Mistakes to avoid when setting up a business in France

Mistake no.1: Not taking the administrative steps involved in setting up a company in France seriously

To set up a business in mainland France or the French overseas departments and regions (DROM), it's important to follow a number of essential steps.

Choosing the legal form of your company

The first step in any business start-up project is choosing the right legal form . legal form of the company. There are several possible forms:

• EURL: Limited liability company
• SARL: limited liability company
• SASU: Société par actions simplifiée unipersonnelle (simplified one-person company)
• SAS: simplified joint-stock company
• SA: Société anonyme (public limited company)
• SCI: Société civile immobilière

For the creation of a micro-enterprise, the following steps do not apply. A micro-entrepreneur can benefit from simplified set-up formalities by going directly to the Guichet unique website. The following steps therefore do not apply to anyone wishing to set up a micro-business.

Drafting by-laws

Drafting the articles of association is the first step in setting up a company. The Articles of Association govern the operation and structural organization of your company: appointment of the director and manager, voting procedures at the General Meeting, distribution of shares, etc. The formalities for drafting the Articles of Association vary according to the legal form chosen. The formalities involved in drawing up the articles of association vary according to the legal form chosen.

Deposit share capital

The next step is to deposit the share capital of your company. The share capital consists of your company's cash contributions. A bank or notary will receive your capital deposit and issue you with a certificate.

Publication in a legal gazette

Setting up a company involves publication in a Journal d'annonces légales (JAL ). You must choose a newspaper that covers the département in which you are setting up your business. A certificate of publication is issued.

Submitting the file to the clerk's office

The final administrative step in setting up a business is to file the application with the Guichet unique pour les entreprises. Since January 1, 2023, this formality has been carried out online, rather than at the commercial court clerk's office.

Prior to the administrative formalities, entrepreneurs need to take a number of factors into account when building their business start-up project .

Mistake No. 2: Preparing your start-up project poorly

Carrying out a market study is necessary to measure the criteria for success and development of your future business. It identifies your target customers and potential competitors, and defines the boundaries of your catchment area.

To obtain financing from a bank or business start-up grants, entrepreneurs are obliged to create a business plan. It provides stakeholders with a clear picture of the viability of your business start-up or takeover project. It covers several areas: marketing, finance, sales and human resources.

The financial forecast provides an estimate of the financial results over the first three years of your company's financial year. It highlights the viability and potential profitability of your business project.

These three documents must be carefully designed. It is advisable to call on the experience of a chartered accountant to help you create these documents, which are essential for convincing your future investors and partners.

Mistake #3: Not finding out about business start-up assistance

Whatever your profile, you may be able to take advantage of some business start-up grants. Not all entrepreneurs have a large budget to start up their business. You may be able to apply for assistance to help you launch your business, even as a self-employed entrepreneur. Under certain conditions, you may be eligible for the following grants:

• ACRE, for jobseekers aged 18-26, provides initial support and partial exemption from social charges.
• The NACRE program supports entrepreneurs from the planning stage through to start-up.
• ARE offers financial support to jobseekers, thanks to the partial continuation of their unemployment benefits.

Some banks offer loans at preferential rates for entrepreneurs wishing to start up their own business. Don't hesitate to present your project to several banks to find out what each one has to offer.

Mistake no. 4: Neglecting communication

Communication is an essential strategy for attracting future customers and retaining their loyalty over time. Entrepreneurs starting up a new business don't necessarily have a large communications budget. Nevertheless, it's advisable to opt for affordable yet effective digital marketing techniques when launching your business:

• Create a search engine optimized(SEO) website;
• Create your business listing on Google ;
• Creating an advertising campaign on Google (SEA: Search Engine Advertising) ;
• Develop a strategy for your presence on social networks (SMO: Search Engine Optimization)

Setting up a new business requires a great deal of preparatory work to demonstrate the viability of your project over time, and to convince your investors and potential future partners. Know-how alone is not enough, so it's important to seek the advice of experts who are able to support you with their skills.

Mistake no. 5: Neglecting your company's registered address

Another common mistake in setting up a business is overlooking the importance of the company's registered address.
The domiciliation is the official address of your company, used for administrative, tax and legal correspondence. Carefully chosen domiciliation can offer many strategic advantages.

Why is domiciliation crucial?
A company's address plays a key role in its image and credibility.
A prestigious address in a business district can enhance the perception of your company among customers, partners and investors.
What's more, a good domiciliation can offer additional services such as mail management, meeting rooms and secretarial services.

The risks of incorrect domiciliation
Neglecting this step can lead to administrative and tax complications.
For example, domiciliation in an inappropriate area could limit your access to certain markets or local financial aid.
What's more, mistakes in domiciliation can complicate administrative procedures and damage your company's reputation.

Protection of privacy
Another crucial aspect of domiciliation is the protection of the executive's privacy.
By using a professional domiciliation address, the executive can avoid using his or her personal address, thus protecting privacy and avoiding mixing business and personal life.
This is particularly important to prevent clients or partners from visiting the executive's private home.

Choose a business address with sedomicilier.fr
To avoid these pitfalls, it's a good idea to choose your business address with a professional service like sedomicilier.fr.
This service enables you to select a prestigious address tailored to your needs, while benefiting from additional services to facilitate the day-to-day management of your business.
What's more, it ensures a clear separation between your personal home and your business address, reinforcing the protection of your privacy.

In conclusion, not taking your company's domiciliation seriously can be detrimental to its development. To maximize your chances of success, be sure to choose a strategic address with sedomicilier.fr, ensuring a solid foundation for the growth of your business while protecting your privacy.