In the US, or in the UK, setting up a corporate bank account is usually quick and easy. In France it is not unusual for the procedure to last a few months, so knowing what to expect, and what to do, is essential.
A bank account is vital for any company, and in France it is a requirement for incorporation. Anti-money laundering and counter-terrorism legislation is necessary for any state; however, because of the French penchant for bureaucracy and paperwork, this process inevitably involves a few extra hoops to jump through.
The requirements can vary from bank to bank, however, from our experience, they usually ask for:
- Extensive details of the company including its history, background, activity, assets, financial forecasts, proposed activity in France, press releases, and details of any future projects, in French!
- The constitution of the French company to be created
- The constitution of the parent company (if there is one), in the original language and in French.
- The most recent annual report of the parent company (if there is one) that includes an audit report, balance sheet, profit and loss statements, and disclosures among others.
- Verification of the identities of the directors including copies of diplomas and certificates, biographies, CVs, passports etc.
- Finally a complete list of all shareholders and people who have a beneficial interest in the company to be created, and in the parent company. [1]
This is a time consuming process that can slow down business expansion in France. But do not be deterred! With experience in this field, we know, and can foresee, the inevitable hurdles in order to keep entrepreneurs one step ahead. Furthermore, with our assistance, the lucrative opportunities in the French market easily offset this slight difficulty. And put it this way; if it was easy, your competitors would already be here!
Whether you’re an entrepreneur, a business leader, or you just want to find out more, get in touch with us. We are happy to help in any way we can.
We often support companies to open bank accounts in France, and have recently helped a listed company from outside the EU to do just that.
(To find out how we can support your company in France get in touch with our expert advisers). – social media
Subject to article L.561-2 of the Code Monétaire et Financier, and to recommendation n°2013-05 of the AMF, we, as chartered accountants, have an obligation to make sure that all of the necessary steps are followed to prevent money laundering.
Sources: AMF recommendation N°2013-05; 3rd European directive of 26th October 05, 2005/60/CE; R.561-1 and L.561-2 of the Code Monétaire et Financier.
[1] This requirement is a vital procedure in the French battle against money laundering, and the company trying to open a corporate bank account has the burden of demonstrating that its activities are clean. By declaring all shareholders and people with a beneficial interest in the company, and in the parent company, there is sufficient transparency and the bank can be satisfied that there are no shell or screen corporations that move money clandestinely. (Subject to article R.561-1 of the Code Monétaire et Financier, any beneficiary or shareholder of the company whose share of capital, or voting rights, (either directly or indirectly held) exceeds 25% must be checked. In practice, this means that their finances and portfolio must be examined, in the interest of transparency, and if they hold capital in other connected companies, further lists of shareholders and beneficiaries must be provided to the bank).