Starting a business in the Overseas Territories is nothing like doing the same thing in Metropolitan France!
Entrepreneurs aren't subject to the same conditions or constraints. From the start, the creation formalities have little in common: the administrative services aren't very efficient.
In Réunion, it takes an average of 3 to 6 months to obtain a K-bis certificate, compared to about 48 hours in Ile-de-France.
You have to go in person to the Commercial Court Registry to get the document you need to do business. You can't do this online like you can in mainland France.
To deal with this situation, the government announced the creation of private registry offices from 2019.
Entrepreneurs are really hoping this measure will cut down on processing times. But that's not all: access to services isn't equal, and neither is the size of the target customer base.
Let's explore together the main difficulties generally encountered by entrepreneurs in French Overseas Territories.
In Réunion, the difficulties encountered by local administrations are the subject of lively debate.
Business founders need to be patient to get their K-bis extract: it takes 6 months on average.
Without this crucial document, you can't legally start operating because the company can't legally exist. You won't be able to, for example, get a loan, unlock your capital in the bank, or make an administrative declaration.
Many young companies are immediately faced with financial difficulties and are put in danger
Even better, many entrepreneurs from overseas departments prefer to register their company in mainland France.
This is probably the most suitable solution for bypassing administrative difficulties.
We're not talking about public services here, but about certain technologies like Stripe or PayPal, famous online payment companies for individuals and businesses.
Right now, no overseas territory can use it, which is a major drawback for the economic development of these territories.
As a result, companies are often required to open a bank account in mainland France.
Internet access is also of lower quality, and it is sometimes impossible to ship goods without paying a significant surcharge.
That doesn't really help with cost optimization, which is a must for any young company.
Business domiciliation in metropolitan France allows you to establish your registered office at a particularly prestigious address, in the most valued Parisian arrondissements or in the heart of the most dynamic French metropolises.
Your company's registered address is super important and a key part of your company's identity. It determines your company's nationality, where you pay taxes, and which courts have jurisdiction if there's a dispute.
As we mentioned earlier, the shortcomings of the overseas administrations can be a handicap for your company.
That's why business owners often prefer to register their company in mainland France in order to benefit from having a legal entity in mainland France.
Much more than just a mailbox, domiciliation companies offer additional services to their clients, such as mail management, a telephone switchboard, and administrative and legal assistance.
Being located in mainland France undeniably gives you access to all the support systems for business development to help them reach more customers and grow their business.
Unless it is a local business intended for customers in the French overseas departments and territories, developing in mainland France makes it easier to reach many customers.
The delayed economic development of the territories in the French overseas departments and territories leads the State to increase targeted aid schemes.
The French government has addressed the uneven development of territories between mainland France and the overseas departments and territories (DOM-TOM). However, many difficulties persist, leading entrepreneurs to domicile their companies on the mainland.
Online business domiciliation is a crucial asset for having a mailbox that's ideally located while making life easier for teams.
Ultimately, it allows you to visibly improve your company's performance.
Written by our expert Paul LASBARRERES-CANDAU
February 19, 2019
