Country Desks — Western Europe
France
Legal System
Civil law — birthplace of the Napoleonic Code Civil. Based on the Code de commerce and the Code de Procédure Civile (CPC). Fully aligned with EU law.
Principal Arbitration Centre
ICC International Court of Arbitration (Paris) — the world's most widely used arbitration institution (831 new cases in 2024). Governed by CPC Art. 1442 et seq. ICC Arbitration Rules 2021.
Corporate Tax
Standard corporate tax 25% (since 2022). VAT (TVA) standard 20%. Extensive R&D tax credit (CIR) regime available.
Partner Office
Served together with our French partner office across cross-border transactions, investment and ICC arbitration proceedings.
Country Desk Brief
Legal System, Investment, Trade & Regulation
A civil-law jurisdiction and the birthplace of the Napoleonic Code Civil — a system that has influenced legal frameworks across the MENA region, Africa and beyond. The Code de commerce and the Code de Procédure Civile (CPC) provide the principal commercial and procedural framework, operating in full alignment with EU law. Mermeroglu Legal advises on market entry, investment structuring, foreign trade and dispute resolution in France, working in coordination with our local partner office across cross-border transactions, investment and ICC arbitration proceedings.
The SAS (société par actions simplifiée) is the preferred vehicle for foreign investors and startups — a flexible simplified joint-stock company with no minimum capital requirement in practice (banks expect reasonable capitalisation). The SARL (limited liability) and SA (public company, minimum capital €37,000) are the other principal structures. Registration accounts and articles (statuts) can generally be prepared and filed remotely through the relevant center (CFE).
France broadly welcomes FDI with no resident-director requirement for SAS or SARL. In sensitive sectors, investments may trigger a notification obligation to the Ministry of Economy and an FDI screening review. Competitive-reform measures since 2017 — including the reduction in corporate tax, the R&D tax credit (CIR), and French Tech initiatives — have reinforced France's position as Europe's leading FDI destination for six consecutive years.
At a Glance — 2024 / 2025
Investment & Trade Indicators
Establishment
How to Form a Company
The SAS is the preferred structure for foreign investors — flexible governance, no minimum capital in law (though banks require reasonable capitalisation), and no residency requirement for management. The SARL suits smaller ventures; the SA (minimum capital €37,000, at least half paid) is used for larger or publicly listed companies.
Foreign ownership: FDI is broadly welcomed; no residency requirement for directors of SAS or SARL. In sensitive sectors, investments trigger a notification obligation to the Ministry of Economy and may initiate an FDI screening review.
Investor eligibility: certain visa categories and incentive programmes require investment of approximately €300,000 in tangible or intangible assets and the creation of jobs within four years.
Typical steps — SAS / SARL
Investment Climate
Investment Models & Where Capital is Flowing
France has ranked as Europe's leading FDI destination for six consecutive years (EY Attractiveness Barometer including 2025). In 2023 it recorded 1,194 FDI projects — capturing approximately 21% of European FDI. The USA is the largest single source of investment (252+ projects in 2024). Approximately 75% of projects are located outside Île-de-France, reflecting broad regional distribution. The February 2025 AI Action Summit generated approximately €109 billion in announced investments.
- Quantum computing & artificial intelligence — a declared national strategic priority; France is Europe's leader in AI-related FDI, with substantial government co-investment through France 2030.
- Industrial investment & R&D — France is the leading European destination for industrial FDI projects; the R&D tax credit (CIR) of up to 30% of qualifying expenditure is a major driver.
- Energy transition — nuclear (including the new EPR2 programme), offshore wind, hydrogen and solar are active themes, supported by targeted investment incentives.
- Agri-food — France is a global leader in agri-food processing and export; a recurring FDI priority sector.
- Competitiveness reforms since 2017 — reduction of corporate tax from 33.3% to 25%, research tax credits, simplification of labour law and the French Tech initiative have structurally improved the investment environment.
- Regional distribution — ~75% of FDI projects are located outside the Île-de-France region, with investment reaching smaller cities and industrial zones.
Foreign Trade — 2024 / 2025
Recent Trade & Principal Partners
France is among the world's top 10 goods exporters, with approximately $668 billion in exports in 2025 (~6.6% increase on 2024). A structural trade deficit persists, though it improved in 2025 (~-$108B) as energy import costs declined. Principal export sectors are aviation and aerospace, automotive and pharmaceuticals. Over 65% of exports go to Europe, with ~54% to EU member states. France has the largest trade deficit with China of any EU member.
Top Export Partners
- Germany (~13.5–14.4%, largest)
- Italy
- United States
- Belgium
- Spain
Top Import Partners
- Germany
- Belgium
- Netherlands
- Italy
- United States
- China (largest deficit)
Principal Export Sectors
- Aviation & aerospace
- Automotive
- Pharmaceuticals
- Luxury goods & cosmetics
- Agri-food products
Regulatory Developments
Notable Legislative Changes
In force 1 January 2021
Arbitration — ICC Arbitration Rules 2021
Updated ICC Rules introduce modern mechanisms including multi-party and multi-contract cases, electronic awards, and an express option for remote hearings (Art. 26(1)). Paris remains the global centre of international commercial arbitration by caseload.
Draft open for consultation before 20 January 2026 — not yet enacted
Arbitration — French Law Reform (ongoing)
The Ministry of Justice established a working group in 2024; March 2025 proposals and a draft decree opened for public consultation before 20 January 2026 aim to codify existing case law and update the definition of international arbitration under the CPC. Not yet in force.
Enacted 13 June 2024
Attractiveness & Financing — Loi n° 2024-537
Law to enhance company financing and France's attractiveness as an investment destination; added new provisions to the judicial framework. Effective dates for certain provisions to be set by decree.
In force 23 March 2019
Digital Arbitration — Loi n° 2019-222
Framework law imposing data protection and confidentiality obligations on online dispute resolution and arbitration service providers operating in France.
Our Approach
How Mermeroglu Legal Engages in France
France mandates typically involve SAS or SARL structuring, FDI screening advice for sensitive-sector transactions, and frequently engage the law of the investor's holding jurisdiction for tax and financing purposes. Our practice is structured to coordinate across those systems through a single point of accountability, working in close coordination with our partner office in France.
Each mandate is led by a single matter principal at the firm, supported by an internal team and local counsel — covering company formation, investment licensing, FDI notification, foreign trade, M&A, and dispute resolution before the ICC and French courts.
INITIAL ENQUIRIES
Market entry and cross-border matters in France are handled through coordinated internal and alliance teams.
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