BUSINESS IN FRANCE
Not so long ago in the eyes of foreign businessmen France was perceived exclusively as a tourist and cultural centre, where you can go for a short time and relax from the active business life. In most cases, people did not consider the option of opening a business in France as a way to immigrate to Europe. Mostly popular were employment or education in one of the French universities, free of charge, by the way.
The situation changed dramatically a few years ago, when the French government began to take measures aimed at improving the business climate in the country. As a result, the pressure of the bureaucratic machine weakened, most of the obstacles to the creation of new companies were removed and many entrepreneurs rushed to France. This is not surprising. The country has a stable economy, a transparent legal system and an efficient banking sector, with low interest rates on loans.
Businessmen from third countries are not left out either. True, citizens from outside the EU need to obtain the appropriate visa and residence permit, and this is not so easy. But there are always options, we will talk about this a little later. In addition to increasing prosperity, business in France will give the opportunity to eventually formalise French citizenship and stay to live in one of the most beautiful countries in Europe, and maybe the world.
CONTENTS
How to start a business in France
Before the practical implementation of the idea of opening a business in France, it is necessary to familiarise yourself with the legal regulations that allow foreigners to carry out business activities on French territory. Citizens from third countries can quite freely register a company in France, but it is not always possible to obtain a French residence permit for full-fledged business management.
The main ways of business immigration to France
Carte de Commercant. The main option for foreigners wishing to open and run a business in France. The visa is issued to entrepreneurs and executives of French companies. The main requirements are professional experience, absence of criminal record and a promising business project. Ideally, the business should have been operating for some time and proved its efficiency.
The application for the card is submitted to the French Consulate in your country. The period of consideration may take up to 6-8 months. In case of a positive decision to issue a visa, a foreigner is granted a temporary residence permit in France for a period of 1 year, with the right to extend up to 3 years.
If the business turns out to be successful, it is possible to get a permanent residence card in France for up to 10 years. After 5 years of residence on the French territory there is an opportunity to apply for citizenship. A businessman is allowed to bring his family to France.
Skills and Talents programme. This visa significantly simplifies the procedure of moving to France for entrepreneurs from non-EU countries. As the name suggests, to participate in the programme, a foreigner must have a fair share of skills and to some extent talent. The main requirements are:
Higher education and 1 to 5 years of entrepreneurial experience, depending on the diploma.
- A business plan, with a clear justification of the economic benefit to France from its realisation. The project must be backed by sufficient financial resources and be designed to create at least two jobs for local residents.
Investor Programme. This visa is granted to foreigners who are ready to invest a substantial amount of money into the French economy. As a rule, additional conditions related to education, skills, work experience are not required. The residence card is issued for 10 years at once. The main conditions:
The foreigner must invest in tangible or intangible assets of France personally or through a company in which he owns at least 30% of the capital, the amount of at least 10 million euros.
- Create or retain at least 50 jobs in an existing French company.
Alternatively, one can move to France as a spouse of a French citizen or person with a residence permit. This will allow you to fully work and do business on French territory.
Another option is to initially set up a company with a French or EU resident, appoint a manager and control the business more remotely. After some time, you can try to apply for a residence permit under one of the migration programmes or get a commercial card.
Business culture in France
To run a successful business in France, it is vital to familiarise yourself with some of the peculiarities of the country's business culture. Let's highlight the main points:
During business meetings and contacts with business partners, it is necessary to keep your distance and adhere to formalities. For example, when addressing a person, especially when making an acquaintance or occupying a senior position, you should give your first and last name and be sure to use the words Monsieur or Madame. The greeting is accompanied by a light handshake, not too sloppy, but without the risk of injuring your hand.
- Always carry business cards, with information in both English and French. A business suit should be a staple of your wardrobe no matter what day of the week it is. Externally, you should look neat, no three-day stubble or brightly coloured make-up.
- Schedule business meetings well in advance and learn the rules of etiquette at the dinner table beforehand. Being 10-15 minutes late is considered the norm. If the meeting is held at the business partner's home, it is advisable to send flowers to the hostess in advance, and wine as a gift is better to exclude. Unless it is an expensive elite drink.
Registering a company in France
According to the Doing Business agency, France ranks 32nd out of 190 countries in terms of accessibility of opening and running a business. This is not the best result in Western Europe, but the position is higher than that of Switzerland and the Netherlands, which are ranked 36th and 42nd respectively. Let's consider the main steps to register a business in France.
The procedure for registering a company (business) in France:
Choose a unique name for the company. You can do it with the help of a special website boutique.inpi.fr.
Open a bank account and deposit the amount of the initial capital of the future company. The funds will be blocked until the registration is completed.
Apply to the regional registration centre – Centre de Formalités des Entreprises (CFE). Find the right office for your specific business here.
This is a specialised institution that checks the entire list of documents of a new company and then independently sends information to various authorities: tax office, labour department, social insurance funds and so on. A fee of about 50 euros is charged only for registration with the commercial court. Everything else is free of charge. The only thing required of the company owner is to register the articles of association with the tax administration.
Publish information about the new company in the local newspaper. The cost is in the region of 5-6 euros. For more detailed information and practical help, contact only French specialists – lawyers, accountants, notaries.
Forms of ownership in France
Before registering a business in France, it is necessary to decide on the form of ownership for the company. The level of taxation and legal responsibility of the owners will depend on it. French legislation offers more than a dozen of organisational and legal forms. Let us briefly dwell on the most popular ones.
Limited Liability Company (SARL). The number of shareholders is not less than 2 people. It is obligatory to appoint a managing director (Gérant). The minimum amount of the authorised capital is 1 euro. If the company is young (up to 5 years), owned by family members and belongs to small or medium-sized businesses in France, it is possible to make deductions in the form of income tax, instead of corporate income tax.
Individual limited liability company (EURL). A type of SARL. The difference is that the company is owned by one person, he is the sole shareholder. Liability is limited to the amount invested, unless the documents stipulate other obligations.
Joint Stock Company (SA). Suitable for large businesses. Requires at least 7 shareholders, at least one of whom must be a natural person. The minimum amount of the authorised capital is 37 thousand euros. The company is managed by a board of 3 to 18 directors. The appointment of an auditor is a mandatory requirement.
Simplified Joint Stock Company (SAS). Unlike SA, 1-2 shareholders are sufficient. An auditor is appointed only if more than 20 employees are employed and annual turnover exceeds 1 million euros.
Business taxes in France
The tax system in France is extremely complex. Without the help of a French tax consultant or accountant, it is quite difficult to understand. Especially when it comes to optimising and reducing costs.
French companies pay corporate income tax or income tax depending on the amount of their income. In addition, under certain circumstances a special tax – Taxe Professionelle – is charged.
Rates of the main taxes in France in 2024
Income tax. Progressive rate depending on income. Up to €10,777 – 0%, over €168,994 – 45%.
Corporate income tax – 25% (from 1 January 2022).
VAT – 20% basic rate. Reduced rates – 0%, 2.1%, 5.5% and 10% apply to certain groups of goods and services – food, passenger transport, cultural events.
Business destinations in France
Business immigration to France, first of all, implies the choice of the sphere of activity for the future company. To do this, you need to study the local market and assess the competition. You can do it yourself or with the help of special agencies. In the second case, the rates start from 4 thousand euros. Small business is considered the most promising in France. The influence of the state here is minimal.
Further, you should familiarise yourself with the list of so-called regulated professions or areas of activity. Opening a business in these areas involves the registration of licences and permits, which are not always easy for foreigners to obtain.
France has a population of over 65.6 million people. Plus tens of millions of tourists visit the country every year. All this forms a huge consumer market. At the same time, the quality of goods and services must be at the highest level.
For many years, the hotel and restaurant business in France has been the most popular with foreigners. And now these directions are quite relevant. Also in modern conditions, IT and financial sectors do not reduce the turnover.
Business visa to France
To move to France for the purpose of business activities for a period of more than 90 days it is necessary to issue a long-term business visa. The document is issued in person at the French Consulate in your country.
Documents for a business visa to France
Three completed visa application forms.
Four colour photographs of the established sample.
Copies of civil and foreign passports.
Certificate of no criminal record in your home country.
Statement of absence of criminal record and bankruptcy in their country and the states where the foreigner has lived for the last 10 years.
Completed administrative document or CERFA form (13473*01).
Payment of a consular fee of 99 euros.
Documents confirming the intention to open or the existence of an existing business in France.
If necessary, French Consular officials may require additional information. Documents must be translated into French and notarised.
RELATED ARTICLES:
