The first issue to be decided is the nature of the business structure. There are a number of options and obligations:
Business Structure
- Auto-entrepreneur/Micro enterprise – This structure is suitable for an individual setting up a freelancer. This option has reduced accounting obligations.
- Entreprise Individuelle (EI) – A sole trader the administration for this entity is simplified.
- Société à Responsabilité Limitée (SARL) - The most common entity, equivalent to a limited liability company.
- Société par Actions Simplifiée (SAS/SASU – A popular for start-ups, a flexible type of corporate entity.
- Société Anonyme (SA) – An entity suited to large companies that have shareholders.
Company Name
- The business name must be created. To establish that it is available check with the Institut National de la Propriété Industrielle (INPI)
- In order to protect your company name, register a trade mark
Articles of Association (Statuts)
Articles of Association must be drafted as required for the following company structures SARL, SAS, SA.
The Articles of Association must note the business purpose, the management, the registered office and the amount of capital.
Register the Business
- File documents with the Centre de Formalités des Entreprises (CFE) or directly online via Guichet Unique (available since 2023).
- Documents required:
- Proof of identity of directors/shareholders.
- Proof of address (for business and personal).
- Draft articles of association.
- Proof of capital deposit.
- Publication notice in a Journal d'Annonces Légales (JAL).
Following registration - Company Identification Numbers
- SIREN (company ID number).
- SIRET (establishment ID number).
- APE code (activity classification).
- VAT number (if applicable).
Register for Tax and Social Security
This process is automatic following the registration of the business.
Obligations include:
- VAT (TVA) declaration (if applicable).
- Corporate tax (Impôt sur les sociétés) or income tax (Impôt sur le revenu).
- Social security contributions (URSS)
Business Bank Account
The share capital should be deposited. A certificate of deposit should be obtained from the bank. The minimum amount depends on the structure of the business. It is considered wise to deposit more that the required minimum amount, for example and SARL or SAS required.
Potential Additional Requirements
- Licences/Permits: Some professions (law, medicine, construction, catering) require specific authorisations.
- Insurance: Professional liability insurance is compulsory in certain sectors.
- Accounting: Must keep books and file annual accounts (except auto-entrepreneurs with simplified rules).
- The individual setting up the business will need a residence permit.
The geopolitical position across Europe continues to demonstrate a degree of uncertainty. France, however, offers a strategic location in that it has central access to the EU market with strong transport links and close proximity to Germany, Italy, Spain, UK, and Belgium. France itself has 68 million potential consumers with a high capacity for purchasing power. As well as a highly educated skilled workforce, both from within France and across the EU without the need for visa requirements. Also, France is consistently ranked high for quality of life making it attractive for expatriates, which helps in recruiting international talent.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
