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[ESTABLISHING A BUSINESS ENTITY IN FRANCE]
incorporation of a subsidiary is more frequently recommended.
accept their office 6. Signature of the articles of association by the shareholder(s) 7. Legal announcements and formalities with the commercial court 8. Obtaining of the final corporate identification number Under normal circumstances, the incorporation would take approximately a week from receipt of all the incorporation documents duly signed. Delays often result from the following matters: (i) selection of the place of the registered office; (ii) selecting the French statutory auditors (if any); (iii) choosing the French bank and operating the transfer of funds. 3. Governance, Regulation and Ongoing Maintenance • Brief summary of regulation of each type and ongoing maintenance, reporting requirements See chart attached comparing the principal forms of commercial company.
2. Steps and Timing to Establish
Brief
overview
of
steps
to
•
incorporate/constitute each
(1) Branch The registration of a branch requires the provision of various documents (e.g., commercial lease, translation of the articles of association of the foreign company, decision of the board of directors (or equivalent) to open the establishment, name of the local representative responsible for its management) to the commercial court of the place of establishment. The registration takes approximately 3 to 4 days from filing. (2) Company Commercial companies must be registered with the local Registry of Commerce and Companies (“ registre du commerce et des sociétés” ). The following steps are required: 1. Drafting of the articles of association ( statuts ) 2. Signature of a lease or domiciliation agreement (or letter) for the company’s premises or registered address 3. Opening of a bank account where the share capital will be deposited; this account is opened in the name of the company in the process of being incorporated 4. Transfer of the share capital by the shareholder(s) to such bank account 5. Obtaining of letters pursuant to which the statutory auditors (if required)
Requirements
for
local
•
shareholding/directors Local shareholding:
• There are no general requirements concerning shareholders (individual or legal entity), but specific restrictions may apply with respect to regulated sectors of activity in France. For example, when certain regulated professional activities are exercised in France through companies, the majority
ILN Corporate Group – Establishing a Business Entity Series
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