As November rolls in, so does the hot shopping season, igniting a consumer frenzy that spells success for sellers. With the 11.11 Global Shopping Festival right around the corner, we have a special treat for our seller friends. Our expert advisors are here to unveil the secrets to wealth through French company registration and exploring brand-new opportunities in the European market.
Why Consider Registering a French Company in the 11.11 Global Shopping Festival?
1. Unbeatable Cost-Efficiency
When it comes to the cost of registering a company in France, it’s one of the most budget-friendly options compared to other European countries. There’s no minimum capital requirement, with a standard registration capital of just 100 euros. Additionally, there’s no need for capital verification. Starting a company in France offers unparalleled cost-efficiency.
What’s more, operating a French company only entails expenses like company registration address fees and financial and tax declaration fees, without the need to hire local employees. The overall cost of maintaining the company is relatively low.
2. Simplified Registration Process with Quick Turnaround
Registering a French company doesn’t involve complex certification processes, embassy or Hague certifications, or the need to mail original documents. The registration process in France is relatively fast, typically taking just 4-8 weeks. This makes it the quickest and simplest option compared to other European countries.
Check our guide to know whether it’s worthwhile to join AliExpress 11.11.
3. Competitive Edge and Cost Savings
Registering a French company provides access to the European Union’s internal trade liberalization policies. Leveraging France’s logistics and financial systems allows you to expand your European business. Moreover, France’s regulations for cross-border e-commerce businesses are relatively lenient, offering sellers flexibility in their operations.
After registering a French company, you can simultaneously obtain a company registration number, VAT identification number, and EORI number, enabling you to engage in trade exports directly. This gives you a significant competitive advantage, especially for sellers seeking to acquire European VAT numbers for efficient customs clearance.
4. Enhanced Brand Visibility and Sales
Registering a French company enhances your brand’s recognition and credibility, strengthening your brand’s international image. It becomes easier to penetrate markets in developed European and American countries, improving your product’s brand image and consumer trust. Naturally, this results in increased sales and revenue.
5. Explore Cross-border E-commerce Platforms with Traffic Support
For Sellers registering a French company, you can reduce intermediary procurement channels and costs. You can independently declare on various cross-border e-commerce platforms, avoiding withholding and tax representation. This makes it simpler to open foreign currency accounts through a French company.
With an independent address for the French company, you can prevent platform review associations, making it easier to gain support from platforms like Amazon and reduce store closure rates. You can also better establish a presence on emerging local e-commerce platforms in France, Germany, Italy, and other European markets.
Types of French Companies
Three common types include:
- Limited Liability Company (SARL): The most common company type, suitable for small and medium-sized enterprises.
- Simplified Joint Stock Company (SAS): More suitable for small and medium-sized businesses, it requires capital verification and is not recommended for e-commerce partners.
- Joint Stock Company (SA): Appropriate for medium to large enterprises with a registered capital of 37,000 euros, best for companies planning to go public, and not recommended for e-commerce registration.
Our seller advisors recommend registering a Limited Liability Company for the following reasons:
- Tax Policy: SARL companies enjoy a tax-exempt sales threshold of approximately 500,000 euros per year for the first two to three years, making it a tax-efficient choice for new businesses. However, it’s crucial to adhere to legal boundaries and fulfill tax obligations to avoid any legal issues.
- Cost Savings: SARL registration allows you to skip setting up a physical bank account and doesn’t impose a capital limit.
- Flexibility: It permits customizing your company structure, management methods, and shareholder rights according to your business needs.
- Annual Audit: New French companies benefit from a one-year audit delay, with annual audits starting from the second year, helping you save time and money.
Key Considerations for Registering a French Company
Company Name: While selecting a company name, it’s advisable to avoid names already in use to ensure legal protection. Choose names that don’t closely resemble existing companies, use French or English words, and avoid sensitive industry-related terms.