Guide to starting a business in France
Valoris Avocats has assisted foreigners looking to set up businesses in France for 10 years. Our multilingual team of experts has built up extensive knowledge on the French business system and laws over the years. Benefits of starting a business in France, requirements, process, and cost – Our guide tells you all you need to know before getting started.
Professional advice to start a business in France
Our teams possess an expertise in business, labor, and tax law, and are proficient in multiple foreign languages, including French, English and German.
When starting a business in France, our clients turn to Valoris because we offer a comprehensive legal expertise combined with a deep understanding of the French business landscape. Our team provides personalized guidance tailored to your specific needs, ensuring that your business launch is smooth and compliant with all relevant regulations.
Planning to start a business in France? Contact us for more information!
Benefits: is France a good place to start a business?
Several key factors make France a compelling environment for entrepreneurs to set up a business.
Firstly, its strategic location within the European Union offers access to a vast market of over 500 million consumers, facilitating business expansion opportunities.
Additionally, France boasts a highly skilled workforce, renowned for its quality education and innovation. The country also fosters a culture of entrepreneurship, with numerous support programs, incubators, and accelerators available to nurture startups.
Requirements for setting up a business in France
Visa / residency permit
In France, foreign individuals have the opportunity to establish their own businesses. However, the required procedures differ based on the individual’s nationality and place of residence.
European entrepreneurs benefit from a simplified process as, unlike their non-European counterparts, they are not required to obtain a residence permit to operate a business in France. The process for Europeans setting up a French company is the same as for French nationals, ensuring a straightforward path to entrepreneurship within the country.
Conversely, non-European individuals may need to apply for a long-stay visa through the French consular authorities in their home country, depending on the circumstances, in order to start their business in France.
Checking company name and website domain
To check the availability of your chosen company name, visit the official website of the Institut National de la Propriété Industrielle (INPI), where you can access a comprehensive database of registered companies in France.
To secure exclusive rights to your company name and logo, it is advisable to register them as trademarks. This step ensures that your branding assets are legally protected, preventing other entities from using or imitating them without your consent.
Ensuring the availability of your desired domain name before registering it for your website is a crucial step. This registration protects the website’s domain name and certifies your ownership of it. Domain name protection is renewable, so you’ll need to be vigilant about renewing your protection.
Tax requirements
France offers businesses favorable and dynamic tax policies.
As you establish operations in France, it is essential to consider that the corporate tax rate stands at 25%, an attractive rate in the European context.
Nonetheless, tax regulations can vary based on individual business circumstances. When starting a business in France, it is therefore advisable to engage with tax authorities or seek guidance from a qualified tax advisor to ensure compliance and optimize your tax strategy in accordance with current legislation and best practices.
Opening a business bank account and capital deposit
Setting up a French company necessitates the opening of a local bank account to facilitate the deposit of the required minimum capital investment. Additionally, obtaining confirmation of the account opening from the bank is imperative to proceed with the business registration process.
How to start a business in France – The different steps
There are several steps involved in setting up a company in France:
- Check the availability of name and domain name,
- Choose a structure,
- Deposit of share capital with banker,
- Signature of the bylaws,
- Legal publicity,
- Carry out formalities at the trade register
- Tax register
Choose your type of business structure
“Micro-entreprise”
The “micro-entreprise” (micro-enterprise) system is a unique, simplified system. It allows you to benefit from simplified formalities for setting up your business in France, as well as for your declaration and payment obligations. Sales thresholds must not be exceeded in order to benefit from this simplified scheme.
”Entreprise individuelle”
“L’entreprise individuelle” or sole proprietorship enables you to run your own business. In fact, setting up and running a sole proprietorship involves fewer constraints than setting up a French company.
Unlike a company, a sole proprietorship does not entail the creation of another legal entity. It is attached to your person, which is why one person cannot own several sole proprietorships (1 individual = 1 sole proprietorship). You can carry out a commercial, craft, agricultural or professional activity.
“SARL” (Société A Responsabilité Limitée)
The SARL (Limited Liability Company) is a commercial company in which the liability of associates is limited to the amount of their contributions. It is made up of a minimum of 2 partners and a maximum of 100 partners, whether legal entities or individuals. It can be chosen by craftsmen, retailers, industrialists and unregulated professionals. Setting up a limited company in France is the ideal choice for family-run projects.
“EURL”(Entreprise Unipersonnelle à Responsabilité Limitée)
The single-member limited liability company (EURL) is a variation of the limited liability company (SARL) designed for a single shareholder.
It is therefore governed by the same legal rules as a SARL, with the exception of all the adjustments necessary for the presence of a single shareholder.
“SAS” (Société par Actions Simplifiée)
The SAS (simplified joint-stock company) is the most common corporate form in France. It offers great flexibility, making it a popular choice among entrepreneurs. A simplified joint-stock company (SAS) is a commercial company that can carry out any type of business, with the exception of certain regulated sectors (tobacco retailing, insurance, etc.).
The minimum number of partners is 2, and they may be individuals or companies. The structure may have a single partner, in which case it is known as a SASU (Société par Actions Simplifiée Unipersonnelle).
The SAS is characterized by its great flexibility, insofar as its partners are free to determine, in the bylaws, the terms and conditions of its operation (decision-making, management bodies, etc.) and to regulate the transfer of its shares (approval clause, non-transferability clause, etc.).
Nevertheless, the considerable freedom offered to SAS shareholders makes the drafting of the bylaws a complex task. It is advisable to entrust the drafting of these articles to a lawyer.
“SASU” (Société par Actions Simplifiée Unipersonnelle)
The SASU (simplified one-person company) is a highly flexible corporate form. It is a commercial company equivalent to a SAS, but with a single shareholder. This single shareholder can be a natural person (an individual) or a company.
Choose your business category
Several business categories are possible when registering a business in France, for example:
- Commercial or industrial: retail such as shops and factories; food such as cafés or restaurants; consulting and services; import and export;
- Trades/Craftsman: art and crafts, building and manual trades and certain types of manufacturing;
- Independent or self-employed professional: working independently and providing a service for individuals or businesses;
- Agriculture
The formalities for all these activities must be carried out on a single platform called the “guichet unique”. All professionals have access to a common extract listing information of importance to third parties, the extract from the national register of companies “Extrait du Registre national des entreprises”.
Register your business in France
Different steps must be followed to register your business in France.
Step 1: Incorporation of your business (pre-registration)
The pre-registration requirements of company registration in France demand you fulfill the following criteria:
- If necessary (non-European foreigners) resident permit,
- Registered company name if desired,
- A registered bank account
Note that for an EURL, SARL or SAS, the minimum share capital has been reduced to €1 but banks require more than this figure to set up an account.
Your share capital will be unblocked as soon as the banker receives the “Kbis” – the certificate of your new company – which normally takes about two weeks. If you end up not going through with the company formation, then your capital will be returned to you immediately.
Step 2: Registration of your business
To successfully register your company in France, follow these essential steps:
- Secure a certificate confirming the deposit of the share capital into a bank account.
- Prepare all required legal documents, including the company’s bylaws, declarations of the directors’ non-conviction, the registered office certificate, and a power of attorney for procedural formalities.
- Have the documents signed by the shareholders.
- Announce the establishment of your new French company in an official legal gazette.
- Submit the necessary documents to the Trade and Companies Register, officially recognizing your company as a legal entity in France.
- Lastly, acquire the “Extrait Kbis,” the official certificate of incorporation for your company.
Step 3: SIRET, SIREN, and APE Identification
When you receive the “Extrait Kbis” (the certificate of incorporation), you will receive a unique 14-digit registration number made up of a SIRET number and a SIREN number. This is your company’s identification number, which must appear on all official documents, invoices and websites. These are the most important numbers for registering a company in France.
The SIRET is your 9-digit SIREN number plus a 5-digit code specific to your company. You will also have an APE (Activité Principale de l’Entreprise) or NAF code, which identifies your company’s main activity.
Once you’ve received your Kbis, your bank manager will be able to activate your business bank account, and your share capital will be released. You will also receive a welcome letter from the tax authorities with a VAT number and the contact details of the tax officer.
Step 4: Formalities once your business is registered
You must also complete the post-registration formalities, including:
- Filing for tax registration
- Registering employees for social security
Administrate and manage your French business
When setting up a business in France, it is essential to seek the help and advice of qualified professionals such as legal advisors.
Valoris Avocats has in-depth knowledge of the local regulatory landscape, tax system, and financial intricacies. Our expertise can help entrepreneurs:
- navigate complex administrative procedures,
- ensure compliance with legal requirements,
- optimize financial strategies,
- manage risks effectively, and
- make informed decisions that contribute to the long-term success and sustainability of the business.
By leveraging the knowhow of these experts, entrepreneurs can mitigate potential pitfalls, enhance operational efficiency, and build a strong foundation for growth in the competitive French market.
Budget: how much does it cost to start a business in France?
Valoris Avocats can manage the entire process of setting-up your company in France and can provide you with the expertise and assistance you need. We are available to provide you with an offer tailored to your specific needs and circumstances.
Our lawyers in French business creation
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