French Guiana is a French Department located on the northern coast of South America. Brazil and Suriname border the country to the east, south, and west, while the northern border of the country hosts the Atlantic Ocean. The total population of French Guiana is approximately 300000 people who mainly speak French, which is also the official language.
Guiana is famous for its wildlife and the French Guiana Space Center. Wildlife includes big cats (jaguars, pumas, etc.) giant anteaters, caimans, etc. The country has a rich colonial history and diverse culture. The primary economic activity is generated by the French government’s financial support and the space center which is operated by the European Space Agency.
Besides the French support, the other factors of the economy are gold mining, agriculture, and fishing. Gold mining is the second biggest contributor to the country’s economy.
Legal business structures in French Guiana
Several business structures are available to investors who wish to register a company in French Guiana. One that best fulfills the needs of the business and investors may be chosen accordingly.
| S# | Type of business structure | Local name | Min. paid-up capital required |
| 1. | Sole Proprietorship | Entreprise Individuelle (EI) | No paid-up capital required |
| 2. | Limited Liability Company (LLC) | Société à Responsabilité Limitée (SARL) | €1 |
| 3. | Public Limited Company (PLC) | Société Anonyme (SA) | €37,000 to €225,000 |
| 4. | Partnership | Société en Nom Collectif (SNC) Société en Commandite Simple (SCS) | No paid-up capital required |
| 5. | Single Member Limited Company | Entreprise Unipersonnelle à Responsabilité Limitée (EURL) | €1 |
| 6. | Partnership Limited by Shares | Société en Commandite par Actions (SCA) | No paid-up capital required |
Sole proprietorship
A sole proprietary business is the simplest business format with little to no regulations binding on it. The owner is solely responsible to run the business as well as assume all the liabilities in a personal capacity.
Limited Liability Company
An LLC is a formal company that requires to comply with preset rules, laws, and regulations to form and operate. The owners (shareholders) of an LLC are separate from the company and not personally liable for debts and losses.
Partnership
A partnership is formed between two or more natural persons to pursue a commercial goal. Partners can be general or limited, having limited responsibility towards loss or debts.
Public Limited Company
A PLC is a business that is most complex in terms of formation and operations. It has a set structural organization and is subject to strict laws. A PLC is different from other types of companies as it can amass capital through the public by offering company shares. Shares of a PLC are traded in a stock exchange.
Single Member Limited Company (EURL)
A EURL is similar to an LLC in all aspects but one; a EURL has only one shareholder or member. It is preferred by entrepreneurs who wish to limit their liabilities while enjoying full control of business operations.
Partnership Limited by Shares (SCA)
A partnership limited by shares is a combination of a limited partnership and a company limited by shares (PLC). The SCA must have a minimum paid-up capital of €225,000.
Cost involved in registering a company in French Guiana
The cost of registering and incorporating a company in French Guiana depends on the type of company structure and the services of the professionals involved in the process.
Here are some of the typical costs involved in registering and incorporating a company in French Guiana:
Sole Proprietorship (EI)
The cost of registering an EI is relatively low, and it mainly involves the cost of registering a business name with the French Guiana Trade and Companies Register (Registre du Commerce et des Sociétés or RCS). The registration fee is approximately €75.
Single member limited company (EURL)
The cost of incorporating an EURL involves the cost of drafting the articles of association, the registration fee with the RCS, and the cost of publishing a legal notice in a newspaper. The total cost is approximately €500 – €1,000.
LLC (SARL)
The cost of incorporating a SARL involves the cost of drafting the articles of association, the registration fee with the RCS, and the cost of publishing a legal notice in a newspaper. The total cost is approximately €1,000 – €2,000.
PLC (SA)
The cost of incorporating an SA involves the cost of drafting the articles of association, the registration fee with the RCS, and the cost of publishing a legal notice in a newspaper. The total cost is approximately €10,000 – €20,000.
It is important to note that these costs are estimates, and they may vary depending on the complexity of the company’s structure, the services of the professionals involved, and any additional costs related to specific industries or regulatory requirements.
Operational expense of a company in French Guiana
The operational expense of a company while manageable are inevitable. These expenses vary depending on the location, nature, and the size of business.
Here are some expenses that the companies are most likely to incur:
Labor costs
Labor costs in French Guiana can be relatively high, mainly due to the high cost of living and the relatively high minimum wage. Employers are required to pay social security contributions and other mandatory benefits, such as health insurance and retirement contributions.
Taxes
French Guiana has a relatively high tax burden, with corporate income tax rates ranging from 15% to 33.33%, depending on the size of the business. There are also other taxes, such as value-added tax (VAT), social security contributions, and local taxes.
Administrative costs
There are various administrative costs associated with doing business in French Guiana, such as the cost of obtaining permits and licenses, registering with the Trade and Companies Register, and complying with labor laws and other regulations.
Infrastructure costs
French Guiana has relatively high infrastructure costs, such as transportation costs due to the remoteness of the region, and the relatively high cost of electricity and other utilities.
Benefits of registering a company in French Guiana
There are several benefits and disadvantages of registering a company in French Guiana. The benefits are strategic in nature pertaining to growth, while the cons pertain to the remoteness and high costs of business.
Here are a few advantages:
Strategic location
French Guiana is located in the northeast of South America, with direct access to the Caribbean Sea and the Atlantic Ocean. This strategic location provides opportunities for companies looking to expand into Latin America and the Caribbean.
Access to natural resources
French Guiana is rich in natural resources, including gold, timber, and fish, which can provide opportunities for companies in these industries.
Tax incentives
French Guiana offers tax incentives to businesses, such as reduced corporate income tax rates, VAT exemptions for exports, and tax credits for research and development activities.
Attractive investment environment
French Guiana has a stable political and economic environment, with a high standard of living, good infrastructure, and a skilled workforce.
Support for innovation and entrepreneurship
The French Guiana government provides support for innovation and entrepreneurship, including funding for research and development projects and business incubators.
Access to EU markets
French Guiana is a French Overseas Department and Region, which provides businesses with access to the European Union (EU) market and its regulations.
Overall, registering a company in French Guiana can provide businesses with opportunities for expansion, access to natural resources, tax incentives, and a supportive environment for innovation and entrepreneurship.
