Business insights and articles written by our team of world-class professionals
In France, the remuneration of the legal representative is a “tax-deductible expense”. In other words, the higher it is, since you don’t pay corporate tax on it, the higher it is, the less tax you pay!
On January 1st 2019, a couple of changes to taxation in France will happen. In particular, Taxation at the source (in French, “prélèvement à la source”) will now apply. But what exactly is it, and will change?
Do you want to create a company, hire employees, or innovate? Chances are, France can grant you subsidies or tax credits! These are just a few of those you could have access to as of 2018!
When running your company, the most important thing to fund is your WCR (Working Capital Requirement). Basically, this refers to all the expenses you absolutely need to pay to get your activity going (you can’t sell products if you can’t buy the materials to make them, for example).
As an employer in France, when paying your employee, there’s additional cost you must pay. This is what’s known as the “employer’s contribution”.
Normally, if you practice any sort of itinerant trade, you’re legally obliged to have this card.
However, there are a few exceptions to this rule.
Being the manager of the executive officer of a company in France obviously has a lot of perks. However, often, your social regime won’t be as good as that of a regular employee; you won’t always be insured against unemployment, for example. As such, it can be very worth your time to combine your function as the director with an employment contract, if it is possible.
Stock purchase warrants were created in 1998 to encourage business creators to take part in the equity of their company, and to stay there.
There are 3 main categories when it comes to raising money for your company:
Start-up capital (the equity of your company on the day it is created), Fundraising (finding people or companies to invest in your business in order to build up your equity. As such, this does not concern you if you create a sole proprietorship and Borrowing (it’s what allows you to meet the expectations of your funding plan if your equity isn’t enough)
The SA, or “Société anonyme”, is the French name for the Limited Company or Public Limited Company. This type of company is based on equity: it brings together people who may not know of each other, and whose participation is based on how much capital they have invested in the company. As such, it mainly concerns important projects.
