Opening a company is a big leap forward for many would-be entrepreneurs, but the jump doesn’t need to be so daunting if you’re armed with the right information.Opening companies in France is what we do every day, so you can trust our information to be up-to-date and correct, as we really know our French business! So, for those that want to get on the road to starting a business in France, we’ve compiled a helpful list of the 8 steps you’ll need to take to put you on the French map.
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 simplyregistering a business addressin 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!
You should always start by creating a business plan. Whether you're planning to open a small business in France or dreaming of a bigger slice of the French market, a business plan allows you to clarify your mission statement and vision for your business, and means you can show investors – and more importantly the French business bank account manager–exactly how your business will run. (It goes without saying that this business plan will need to be translated into French.)
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You will need to consider who your market and customers will be in France, how much money you or your partners will be investing, what business experience you have and how much money you are likely to make and spend during the next few years.
For more information on how to structure a good plan, click here on our article on how to write thebest French business planwritten by Paris entrepreneur Dawn Bournand.
Next, you’ll need to choose the type of company structure for your business. It's important to do your homework here as you'll need to find the structure that fits with the type of business you have and the amount of turnover your business does.
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If you want some great in-depth information about what exactly each of these types of structures are, please consult our article:What's the difference between a SARL, SAS, SA, EURL, Micro-Entreprise & Auto-Entrepreneur?
Then you have to register your by-laws, either with an affordableregistered company formation agentor with a lawyer (although lawyers are generally much more expensive!) This includes being specific about your business – what products you’ll sell or what services you want to provide.
It’s important to have a clear idea of what your business is and have some vision for what your business hopes to become in the future because every time you branch out into something new with your business, you’ll have to inform the CFE, CMA or CA.
How To Open A Bank Account In France
If you belong to certain professions such as therapists, accountants, builders, doctors, dentists, vets, lawyers – basically anything that requires certain qualifications before you can work with people – you’ll need to make sure you are registered under the French professional organisation in order that you qualify for the right insurance.
Next, you’ll need a business bank account. It is possible to open bank accounts remotely now (especially due to travel restrictions since the global pandemic), so once you’ve arranged yourbank account introductionswith a bank manager, you need to be prepared to go through your business plan and answer any questions about your company.
French bank account managers can be very exacting about who they allow to open an account due to stringent laws to prevent money laundering. This is where your business plan comes in very handy as it puts an account manager’s mind at ease if he can see all the facts in figures laid out.
Starting A Business In France
For more information on how to open a bank account easily without any fuss, see our useful article:Business Banking in France - What NOT to Do.
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 capitalwas7, 500euros 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.
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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.
Next comes a quaint French rule of announcing the opening of your company in the press. You have to publish an announcement in an authorized newspaper such as Le Parisien or Les Echos or a business publication so that your company is formally and publicly introduced into the business world.
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.)
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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 Imp̫ts Рand 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 Travailif 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.
How To Start A Business In France: What You Need To Know
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.
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.
Start 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.
If you wish to import and export goods internationally, you will need to apply for a EORI number with the French Customs Authorities. For more information take a look at our article:The EORI number explained: what it is and why you need it to trade
Problems & Benefits Of Starting A Business 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 professionalFrench accountantcalled an ‘expert comptable’. They 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.
For more information, click here for our articlesHow does the payroll system work in France?and alsoHow do I pay VAT / TVA in France?
If all this has piqued your interest into starting a business in France, then the next step is for you to download our free in-depth 11-page guide which is featured at the end of this article. Alternatively, you can take a look at our video guide to Starting a Business in France which will lead you through all of the steps in a clear and concise manner so you have absolutely everything you need to get your new French business off the ground fromregistering a business address, opening a bank account, tax planning or advice, orfinding
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