Table of Contents

• Choose the Right Business Structure
• Create a Business Plan
• Choose a Business Name
• Draft the Articles of Association (Statuts)
• Open a Business Bank Account and Deposit Initial Capital
• Publish a Legal Notice
• Register Your Company
• Obtain Necessary Licenses and Permits
• Register for Taxes and Social Security
• Set Up Your Accounting System
• Hire Employees (if applicable)
• Get Insurance
• Market and Launch Your Business
• Conclusion

Starting a business in France can be a rewarding yet intricate process, especially for those unfamiliar with the country’s legal and administrative procedures. This comprehensive guide will take you through each essential step required to create your company in France, ensuring you understand the nuances involved in the process.

If you need further clarifications, just get in touch with our Team of Experts!

1. Choose the Right Business Structure

The first and most crucial decision you’ll make is selecting the appropriate legal structure for your company. In France, several business structures exist, each with specific legal and financial implications:

• Sole Proprietorship (Entreprise Individuelle – EI): Ideal for solo entrepreneurs, this structure offers simplicity but does not separate the owner’s personal assets from the business’s liabilities. Variants include the Micro-Enterprise (formerly Auto-Entrepreneur), which benefits from simplified accounting and lower tax rates but is subject to revenue thresholds.
• Limited Liability Company (Société à Responsabilité Limitée – SARL): A popular option for small to medium-sized businesses, the SARL structure limits the shareholders’ liability to their contributions. The minimum share capital is just €1, though practical contributions are often higher to secure financing.
• Simplified Joint Stock Company (Société par Actions Simplifiée – SAS): Known for its flexibility, the SAS allows greater freedom in drafting the company’s bylaws and management structure. This structure is often preferred by startups and foreign investors due to its adaptability.
• Public Limited Company (Société Anonyme – SA): Typically used by larger enterprises or companies planning to go public, the SA requires a minimum capital of €37,000 and is subject to stricter regulatory requirements.

Choosing the right structure involves assessing the size of your business, the number of shareholders, and your long-term objectives. Consulting with a legal advisor or notary can help clarify the best option for your specific situation.

2. Choose a Business Name

Your business name must be unique and compliant with French regulations. It’s essential to ensure that your chosen name is not already in use or trademarked. Here’s how to proceed:

1. Check Name Availability: Use the National Institute of Industrial Property (INPI)’s online database to check if your desired business name or trademark is already registered. You can access the INPI’s search tool here: INPI Trademark Search.
2. Register Your Trade Name: If the name is available, you can proceed with registering it as a trademark to protect it legally. This can be done directly through the INPI website.
3. Reserve Your Domain Name: If your business will operate online, consider reserving a corresponding domain name. This can be done through any domain registration service, ensuring your brand’s presence on the web.

3. Draft the Articles of Association (Statuts)

The Articles of Association are the foundational documents of your company. They define the company’s purpose, the roles and responsibilities of its directors and shareholders, and the rules governing the operation of the business. Here’s what to include:

• Company Name: As verified and chosen in the previous step.
• Registered Office (Siège Social): The official address of your business in France.
• Capital Structure: Details of the share capital, including the number and value of shares issued.
• Management Structure: Defines the roles of directors and officers, their appointment process, and their powers.
• Decision-Making Processes: Outlines how decisions will be made, including voting rights and procedures for general meetings.

Drafting these statutes can be complex, especially for SAS or SA structures, where more flexibility allows for a tailored governance model. It’s highly recommended to seek assistance from a legal professional or notary.

4. Open a Company Bank Account and Deposit the Initial Capital

Opening a business bank account and depositing the initial share capital is a crucial step in the company formation process in France. For foreigners not residing in France, this process has additional considerations. Here’s how to proceed:

1. Choose a Bank
   • For Residents: If you are a resident in France, you can choose any French bank that offers business accounts. Major banks include BNP Paribas, Société Générale, Crédit Agricole, and HSBC France. It’s advisable to choose a bank that understands your business sector and can offer tailored services for your needs.
   • For Non-Residents: Foreigners not residing in France may face more stringent requirements. For example, banks require an in-person meeting and a French address.
2. Gather Required Documents
   The documents required to open a business bank account can vary slightly depending on whether you are a resident or a non-resident:
   • For Residents:
     • Drafted Articles of Association.
     • Proof of identity (passport or French national ID).
     • Proof of residence (utility bill, rental agreement).
     • A business plan, especially if you are seeking additional financial services or loans.
   • For Non-Residents:
     • Drafted Articles of Association.
     • Passport (a visa might also be required if you are from outside the EU).
     • Proof of address in France (utility bill, bank statement).
     • Tax identification number from your home country.
     • A business plan, which is particularly important if you are seeking credit or other banking services.
   • Most banks request a French resident’s guarantor or proof of a French business address, so it’s important to clarify these requirements with the bank in advance.
3. Deposit the Share Capital
   Once your account is set up, you must deposit the initial share capital. The amount required depends on your chosen business structure:
   • For an SARL or SAS, the minimum share capital can start as low as €1, but a more substantial deposit is often recommended to present a credible financial foundation.
   • For an SA, the minimum capital is €37,000.
4. For non-residents, the transfer of funds from an international account might involve additional steps or fees. Ensure that your international bank can facilitate a swift and compliant transfer to your new French business account.
5. Obtain a Certificate of Deposit
   After the capital is deposited, the bank will issue a certificate of deposit (Attestation de dépôt des fonds). This document is essential as it verifies that the share capital has been deposited and is required for the company registration process.
   For non-residents, the bank may hold the funds until all administrative steps, such as company registration, are completed. The funds will be blocked in the account until the company is officially registered, at which point they become available for operational use.

Additional Tips for Non-Residents

• If you face difficulties opening a bank account as a non-resident, consider engaging a service that specializes in helping foreigners with the administrative setup in France, such as Clevver.

By carefully preparing, you can navigate the complexities of opening a business bank account in France as a non-resident, ensuring a smooth process for your company’s financial setup.

Get in touch now!

5. Publish a Legal Notice

In France, you must announce the creation of your company in an authorized legal journal (Journal d’Annonces Légales – JAL). This is a transparency measure to inform the public of your company’s existence. Here’s how to do it:

1. Choose a JAL: Select a journal that is authorized to publish legal notices in the region where your company is registered. You can find a list of authorized journals here: JAL Directory.
2. Draft the Notice: The notice should include key details such as the company name, legal form, registered office, share capital, and management structure.
3. Publish and Obtain a Certificate: Submit your notice to the JAL and obtain a certificate of publication. This document is required for the registration process.

6. Register Your Company

Now that you have all necessary documents (Articles of Association, bank certificate, and publication certificate), you can proceed with the official registration of your company. This is done through the Centre de Formalités des Entreprises (CFE), which acts as a one-stop shop for all administrative formalities. Here’s how to proceed:

1. Choose the Appropriate CFE: The CFE you need to register with depends on the nature of your business:
   • Chamber of Commerce and Industry (CCI): For commercial businesses and services.
   • Chamber of Trades and Crafts (Chambre des Métiers et de l’Artisanat): For artisans and craftspeople.
   • URSSAF: For liberal professions.
   • Chamber of Agriculture: For agricultural businesses.
2. You can find more information and the contact details of your relevant CFE here: CFE Directory.
3. Submit Registration Documents: You’ll need to submit the following:
   • Completed registration form (available from the CFE).
   • Articles of Association.
   • Certificate of deposit from your bank.
   • Proof of publication in a JAL.
   • Proof of identity and residence of the directors.
4. Obtain the Company Registration Number (SIRET): Once processed, your company will be assigned a SIRET number (unique business identification number) and be registered with the Registre du Commerce et des Sociétés (RCS), which is the French company register. Your company will also be automatically registered for VAT and other necessary tax obligations.
   You can access the RCS and find more information here: Infogreffe – RCS.

7. Obtain Necessary Licenses and Permits

Depending on your business activity, you may need specific licenses or permits to operate legally in France. These may include:

• Health and Safety Licenses: Required for businesses in the food and beverage industry.
• Professional Licenses: Necessary for regulated professions such as real estate agents, architects, and lawyers.
• Environmental Permits: For businesses with potential environmental impacts.

Consult with your local CFE or relevant professional organization to ensure you meet all legal requirements.

8. Register for Taxes and Social Security

Your business needs to be registered for various taxes and social security contributions. This includes:

• Corporate Tax (Impôt sur les Sociétés – IS): Payable on the profits of your company.
• Value-Added Tax (VAT – Taxe sur la Valeur Ajoutée – TVA): Required if your business exceeds certain turnover thresholds.
• Social Security Contributions: For employee benefits such as health insurance, pensions, and unemployment insurance.

Most of these registrations will be handled automatically when you register your company with the CFE. However, it’s important to confirm that you are correctly registered with the relevant authorities:

• URSSAF: Responsible for social security contributions. You can register and find more information here: URSSAF.
• Direction Générale des Finances Publiques (DGFiP): The French tax authority responsible for corporate tax and VAT. Their website can be accessed here: DGFiP.

9. Set Up Your Accounting System

French law mandates that all companies maintain detailed financial records. Your accounting system should include:

• General Ledger (Grand Livre): A record of all financial transactions.
• Inventory Book (Livre d’Inventaire): A yearly record of your company’s inventory and assets.
• Annual Accounts (Comptes Annuels): A report of the company’s financial status, including the balance sheet, income statement, and annexes.

Hiring a Certified Public Accountant (Expert-Comptable) is highly recommended to ensure compliance with French accounting standards. They can assist with bookkeeping, tax filings, and financial reporting.

10. Hire Employees (if applicable)

If you plan to hire employees, there are specific steps you must follow:

1. Register with URSSAF: You must register as an employer with URSSAF to pay social security contributions. This can be done online here: URSSAF Employer Registration.
2. Draft Employment Contracts: French law requires that all employees have a written employment contract. This contract should outline the job role, salary, working hours, and other terms of employment.
3. Comply with Labor Laws: France has strict labor laws regarding minimum wage, working hours, employee benefits, and termination procedures. Ensure that your company complies with all relevant regulations.
4. Set Up Payroll: Implement a payroll system to manage employee salaries and social security contributions. This can be done in-house or through an external payroll service provider.

11. Get Insurance

French law requires businesses to have certain insurances in place:

• Public Liability Insurance (Responsabilité Civile Professionnelle): Covers damages caused by your business to third parties.
• Professional Indemnity Insurance: Necessary for regulated professions such as doctors, lawyers, and architects.
• Property Insurance: Covers your business premises and equipment against risks such as fire, theft, and natural disasters.

Consult with an insurance broker to determine the appropriate coverage for your business.

12. Market and Launch Your Business

With all legal and administrative steps completed, you can now focus on marketing and launching your business. Develop a marketing strategy that includes:

• Branding: Create a strong brand identity, including a logo, color scheme, and messaging.
• Website: Develop a professional website to showcase your products or services.
• Digital Marketing: Utilize social media, email marketing, and search engine optimization (SEO) to attract customers.
• Networking: Join local business networks and attend industry events to build relationships and promote your business.

Conclusion

Creating a company in France is a detailed process that requires careful attention to legal and administrative requirements. By following these steps, you can establish your business on a solid foundation, ensuring compliance with French regulations and positioning your company for success. Whether you are a local entrepreneur or a foreign investor, understanding each step in the process will help you navigate the complexities of starting a business in France.

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The regulation for company formation in France requires that:

• Every company that is being formed have an address of domiciliation in France
• During the formation process, a legal notice has to be published in a local paper, in french
• A certain number of rules set by law must be included in the company statutes
• The 1€ minimum start capital must be deposited before the company is opened. But most french banks won’t open an account to a non-resident director/shareholder, even less while the company is being formed. Classic example of a “the chicken or the egg first” situation.

And much more…

A company formation without any of the 3 services above is not complete.

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