According to EY’s latest business attractiveness survey, France remained the leading foreign direct investment (FDI) destination in Europe, ahead of both the UK and Germany. Life sciences and e-commerce are considered the best sectors for business investment. Although there was a sharp drop in investments during the COVID-19 pandemic, France launched a major economic recovery plan, France Relance, to support business ventures. Perhaps as a result of this, 74% of investors believe that France’s attractiveness will improve in years to come.

Our lawyers will give you professional advice on how to start your business in France.

Anyone can set up a business in France. You do NOT need to be a resident or be an EU citizen to become a French business owner. It can help, but if you live and work outside the EU, you can still open a company in France by simply registering a business address in France. That could mean opening a virtual office or finding actual premises for your business. You certainly don’t have to buy a house or change your citizenship!

The most common structures in France are:

• EURL – owned by a single person and run as a limited liability single shareholder company.
• SARL – which is the equivalent of a French limited company, or Ltd or LLC company.
• SAS – which is a Simplified Stock Company; this type of company is ideal for foreign investors who do not want to become resident in France.
• Branch – if you want to extend your existing business and register it as a branch in France.

In France, businesses are split into different categories:

• Commercial or industrial – retail such as shops and factories; food such as cafés or restaurants; consulting and services; import and export; 
• Trades/artisan, – art and crafts, building and manual trades and certain types of manufacturing;
• Independent or freelance professional – working independently and providing a service for individuals or companies;
• Agricultural.

These categories have their own registration centres based in the area you wish to set up:

• the Centre de Formalités des Entreprises (CFE)
• the Chambre des Métiers et de l’Artisanat (CMA)
• the Chambre d’Agriculture (CA)

Deposit Capital in Your French Bank Account

For a 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.

The traditional share capital was 7,500 euros but a minimum amount could be deposited of around 4,000 euros. Please bear in mind that this is « working capital » and can be taken out of the account for use at any time.

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.

Incorporation of Your French Business

There are various documents and evidence you’ll need to get together to incorporate your French company. You will need a completed application form, a certified copy of each director/shareholders passport, and two utility bills that are less than three months old to prove addresses (cell phone bills are not accepted.)

These documents will then need to be sent to various administrations including the National Institute of Statistics and Economic Studies (INSEE), which will register your company with the national business directory. Your documents will also need to go to the tax office – the Centre des Impôts – and the commercial court called the Greffe du Tribunal de Commerce.

To make sure you’re paying the right pension and labour payments, the social security office (URSSAF) will need to be informed as well as the Caisses Sociales and Inspection du Travail if you are employing or recruiting staff and the Centre des Formalités des Entreprises or Chambres des Métiers.

Once your documents have gone to all the right government departments, your application will receive all the official stamps that formalises your French company incorporation.

As you can see there are quite a few stages to go through, but if you have the help of a French company formation agent then all these can be done very easily without the need for going backwards and forwards to government departments or speaking to officials in a foreign language. Then with the time you have freed up, you can take advantange of any small business opportunities in France to put your stamp on the market.

In terms of timescales, incorporation usually takes up to two weeks from the time the bank account is opened (as long as all the paperwork is in order) and VAT registration takes up to two weeks.

Registering A Business in France

When you receive the ‘Extrait Kbis’ (the certificate of incorporation) you will be provided with a unique 14-digit registered number comprised of a SIRET and SIREN number which is your company ID number that must be written on all official documents, invoices and websites. These are the most important numbers you need when registering a business 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 (Activite Principale de l’Entreprise) or NAF code which identifies the main activity of your business.

Once the Kbis arrives, your bank manager can activate your business bank account and your share capital will be unblocked. You will also receive a welcome letter from the tax office with a VAT number and tax officer contact details. Your VAT number starts with the letters FR plus a 2-digit code followed by your SIREN.Our accounting partners will help you with the accounting rules and norms in France.

French tax law and accountancy can be especially complicated when you’re from a foreign country. Instead of getting into difficulties, the best way to save yourself from trouble from the French tax man, is to appoint a professional French accountant called an ‘expert comptable’. This will be a regulated professional who is legally obliged to keep you up to date with all the tax laws and is held legally responsible for the good standing of your accounts. He can also help you with VAT returns and payrolls.