How to start a business in France in 2020?

France is a dream country for many people, which is primarily associated with the Eiffel Tower and frog legs. France rightfully occupies one of the first positions in the conditional ranking of the most attractive European countries for doing business. This is due to several reasons.

Entrepreneurs from other countries who plan to open a business in France can expect understanding from the country's authorities, good attitude from local residents, as well as ample business opportunities.

Business culture in France

To run a successful business in France, it is vital to become familiar with some of the country's business culture. Let's highlight the main points:

During business meetings and contacts with business partners, it is necessary to maintain distance and adhere to formalities. For example, when addressing a person, especially when meeting someone or holding a leadership position, you need to 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 careless, but without the risk of injuring the hand.
Always carry business cards with you, with information in both English and French. A business suit should be the main part of your wardrobe, regardless of the day of the week. Outwardly, you need to look neat, no three-day stubble or bright makeup.
Make business appointments well in advance and learn proper dinner table etiquette ahead of time. Being 10-15 minutes late is considered normal. If the meeting takes place at a business partner’s home, it is advisable to send flowers to the hostess in advance, and it is better to exclude wine as a gift. Unless it's an expensive luxury drink.

Preparation of documents for residence in France

Today there are no significant obstacles to opening a business in France

could, including a foreign citizen. French citizenship is not required for this. This is largely a consequence of the French state’s policy to attract investment into the country and create new jobs. Since there are not enough jobs in the country, as already mentioned, the foreign citizens who create them are treated accordingly. So many operations related to documentation are carried out much faster.

So, what documents must a foreign citizen present in order to be given the opportunity to open a business in France?

from scratch?

You should immediately distinguish between documents related to the fact of residence of a citizen who has decided to come to live in France for permanent residence

- and documents that are related specifically to his plans for doing business. This is not the same thing, because you can live in France and not have a business here, or you can buy a business in France without living in this country, or you can do both.

If a citizen-future business owner intends to live in France, then he will need the following documents:

visa to France. Such a visa is necessary so that you can safely enter the country and stay here legally.
medical insurance policy in France. All medical services in France are very expensive, it is best not to pay for them out of your own pocket, but to ensure that the insurance company pays for it all. But to do this, you need to worry about buying a medical insurance policy in France in advance.
opening a bank account in France.
Without this, it is almost impossible to come
to live in France
. Please note that this is a citizen’s personal bank account and is in no way connected with his business activities. You need to deposit a minimum amount of money into such an account in order to obtain permission to enter the country - the French state will see that you have the funds to provide for your accommodation, and no problems will arise.
If you are planning to take your family with you to live in France
, then do not forget that for each family member you will also need to complete all these documents. In many cases, the services of a sworn translator and apostille of various documents will also be required. All this may cause minor hiccups, but in general it is quite surmountable.

Finally, for those who want to come and live in France

It is mandatory
to buy an apartment in France
or enter into a rental agreement in France. Only by doing all this can you be sure that no difficulties will arise with your arrival in France.

Requirements for a businessman in France

The basic requirements for a businessman, of course, are the same in all countries - ingenuity, enterprise, the ability to find creative solutions and overcome difficulties, perseverance and courage, without which it is simply impossible to set foot on this path. If you want to open a business in France

, then no special education or special documents will be required.

Anyone can buy a business in France; you don’t even need to be a citizen of this country. The only requirement that France makes is that the director of the company be a citizen of the country.

However, this does not apply to the owner; he can come to live in France

, or may be permanently abroad. Since a tax is paid on any purchase or sale of a business, the French authorities are interested in the business changing owners.

The only important requirement is to obtain a merchant card. Getting it is not difficult at all, you will need to present a standard set of documents - passport, international passport, visa in France, application for a merchant card.

Problems with this almost never arise; the French government would be happy if all citizens were businessmen and did not look for free jobs, but created them themselves.

At least if a foreign citizen wants to become a businessman and buy a business in France,

In all cases they will meet him halfway and even provide some assistance.

Popular areas for starting a business

Before opening a business in France,

Of course, it's worth thinking about how to make it profitable. And here in the first place is the area to which your business will belong. There are many areas available to a foreigner who decides to open a business in France. The most profitable of them can be considered:

real estate and hotel business. This is always profitable in almost any country, and France will not be an exception.
food, including the restaurant business. The French are very fond of going to restaurants and cafes, and if you have something to offer them in this regard, you can count on a fairly quick return.
Internet technologies, programs and all computer services. Today in France there are many companies of this type, but this market is very wide and has a lot of opportunities. It is likely that your company, if it chooses one of these directions, will become quite successful.
services sector. Every country requires hairdressers, makeup artists, and so on. If you create a company that is capable of providing a variety of services at a high level, then rest assured that your company will not be in poverty either.

There are many other areas in which you can open your own profitable business. A good businessman who is close to moving from words to action has usually already decided on what exactly he is going to do. Having settled on one or another direction for your business, you can move on to the next stage and prepare to open and launch your French company.

What type of activity is better for a foreigner to choose?

Anyone can open their own business in France. Of course, there are also industries that require a French diploma, a special license or a professional card. In some areas, it is enough to have minimal experience.

For example, such areas include educational activities, medical or legal. Business immigration to France is mainly carried out to open a business in areas such as construction, catering, real estate, trade, information technology and the hotel industry.

Types of businesses in France

The most common organizational and legal type of company in France is a limited liability company. The minimum amount of authorized capital for such companies is 7,500 euros. You need to pay the entire amount at once when registering a business. The number of founders can vary from two to five. Financial statements on the activities of the enterprise must be prepared and submitted to the tax authority only once a year. However, there are also risks. If the amount of the authorized capital during the year falls by less than 50% of its original volume, then the enterprise may be closed by court decision.

The second type of company is a joint stock company (with unlimited liability). The minimum authorized capital is 250 thousand francs, which equals approximately 38 thousand euros. The minimum number of founders is seven people. If we are talking about a limited liability joint stock company, then the number of founders can be two people, and the minimum authorized capital is 50 thousand francs (approximately 7 thousand euros).

An analogue of our individual entrepreneur in France is a company with unlimited liability. Consists of one founder who bears full responsibility for the business with all his property. The minimum amount of authorized capital will please you - it is symbolically one euro.

The average period for opening a business in France is from 2 to 4 months. It is best to use the services of specialized companies that will help you collect a package of necessary documents, successfully conduct all meetings with French government authorities and give useful advice regarding starting your business.

Applying for a business visa

List of required documents

Applicants must provide the French Consulate with the following documents:

1 application form for a short-term visa, completed in French or English, dated and 2 signatures;
2 photos;
Original invitation from a French company (with a photocopy), indicating the last name, first name and position of the invited person, indicating the purpose and duration of stay, financial obligations associated with the official visit;
Certificate from the place of work for employees: a certificate indicating the position and salary of the person, the name and address of the enterprise, permission to leave, length of stay and a guarantee of return to their homeland;
Certificate of personal income in Ukraine (bank account balance, statement of the movement of funds in the account for at least the last six months, documents confirming the availability of real estate, securities, etc.);
Foreign passport with copies of all pages except blank ones; citizens who have two or more passports must provide them when submitting documents;
Internal passport with copies of all pages except blank ones;
A copy of your marriage, divorce or death certificate;
Hotel reservation;
Booking air tickets in both directions (do not buy tickets before receiving a visa);
Car insurance, registration certificate and driver's license, with a copy - in case of traveling by car;
Medical insurance for the duration of the trip.

This list is general (informative), but does not exclude the requirement of additional documents.

Price

Visa fee for obtaining a business visa:

Consular fee	Schengen visa
Citizens of Ukraine	35 euros
Citizens of Russia	35 euros
Citizens of Georgia	35 euros
Citizens of Moldova	35 euros
Citizens of other countries	60 euros

This amount of payment implies standard terms for reviewing submitted documents. If an emergency review of the application is necessary, you will have to pay twice as much.

The VC service fee in 2020 is about €25 (payment is taken in rubles).

How to open a business in France

Choosing a name

At the first stage, you must decide on the name of your organization. It must be selected according to the following criteria:

uniqueness – should not copy the name of other companies, brands, organizations in France and the European Union;
relevance – it is desirable that people immediately understand the profile of your activity by name;
ease of reading and pronunciation - necessary for advertising and marketing.

Note that brevity and creativity when choosing an organization name is not always good; both long and fairly simple names can become popular.

Choosing a legal form of activity

Next, based on the type of business you will conduct in France and its scale, you need to choose the organizational and legal form of your commercial activity. For example, a joint stock company or a sole proprietorship. The amount of taxes, approach to management, form of ownership, etc. will depend on this. What forms are available in France will be discussed below in a separate section.

Opening a bank account

In order to open a business in France, we will need to open an account in our name in one of the local banks. This is necessary for two reasons:

To this account you need to transfer funds for the authorized (initial) capital of the company (the amount is determined by the organizational and legal form) - an advance or the entire amount.
In this country, business payments must go through accounts in French banks - a common rule in the European Union.

Please note that until the completion of the company registration procedure, money in bank accounts for the authorized capital will be blocked.

Register your organization

At the fourth stage, you need to apply to register your organization through a special registration center - Center de Formalités des Entreprises, or CFE for short. This is a special institution whose task is to collect and double-check all documents, and then send them to the necessary authorities:

Consolidated Register of Companies and Firms;
Tax Service;
National Institute of Industry;
Central Trade Register;
Labor Department;
Pension and social insurance funds.

This service costs only 50 euros.
At the same time, to interact with the CFE, the future merchant will only need to submit an application and the necessary documents, as well as independently fill out the charter for the tax authorities.

Informing the public

A prerequisite for establishing a company in this country is to inform the public about this legal act. This is worth remembering if you are planning to open a business in France - features of local administrative law, failure to comply with which can lead to serious problems. This is done through a special note in one of the local newspapers. In addition, you need to list your business in the Official Bulletin of Civil and Commercial Announcements.

Company registration in France

According to the Doing Business agency, in 2020 France ranks 32nd out of 190 countries in the world in terms of accessibility to opening and subsequently 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 in 36th and 38th place respectively. Let's look at the main steps to register a business in France.

Procedure for registering a company (business) in France:

Choose a unique name for the company. You can do this using the special website boutique.inpi.fr
Open a bank account and deposit the initial capital of the future company. Funds will be blocked until registration is completed.
Submit your application to the regional registration center - Center de Formalités des Entreprises (CFE). You can find a suitable office for a specific business here.
This is a specialized institution that checks the entire list of documents of the new company, and then independently sends information to various authorities: the tax service, the labor department, social insurance funds, and so on. A fee of approximately 50 euros is provided only for registration in the commercial court. Everything else is free.
The only thing that is required of the company owner is to independently register the charter with the tax administration. Here is the link to the official website for applying to CFE. In addition, here you can find useful materials related to registering a business in France, for example, sample charters for different types of companies.
Publish information about the new company in a local newspaper. The cost is around 5-6 euros. For more detailed information and practical assistance, contact only French specialists - lawyers, accountants, notaries.

Types of ownership

The amount of taxes and the owner’s responsibility depend on the form of ownership of the organization.

The most common of them are:

SARL. This is the French equivalent of an LLC and requires at least two shareholders and a managing director. The amount of the statutory contribution can be from 1 euro. For companies representing small businesses in France and family businesses of this form, it is possible to pay income tax instead of the required corporate tax.
EURL - differs from SARL in that the owner of the company and the sole shareholder can be one person. In this case, responsibility and obligations will depend on the amount of investment deposits and regulatory documents.
S.A. A company of shareholders is a form designed for a large enterprise; it is assumed that there will be more than 7 shareholders. The smallest authorized amount is 37,000 euros. The organization is governed by a board, which must number from 3 to 18 directors. Such a company must have an auditor appointed for regular audits.
SAS. This is a company that allows a minimum number of shareholders. The appointment of an auditor is only required if the company has more than 20 employees and the annual turnover exceeds 1 million euros.
SNC. This is a general partnership in which all participants are responsible for all property. Registration of such a company does not require the payment of authorized capital and public reporting in the future.

Organizational and legal forms

To organize your own business in France from scratch, you will have to choose a legal form. The amount of taxes, management approach and other aspects will depend on this. Conventionally, forms of commercial activity in this country can be divided into 3 groups.

Medium and large business

In all legal forms of medium and large businesses, foreign businessmen and French citizens can be founders and shareholders. Highlight:

Society of shareholders of open or closed type - SA (Societe anonyme) . The form is designed for a relatively large enterprise and implies the presence of at least 7 founders and 7 shareholders. The amount of authorized capital is from 37,000 euros. The administrative council must consist of a minimum of 3 participants, a maximum of 18. There must be a special inspector who will conduct the audit.
A joint stock company or limited liability company with 2 or more shareholders - SARL (Societe a responsabilite) . Number of participants from 2 to 50 people. An important condition is the appointment of a managing director. The minimum authorized capital is 7,500 euros. The amount of capital is determined by the founders.
Joint-stock limited partnership - SCPA (Societe en commandite par action) . The minimum number of partners and shareholders is 1. For public signature, an authorized capital of 250,000 euros is required, without signature - 37,000.
Simplified joint stock company - SAS (Societe par actions simplified) . It requires a minimum number of participants and a certain number of shares, the size of the authorized capital is not limited, at least 1 founder and 1 shareholder are required.

Small business in France

Small business is one of the most common forms of entrepreneurship in France. Here they highlight:

Limited liability company - EURL (Entreprise Unipersonnelle à Responsabilité Limitée) . Often this is a small family business. The authorized capital is determined by the owner of the company; he also bears full responsibility for the financial and economic activities of the enterprise with his own capital.
Simple limited partnership - CS (Societe en commandite simple) . Subject to public reporting and is a legal entity. Full partners are liable with all their property, and limited partners (participants) are liable only with their contributions to the business. There is no minimum authorized capital required.
General partnership - SNC (Societe en nom collectife) . Not subject to public reporting. This form is usually chosen for a family business where all members are equally responsible for financial results. The partnership is recognized as a legal entity and can appoint as its director someone who is not a member of the partnership. There is no minimum authorized capital required. Does not involve public reporting.
Sole enterprise - EI (Entreprise individuelle) . Analogous to an individual entrepreneur. The owner is liable with all his property for the obligations of the enterprise. Not subject to public liability.

Branch or representative office of a foreign company

You can open a branch of a foreign company in France in the following ways:

Bureau or Representative Office - Bureau de Representation . Involves establishing new and developing old contacts, collecting information, market research, and advertising activities. In this case, contractual relations are implemented and trading operations are carried out on behalf of the parent company. If the branch deals only with contracts, then registration with the Chamber of Commerce and Industry is not required. If the functionality of the representative office is significantly expanded, then registration is already necessary.
Agency - Agence . It has wider capabilities compared to the first form. Requires inclusion in the Consolidated Register of Companies and Firms. The manager has the right to conduct professional activities in the area in which the parent company is engaged. The Agency bears full responsibility for the obligations assumed by the Agent abroad.
Branch - Succursale . This is an entire commercial enterprise with its own property and organizational structure. However, it is not a legal entity and does not have its own capital. Has greater governing rights than the Agency, but activities are limited to the use or creation of services or goods originating from the parent company.
Branch - Filiale . A real subsidiary that is an independent legal entity and resolves all issues independently. More than half of the authorized capital belongs to the head (parent) company, but it is not responsible for the obligations and debts of its branch.

If you plan to open a foreign representative office of your company, you collect a number of documents. All documentation for registration services is submitted in two copies with a translation into French made by a professional translator.

List of documents:

Statutory documentation. Submitted to the Commercial Court at the location of the branch.
Petition. Submitted to the Trade Register along with other necessary documents.
Foreign merchant card. Required if the manager is a foreigner.

Business taxes

France has a rather complex tax system, which a future businessman will have to understand for a long time. But this must be done, since it is unlikely that you will be able to evade paying taxes without risking your own freedom.

So, French companies, based on their profitability, need to pay corporate or income tax.

There is also a special tax that is assessed in certain situations.

Income tax. This is a progressive rate that is paid based on the amount of profit. If the company's income is less than 9 thousand euros, no tax is charged, the maximum rate is 45%.
Corporate - 33.33%.
Basic VAT - 20%, reduced 2.1%, 5.5% and 10% - is calculated on certain goods and services that the company provides.

Features of the tax system in France

Immigration to France in connection with opening your own business in this country requires a detailed study of the local tax system. Remember, it is unlikely that you will be able to hide from paying taxes here. They will try to force you to pay everything that is due, by any available means.

So, if you work legally, you will have to pay taxes in France twice. In addition to the social tax, which will be deducted from your salary every month, you will need to pay a percentage of your total annual income once a year. Social tax is approximately 18-20% of your salary. From these funds, the state pays you compensation for sick leave, medications, unemployment benefits, and so on.

Buying and selling ready-made businesses

If you are going to sell or buy a business in France,
it is best to turn to specialists. This is because in such a situation you will get:

significant acceleration of buying or selling.
guarantee of complete confidentiality. This is especially important for the seller of a business because publicizing the sale of the business can negatively impact the business itself and reduce its value.
assistance in conducting a business audit, without which not a single sale takes place.
buying or selling a business at its real price, not higher or lower.
a guarantee that all documents will be executed properly and you can rest assured that as a result of the transaction you will acquire all the rights that you expect. This is especially true due to the fact that most documents have to be signed in French, so a good knowledge of this language or the presence of a translator is simply necessary.

France is one of the world's leading economic powers, an industrialized country, one of the richest countries in Europe and the fourth richest country on the planet. All the benefits arising from this are available to those who already live and work in France, and if you are just planning to move to France , then information about the types of small businesses that will be in demand and profitable here will be useful.

Travel and tourism

Paris has long established itself as the most popular tourist destination in the world, and every year hundreds of thousands of tourists come here to see with their own eyes the majesty of the Eiffel Tower, take a boat ride on the Seine or relax on the French Riviera . If your goal is to start a business in France , then you should think about opening your own travel agency. You can enter this industry with the name of a significant player (open a franchise business) or stand at the origins of your own small agency.

Franchising implies the presence of a large start-up capital so that the company can cope with all the logistics tasks associated with tourism. However, if you are strictly limited by budget, then you can enter the industry as a tourist guide and translator, especially if you know not only French , but also speak one of the international languages, for example, English or Spanish. Former residents of Russia and CIS countries can focus exclusively on the Russian-speaking public.

African crafts/gift shop

An African crafts and souvenirs store is another viable and very profitable business that can be opened in almost any city in France. A steady income will be provided by emigrants of African descent who honor their roots, are proud of their origins, and value their culture and heritage. If you have the opportunity to establish channels for the supply of goods from various regions of Africa, then you should think about starting this type of business in France and enjoying a stable flow of customers.

Insurance brokerage business

If you are a certified insurance broker and also live in France, you may want to consider starting your own insurance brokerage firm. The good news is that the insurance brokerage business is a very profitable endeavor, and the industry itself is still ready for new players. If you decide to do this, then you should know in advance that work in the segment is strictly regulated, and to start a successful business you will need a license.

Taxi

If you live in Paris or any other major city in France and are looking for a hassle-free way of cash flow, then you should consider starting your own taxi service. All you need to do to get started is register with your local authorities, obtain a license and permission to operate as a taxi company. In truth, if you learn to manage your business competently, you will be able to increase the number of vehicles from one car to an entire fleet - this will allow you to cover most areas of the city and increase your financial flow.

Freight transportation

Another thriving and profitable business that can be started with relative ease and simplicity in France is to become a freight operator. The potential target audience is very wide: these include large companies that transport goods from one part of the country to another, and individuals moving, for example, to another region. All of them are forced to use the services of a cargo carrier. All you need to do to become a founder and owner of this type of business is enroll in a commercial truck driving school, obtain a commercial driving and hauling license, purchase a reliable truck, and start building a customer base.

Restaurant and bar business

Bars and restaurants are a consistently profitable business, especially in France, where the French lifestyle involves long lunches and evening rest from the day's worries. If you are thinking about a place where the restaurant and bar business will become as profitable and liquid as possible, then take a closer look at Paris, Monaco, Lille, Nantes, Saint-Etienne, Lyon or any large settlement that is attractive from a tourism point of view. You can specialize in local cuisine or cook international cuisine, or a combination of both - either way, you'll be able to get a good return on your investment. Just make sure that the restaurant or bar is in a good location and the food is tailored to the needs and tastes of the community living in the area of the establishment.

Real estate agency

Real estate in France is a huge industry that is still open to investors. To begin with, you can get a job at one of the existing real estate agencies and gain knowledge as a hired realtor. Then, having practical experience behind you, you can think about opening your own agency.

Interior decoration

France is one of the countries that boasts a high-end decorating industry. You may not be aware of it, but some of the best interior decoration pieces you see around come from France or Italy. In general, elements of French interior design can be traced not only on the territory of the Fifth Republic, and not only in the houses of wealthy citizens. If you are overwhelmed with creative ideas and are generally interested in development in this direction, then you can undergo training and open your own decor and interior design company.

Jewelry and accessories store

If you have some start-up capital and are looking for a viable business, then you should take a closer look at the idea of opening your own jewelry and accessories store. The whole attractiveness of this type of activity lies in the absence of geographical restrictions, that is, such a store can be opened in almost any city in France. This is a truly promising, profitable and easily implemented business.

Plumbing services

Plumbing services are the type of activity where a queue of clients will line up even before you overcome all the bureaucratic obstacles to officially register the business. This is because in large cities of the country there is an acute shortage of competent plumbers. If you love working with your hands and are ready to do this in France, then you can safely start looking for clients. If you still need to acquire the necessary skills, then go study, practice, and only then can you found a successful and in-demand company providing plumbing services.

Of course, this is not an exhaustive list of potentially profitable types of business, and when looking for a place to apply your own efforts, you must first of all focus on your own knowledge, skills, education and experience, but perhaps this information will help you decide, and moving to France for permanent residence is already will not frighten you with such vague prospects.

Advantages of starting a business in France

The state is interested in the development of the small business sector, which is a priority for countries with developed market economies.
The situation is that France imports a large number of goods rather than producing them on its own, and all due to the lack of specialists for the implementation of such production enterprises.
A stable currency, well-established laws, especially in relation to the procedure for registering enterprises, the peculiarities of their functioning, tax rates, and so on.
The long-term policy of attracting Western capital has formed a special mentality among the French: they treat foreign enterprises in the same way as national ones - this is an important feature of the behavior of potential buyers.
Prospects for the development of industries: in France it is profitable to open a business related to tourism, agriculture (farming), trade, manufacturing, and so on - each industry is attractive in its own way.

Subtleties of French entrepreneurship

To start your own business in France, you can choose a form such as a representative office, which is the cheapest option. In this case, you can limit yourself to just renting an office, obtaining a postal address and paying for the services of a representative. This organizational form does not have the form of a legal entity. She doesn’t do accounting or pay taxes.

And one more interesting feature of entrepreneurship in France: in this country it is impossible to immediately take advantage of the profits. You can receive your income monthly as a salary or once a year in the form of dividends.

Approximately 50% of the salary will go to pay taxes, but at the same time the state provides enormous opportunities for social and insurance security. But annual payments of such guarantees are not provided due to the lack of contributions.