Legal Requirements for Foreign Entrepreneurs
Starting a business in France as a foreign national requires compliance with specific residency and professional regulations. The requirements differ significantly based on the entrepreneur's citizenship and current residency status. European Union (EU), European Economic Area (EEA), and Swiss citizens benefit from the principle of free movement and can establish a business under the same conditions as French nationals.
Non-EU citizens must hold a valid residence permit that explicitly authorizes "professional activity." Common visa types for business owners include:
- Talent Passport (Passeport Talent): Designed for innovative projects, investors, or highly skilled individuals. It typically lasts four years and is renewable.
- Entrepreneur/Liberal Profession Visa: For individuals planning to create a new activity or practice a regulated profession.
- Long-stay Visa (VLS-TS): Validated as a residence permit for the first year.
Specific professions (e.g., medicine, law, architecture) are "regulated" and require French-recognized diplomas or certifications. Foreigners must verify their qualifications with the relevant professional body before registration.
Choosing a Legal Structure
The choice of legal structure impacts the entrepreneur's liability, taxation, and social security regime. France offers several options, categorized into individual businesses and commercial companies.
Micro-entreprise (Auto-entrepreneur)
This is a simplified sole proprietorship suitable for small-scale activities. It features simplified accounting and social security contributions calculated as a percentage of turnover. There is no minimum capital requirement (0 EUR / $0 USD, Jan 2026).
Commercial Companies (SAS and SARL)
For larger projects or partnerships, entrepreneurs typically choose between:
- SARL (Société à Responsabilité Limitée): A limited liability company requiring at least two shareholders (or one for an EURL). It is governed by strict legal frameworks.
- SAS (Société par Actions Simplifiée): A simplified joint-stock company offering high flexibility in drafting bylaws. It is the preferred choice for startups.
The minimum legal share capital for these companies can be as low as 1 EUR ($1.05 USD, Jan 2026), though a higher amount is often recommended for credibility with banks.
Detailed information on legal forms can be found on the official Service-Public.fr portal.
The Registration Process
Since 2023, all business formalities in France must be completed online through the "Guichet Unique" managed by the National Institute of Industrial Property (INPI). This centralized portal replaces the various Centers for Business Formalities (CFE).
Steps to Incorporation
- Drafting the Bylaws (Statuts): Required for companies (SAS, SARL). This document defines the rules of operation.
- Depositing Share Capital: Funds must be deposited into a blocked professional bank account.
- Publishing a Legal Notice: A notice of incorporation must be published in a Journal of Legal Notices (JAL). The cost is approximately 150 EUR to 250 EUR ($157.50 to $262.50 USD, Jan 2026).
- Registration via INPI: Submission of the application file online. Registration fees for the Register of Commerce and Companies (RCS) are approximately 37.45 EUR ($39.32 USD, Jan 2026).
Once registered, the business receives its identification numbers from INSEE: the SIREN (9-digit business ID) and SIRET (14-digit establishment ID). These are essential for all administrative and commercial transactions.
Taxation and Social Security
Businesses are subject to Corporate Tax (IS) or Income Tax (IR), depending on the chosen structure. Value Added Tax (VAT) registration is mandatory once turnover exceeds specific thresholds (e.g., 39,100 EUR / $41,055 USD, Jan 2026 for services). Entrepreneurs must also register with URSSAF for the payment of social security contributions.
Registration must be completed through the INPI Guichet Unique website.