Setting up a business in France from abroad

Are you a foreigner looking to develop an entrepreneurial project in France?

Such a project involves slightly different administrative procedures from those required of French nationals.

Indeed, such a reality can be quite different for a foreigner if he or she tends to hold a corporate office within the structure (manager, chairman or director)...

If this individual is just an investment partner, then no worries!

 Focus today on setting up a business in France from abroad

What are the differences in the creation process?

Note that the difference in administrative procedures does not apply to nationals of a European Union country, who have a similar procedure to the French for developing their business in France.

For non-EU nationals, it is necessary to obtain a residence permit or a visa allowing them to hold a corporate office.

If you wish to reside in France, you need a residence permit.

However, it is vital to choose the right residence permit, as not all of them entitle the holder to hold a corporate office. Only 4 permits are compatible with a potential professional vocation.

These are :

• The 10-year resident permit : this residence permit gives access to an unlimited range of professions, but remains the most difficult to obtain, as the French government imposes an integration criterion. This is measured in terms of the ability to respect the principles of the Republic and master the French language. The card is valid for 10 years and can be renewed.
• Carte de séjour commerçant: this is the most frequently requested residence permit. It is specialized in the commercial sector, and allows the holder to act as president, manager or director of a company. To obtain this residence permit, however, you must first obtain a long-stay visa directly from the French consulate in your country of origin.
• The "Vie Privée et Familiale" residence permit : this third possibility is linked to the existence of a relative who already holds French nationality or a residence permit on French territory. This type of residence permit gives access to all professions and to setting up a business.
• The "Compétences et Talents" residence permit: Finally, this residence permit is valid for a maximum of 4 years, not including renewals, and gives highly qualified individuals the opportunity to set up or invest in a business in France. To qualify, applicants must hold a Bac +5 or equivalent degree, or have at least 5 years' professional experience. They must also have a business plan.

If you don't wish to reside in France, you don't need to go through any special formalities as a foreigner. All you have to do is develop your business!

 Authorized legal structures when you already have a business abroad

It is advisable to start by setting up a liaison office in France to test the market.

If the adaptation goes well, it is then possible to create a more stable establishment among various legal structures:

• Succursale: this legal structure corresponds to the secondary establishment of a foreign company on French territory. It has no separate legal personality, no assets and no debts separate from the main company. A subsidiary is often preferred by foreign companies because of the formalities involved.

• The Société À Responsabilité Limitée or SARL : often used to develop a business by a foreigner in France, due to its flexibility, the foreign manager is required to complete a number of administrative formalities beforehand. Before setting up a SARL, they must obtain a foreign trader's card if they are not from an EU country. If the company has only one partner, the EURL (SARL with only one partner) is suitable.
• Société par Actions Simplifiée or SAS : a more closed structure, the SAS is a very simple business form often chosen by SMEs or even some individual entrepreneurs (known as SASU). Like the SARL, it is often used by foreign entrepreneurs.

Finally, a number of other legal structures are available to foreign entrepreneurs, such as public limited companies (SA), partnerships limited by shares (Société en commandite par actions), general partnerships (Sociétés en nom collectif), or real estate investment companies (SCI) if the activity is linked to the management of real estate.

What are the prohibitions?

It is forbidden for any foreign contractor who has been previously convicted or is the victim of a ban in his country of origin, to obtain a temporary residence permit.

In addition, all foreigners must comply with all the obligations imposed on nationals in the context of the activity and sector in question.

In conclusion, it is possible for foreigners to set up a company in France.

However, they must respect a certain number of rules and prohibitions, and take into account differences in treatment when it comes to administrative procedures.