How to set up a business in france in 2025?

Introduction

France is a leader in innovation and entrepreneurship in 2025, combining traditional business values with modern opportunities. The French economy has become a lively ecosystem that welcomes entrepreneurs from both domestic and international backgrounds.

The business scene in France has undergone significant changes, including:

A simplified digital administration system
Fewer bureaucratic obstacles
Increased support for startups and small to medium-sized enterprises (SMEs)
Strong government incentives for environmentally-friendly businesses
Advanced technological infrastructure

To succeed in this market, it’s important to understand French business culture. The French way of doing business values professionalism while also appreciating a good work-life balance. This cultural backdrop influences everything from how deals are made to how people interact in the workplace.

France has become an attractive destination for foreign investment due to:

Its strategic location in Europe
A skilled workforce and top-notch education system
Strong protection for intellectual property rights
Cutting-edge research and development facilities
Competitive tax benefits for innovative companies

The country’s dedication to going digital and promoting sustainable practices has created a welcoming environment for businesses in all industries. Whether you’re starting a tech company, opening a traditional store, or launching a creative venture, France’s business landscape in 2025 provides the necessary resources and support for success.

Are you ready to start your entrepreneurial journey in France? Let’s take a look at the key steps and factors to keep in mind when setting up your business in this lively market.

Understanding French Business Culture

The French approach to business is different from many global practices, especially in its commitment to l’art de vivre – the art of living. This cultural foundation influences every part of professional life in France.

Work-Life Balance: A National Priority

35-hour workweek remains standard
2-hour lunch breaks common in traditional companies
5 weeks minimum paid vacation annually
Right to disconnect after work hours
Protected weekends and holidays

This balanced approach has shown positive results in French productivity metrics. Studies indicate French workers achieve similar output levels to their international counterparts despite fewer working hours, attributing success to focused work periods and reduced burnout rates.

Union Influence in Business Operations

Strong collective bargaining power
Regular social dialogue between employers and employees
Mandatory worker consultations for major company decisions
Protection of worker rights through strict labor laws
Annual salary negotiations at company level

La French Tech: Driving Innovation

The government’s commitment to modernizing the business landscape is evident through La French Tech initiative, which offers:

Simplified visa processes for tech talents
Tax incentives for innovative startups
Access to public funding programs
International networking opportunities
Dedicated support hubs in major cities

French business culture emphasizes relationship-building and long-term partnerships. Business meetings often start with casual conversation, and rushing straight to business matters is considered impolite. Decision-making typically follows a hierarchical structure, with senior management holding significant influence over final choices.

The French workplace values:

Professional qualifications and expertise
Clear communication channels
Formal business etiquette
Quality of work over quantity
Collaborative problem-solving approaches

Understanding these cultural nuances helps navigate the French business environment successfully. Companies that embrace these values often find themselves better positioned to build lasting relationships with French partners, employees, and clients.

Who Can Start a Business in France?

Starting a business in France is open to both French nationals and foreigners, with specific requirements based on your status and the type of business you plan to establish.

Age and Legal Requirements

Must be at least 18 years old
No criminal record for certain business activities
Legal capacity to enter into contracts
EU citizens can start immediately
Non-EU citizens need a valid residence permit

Required Documentation

Valid ID or passport
Proof of address (less than 3 months old)
Social security number
Bank account details
Professional qualifications (if applicable)
Clean criminal record certificate

Regulated Professions

Some professions require specific qualifications and licenses:

Medical practitioners: Registration with Ordre des Médecins
Lawyers: Membership in the French Bar Association
Architects: Registration with Ordre des Architectes
Accountants: Professional certification from Ordre des Experts-Comptables

These regulated professions often need:

Proof of relevant qualifications
Professional insurance
Registration with professional bodies
Additional permits or licenses

Special Cases

Students can start businesses with valid student permits
Retirees must prove sufficient financial resources
Freelancers need specific status declarations
Digital nomads may qualify for French Tech Visa
Artists and authors have unique registration requirements

The French administration provides dedicated support through Chambres de Commerce et d’Industrie (CCI) to guide entrepreneurs through these requirements, offering personalized assistance based on individual situations and business types.

Legal Structures for French Businesses

Choosing the right legal structure for your business in France sets the foundation for your entrepreneurial journey. Let’s explore the five main business structures and their distinct characteristics:

1. Micro-entreprise

This structure is ideal for solo entrepreneurs and freelancers who have relatively low revenue.

Simplified accounting and tax procedures
Revenue limits: €176,200 for commercial activities, €72,600 for services
Personal assets are not separated from business assets
Social charges calculated based on actual income

2. EIRL (Entrepreneur Individuel à Responsabilité Limitée)

EIRL is suitable for individual entrepreneurs who want to protect their personal assets from business liabilities.

Protection of personal assets from business liabilities
Choice between income tax or corporate tax
Requires detailed asset declaration
Higher administrative requirements than micro-entreprise

3. EURL (Entreprise Unipersonnelle à Responsabilité Limitée)

EURL is a single-member limited liability company that offers clear separation between personal and business assets.

Minimum capital requirement: €1
Can switch to SARL if adding partners
Subject to corporate tax by default

4. SASU (Société par Actions Simplifiée Unipersonnelle)

SASU is a single-shareholder simplified joint-stock company with a flexible management structure.

Attractive for investors
Mandatory statutory auditor if certain thresholds exceeded
Social security regime of employees for the president

5. SARL (Société à Responsabilité Limitée)

SARL is a multiple partners (2-100) limited liability company that is popular among small and medium-sized businesses.

Minimum capital requirement: €1
Limited liability for shareholders
Strict management rules

Tax Implications

Each structure has different tax implications:

Micro-entreprise: Progressive income tax rates
EIRL: Choice between income tax and corporate tax
EURL: Corporate tax (33% standard rate)
SASU: Corporate tax plus dividend taxation
SARL: Corporate tax with option for income tax in certain cases

Liability Protection

The level of liability protection varies across structures:

Low Protection: Micro-entreprise
Medium Protection: EIRL
High Protection: EURL, SASU, SARL

Each structure comes with specific reporting obligations and social security contributions. Your choice should align with your business goals, expected revenue, and desired level of personal asset protection.

How to Start a Business in France as an Expat?

Starting a business in France as an expat requires strategic planning and local market understanding. The French business landscape offers unique opportunities, yet navigating it successfully demands specific knowledge and resources.

Essential Local Resources:

Chamber of Commerce and Industry (CCI)
Business France – government agency for international investment
Professional accountants familiar with expat regulations
Local business networking groups
Legal advisors specializing in international business law

Key Steps for Success:

Market Research: Study your target audience, competition, and local consumer behavior
Language Proficiency: While English is common in business, French proficiency opens more doors
Cultural Integration: Build relationships with local entrepreneurs and industry professionals
Professional Support Network: Connect with:

Business consultants
Tax advisors
Legal experts
Banking professionals

Location Strategy:

Research different regions and their business ecosystems
Consider tax incentives in specific areas
Evaluate local workforce availability
Assess proximity to suppliers and target market

The French government provides support through programs like Welcome to France and regional development agencies. These resources offer guidance on administrative procedures, funding opportunities, and market entry strategies. Many cities host international business incubators designed specifically for expat entrepreneurs, providing workspace, mentorship, and networking opportunities.

Obtaining a French Business Visa

Securing the right visa is a crucial step for international entrepreneurs looking to establish their business in France. The French government offers several visa options tailored to different business needs:

1. Long-Stay Entrepreneur Visa (VLS-TS)

Valid for 12 months with renewal options
Requires proof of sufficient financial resources
Business plan evaluation by local authorities
Minimum investment threshold of €30,000

2. Talent Passport – Business Creator

4-year renewable residence permit
Perfect for innovative startup founders
Less stringent financial requirements
Fast-track processing available

3. French Tech Visa Program

Designed for tech startup founders and employees
Accelerated application process (2 weeks)
No diploma requirements
Family members automatically eligible
Access to the French Tech ecosystem

4. Required Documentation

Valid passport
Business registration documents
Proof of accommodation in France
Health insurance coverage
Financial guarantees
Criminal record check

The French Tech Visa program stands out as a game-changer for tech entrepreneurs. This initiative streamlines the visa process for qualified tech startups, offering a simplified path to establishing operations in France. The program includes mentorship opportunities, networking events, and potential funding access through the French Tech ecosystem.

For regulated professions, additional permits might be required alongside the business visa. The specific requirements vary based on your business sector and professional qualifications.

Choosing and Registering Your Business Category in France

The French business classification system divides commercial activities into distinct categories, each with specific tax implications and regulatory requirements. Understanding these categories helps entrepreneurs select the most suitable structure for their venture.

Main Business Categories in France:

Commercial Activities (Commerçant): Retail and wholesale trade, restaurant and hospitality services, import-export operations
Industrial Activities (Industriel): Manufacturing, production of goods, processing raw materials
Artisanal Activities (Artisan): Skilled trades and crafts, manual work and repairs, custom-made products
Liberal Professions (Profession Libérale): Medical practitioners, legal professionals, consultants, creative professionals

Tax Implications by Category

Each business category carries unique tax obligations:

Commercial and Industrial: Subject to corporate tax (IS) or income tax (IR)
Artisanal: Eligible for specific tax benefits and simplified accounting
Liberal Professions: Special social security regime and professional tax considerations

Registration Requirements

Your chosen category determines your registration path:

Commercial/Industrial: Register with the Registre du Commerce et des Sociétés (RCS)
Artisanal: Register with the Répertoire des Métiers (RM)
Liberal Professions: Register with URSSAF and professional orders

Impact on Business Operations

The selected category influences:

Accounting obligations
Professional insurance requirements
Social security contributions
Qualification requirements
Business premises regulations

Some activities might require additional permits or licenses depending on their classification. The French administration regularly updates these requirements to adapt to evolving business practices and technological advancements.

Registering Your French Business: Step-by-Step Guide

The Centre de Formalités des Entreprises (CFE) serves as your one-stop shop for business registration in France. Here’s your practical guide to navigate the registration process:

1. Choose Your CFE Office

Depending on your business activity, you need to select the appropriate CFE office:

If you’re engaged in commercial activities, contact the Chambers of Commerce.
For artisanal activities, reach out to the Chambers of Trade.
Liberal professions should connect with URSSAF.
Commercial companies must approach the Registry of the Commercial Court.

2. Required Documentation

Gather the following documents before visiting the CFE office:

Valid ID or passport
Proof of address (less than 3 months old)
Bank certificate of capital deposit
Articles of association (statuts)
Lease agreement or property deed
Criminal record check (casier judiciaire)

3. Registration Steps

Follow these steps to complete your business registration:

Submit your application package to CFE
Pay registration fees (€50-€300 depending on structure)
Receive confirmation within 24-48 hours
Wait for official registration (2-3 weeks)

Special Requirements for Regulated Businesses

If you belong to a regulated profession, be prepared with additional documents such as:

Professional qualifications
Industry-specific licenses
Professional insurance certificates
Authorization from regulatory bodies

Digital Registration Option

For convenience, you can also register online through the guichet-entreprises.fr platform, which is part of the Guichet Unique initiative that streamlines business registration processes in France:

Create your account
Upload required documents
Track application status
Receive digital notifications

Post-Registration Requirements

Once your business is successfully registered, there are a few tasks you need to complete:

Open a business bank account
Set up accounting systems
Register for VAT (if applicable)
Obtain necessary insurance

For regulated businesses, additional steps include:

Joining professional orders
Obtaining specific permits
Meeting industry standards
Setting up mandatory guarantees

The CFE handles distribution of your information to relevant authorities, including tax offices, social security, and statistical services, streamlining your entry into the French business landscape.

Getting Siret, Siren, and APE Numbers: What You Need to Know

Your French business identity comes with three essential numbers: Siren, Siret, and APE. These unique identifiers serve as your business’s digital fingerprint in France’s administrative ecosystem.

Siren Number (9 digits)**

Primary identification number for your business
Stays with your company throughout its existence
Required for all tax declarations and administrative procedures

Siret Number (14 digits)

Combines your Siren number with a 5-digit establishment code
Identifies each physical location of your business
Must appear on all invoices, contracts, and official documents

APE Code (5 characters)

Classifies your main business activity
Determines your applicable tax rates and regulations
Helps statistical analysis of economic sectors

These numbers are automatically assigned when you register your business through the CFE. Your Siret number becomes particularly important for:

Opening business bank accounts
Applying for government aid or grants
Setting up relationships with suppliers
Registering for VAT
Filing social security contributions

Pro tip: Keep digital copies of these numbers readily accessible – you’ll need them frequently for business operations in France.

Choosing Your Company Name: Tips and Tricks from Experts at Istari Conseil

Selecting the perfect name for your French business requires careful consideration of both legal requirements and brand identity. Here’s what you need to know:

Legal Requirements:

Your company name must be unique and not infringe on existing trademarks
Avoid names that could mislead about your business activities
Steer clear of protected terms like « national, » « municipal, » or « official »
Include appropriate legal suffix (SARL, SAS, etc.)

Brand Identity Considerations:

Choose a name that resonates with French consumers
Consider cultural connotations and potential translations
Keep it simple and memorable
Ensure domain name availability

Verification Process:

Conduct preliminary searches on INPI database
Check domain name availability
Search social media platforms
Verify trademark registrations
Submit name reservation request

Expert Tips:

Test pronunciation with native French speakers
Research potential negative associations
Consider future international expansion
Keep the name adaptable for different markets

The INPI (Institut National de la Propriété Industrielle) maintains a comprehensive database of registered company names. A thorough search through their platform helps avoid potential legal issues and trademark disputes. Professional assistance from organizations like Istari Conseil can streamline this process and ensure compliance with all naming regulations.

Starting Up an Online Business in France: Opportunities and Challenges

The French e-commerce market presents lucrative opportunities for entrepreneurs, with digital sales reaching €146.9 billion in 2024. Setting up an online business in France shares basic requirements with physical stores – you’ll need proper registration, SIRET numbers, and tax compliance.

Key Digital Requirements:

A secure payment gateway compatible with French banking systems
GDPR-compliant data protection measures
French-language website version
.fr domain registration (recommended)

VAT Considerations for E-commerce:

Standard VAT rate: 20%
Reduced rates: 5.5% or 10% for specific products
Distance selling threshold: €10,000
Mandatory VAT registration for sales exceeding the threshold

Cross-Border Sales Regulations:

EU consumer protection laws apply
14-day return policy requirement
Clear pricing display including all taxes
Shipping information in French

Digital Platform Requirements:

SSL certification
Clear terms and conditions
Privacy policy in French
Cookie consent mechanisms

The French digital marketplace demands strict adherence to consumer protection laws. Online businesses must display comprehensive company information, including SIRET numbers and VAT registration details. Price transparency rules require all costs – including shipping and handling fees – to be clearly visible before purchase completion.

French customers expect high-quality customer service in their native language. Consider implementing:

Live chat support in French
Local phone number
French email support
Social media presence on popular French platforms

Foreign Companies Opening Up Shop in France: Branches vs. Subsidiaries Explained

International companies eyeing the French market face a crucial decision: setting up a branch or establishing a subsidiary. Each structure comes with distinct legal and financial implications.

Branches in France

Direct extensions of foreign companies
No independent legal status
Parent company bears full liability
Simpler accounting requirements
Subject to French corporate tax on French-sourced income
Limited autonomy in decision-making

Subsidiaries in France

Independent legal entities
Separate corporate identity
Limited liability protection
Complete financial autonomy
Subject to French corporate tax on worldwide income
Greater operational freedom

Tax Considerations

Branches: Profits taxed at standard corporate rate (25% in 2025)
Subsidiaries: Access to tax treaties and potential local incentives
VAT registration required for both structures

Employment Regulations

Both forms must comply with French labor laws
Mandatory social security contributions
Adherence to collective bargaining agreements
Work councils required for companies with 50+ employees

Regulatory Requirements

Branches: Registration with RCS (Trade and Companies Register)
Subsidiaries: Full incorporation process
Both need local representation
Regular financial reporting to French authorities

The choice between a branch and subsidiary depends on your business strategy, desired level of autonomy, and long-term plans for the French market.

Starting Up a Non-Profit Company In France: A Comprehensive Guide

Setting up a non-profit organization (association à but non lucratif) in France offers unique opportunities to make a social impact while benefiting from specific advantages. The French legal framework provides a supportive environment for non-profit initiatives through the 1901 Law on Associations.

Essential Requirements:

Minimum of 2 founding members
Clear charitable or social purpose outlined in statutes
Registered office address in France
Management board with defined roles
Detailed constitution (statuts)

Tax Benefits and Financial Advantages:

Exemption from commercial taxes
Reduced VAT rates on certain activities
Ability to receive tax-deductible donations
Access to public grants and subsidies
Option to issue tax receipts to donors

Registration Process:

Draft your organization’s statutes
Hold a constituent assembly
File declaration at local prefecture
Publish creation notice in Journal Officiel
Apply for RNA (National Registry of Associations) number

Operational Considerations:

Annual general meetings required
Transparent financial reporting
Separate bank account for association funds
Insurance coverage for activities
Volunteer management systems

The French government actively supports non-profit organizations through various funding programs. Organizations focusing on social innovation, environmental protection, or cultural preservation often receive priority access to public resources and partnership opportunities with local authorities.

Administrating Your French Business: Key Considerations

Running a business in France requires strict adherence to specific administrative regulations, particularly regarding invoicing and financial documentation. Let’s dive into the essential requirements for managing your business operations effectively.

Invoice Requirements

Your French business invoices must include these mandatory elements:

Company name and legal status
Business address
SIRET and VAT numbers
RCS number with city of registration
Share capital amount (for corporations)
Sequential invoice numbering
Issue date and payment due date
Detailed description of goods/services
Unit price (before and after tax)
Applied VAT rate
Payment terms and conditions
Late payment penalties

VAT Compliance Guidelines

VAT regulations in France vary based on your business activities:

Domestic Sales

Standard VAT rate: 20%
Reduced rates:
10% (accommodation, transport)
5.5% (essential goods)
2.1% (medications)

International Transactions

EU B2B sales: Zero VAT with valid EU VAT number
Non-EU exports: Zero VAT with customs documentation
Digital services: Special VAT rules apply based on customer location

Record Keeping Requirements

French law mandates maintaining detailed business records:

Sales and purchase invoices: 10 years
Bank statements: 5 years
Employee records: 5 years
Tax documents: 6 years
Accounting books: 10 years

Digital Requirements

French businesses must ensure:

Electronic invoicing compatibility with 2025 regulations
Certified accounting software for VAT transactions
Secure digital archiving systems
Regular data backups
Compliance with GDPR requirements

These administrative procedures form the backbone of proper business management in France. A robust understanding of these requirements helps avoid penalties and ensures smooth business operations.

Hiring Employees In France: What Every Entrepreneur Should Know

The French labor code sets strict guidelines for employment relationships, making it essential to understand your obligations as an employer. Here’s what you need to navigate the French hiring landscape:

Mandatory Employment Contracts

CDI (Contrat à Durée Indéterminée) – Standard permanent contract
CDD (Contrat à Durée Déterminée) – Fixed-term contract
Part-time contracts
Apprenticeship agreements

Each contract must include:

Job description and responsibilities
Working hours and location
Compensation details
Trial period duration
Notice period requirements

Social Security Contributions

French employers must contribute to various social security schemes:

Health insurance: 13% of gross salary
Pension fund: 8.55% – 16.67%
Unemployment insurance: 4.05%
Family allowance: 5.25%
Work accident insurance: Rate varies by industry

Working Hours and Leave

Legal working week: 35 hours
Maximum daily work: 10 hours
Paid leave: 5 weeks minimum annually
Public holidays: 11 days
Additional leave for specific events (marriage, birth, death)

Collective Bargaining Agreements

Different sectors have specific agreements affecting:

Minimum wages
Working conditions
Benefits packages
Career development opportunities

Employee Benefits

Required benefits include:

Health insurance (Mutuelle)
Profit-sharing schemes for companies with 50+ employees
Restaurant vouchers (common but not mandatory)
Transportation allowance

Termination Rules

French law provides strong employee protection:

Written notice required
Severance pay calculations based on tenure
Specific procedures for economic dismissals
Mandatory exit interviews

The French employment system prioritizes worker protection while maintaining professional standards. Understanding these requirements helps create compliant and positive workplace relationships.

Conclusion: Starting Your Business Journey in France

Starting a business in France opens doors to a vibrant market filled with innovation and growth potential. The French business landscape offers diverse opportunities through various legal structures – from the simplicity of micro-entreprise to the robust framework of SARL.

Your entrepreneurial journey in France requires:

Understanding of local business culture and work-life balance
Proper documentation including Siret, Siren, and APE numbers
Clear grasp of legal requirements for your chosen business structure
Knowledge of employment regulations and social charges
Familiarity with French invoicing and administrative procedures

The path to success becomes smoother with expert guidance. Professional advisors at Istari Conseil specialize in navigating complex regulations, cultural nuances, and administrative requirements. Their expertise proves invaluable for entrepreneurs seeking to establish thriving businesses in France.

The French market welcomes both domestic and international entrepreneurs with open arms. Whether you’re launching an online venture, opening a physical store, or establishing a non-profit organization, France provides the infrastructure and support systems needed for business growth.

Ready to turn your entrepreneurial dreams into reality? Take that bold step forward – France awaits with its blend of tradition, innovation, and endless possibilities for business success.

[Contact Istari Conseil today to start your entrepreneurial journey in France]

FAQs (Frequently Asked Questions)

What are the main legal structures for starting a business in France?

In France, the main legal structures for businesses include Micro-entreprise, Entrepreneur individuel à responsabilité limitée (EIRL), Entreprise unipersonnelle à responsabilité limitée (EURL), Société par Actions Simplifiée Unipersonnelle (SASU), and Société à Responsibilité Limitée (SARL). Each structure has its own tax implications and liability protections.

Who is eligible to start a business in France?

Anyone can start a business in France, but certain eligibility criteria apply. EU citizens have fewer restrictions, while non-EU citizens may need a residence permit. Additionally, specific documentation such as a social security number may be required.

How can an expat start a business in France?

An expat can start a business in France by obtaining the necessary French business visa, choosing an appropriate business category, registering the business with the Centre de Formalités des Entreprises (CFE), and ensuring compliance with local regulations.

What is the importance of Siret, Siren, and APE numbers for businesses in France?

Siret, Siren, and APE numbers are unique identification numbers assigned to businesses in France. They are essential for tax purposes and are required for official documentation such as invoices or contracts.

What steps should I follow to register my French business?

To register your French business, you need to choose your business category, gather required documentation, submit your application through the CFE, and obtain your Siret and Siren numbers. Special requirements may apply depending on whether your business is regulated or unregulated.

What are some key considerations when choosing a company name in France?

When choosing a company name in France, it’s important to check its availability via INPI to avoid conflicts with existing businesses. The name should also reflect your brand and comply with French naming regulations.