Expat Guide to Setting Up a Business in France

France is certainly one of Europe’s gems. Filled with incredible history, legendary cuisine and beautiful cities, towns and villages, it is an attractive option for expats to consider setting up a business. Among the biggest economies in Europe, in 2023 it was only behind Germany in terms of annual average salary. However, high inflation since 2021 has meant that the good wages aren’t going as far as they might elsewhere. This could be seen as a stumbling block for many keen to start a business, but with GDP predicted to rise and inflation expected to fall, there could well be reason to be optimistic.

In this blog, we look at how an expat can set up a business in France so they can be part of the future which may well be a little rosier across the channel.

Aside from the reasons we mentioned above, France can lay claim to being in a prime location. Being a member of the EU and having direct access to over 500 million customers means that your business may find opportunities coming from more than just your base country. Compare this with the UK – where thanks to Brexit plenty of red tape gets in the way – and you could soon be tapping into multiple new markets.

The French government also look to support businesses. The France 2030 Investment Plan for example is allocating €100 billion for economic development including innovation and ecological transition.

So, how do you get your business to be part of this exciting country and the opportunities it delivers? Let’s dive a little deeper.

Setting up a business in France as an expat can be a little complex but much depends on where you come from. If you are already a citizen of a country within the Schengen area, you can set up a business without needing a specific visa. However, if you are a citizen of the UK or the USA, you’ll need a long-stay visa to allow you into the country and be eligible for a stay of up to one year.

If you wish to set up a business in France and are not from the EU, EEA or Switzerland you’ll need a suitable visa. The long-stay visa is for entrepreneurs who can provide evidence that they can pay themselves at least the minimum wage and that the business activity is compatible with all public health and safety requirements.

It is valid for just twelve months but can be renewed as long as specific conditions are met. Namely, your earnings still match the minimum wage requirements, and you still meet all terms of visa eligibility.

If you do not yet live in France, you’ll need to apply for a VLS-TS via the French consular authorities in your home country. This is the Visa that grants you entry to France for up to one year. To support your application you will need a host of documents, a comprehensive list can be found here.

All of these must be submitted with the application, and where necessary, accompanied by a French translation.

The application should be completed no earlier than three months before the planned arrival date in France. Upon arriving in France, the VLS-TS must be validated with the French Office of Immigration and Integration (OFII). During the validation process, you’ll need to pay €200 to the OFII with a further €25 stamp duty and €99 for the actual visa.

Should the visa be granted, you can become a resident, albeit temporarily. However, if you spend five years in France, uninterrupted, you can apply for a residence card which then allows you to remain in France and undertake any form of paid employment. This then lasts for 10 years and can be renewed if required.

If you already live in France and hold a form of residence permit, you won’t have to worry about this and can head straight to the steps below.

Armed with your residence visa, you are on the right path to being able to set up a business in France. Just make sure you also have a French social security number and French address before going any further. You’ll also need to be over 18 years of age, and depending on what type of business you have, you may also need specific certifications to prove you can operate that kind of business.

In France, you must decide what type of business structure your business falls under. This largely depends on the size of your business, whether you have personal assets you wish to protect and how you want tax to be paid by your company. You could choose from:

This is the legal structure primarily used by freelancers and rather than a business structure is more clearly defined as a tax status. You don’t charge VAT or claim expenses on your business and have both personal and professional assets combined. The business activities and annual turnover are likely to be limited.

Also known as the EIRL, this structure is for sole traders and provides them with a degree of liability. It allows you to register a business under your name or a business name. Detailed guidance and support can be found here.

The EURL is also a structure with limited liability and is set up for a single person and shareholder. Professional assets are separated from personal, allowing expenses to be charged to the business. You’ll need to pay a fee to put a business in this category and with could range from a few hundred Euros to a few thousand! Furthermore, you must also declare the creation of your EURL via a legal announcement. This will cost an additional €121.

This is the upgrade to the EURL and is a popular choice for those with small and medium-sized businesses. A SARL is a limited liability company with between 2 and 100 partners. Liability is limited to capital investment and no minimum capital is required to set one up. There can be more than one company head, and all founding partners must agree to allow new associates to come on board.

These are among the most common options but you could also find it worth considering a SASU or a SAS depending on your business structure.

Now with a residence permit in place and an appropriate business structure chosen, you can begin the process of registering your business in France. Businesses in France are assigned to one of four categories, and this categorization determines how you register it. Your business will fall under one of the following:

Luckily, to save time and not have your registration sitting among too many other businesses, each category has a specialist registration centre. These are known as CFE or Centre de Formalités des Entreprises.

Once you’ve established which category your business fits into, you’ll need to contact the relevant CFE. This is the more streamlined option and should provide you with a faster and even more personalised experience.

For shops or commercial businesses with no craft, trades or artisan elements, you will need to contact the Chambre de Commerce et d’Industrie (CCI).

If you are a craftsperson or work in manual trades, you will register with the Chambre de Métiers et de l’Artisanat (CMA).

If your company is one of regulated professionals, you’ll need Les Greffes des Tribunaux de Commerce. You should be aware that should your company work in a regulated field, you may be asked to provide additional evidence of your experience and qualifications. Such trades include lawyers, those working in medicine and perhaps surprisingly hairdressers.

Should your business be for intellectual services such as web designers, your CFE will be the URSSAF.

If you work in agriculture the CFE you need is the Chambre d’agriculture.

In some cases, special licences are required for specific businesses. Ask the CFE whether this applies to you, so you don’t get caught out at a later date.

When completing your registration, you’ll need quite a lot of information to support you. This can vary greatly depending on which CFE you need to register with, but you should expect to be asked for:

With registration completed, your CFE will send you some official documentation. Within it will be your Siret, Siren and APE numbers. These are important as they identify your business to not only those who use it but to the authorities too. Your Siren remains the same for the time your business is in operation, but should you relocate, your Siret will change. The Siret must be shown on all invoices and any official company documentation.

The APE is simply a code that indicates the main activity of your business.

We are almost there…. Your business in France is almost ready to go. You just need to check if the name you want to use is already in place elsewhere and registered as a trademark with elsewhere. The INPI website allows you to browse for free and see if your business name is already being used. If it is not, you can use it, but it may be worth registering it as a trademark. This protects the name and/or logo from being used elsewhere.

Once you are up and running, you will need to make sure you comply with French law. It can be quite different to what you may have been used to elsewhere.

If your business has an annual turnover that exceeds a specific amount, you’ll need to be registered for VAT or TVA. You can do this through the tax office. In addition, you may need to make social security contributions. This will largely depend on which legal structure your business operates under.

Insurance is also an essential requirement to help keep your business protected. The kind of cover you’ll require will vary depending on the type of business you have.

Finally, accounting. In France, it is a legal requirement that businesses maintain precise accounts and submit annual financial statements. Failing to do so could result in prosecution.

Perhaps surprisingly, despite the wealth of info we have provided above, you can be officially set up as a business in France in as little as four days. Just ensure you have your resident permit in place and have done the necessary research in advance. Should you be requiring loans, you’ll need proof of funds too.

Employing staff could take some time too, and should you require people to work with you, you’ll need to ensure you are up to speed with French labour laws. Employees in France have specific rights and you’ll have to spend time ensuring your business complies with them all. Getting legal advice before hiring people would be the best advice!

It would also be a wise idea to ensure you have all the relevant insurance for your time in France. We provide business travel insurance for expats as well as comprehensive health and travel insurance for working abroad. Speak to our team of experts today for a no-obligation expat insurance quote.