With more than 2.1 million urban inhabitants, Lyon, France, is offering a superb environment to global entrepreneurs to come and start their businesses. Approximately, 60% of business experts in Europe consider Lyon as an alternative city to Paris to establish their companies. From main European cities, Lyon can be reached within two hours at most. This is thanks to its strong transportation system. Eco-friendly technologies have strengthened the industries of the city further to a great extent. A high level of education has also contributed a lot in creating a pool of talent in this city. All these factors when combined make it a profitable place to set up a business.
On the basis of your investment type, you will need to frame your strategy. For instance, if you’re a minor investor in one of the listed companies of the French Stock Exchange, a transaction declaration to the French National Bank is sufficient. Apart from it, there are some delicate business fields like security, chemistry, and others. In such a case, an authorization demand should be made to the Financial Minister of the country. You can also contact the local Invest in Lyon Agency to resolve your queries.
Investment Type and the Need for Strategy
Registration is significant for any business. E-registration services can help you in this regard. Generally, it will take only a few days to get your business registered. Some changes in the administrative processes and regulatory framework has made it plausible for international investors in businesses to invest their money in this city. New procedures have made it quick and hassle-free for you to prosper your career as a businessman here.
While setting your business in Lyon, you have to pick the best establishment type on the basis of your business strategy.
- Affiliated Company: All kinds of business-related activities can be done when you have an affiliated company. For every action of your affiliated company, you will be considered responsible.
- Subsidiary: With a trading and commercial mandate, your subsidiary office will always have a local representative of the main company located outside.
- Liaison Office: It is the simplest form of establishment. The mother company located in your country will be represented by it. However, it will never gain permission to trade with other companies.
Legal Form Your Business Should Have in Lyon
So, at last you have made plans to establish an affiliated company in Lyon. Now, it’s time to follow certain steps for setting up your office legally. Some of such steps are recruiting legal representatives, writing the name and rules of the company, buying a business-covering insurance, and others.
Presently, three main legal types are dominating the businesses in the city. Let’s see what they are.
- SARL or Societe a Responsabilite Limitee: Have a SARL if you can’t invest much. The responsibility of the shareholder is greatly determined by the amount he or she is investing. The status between the employees of the company and the director may be the same. If your debt holder or bank is demanding to extend the responsibility to a personal level, you can do it by limiting the responsibility of the stakeholder.
- SAS or Societe a Actions Simplifiee: As the minimum amount required for starting the business is not fixed, minor investors can even create a SAS. It is the shareholders who decide the initial amount for investing. The code of conduct is also set by the shareholders. They also tell the company’s staff how to delegate the responsibilities of the business by staying within that same company.
- SA or Societe Anonym: To run your renowned company successfully in France, create a SA. You can increase the business’ capital by issuing obligations or new shares. Shareholders will have no restrictions in withdrawing or increasing their ownership percentage. At the same time, they will also remain free to trade the shares.
Apart from it, you have to follow certain tax rules. While trading in Lyon, your tax will be calculated on the basis of the results your business is getting annually. It means that your taxation amount will never exceed your actual ROI. This kind of tax system in the country helps you in expanding your company in the country within a short time. Local taxes covering services and maintenance of the French districts are also affordable.