France vs Germany
Germany is £15 cheaper in year 1 and £168 a year cheaper after that.
| FranceSAS / SASU | GermanyGmbH (or UG from €1) | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £479 | £464 |
| Minimum, per year after | £288 | £120 |
| Typical year 1 | £3,154 | £3,619 |
| Government fee | £46€53.16 (€33.83 registration plus €19.33 beneficial owner declaration) | £194€225 Handelsregister |
| Indirect setup | £145–1,585 | £150–1,110 |
| Running per year | £288–4,198 | £120–5,470 |
| Share capital | €1 | €25,000€12,500 paid in; UG from €1 |
| Rules | ||
| Directors | No local director | No local director |
| Remote setup | Through a providerOnline through the guichet unique. Non-residents usually need a local adviser. | Fully remoteVideo notarisation works for standard GmbH and UG formations. |
| Audit | No audit below size thresholds | No audit for small companies |
| Time to form | 1 to 3 weeks | 2 to 4 weeks |
| Ease for foreign owners | 2/5 | 2/5 |
| Tax and banking | ||
| Corporation tax | 15% / 25%25%, or 15% on the first €42,500 for small companies. | 30%About 30%: 15.8% corporation tax plus trade tax, which varies by town. |
| Dividend withholding | Dividend withholding is 25% to companies and 12.8% to individuals. | 26.4%26.4% dividend withholding, reduced by treaty. |
| VAT / GST | 20% | 19% |
| Banking | 2/5You need a capital deposit account before registering. Slow for non-residents. | 3/5Qonto, Finom and Vivid open GmbH accounts. You need one before paying in capital. |
| All company setup fees in France | All company setup fees in Germany | |
Questions
Is France cheaper than Germany for company setup?
No. Germany is cheaper, at least £464 in year 1 against £479 for France.
Which is cheaper to run each year?
Germany, at least £120 a year against £288 for France.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
France, in 1 to 3 weeks. Germany takes 2 to 4 weeks.
How does corporation tax compare?
France: 25%, or 15% on the first €42,500 for small companies. Germany: About 30%: 15.8% corporation tax plus trade tax, which varies by town.
Sources: Infogreffe · economie.gouv.fr · PwC · service-public.fr · Norman