We recently featured on an episode of the Oui Talk podcast to discuss the process of starting a French business and what it means to be a foreign entrepreneur in France - why you should start a business in France, what the challenges are, and what you need to know as a foreign investor and entrepreneur.
You can watch or listen to the episode here - Foreign Entrepreneurs in France: Company Creation and Immigration - but we’ve also we’ve written out a handy summary of the main talking points from our chat with host Virginie Le Baler so you don’t need to make notes!
Why France is attracting entrepreneurs
1. The ‘Made in France’ effect
France has a huge amount of cultural cachet, but it also has very real and tangible benefits for businesses. Being based in France can be hugely beneficial for businesses in sectors like perfume and fashion, with Paris being the spiritual home of these industries. Being able to say you are based in Paris can bring a perception of quality and sophistication to your products.
2. It’s got better for businesses
The last 10 years have also seen enormous improvements in the administrative environment for businesses in France. France is now a much more friendly country for entrepreneurs and investors. It is still France, so certain things can be a bit complicated, and there are still some administrative headaches. But recent governments have made a genuine effort to improve productivity and court businesses, allowing companies to scale up without feeling the need to move elsewhere.
3. Leading infrastructure
France is also an attractive country in terms of infrastructure. Situated in the heart of Europe, being based in France means immediate access to a wealth of large and lucrative markets. Roads and trains provide strong transport infrastructure, while a range of specialities mean there are hub cities for many different industries. France is a holdout when it comes to manufacturing and industrial expertise, particularly compared to the US or UK, providing the means to make goods as well as store and ship them.
4. Top talent
This extends to employees as well. A number of famous engineering schools, universities, and a great pedigree in maths and IT mean there’s plenty of talent to support all of those operations. This is beneficial for nascent AI businesses, but also more specialist sectors like aerospace, where France is a world leader. Tech is a particular point of pride, with a great startup environment led by the impressive Station F campus in Paris, and backed up by hubs all across the country.
5. Financial incentives
For foreign entrepreneurs, France also has huge financial advantages over other European nations, with ready access to grants and investment opportunities. The Bpifrance investment bank provides startups with significant private equity, particularly in tech, while there are also generous R&D credits available, and a number of EU startup funding schemes. The situation in the US has also expedited a lot of plans—from businesses looking to leave because of tariffs; to retirees bringing their retirements forward, moving to France, and setting up new ventures to support their lifestyles.
Starting a business in France as a foreigner
Starting a business in France as a foreigner should always start with contacting a formation specialist. They will help you to draft your formation documents—things like your articles of association, and resolution to appoint directors and auditors.
The second step is equally vital: paying your share capital before incorporating. This is often misunderstood as specialists wanting your money upfront, but this isn’t a dodgy ploy to rip you off—it’s just one of those administrative French quirks! You need to demonstrate that you have the money before you can open a business bank account.
This usually means creating an escrow account in the name of your future company, then paying your share capital paid into that account. The money is safeguarded until your company is opened, but you’ll need that piece of paper saying you’ve paid it in to open one! There are different ways to do this depending on the complexity of the project, too, so it's best to work with an expert.
The third step is gathering documents and going through the core formation process—the registration of your company with the INPI. This part takes around three to five working days, depending on where you’re based, but you aren’t done just because you have your certificate of incorporation.
Next you need to actually open your bank account. If you have an escrow account, you can send your formation certificate (Kbis), and the bank will open the account for you. If the capital has been deposited with a lawyer or notary, you’ll need to initiate a process to open a bank account.
A good rule for French formation is that there’s always a solution; things might just work a little differently to what you’re used to. French banks in particular work to their own timelines. This means lots of compliance processes, which can include meeting you or your representative to get an understanding of your needs. This level of due process can be complex, but it’s a measure of the security and trustworthiness of French banks.
The final step is tax registration. This happens almost automatically for VAT and other tax registration, while importers and exporters can also request an EORI number. The whole formation process is around four to six weeks on average for foreign citizens. For more in-depth information on the whole process, take a look at our article: Start a Business in France in 8 Steps
Advice for foreign entrepreneurs in France
Forget what you know
Our experience is that a lot of entrepreneurs go in thinking that what applies in their country applies in France. They bring their background and corporate culture with them, and find that their expectations clash with reality. Our biggest advice is to forget what you know, and accept the French way of thinking. It’s a new country with new rules, and you need to go in with a blank slate and a willingness to learn!
Accountancy is a prime example: the way accountancy works is very specific to France, and unlike how it works anywhere else. You can have an accountant in your country, but in France you need to trust the local experts. The system is so specific that it’s easy to make big mistakes that can be extremely costly. Your accountant will be your best friend in France—that’s how important they are to getting things right.
Keep control of your company
We also recommend that entrepreneurs retain maximum control over their company and its stakeholders. It can sound good to let someone local manage the business for you, but you should try to retain control and keep tabs on what’s going on, at least initially. You’ll want some impartial experts in place to help guide your business, but putting trust in someone to direct your French company who you don’t know extremely well can be risky.
The reason people often offload this is the difficulty in appointing a foreign director. Banks will often want a director with a residency permit or other visa that guarantees they will be in the country full time, actively managing the business. As a result, there’s a temptation to find someone who seems reputable—such as an existing contact or ‘friend of a friend’---to take the job. This is a common shortcut, but not one that’s worth taking.
Comply with immigration law
Keeping yourself in line with local immigration law is also key. Just because you have a talent passport or residence permit, it doesn’t necessarily mean you can start a business in France. Choosing the right permit will depend on your situation and the company you intend to start. These options include:
Talent Passport
The talent passport is for entrepreneurs looking to open a well-structured company with a solid business plan and minimum 30k euros investment.
For this, you will ideally need a masters degree and a minimum of six years experience in a relevant field (an engineering degree won’t help you open a bakery!). This lasts for four years, and allows you to bring your family, as well as including an option for renewal.
Entrepreneur / Self-Employed residence permit
This option is similar to the Talent Passport, but doesn’t require the 30k euros investment. It’s a more flexible option for freelancers and solo entrepreneurs who want to register their business as a commercial, artisanal, industrial or liberal activity.
You will have to prove your experience and the financial strength of the project, as well as showing your own financial health. However, it is only valid for one year and does not cover family moving with you, though it can be renewed each year. For more information, take a look at our article: French entrepreneur visa – everything you need to know
Job Search / Business Creation residence permit
This visa is a good option for people who have studied in France and completed a master’s degree. It’s valid for one year, making it an interim option between your student visa and the other permit options, allowing you to get started and then apply for another visa once you’re in a stronger position.
Whichever visa you apply, for, try to put yourself in the shoes of the immigration agent who will be quickly scanning through your file. Make it clear what the project is, your documentation and what you want. An expert will be able to help you compile and optimise this to make it easy to pass through the system and be accepted, but a clear, detailed business plan that makes it clear you understand the French market will help.
Form a coherent strategy
Starting a business in France isn’t something you should do on a whim, or without doing a serious amount of pre-planning. Part of the process of opening a bank account is demonstrating that you’ve done your homework, including a market analysis that nails down your potential customers. You’ll also need to choose the right legal structure for your business, and complete three years of financial projection, as well as ideally showing how you will recruit within France. Here’s a useful article showing all the legal structures in France.
The bank will then check your personal finances to ensure you can remain solvent, which should be equivalent to French minimum wage (1800 euros). Your background should also be aligned with the business activity you’re planning, and your project should be credible in scale and ambitions, as the INPI needs to agree that your idea is feasible and will work.
Timing (and expertise) is everything
If there are two bits of advice we leave everyone with, the first is that the incorporation process we’ve detailed above takes time. If you rush, it will be difficult and stressful. Plan ahead, and be conscious when starting your project that it could take several months to come to fruition, even with extensive and proper planning. This timescale can impact on investors and equity, so make all relevant parties aware of how long it will take and what the timeline will be for achieving a return on their investment.
The second is to get the right consultants and experts in place early on. Whether it’s about accountancy, taxes, visas, or employment and commercial contracts, find regulated specialists with a good track record. There will be a cost attached, but you will save money in the long run. This is the cost of doing business in France that allows you to take advantage of the many benefits—helping you make money and make a new life for yourself. Focus on your business, and let the experts do the rest!
Watch the episode or for more information, download our free guide to opening a business in France below.
