We just lately featured on an episode of the Oui Discuss podcast to debate the method of beginning a French enterprise and what it means to be a overseas entrepreneur in France – why it is best to begin a enterprise in France, what the challenges are, and what it’s good to know as a overseas investor and entrepreneur.
You’ll be able to watch or hearken to the episode right here – International Entrepreneurs in France: Firm Creation and Immigration – however we’ve additionally we’ve written out a helpful abstract of the primary speaking factors from our chat with host Virginie Le Baler so that you don’t have to make notes!
Why France is attracting entrepreneurs
1. The ‘Made in France’ impact
France has an enormous quantity of cultural cachet, however it additionally has very actual and tangible advantages for companies. Being primarily based in France could be massively helpful for companies in sectors like fragrance and style, with Paris being the non secular house of those industries. Having the ability to say you might be primarily based in Paris can carry a notion of high quality and class to your merchandise.
2. It’s received higher for companies
The final 10 years have additionally seen monumental enhancements within the administrative atmosphere for companies in France. France is now a way more pleasant nation for entrepreneurs and traders. It’s nonetheless France, so sure issues could be a bit sophisticated, and there are nonetheless some administrative complications. However current governments have made a real effort to enhance productiveness and courtroom companies, permitting firms to scale up with out feeling the necessity to transfer elsewhere.
3. Main infrastructure
France can also be a lovely nation when it comes to infrastructure. Located within the coronary heart of Europe, being primarily based in France means fast entry to a wealth of huge and profitable markets. Roads and trains present robust transport infrastructure, whereas a spread of specialities imply there are hub cities for a lot of totally different industries. France is a holdout with regards to manufacturing and industrial experience, significantly in comparison with the US or UK, offering the means to make items in addition to retailer and ship them.
4. Prime expertise
This extends to workers as properly. Various well-known engineering colleges, universities, and an amazing pedigree in maths and IT imply there’s loads of expertise to assist all of these operations. That is helpful for nascent AI companies, but additionally extra specialist sectors like aerospace, the place France is a world chief. Tech is a selected level of delight, with an amazing startup atmosphere led by the spectacular Station F campus in Paris, and backed up by hubs all throughout the nation.
5. Monetary incentives
For overseas entrepreneurs, France additionally has large monetary benefits over different European nations, with prepared entry to grants and funding alternatives. The Bpifrance funding financial institution gives startups with important non-public fairness, significantly in tech, whereas there are additionally beneficiant R&D credit accessible, and a variety of EU startup funding schemes. The state of affairs within the US has additionally expedited a number of plans—from companies seeking to depart due to tariffs; to retirees bringing their retirements ahead, shifting to France, and organising new ventures to assist their existence.
Beginning a enterprise in France as a foreigner
Beginning a enterprise in France as a foreigner ought to at all times begin with contacting a formation specialist. They may assist you to to draft your formation paperwork—issues like your articles of affiliation, and backbone to nominate administrators and auditors.
The second step is equally very important: paying your share capital earlier than incorporating. That is typically misunderstood as specialists wanting your cash upfront, however this isn’t a dodgy ploy to tear you off—it’s simply a type of administrative French quirks! It’s good to reveal that you’ve got the cash earlier than you possibly can open a enterprise checking account.
This normally means creating an escrow account within the identify of your future firm, then paying your share capital paid into that account. The cash is safeguarded till your organization is opened, however you’ll want that piece of paper saying you’ve paid it in to open one! There are other ways to do that relying on the complexity of the undertaking, too, so it is best to work with an skilled.
The third step is gathering paperwork and going by way of the core formation course of—the registration of your organization with the INPI. This half takes round three to 5 working days, relying on the place you’re primarily based, however you aren’t finished simply because you may have your certificates of incorporation.
Subsequent it’s good to really open your checking account. If in case you have an escrow account, you possibly can ship your formation certificates (Kbis), and the financial institution will open the account for you. If the capital has been deposited with a lawyer or notary, you’ll have to provoke a course of to open a checking account.
An excellent rule for French formation is that there’s at all times an answer; issues may simply work somewhat in another way to what you’re used to. French banks particularly work to their very own timelines. This implies plenty of compliance processes, which might embrace assembly you or your consultant to get an understanding of your wants. This stage of due course of could be complicated, however it’s a measure of the safety and trustworthiness of French banks.
The ultimate step is tax registration. This occurs virtually robotically for VAT and different tax registration, whereas importers and exporters may also request an EORI quantity. The entire formation course of is round 4 to 6 weeks on common for overseas residents. For extra in-depth info on the entire course of, check out our article: Begin a Enterprise in France in 8 Steps
Recommendation for overseas entrepreneurs in France
Overlook what you realize
Our expertise is that a number of entrepreneurs go in pondering that what applies of their nation applies in France. They convey their background and company tradition with them, and discover that their expectations conflict with actuality. Our greatest recommendation is to neglect what you realize, and settle for the French mind-set. It’s a brand new nation with new guidelines, and it’s good to go in with a clean slate and a willingness to study!
Accountancy is a primary instance: the way in which accountancy works may be very particular to France, and in contrast to the way it works anyplace else. You’ll be able to have an accountant in your nation, however in France it’s good to belief the native specialists. The system is so particular that it’s straightforward to make huge errors that may be extraordinarily expensive. Your accountant shall be your greatest good friend in France—that’s how vital they’re to getting issues proper.
Maintain management of your organization
We additionally advocate that entrepreneurs retain most management over their firm and its stakeholders. It could possibly sound good to let somebody native handle the enterprise for you, however it is best to attempt to retain management and hold tabs on what’s occurring, at the very least initially. You’ll need some neutral specialists in place to assist information your enterprise, however placing belief in somebody to direct your French firm who you don’t know extraordinarily properly could be dangerous.
The rationale individuals typically offload that is the problem in appointing a overseas director. Banks will typically need a director with a residency allow or different visa that ensures they are going to be within the nation full time, actively managing the enterprise. In consequence, there’s a temptation to seek out somebody who appears respected—corresponding to an current contact or ‘good friend of a good friend’—to take the job. This can be a frequent shortcut, however not one which’s price taking.
Adjust to immigration legislation
Maintaining your self consistent with native immigration legislation can also be key. Simply because you may have a expertise passport or residence allow, it doesn’t essentially imply you can begin a enterprise in France. Selecting the best allow will rely in your state of affairs and the corporate you plan to begin. These choices embrace:
Expertise Passport
The expertise passport is for entrepreneurs seeking to open a well-structured firm with a stable marketing strategy and minimal 30k euros funding.
For this, you’ll ideally want a masters diploma and a minimal of six years expertise in a related area (an engineering diploma received’t assist you to open a bakery!). This lasts for 4 years, and lets you carry your loved ones, in addition to together with an choice for renewal.
Entrepreneur / Self-Employed residence allow
This selection is much like the Expertise Passport, however doesn’t require the 30k euros funding. It’s a extra versatile choice for freelancers and solo entrepreneurs who wish to register their enterprise as a industrial, artisanal, industrial or liberal exercise.
You’ll have to show your expertise and the monetary energy of the undertaking, in addition to displaying your personal monetary well being. Nevertheless, it’s only legitimate for one yr and doesn’t cowl household shifting with you, although it may be renewed every year. For extra info, check out our article: French entrepreneur visa – every thing it’s good to know
Job Search / Enterprise Creation residence allow
This visa is an efficient choice for individuals who have studied in France and accomplished a grasp’s diploma. It’s legitimate for one yr, making it an interim choice between your scholar visa and the opposite allow choices, permitting you to get began after which apply for an additional visa when you’re in a stronger place.
Whichever visa you apply, for, attempt to put your self within the footwear of the immigration agent who shall be rapidly scanning by way of your file. Make it clear what the undertaking is, your documentation and what you need. An skilled shall be in a position that will help you compile and optimise this to make it straightforward to cross by way of the system and be accepted, however a transparent, detailed marketing strategy that makes it clear you perceive the French market will assist.
Type a coherent technique
Beginning a enterprise in France isn’t one thing it is best to do on a whim, or with out doing a critical quantity of pre-planning. A part of the method of opening a checking account is demonstrating that you just’ve finished your homework, together with a market evaluation that nails down your potential clients. You’ll additionally want to decide on the correct authorized construction for your enterprise, and full three years of monetary projection, in addition to ideally displaying how you’ll recruit inside France. Right here’s a helpful article displaying all of the authorized constructions in France.
The financial institution will then verify your private funds to make sure you can stay solvent, which must be equal to French minimal wage (1800 euros). Your background must also be aligned with the enterprise exercise you’re planning, and your undertaking must be credible in scale and ambitions, because the INPI must agree that your concept is possible and can work.
Timing (and experience) is every thing
If there are two bits of recommendation we depart everybody with, the primary is that the incorporation course of we’ve detailed above takes time. In case you rush, will probably be troublesome and worrying. Plan forward, and be acutely aware when beginning your undertaking that it may take a number of months to return to fruition, even with intensive and correct planning. This timescale can impression on traders and fairness, so make all related events conscious of how lengthy it would take and what the timeline shall be for attaining a return on their funding.
The second is to get the correct consultants and specialists in place early on. Whether or not it’s about accountancy, taxes, visas, or employment and industrial contracts, discover regulated specialists with a great observe report. There shall be a value connected, however you’ll lower your expenses in the long term. That is the price of doing enterprise in France that lets you make the most of the various advantages—serving to you become profitable and make a brand new life for your self. Deal with your enterprise, and let the specialists do the remainder!
Watch the episode or for extra info, obtain our free information to opening a enterprise in France beneath.
