French banks are in a league of their very own. Not like the banks in Britain the place the large banking corporations compete on your cash with rate of interest incentives or insurance coverage reductions, the French banks have a barely completely different angle. It’s as much as you to impress them.
So that can assist you perceive the generally pernickety methods of the French enterprise banking system, we’ve compiled an inventory of what NOT to do. In any case, the French like to begin off a sentence with “Le problèm est….” so by tackling the adverse up entrance, you’ll be means forward of the sport.
1. DON’T Be Imprecise
Banks prefer to know precisely what your enterprise is about. You possibly can’t get away with simply saying “Oh it’s a tech factor. We’re going to be the following large startup.” It’s good to come armed with a marketing strategy which specifies suppliers, workers, places of work, potential clients and potential gross sales with a five-year monetary projection together with all of your doable bills. Additionally you have to element precisely why you need your enterprise to be situated in France. Oh, and one other factor – your marketing strategy must be translated into French.
2. DON’T Be Coy
You possibly can’t conceal something from a French financial institution. You need to be up-front about your capital and property and you need to title each one that has a vested curiosity in your enterprise. Since 9/11, banks have turn into super-strict about money comings and goings with a view to cease the funding of terrorism. So in order for you a French financial institution to carry your cash, they should know the place it’s coming from and who it’s going to. They don’t need to see your cash being syphoned off to an inventory of holding or offshore corporations.
3. DON’T neglect cultural variations
Overseas entrepreneurs who need to open a enterprise checking account in France have to keep in mind that the French have very particular methods of doing issues. And that features how they spend their cash. Banks received’t let you might have an account until your enterprise is viable for the French market. The banks notably like retail companies, particularly those who promote garments, purses and sneakers, heating programs and residential décor gadgets. E-commerce can be widespread due to the low-overheads. However they received’t be so enthusiastic with idea-based companies that haven’t obtained a confirmed track-record. They like one thing quantifiable.
You additionally want a very good understanding of French – or have a associate or contact that does. Though many banking employees converse English, you’ll should be language savvy to cope with the paperwork and the occasional phone-calls.
4. DON’T be a cheap-skate
The legislation in France states you’ll be able to open a checking account with only one euro however the actuality is that no financial institution will take you severely in the event you provided them just one shiny coin as your share capital. You want not less than 4000 of them. That is to cowl necessities resembling financial institution charges and authorities taxes. And as your share capital must be made public (French legislation insists it have to be displayed on logos, letterheads and web sites) then something lower than 4000 euros goes to make you seem like a chancer so that you’re higher off depositing as a lot share capital with the financial institution as you’ll be able to.
So now you already know what NOT to do, you’ll have a greater concept of methods to go about opening a French checking account. Or else you’ll be able to all the time ask us and we’ll be completely happy to introduce you to the French banks who’ve helped a whole bunch of our purchasers efficiently arrange their enterprise checking account. For extra info, obtain our free information under and both electronic mail us direct by means of our contact web page or name our staff on 0033 (0) 1 53 57 49 10 in France or 0044 (0) 203 445 0916 within the UK.
