France named as prime location for multinational legal entities

PARIS, FRANCE and LONDON, UNITED KINGDOM — France has been highlighted as a prime location for multinational corporations looking to establish legal entities in a recent report by Entity Portfolio Management (EPM) leader Mercator.
Based on data sourced from Mercator’s proprietary EPM technology platform Entica, France placed in the top 20% globally as a location for multinationals to base legal entities, ranking 34th out of 180 jurisdictions surveyed.
France outperformed the global average by 16% in terms of the speed at which key corporate secretarial activities are completed. This efficiency is largely attributed to the widespread adoption of e-signatures, sole-signature powers, and the increasing use of online systems for filings.
Notably, tasks related to Ultimate Beneficial Owner (UBO) registers and Management/Officer Changes are expedited, while Board of Director (BOD)/ Shareholder Decisions are 40% quicker than the global average.
Kariem Abdellatif, Head of Mercator, said, “France is a key market for many international businesses looking to establish or expand their operations, and it is encouraging to see further adoption of online systems – including the new ‘single register of companies’ (“INPI”) – to ease the burden on in-house legal teams and speed up processes.
Despite these advantages, the report also highlights some challenges. Operating in France is estimated to be 4% more expensive than the global average. The requirements for physical paper filings and a local presence, along with the high volume of documentation and varying formalities, contribute to this cost.
However, it is worth noting that the average cost for UBO tasks in France is 30% less than the global average, thanks to streamlined processes and e-signature utilization.
The report underscores the importance of local knowledge and native language skills for multinationals aiming to set up and maintain entities in France, given the country’s unique regulatory landscape.