the Channel Tunnel, which passes underneath the English Channel.
France is the largest state in the European Union by area and the second largest in Europe behind Ukraine.
France is a developed country and possesses the fifth largest economy by nominal GDP and eighth largest economy by purchasing power parity. It is the most visited country in the world, receiving 82 million foreign tourists annually. France is one of the founding members of the European Union, and has the largest land area of all members. It is also a founding member of the United Nations, and a member of the Francophonie, the G8, G20, NATO, OECD, WTO and the Latin Union. It is one of the five permanent members of the United Nations Security Council, possesses the third largest number of nuclear weapons in the world and the largest number of nuclear power plants in the European Union.
The most common type of company in France
There are three main kinds of business entity in France:
- business corporation – Societé Anonyme (SA)
- limited company – SARL
- simplified stock corporation - SAS
The requirements for an SA company
- the minimum share capital is €37,000, of which at least half must be paid up
- the company must have at least seven shareholders
- shareholders are liable up to the limit of their capital contribution
- accounts must be audited in line with statutory requirements
- top managers are treated as employees for tax and social security purposes
The requirements for a SARL company
- the minimum share capital was recently reduced to €1.00
- the minimum number of shareholders is one
- shareholders are liable up to the limit of their capital contribution
- accounts must be audited in line with statutory requirements
- top managers have more onerous tax and security rules than SA managers
SAS company
The Societé Par Actions Simplifieé (Simplified Stock Company) is a relatively new type of entity in France. It is a vehicle for creating a joint venture between a French company and a foreign partner. Previously, French companies had found it difficult to enter into joint-venture relationships with foreign companies because of the rigidity of French corporate law. However SAS companies are increasingly finding favour with foreign investors, particularly in the USA, who wish to set up subsidiaries in France.
The requirements for an SAS company
- the minimum share capital is €37,000 of which half must be paid up
- the company must have at least two shareholders and a chairman
- shareholders are liable up to the limit of their capital contribution
- there is no need for a board of directors
Requirements to incorporate French company
- Companies objects - a brief description of the activities of your company.
- Proposed company name
- Sàrl - one director and two shareholders.
- A copy of the passports of the shareholders and officers
- Details of the marital status of any shareholders, including names of spouses.
This requirement is unique to France
- SCI – one director and two shareholders.
