Setting up a business in France

France is one of Europe’s most attractive destinations for entrepreneurs and investors. With its robust economy, central location in the EU, and access to a consumer base of over 450 million people, France offers significant opportunities for growth. However, launching a business in France requires careful planning and a clear understanding of legal, fiscal, and cultural requirements. Below are the essential considerations to keep in mind.

Understand the legal framework and eligibility

Before starting, confirm your legal right to operate a business in France.

• EU/EEA and Swiss citizens enjoy full freedom of establishment without additional permits.
• Non-EU citizens must obtain a residence permit authorising commercial activity, such as the Passeport Talent – Business Creator visa.

Choose the right business structure

Selecting the appropriate legal structure is critical as it impacts taxation, liability, and administrative obligations. The most common options are listed below.

• Micro-Enterprise (Auto-Entrepreneur): Simplified for freelancers and small businesses with limited revenue.
• SARL (Société à Responsabilité Limitée): Ideal for small to medium-sized businesses, offering limited liability.
• SAS (Société par Actions Simplifiée): Highly flexible, popular among startups and foreign investors.
• SA (Société Anonyme): Designed for large corporations with significant capital requirements.

Registration and administrative steps

The registration process involves several formalities, including:

• drafting Articles of Association (Statuts) in French
• depositing share capital in a French bank account and obtaining a certificate
• registering through the Guichet Unique portal and receive a Kbis extract (official registration certificate)
• obtaining a SIRET number and registering for taxes and social security contributions.

Taxation and social contributions

Businesses in France are subject to:

• Corporate Income Tax (standard rate 25%, with reduced rates for SMEs)
• VAT registration for most commercial activities
• social security contributions for employees, managed through URSSAF.

France also offers incentives such as R&D tax credits and startup grants, making it attractive for innovative ventures.

Labour law compliance

Hiring employees in France requires strict adherence to the Code du Travail.

• Written employment contracts in French are mandatory.
• A standard workweek is 35 hours, with regulated overtime and rest periods.
• Employers must comply with minimum wage laws (€1,766.92/month in 2025), social security contributions, and GDPR for employee data.

Practical tips for start-ups

• Prepare all documents in French to avoid delays.
• Consider engaging a specialist accounting firm for compliance and tax optimisation.
• Use digital tools and e-government portals for faster registration.

If you have any questions or need further assistance, please get in touch.