Each type of company has its own specificities and its own official procedure for setting up a business. Let's take a look at the seven key stages involved in setting up a new business, and how to develop it under the best possible conditions.
Define and develop your business project
Every business start-up begins with an idea. A project is first and foremost an idea. This stage is the most important, but also probably the most complex, given the vast and competitive world of entrepreneurship. Whether your idea is simple or innovative, complex or obvious to you, it will only produce value if it is implemented methodically.
So, before you rush headlong into investing time and money, take a step back and ask yourself the right questions, to find out whether your idea really is a good one, and whether the project makes sense in today's market.
Once you've defined your idea, it's time to check that the resulting project meets a concrete consumer need. If your ambition is to set up an online business, this will also enable you to assess the digital tools required for your activity.
To structure your thoughts, answer this list of questions:
- What business sector would you like to enter? Do you know the market in this area (prices, competition, trends)? What are consumers' needs? What types of products/services would you like to sell?
- Who are your target customers (gender, age range, family situation, professions, hobbies, etc.)? What do they have in common? Are they individuals (BtoC) or businesses (BtoB)?
- In which geographical area would you like to distribute your products/services?
- Would you like to set up a business on your own or with others? Do you think you should set up your own business, a sole proprietorship or a company?
- How would you like to finance your project? Do you have personal funds, family investments or do you need to find external investors and financing?
- What do you need to run your business, in terms of finance and equipment? Can you get started right away, or do you need premises, stock, expensive equipment and staff?
By answering all these questions, you'll already have a clear idea of the viability of your idea, and therefore of your business.
Your business creation must meet a need and therefore a demand.
Reflecting on the project itself should also enable you to find your uniqueness, that extra something that sets you apart from the players already present on the market, especially if the chosen field is particularly competitive.
If you carry out very detailed market research, you'll be able to analyze the potential outlets for your project, and whether these are sufficient to make your business a success.
Drawing up a market study and business plan
Market research
Whether you want to offer a service or a product, market research is a crucial step in defining the contours of your future business. The aim here is to precisely identify the current state of the market (demand and supply), the players already present in the sector - your direct competitors - and the market's development trends.
Here's a table to help you draw up your market study, to be updated regularly.
The business plan
For an entrepreneur in the process of setting up a business, the business plan is a multi-purpose management tool, enabling him to formalize in writing the development prospects of his project.
The business plan enables you to set your company's development objectives, then highlight the key components of your business creation project, in order to identify the levers of success for your idea, and highlight its strengths and weaknesses by comparing them with the market.
But above all, the business plan is essential for determining the company's financial equilibrium, between costs (materials, salaries, rents, etc.) and revenues (product sales, services, etc.).
Last but not least, a solid business plan is essential to convince partners and potential investors of the value of your idea and the maturity of your project. Investors, especially banks, will be more inclined to invest in you and your company if you present them with concrete, factual elements, which will reassure them as to the return on their investment.
The composition of the business plan is simple. You must include :
- your market research;
- your sales strategy: product/service, pricing, communication, distribution, target customers ;
- your financial forecasts: short-, medium- and long-term financing plan, cash flow requirements, potential time to profit, sales forecasts.
Finding financing and assistance
Financing options
Once the business plan has been drawn up, it's time to finance the start-up.
To start up a business, you need to pay the start-up costs inherent in the type of company and its legal form, and possibly finance equipment, premises or staff if required. Entrepreneurs can choose between different types of financing to find the funds they need to start up their business:
- Internal financing,
- External financing,
- Bank financing,
- Or government funding.
More often than not, entrepreneurs use their own funds or take out a bank loan to finance the creation of their company. They may also call on friends and family, or use crowdfunding campaigns to raise funds for the formation of their company.
Depending on your profile and location, you may be eligible for a wide range of government grants and funds. Find out more.
Business start-up assistance
The Banque Publique d'Investissement (BPI France) can provide financing. You may also be able to obtain additional financial assistance from the CCI, your regional or departmental authorities, France Travail, or business networks.
Unemployed entrepreneurs benefit from a number of grants from public or private bodies to encourage the growth of their project, especially at the start-up stage.
Here's the range of assistance currently available to business creators:
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ACRE: Help for Entrepreneurs (France Travail)
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ARCE: Aide à la Reprise ou à la Création d'Entreprise (French business start-up aid)
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CAPE: Contrat d'Appui au Projet d'Entreprise (Business Project Support Contract) (France travail)
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business start-up or takeover support scheme (formerly known as NACRE): help with setting up, developing or structuring a business, managed by each region
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Innovation grants
You can also take part in support, acceleration and incubation programs, such as those offered by the BGE (Bureau de Gestion des Entreprises), or in competitions reserved for different types of businesses (micro-businesses, start-ups).
These various contests and programs can bring you many advantages:
- benefit from personalized business start-up support to help you get your business off the ground and develop your business (formalities, free accounting software, panels of investors to pitch your project to, etc.),
- measure the viability of your project in a sustainable way with professionals,
- raise funds from various investors,
- Gain visibility in the business world and in your region.
You'll find all the information you need about these programs online, wherever you live - they exist in Paris and all major cities. Don't hesitate to ask, and be aware that there is also support available to suit your situation, particularly for young entrepreneurs.
Choosing your company's legal status
It's not just a question of choosing a legal status, but above all of choosing the right one for your business. To do this, you need to be familiar with all of them, and know their advantages and disadvantages. Then you'll quickly be able to decide which one is best suited to your future business.
Choosing your legal form is not something to be done lightly, as it determines the taxation applied to the company, the liability and remuneration of the company director, the development of the structure, its financing method, and the separation of powers.
The choice of legal form should be determined by the following factors:
- Number of associates
- Minimum share capital
- Tax system
- Managerial responsibilities
- Social security for managers
First of all, you need to know whether you'll be working alone or with others.
When choosing between SA, SAS, SASU, SARL, SCI, EIRL, micro-business, etc., the advice of a chartered accountant can be very useful. He or she will be able to assess which status is best suited to the needs of the project and the future expectations of the entrepreneur.
You can choose between two main families: companies and sole proprietorships, with a variety of sub-forms.
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Companies This first family is for projects involving several people:
- SARL or Limited Liability Company
- SAS or Simplified Joint Stock Company
- SA or Société Anonyme
- The SNC or Société en Nom Collectif (partnership)
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Single-member companies and micro-enterprises: within this second family, reserved for solo entrepreneurs, there are 4 sub-categories:
- EI or Sole Proprietorship
- Micro-business
- EURL or Entreprise Unipersonnelle à Responsabilité Limitée (one-man limited liability company)
- SASU or Société par Actions Simplifiée Unipersonnelle (simplified one-person company)
Domicile of company headquarters
There are a number of ways to domicile a company.
Whether at the entrepreneur's personal home, in a shared office (coworking, business incubator, etc.) or with a commercial domiciliation company, domiciliation is an important step in setting up a business.
The choice of your company's address is decisive, because on the one hand, the company is taxed in the locality where its head office is located, and on the other, this address cannot be changed, as it will appear on numerous documents and media: payslips, invoices, business cards, website, etc.
There are several ways to determine your company's address:
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Domiciliation at home: this first option is very popular, as at first glance it appears to be the most advantageous in terms of cost and time, especially for microentrepreneurs. Unfortunately, it also has its drawbacks: a lack of credibility with potential customers and investors, and poor privacy protection.
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Domiciliation in a business incubator: the opportunity to rub shoulders with a concentration of other entrepreneurs and expand your network is a real bonus. However, the choice of address is limited.
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Domiciliation in commercial premises: acquiring your own commercial premises seems an interesting solution for legitimizing and developing your business. However, this option can be very costly and inflexible in terms of location.
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Domiciliation via a domiciliation company: this is often a very good compromise between domiciliation at home and the purchase or rental of business premises. A domiciliation company gives you the opportunity to have a mailbox at a prestigious address, at affordable rates.
It is therefore essential to know your project inside out, and to have followed the previous steps, in order to choose the most attractive business domicile alternative.
Good to know: domiciliation companies such as SeDomicilier offer tailor-made support during the creation of your company (whatever your corporate form) as well as complementary services such as :
- expert legal support at every stage of your company's creation, right through to registration and obtaining your K-bis,
- managing your business mail,
- a switchboard,
- booking meeting rooms in a business center in Paris and other major cities in France for your business meetings.
Official administrative procedures
The administrative procedures and formalities involved in setting up a business depend largely on its corporate form and status.
For example, micro-entrepreneurs (formerly auto-entrepreneurs) will benefit from much simpler online set-up formalities and less red tape, whereas company founders will have to :
- draw up articles of association,
- deposit share capital,
- compile a file for the clerk's office of the Commercial Court,
- publish a legal notice in an official newspaper,
- and pay the various costs involved in setting up the company, such as registry fees and the publication of legal notices.
Company registration
Once the company's status has been chosen, the entrepreneur must register his business with the Centre de Formalités des Entreprises (CFE), commonly known as the "one-stop shop".
In most cases, this procedure is carried out online, and involves declaring your activity and registering your company with the Siren register. This formality is carried out at the Registre du Commerce et des Sociétés if the activity is commercial, at the Répertoire des Métiers if the activity is artisanal, or at the Registre des Agents Commerciaux, or at the clerk's office of the Tribunal de Commerce in the département where the company is located.
In France, all types of business must be registered in order to acquire the rights and obligations of a company.
This registration is justified by a unique identification number called SIREN, issued by INSEE, and an APE code (Activité Principale Exercée). The company receives a Kbis extract showing the SIREN and the APE code.
This will enable you to release the share capital and start up your business, while complying with all future tax declarations and payments.
Good to know: the SIREN number identifies the company, while the SIRET number identifies an establishment, i.e. a location. A company has a single SIREN number, and can therefore have several establishments located in different places, i.e. several SIRETs.
Preparing a file for the Commercial Court clerk's office
Before you can obtain your registration, you must gather a certain number of documents to make up the file that will be submitted to the Registrar of the Commercial Court (Greffe du Tribunal de Commerce):
- an M0 form,
- an original copy of the initialled, dated and signed articles of association,
- a certificate of deposit of funds by the bank in a blocked account,
- the deed of appointment of the company manager,
- a copy of the JAL or Journal d'Annonce Légale in which the notice of incorporation was published, or a copy of the dated certificate of publication,
- a document proving the company's registered address.
Once your file has been completed and finalized, it will be sent to the appropriate CFE (CCI, Urssaf, etc.).
Drafting the company's articles of association
Particular attention should be paid to drafting the company's articles of association. We recommend that you call on the services of a professional lawyer or notary to ensure that you leave no stone unturned when drafting your company's articles of association.
Deposit of share capital
The deposit of share capital is the payment of a sum dedicated to the start-up of the company. It is deposited in an escrow account at a bank or notary's office, in exchange for a document certifying the capital deposit, until your company is registered.
This is mandatory for commercial companies: SAS, SASU, SA, SARL, EURL, SEL (société d'exercice libéral) and therefore SELARL, SELURL, SELAFA, SELAS, SELSAU, SCS, SCA, and SNC. Civil or individual companies are exempt from the capital deposit requirement.
The amount of capital also depends on the choice of company status, and must be specified in the articles of association.
This is necessary to obtain a certificate of deposit, which will then enable you to file your articles of association with the Centre de Formalités des Entreprises (CFE). For most current structures, the law no longer imposes a minimum share capital. The amount is freely determined in the articles of association, except for SAs and SCAs, where the share capital must be at least €37,000.
This operation must be carried out by a person acting on behalf of the company, with access to the funds generated by the "cash" contributions.
While the majority of business founders set up their company in cash, there are different types of capital contributions, divided into three groups:
- cash contributions,
- contributions in kind,
- contributions in kind.
Next, publishing an advert in a legal gazette (JAL) approved by your département is one of the essential formalities.
Payment of administrative costs
Many of the administrative formalities involved in registering a company are not free of charge.
First of all, the registration process entails payment of registry fees.
As such :
- Single-member companies such as EIRLs or SASUs will have to pay €28.68;
- For SAS, SARL, SA and SNC companies with a commercial activity, the amount is €41.50;
- Lastly, registration without BODACC, which is necessary for several companies such as SELs, GAECs and CUMAs, requires payment of €74.10.
In a second phase, you will also have to pay for the publication of a legal announcement in a JAL.
The cost of such an ad will depend on the length of the ad, the compulsory information to be included depending on the legal status chosen, and the newspaper chosen. The price to be paid ranges from around 70 to 200 euros.
Receipt of the Kbis extract
Finally, once you've registered your company, the only way to make it official is to obtain your Kbis extract. As we saw above, this is your company's identity document, containing its APE code and SIREN number (and any SIRET numbers). It will be sent to you by the Greffe du Tribunal de Commerce.
Launching your business
Once you've taken all these steps, you're ready to launch your business! The adventure begins, and you're ready to take off, make a name for yourself, grow and reach for the clouds!
First of all, to be able to work, you need to take out the compulsory civil liability insurance and, if necessary, join the social security bodies.
In addition to your job, you're now an entrepreneur. Solopreneurs wear many hats, and have to learn to multi-task in order to sell their products/services and keep the business running.
Where to start? It can be difficult to sort out and prioritize all the things you now have to do. The key is to proceed in order of priority and importance. Every day, first do your job, the orders in hand that will bring in your first sales, and then, if you still have time at the end of the day, work on the business itself.
Training and starting up a business has two main objectives:
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Structure it internally. To achieve this, it is advisable to set up structured dashboards that are shared throughout the team. This makes it easy to assign tasks and track project progress. It's also a good idea to equip yourself with invoicing and accounting software, so that you can easily fulfill all your administrative and accounting obligations.
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Make it known to potential customers. To do this, we recommend starting by creating a visual identity (logo, graphic charter), a website, social network accounts and launching a local press campaign. The next priority is to find outlets for your products/services by building up a sales network of individual customers (BtoC) or professionals (BtoB) in your catchment area.
The company's development must also be accompanied by the search for new financing for investment, in particular by obtaining bank loans.
The search for new partners or equity investors (investment funds, business angels, etc.) strengthens the company's equity capital and provides the liquidity essential to its development.
Entrepreneurs can obtain information from their local CCI. The role of the Chambers of Commerce and Industry (CCI) is to support and advise businesses in their choices and at every stage of their development.
Many company directors choose to call on the advice of professionals to help them with their business and legal affairs. Professionals will help you with all the administrative procedures that can be complex and time-consuming.
In addition to offering head office addresses in Paris and throughout France, did you know that domiciliation companies offer online administrative and legal support to guide entrepreneurs through all the formalities involved in setting up and running their business?
All your services are then available in a personalized, secure virtual office.
