Table of Contents

• Introduction
• Determine Your Business Structure
• Ensure Legal Eligibility
• Choose and Register Your Business Name
• Draft the Articles of Association
• 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

France, with its robust economy, strategic location in Europe, and thriving business environment, is an attractive destination for foreign entrepreneurs looking to start a company. However, navigating the legal and administrative processes as a foreigner can be complex.

This article provides a comprehensive overview of the steps involved in starting a company in France as a foreigner, highlighting key considerations and tips to help you establish your business successfully.

Why Start a Business in France?

Before diving into the process, it’s important to understand why France is an appealing destination for foreign entrepreneurs:

1. Strategic Location: France is centrally located in Europe, offering easy access to other European markets.
2. Strong Economy: As one of the world’s largest economies, France offers a stable and prosperous environment for business growth.
3. Innovation and Support: France has a strong focus on innovation, particularly in sectors like technology, renewable energy, and healthcare. The government also provides various incentives and support programs for startups.
4. Quality of Life: France is renowned for its high quality of life, including excellent healthcare, education, and infrastructure, making it an attractive place to live and work.

Step 1: Determine Your Business Structure

The first step in starting a company in France is to choose the right legal structure. The most common business structures for foreigners include:

• Sole Proprietorship (Entreprise Individuelle – EI): Suitable for solo entrepreneurs, this structure is straightforward but does not separate the business owner’s personal and business assets.
• Limited Liability Company (Société à Responsabilité Limitée – SARL): A popular choice for small to medium-sized businesses, the SARL limits the liability of its shareholders to their contributions.
• Simplified Joint Stock Company (Société par Actions Simplifiée – SAS): Known for its flexibility, the SAS allows for a tailored management structure and is often chosen by startups and foreign investors.
• Public Limited Company (Société Anonyme – SA): Typically used by larger companies or those intending to go public, the SA requires a higher minimum capital and is subject to more stringent regulations.

The choice of structure depends on factors such as the number of shareholders, the level of liability you are willing to accept, and your business goals.

Step 2: Ensure Legal Eligibility

Before you can start a business in France, you need to ensure that you meet the legal eligibility requirements:

1. Visa and Residence Permit: Non-EU/EEA citizens must obtain the appropriate visa and residence permit to live and work in France. This typically involves applying for a long-stay visa marked “entrepreneur/profession libérale” or a “Talent Passport” if you qualify as a highly skilled entrepreneur or investor.
2. Proof of Funds: You may need to provide proof of sufficient financial resources to support yourself and your business during the initial phase.
3. Criminal Record Check: In some cases, you may be required to submit a criminal record check from your home country.

It’s advisable to consult with the French consulate or embassy in your home country to confirm the specific requirements for your situation.

Step 3: Choose and Register Your Business Name

Choosing a unique and compliant business name is a crucial step in establishing your brand in France. Here’s how to proceed:

1. Check Name Availability: Use the National Institute of Industrial Property (INPI)’s online database to ensure your desired business name is not already in use. You can access the INPI’s search tool here: INPI Trademark Search.
2. Register Your Trade Name: Once you’ve confirmed the availability of your business name, you can register it to protect your brand. This can be done through the INPI.
3. Domain Name Reservation: If your business will have an online presence, reserve a corresponding domain name through a domain registration service.

Step 4: Draft the Articles of Association

The Articles of Association (Statuts) are the foundational documents of your company, outlining the business’s purpose, management structure, and operational rules. Key elements to include are:

• Company Name and Registered Office: The official address of your business in France.
• Capital Structure: Details of the share capital, including the number and value of shares.
• Management Structure: Roles of directors and officers, their appointment process, and their powers.
• Decision-Making Processes: Procedures for making decisions, including voting rights and general meetings.

Drafting the Articles of Association can be complex, particularly for structures like SAS or SA, which offer more flexibility. It’s advisable to consult a legal professional or notary to ensure the document meets all legal requirements.

Step 5: Open a Business Bank Account and Deposit Initial Capital

Opening a business bank account in France is essential for depositing the initial share capital and managing your company’s finances. Here’s how to navigate this process as a foreigner:

1. Choose a Bank: Select a bank that caters to international clients, such as BNP Paribas, Société Générale, or HSBC France. Some banks may offer specialized services for non-residents.
2. Submit Required Documents: You’ll need to provide:
   • Valid passport.
   • Proof of address in your home country.
   • Proof of a business address in France (can be obtained through a virtual office service if needed).
   • A business plan, particularly if seeking additional financial services or loans.
3. Deposit Share Capital: The required amount varies based on your business structure (e.g., €1 for an SARL or SAS, €37,000 for an SA). The bank will issue a certificate of deposit, which is required for company registration.
4. Consider Using Clevver: If you face difficulties opening a bank account as a non-resident, consider using a service like Clevver. Clevver provides virtual office solutions and assists with remote bank account opening, making the process smoother and faster for international entrepreneurs.

Get in touch with our Team!

Step 6: Publish a Legal Notice

In France, it is mandatory to publish a legal notice of your company’s formation in an authorized legal journal (Journal d’Annonces Légales – JAL). The notice should include key details such as the company name, legal form, registered office, and share capital. After publication, you’ll receive a certificate, which is required for the next step.

Step 7: Register Your Company

With all the necessary documents in hand (Articles of Association, bank certificate, and publication certificate), you can now register your company through the Centre de Formalités des Entreprises (CFE). The CFE acts as a one-stop shop for all administrative formalities:

1. Choose the Appropriate CFE: The CFE you need depends on your business type:
   • 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. Submit Registration Documents: You’ll need to submit the registration form, Articles of Association, certificate of deposit, proof of publication, and identity documents.
3. Obtain the Company Registration Number (SIRET): Once processed, your company will be assigned a SIRET number and be registered with the Registre du Commerce et des Sociétés (RCS).

Step 8: Obtain Necessary Licenses and Permits

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

• Health and Safety Licenses: For businesses in the food and beverage industry.
• Professional Licenses: Required 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 professional organizations to ensure you meet all legal requirements.

Step 9: Register for Taxes and Social Security

Your company must be registered for various taxes and social security contributions. This includes:

• Corporate Tax (Impôt sur les Sociétés – IS): Payable on company profits.
• 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 healthcare and pensions.

Most of these registrations will be handled automatically during your company registration with the CFE. However, it’s important to confirm that your business is correctly registered with authorities like URSSAF for social security and DGFiP for tax purposes.

Step 10: Set Up Your Accounting System

French law mandates that 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 and income statement.

Hiring a Certified Public Accountant (Expert-Comptable) is recommended to ensure compliance with French accounting standards and to manage tax filings and financial reporting.

Step 11: Hire Employees (if applicable)

If you plan to hire employees, you must comply with French labor laws:

1. Register with URSSAF: As an employer, you need to register with URSSAF to pay social security contributions. This can be done online: URSSAF Employer Registration.
2. Draft Employment Contracts: French law requires that all employees have a written employment contract detailing job roles, salary, and working conditions.
3. Comply with Labor Laws: France has strict regulations regarding minimum wage, working hours, employee benefits, and termination procedures. Ensure your company adheres to these laws.
4. Set Up Payroll: Implement a payroll system to manage employee salaries and social security contributions, either in-house or through an external service provider.

Step 12: Get Insurance

French businesses must have certain mandatory insurances, including:

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

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

Step 13: Market and Launch Your Business

With all legal and administrative steps completed, focus on marketing and launching your business. Develop a 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

Starting a company in France as a foreigner involves navigating a complex legal landscape, but with the right preparation and support, it can be a rewarding endeavor. By following these steps, you can establish a strong foundation for your business in one of Europe’s most dynamic markets. Whether you’re looking to tap into the French market or use France as a base for European operations, understanding the process will help you successfully launch and grow your business in France.

Form your company in France with Clevver

You are ready to form a company in France, but don’t know where to start?

Every argument is there to decide to start doing business in the hexagone. That is, if you do not trip on the many complex steps and regulations of forming a company.

Use Clevver’s expertise on the ground to form your company:

• Local, french speaking partners
• Completely remote formation
• Company ready in 2-4 weeks
• No need to be a resident in the country
• Competitive pricing: see pricing

The Clevver solution:

• Deposit your share capital and get a pro account in 1 easy step with ClevverBanking
• The entire process takes place online
• No need to travel to France
• Save time and be business ready faster
• Manage your finance in the same Clevver portal as for all your business activities
  

Your business address on L’avenue des Champs-Élysées

• Well renowned location, elevating your company’s status
• Clevver takes care of your mail, allowing you to manage the company remotely
• View all the post received at your address in your Clevver portal
• Benefit from a much lower CFE (cotisation foncière des entreprises) rate of taxation than if you were to domiciliate your company outside of Paris
• Manage your finance in the same Clevver portal as for all your business activities

Why get the bundle instead of buying each service separately?

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.

Let Clevver take care of the entire process, allowing you to focus on growing your business instead, in France and at home. Take advantage of our bundle and save 200€. Get in touch with our Team.