Launching a Business in France in 2026: Key Considerations

Choosing the Right Legal Structure

The legal form of your company is one of the first decisions to make. Popular structures include:

• SARL (limited liability company) – suitable for small and medium businesses.

• SAS (simplified joint-stock company) – more flexible and attractive to investors.

• Branch or subsidiary – an option for foreign companies establishing operations in France.

Each form has implications for liability, governance, taxation, and administrative obligations.

Registration and Administrative Formalities

• Businesses must register with the Centre de Formalités des Entreprises (CFE) to obtain a SIRET number and VAT registration.

• Certain activities may require additional authorizations or permits, such as health, professional, or environmental licenses.

Language Obligations

The Toubon Law requires workplace documents, software interfaces, manuals, and advertising materials that impose obligations or are essential for employees to be provided in French.

Accounting and Reporting Requirements

• Companies must follow the Plan Comptable Général (PCG), the French accounting standards.

• Annual financial statements include a balance sheet, income statement, and annexes, filed with the commercial court registry.

• From 2026, electronic invoicing for B2B transactions will become mandatory.

Taxation and Social Contributions

• Corporate Income Tax (CIT): Standard rate of 25%, with a reduced rate of 15% for qualifying small businesses.

• VAT: Standard rate of 20%, with reduced rates at 10%, 5.5%, and 2.1%.

• Local Taxes: Includes the Cotisation Foncière des Entreprises (CFE). The CVAE tax is being phased out by 2027.

• Social Contributions: Employers should anticipate charges of 40–50% of gross salaries.

• Payroll Tax: Applies to businesses not subject to VAT, with progressive rates.

• Incentives: Research and innovation tax credits are available for eligible companies.

Fiscalization and Digital Compliance

France requires certified fiscal systems to prevent fraud. These include:

• Unique invoice numbering and digital signatures.

• Secure data storage for six years.

• Certification of software solutions, renewed every three years.

Sustainability and ESG Reporting

From 2025 onward, sustainability obligations expand significantly:

• Corporate Sustainability Reporting Directive (CSRD): Large companies must provide detailed sustainability disclosures.

• Corporate Sustainability Due Diligence Directive (CS3D): Expected by 2026, imposing human rights and environmental due diligence obligations across supply chains.

Administrative Simplification

France is gradually reducing bureaucracy, with plans to cut thousands of administrative forms by 2030 and to simplify payroll and reporting processes.

A Changing Fiscal Environment

While pro-business reforms have taken place in recent years, new tax contributions on large corporations and specific industries are also emerging. Entrepreneurs should monitor these changes carefully.

Summary: What to Keep in Mind for 2026

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