Introduction
France is one of Europe’s most dynamic and innovative economies. Its central location, first-class infrastructure, and EU membership provide frictionless access to a 450-million-consumer market. Over the last decade, reforms have simplified company creation and reduced taxes to attract foreign entrepreneurs and investors. Despite recent political uncertainty, France’s fundamentals remain strong and opportunities abound. According to EY’s annual foreign investment barometer, France continues to rank among the EU leaders for inward projects.
From Paris’s thriving startup ecosystem to the strong industrial base in Lyon, Marseille, and Bordeaux, France offers numerous opportunities for business development. For expats and international investors, setting up a company in France can be an opportunity provided they understand the procedures, administrative steps, and legal requirements.
This guide explains, step by step, how to create a company in France, the legal structures are available, and a focus on the practical considerations to keep in mind when launching your business as a foreign founder or non French resident.
Why Start a Business in France?
A thriving economy and access to the EU market
France is the second-largest economy in the European Union and ranks among the top 10 worldwide. Its strategic position offers direct access to European markets, with seamless logistics and trade networks connecting to Germany, Spain, Italy, and beyond. Establishing your company in France allows you to benefit from EU trade agreements and the single market ideal for export-oriented or service-based businesses.
Support for innovation and startups
The French government strongly supports innovation through initiatives such as La French Tech, tax credits for research and development (CIR), and grants for startups. Over the past few years, France has become Europe’s leading destination for venture capital investment. World-class Start up incubators such as Station F are making France an attractive destination for tech entrepreneurs and investors.
Highly skilled staff in certain fields
France has a well-educated workforce. Engineering, finance, research, and digital industries benefit from a deep pool of qualified professionals. Many French graduates are fluent in English, which makes integration into the local business environment smoother for international companies.
Legal Structures for Companies in France
The main business structures (SARL, SAS, EURL, auto-entrepreneur, etc.)
Before registering your business, you’ll need to choose the appropriate legal form. The most common company legal structures in France are:
- SAS (Société par Actions Simplifiée) The most flexible form for entrepreneurs, especially popular with foreign investors. It allows multiple shareholders, free transfer of shares, and adaptable governance. This is one the most common one for news companies. You will also come accross “SASU” wich are the same as SAS but with one shareholder hence the “U” that stands for “unipersonnelle”
- SARL (Société à Responsabilité Limitée) – Similar to a limited liability company (LLC). Best for small to medium-sized businesses with stable ownership.
- EURL (Entreprise Unipersonnelle à Responsabilité Limitée) A one-person version of the SARL, ideal for solo entrepreneurs with lower social charges on the directors’ pay.
- Auto-entrepreneur (micro-entreprise) – Simplified regime for freelancers or small service providers, with reduced accounting and tax obligations.
How to choose the right legal form for your project
Your choice will depend on the number of shareholders, your business size, your growth expectations, and your need for flexibility. For example, the SAS is preferred for startups seeking investors or entrepreneurs not yet sure with their project who want to opt for the more versatil legal structure, while the SARL suits family businesses or one personn shop with recurring income distributed to the director at a lower social charges cost..
Tax implications and liability differences
In all limited liability structures (SARL, SAS, EURL), shareholders’ liability is limited to their capital contribution. However, taxation differs: SAS and SARL are subject to corporate income tax (IS) by default, while micro-entrepreneurs pay simplified income-based contributions i.e. expenses are deducted based on the forfait approach instead of actual expenses. Seeking advise from a french CPA is a good option to consider in order to choose the best option for your business.
Step-by-Step Process to Set Up a Company in France
Step 1: Choose your business structure and registered office
Once you’ve selected your company legal structure, you must define your registered office address (“siège social”). It can be:
- Your home address (if you are a director or shareholder);
- Premises rented or owned by the company;
- Or, very commonly for foreign investors, through a domiciliation company, which provides a legal address for your business.
Domiciliation services usually cost between €25 and €50 per month, depending on the additional services offered :mail forwarding, administrative support, etc. In order to set up the domiciliation of your company you will need draft bylaws, proof of residence of the director/owner and ID live confirmation for some providers.
Step 2: Deposit the share capital
Before registration, you must deposit the company’s share capital. This can be done either at a notary office or in a French bank, including online banks.
The deposit requires several documents:
- Identification of each shareholder;
- Proof of residence;
- Draft of the company’s bylaws;
- For corporate shareholders, a certificate of incorporation or equivalent.
After the deposit, you’ll receive a certificate of deposit of funds, necessary for registration.
Step 3: Prepare all legal documents
To incorporate your company, you’ll need to prepare:
- The bylaws (statuts), describing your company’s structure and governance;
- The appointment of directors which can be done directly in the bylaws or separately ;
- Personal ID and proof or residence of the director and non conviction declaration;
- Proof of the registered office address;
- The capital deposit certificate;
- Declarations of beneficial owners.
Step 4: Register your company (Guichet Unique / INPI)
All company formations in France now go through the Guichet Unique platform, managed by the INPI (Institut National de la Propriété Industrielle). This online system centralizes all registration data and automatically communicates with the local commercial court clerk (greffe du tribunal de commerce). Once processed, your company receives a SIREN number, confirming its legal existence. SIREN number is the registration number of the legal entity composed of 9 digits. SIRET number is the SIREN 9 digits plus 5 digits corresponding to a special location. Businesses with only one locations have only one SIRET number while business with several locations will have as many SIRET numbers.
Once the company is registered, the K-Bis will be issued : it is the official registration certificate of the company.
Step 5: Open a French business bank account
Opening a business bank account is often one of the most challenging steps for foreign entrepreneurs.
Options to consider:
- Use an international bank that operates in both your home country and France (e.g., HSBC, BNP Paribas, Société Générale). If you already hold an account abroad, this can simplify verification.
- Choose an online or neo-bank if you reside within the EU. These banks (like Qonto or Shine) often accept digital submissions and offer faster onboarding.
Once the company will be incorporated, the bank or notary that still hold the share capital on an escrow account will request the K-Bis and will transfer the funds to the current account of the company.
Administrative and Tax Considerations
Corporate tax rates in France (IS)
France’s corporate tax rate (Impôt sur les Sociétés) is 25% for most companies. However, small and medium-sized enterprises (SMEs) may benefit from a reduced rate of 15% on the first €42,500 of profit if certain conditions are met.
Social charges and contributions
Employers must pay social security contributions, covering health, pensions, and unemployment. These can represent around 30 to 45% of gross salary, while employees contribute approximately 20 to25%. For SAS, social charges on the net pay of the director will add up to circa 65% while it will amount to 40% for SARL.
Accounting and annual reporting obligations
All French companies must maintain proper accounting and file annual financial statements. Depending on the size, you may need a statutory auditor (commissaire aux comptes). Working with a certified accountant (expert-comptable) is highly recommended in any case.
Opening a Business Bank Account in France
Documents required for foreigners
Banks typically require:
- The company’s bylaws and registration documents;
- Identification of directors and shareholders;
- Proof of address;
- Proof of business activity (invoices, contracts, or business plan).
Choosing between traditional and online banks
Traditional banks offer full-service relationships and local expertise, while online banks (Qonto, Shine, Revolut Business) provide faster setup and digital management tools. Online banks are currently trying to enlage their client base hence will be more flexible and supportive in the openning of account for foreign business owners. It is easier for resident of the EU to open bank accounts.
Common challenges and how to overcome them
Foreign entrepreneurs often face lengthy verification procedures (KYC) or requests for additional documents. Working with a local advisor can make the process smoother and help you prepare the right documents in advance.
Visa, Residency and Work Permits for Entrepreneurs
French Tech Visa and other business permits
For tech entrepreneurs and investors, the French Tech Visa offers a fast-track residence permit valid for up to four years. It is available for startup founders, employees, and investors.
Other options include the Talent Passport or Entrepreneur visa, which allow foreign nationals to reside in France while managing their business. Dealing with a specialized immigration lawyer is much advised in these cases.
Setting up a company while living abroad
You can register a French company without residing in France, as long as you provide a registered address and appoint a legal representative. However, having a local partner or agent can simplify administrative interactions.
Relocating to France as an entrepreneur
Once your company is established, you can apply for a long-stay visa to manage and grow your business in France. The relocation process is simplified if your business contributes to innovation, job creation, or investment.
Common Challenges and How to Overcome Them
Language and administrative barriers
Most legal and administrative documents are in French. Hiring bilingual advisors helps ensure full compliance and clear communication with authorities.
Understanding local regulations
France’s administrative framework is detailed, especially concerning labor law, accounting, and taxation. Working with professionals familiar with both French law and international business constraints is essential.
How L2A Advisory Can Help You Set Up Your Company
Legal and accounting support for foreign investors
At L2A Advisory, we act as your facilitator and coordinator throughout the company formation process. We collaborate with partner notaries for company creation, assist with bank account opening, and prepare all necessary documents including bylaws, declarations, and filings. We act as your one stop shop for your company creation with both a digital approach and tailormade advice.
We also submit and monitor your incorporation file directly through the Guichet Unique platform, ensuring a smooth registration process.
Assistance with registration, tax, and compliance
Our team provides comprehensive support for corporate tax, accounting, and legal compliance in France. We help international clients stay compliant while optimising their operations and tax structure. That’s a key point in our added value, we manage the company creation and the
Personalised consulting for expats and foreign investors
Whether you’re an individual entrepreneur or a foreign investor wishing to open a company in France, L2A Advisory offers tailored advice to help you make informed decisions and build a sustainable business in France.
FAQs About Setting Up a Company in France
Can I open a company in France without living there?
Yes. You can create and manage a French company remotely, as long as you have a registered address in france for your company and proper documentation (proof of residence) for yourself.
How long does it take to register a company?
Typically one to three weeks, depending on how quickly you prepare the documents and open a bank account.
What is the minimum capital required?
There is no legal minimum for SAS or SARL structures many companies start with €1. However, a higher amount is often recommended for credibility, we often advise to go with 1000 € of share capital and, if more cash is required in the business, to inject via a shareholder loan.
Do I need a French partner or director?
No. Foreign nationals can own 100% of a French company, and the director does not have to be a French resident. However, some banks may prefer a french resident signatory.