How to Move a Company to France from UK

Recent government measures focused on international openness are making France a destination of choice for foreign investors, company founders, company directors and employees. 

In particular, the penalties of leaving Europe’s single market after Brexit means many UK businesses are being lured out of the UK and into their closest European neighbour.

Companies in France can offer their employees optimum working conditions – due to a highly effective social security system and a vast array of bilateral social security agreements – while the costs of sending employees to work in France can be offset through one of the most attractive expatriate tax systems in Europe.

Adverts welcoming British businesses went online immediately after the Brexit vote, and more than 4000 letters were sent to city investors. The French government has pushed through an extension to expat tax exemptions, offering eight years of incentives for workers based in France.

So, what are the potential benefits of moving your business to France, and what are the steps to forming a business in France?

Tax incentives for relocating to France

As of September 2016, individuals sent to work in France by a foreign company or recruited to work in France by a French company are tax exempt on any perks or supplements to your salary, or from 30% of the net remuneration. There is also a 50% exemption on any shares, deposits, and capital gains tax, providing the payments originated from a foreign source.

Whilst these measures aim to attract bankers, they also apply to smaller businesses and entrepreneurs with the right structuring. As with any tax scheme, it's vital that you seek professional advice before attempting to take advantage.

Smaller businesses could also reap more tangible benefits from moving to France. A current tax break allows corporations investing in SMEs to spread the expense over five years. This is beneficial in minimising tax and maximising profits, helping both investors and recipient. Efforts will also be made to help families integrate, with schools across the country promising foreign language classes for new students.

Moving your business to France

Once you’ve decided to move, the first big decision is picking the right business structure for your needs. The variations are numerous, and while it is possible to change, you’ll want to get it right first time.

The difference between a EURL and a SARL for instance might not be immediately apparent. As changing business classifications can be difficult, it is vital to seek specialist advice for any company formation.

Most small businesses in France will choose to incorporate as a SARL, a form of limited company. SARLs have a minimum of one director and technically requires €1 of share capital, but banks will ask for a bare minimum of €4000 to open an account.

Partnerships with foreign companies will usually form as an SAS company, and larger businesses with a few shareholders will usually become an SA, or corporation.

French business fees and finances

Opening a bank account can be one of the more difficult parts of the process as regulations have tightened since 9/11. In most cases you will need a partner who speaks French to liaise with the various organisations.

Knowing exactly what you’re selling is a major part of company formation in France. After you’ve chosen your structure, you need to register your company’s by-laws through a company formation agent or lawyer. In essence, this will tie you to selling only the products or services mentioned therein.

The incorporation process requires a few administrative fees, as well as declaring the specifics of your business. This is accomplished by contacting the local ‘centres de formalités des entreprises’ (CFE) specific to your industry. They can then forward your application to the correct Chamber of Commerce to secure the requisite paperwork. 

For more information on relocating to France please contact TRCI for information and assistance with all of the above or email  sales@therelocationcompanyinternational.com.