Starting a business in France: A guide for Indian residents with requirements, fees, and opening France business account

Aditya Shrivastava

30.11.23

8 minute read

France is a key economy in Europe and offers pathways for foreigners to start a company. At the same time, there can be challenges in dealing with a complex taxation system, language barrier and high costs for employees. While Indians can register a company in France and carry on business, they must comply with French rules regarding business formation, annual filings, and taxation. Read on to learn more about starting a business in France as an Indian passport holder and what to expect from the process.

Table of contents
Can you register a company in France from India? Different types of companies in France Requirements to start France company from India What does it cost to run a France company? Starting costs for setting up the company Fees for compliances, annual filings Taxes and Government Fees Starting a business account for France company Moving to France from India

Can you register a company in France from India?

Yes, Indian nationals can register a business in France as long as all the French regulations are complied with. France allows for foreign passport holders, like Indians, to apply for a temporary residence permit as long as you can show a true, serious and economically viable business proposal. In addition, you will need to show that you have a significant amount of funds to access during your stay. This temporary residence permit and visa can turn into a longer-stay one.¹

Check out our section at the end of the article for more information on visas.

European Union citizens will be able to set up a company freely in France. The Guichet-Enterprises website has the procedures for starting a company in France as a European national.

To register a company in France, you can do it online with the Guichet-Enterprise website which will forward it on to the appropriate government agency and the Centres de Formalités des Entreprises (CFE). But the website can only be used for registering specific businesses:²

Businesses for commercial agents.
Micro-entrepreneurs
An agricultural business
A commercial or artisanal business activity
A SAS, SA, SNC, SELAFA, or SELAS
Setting-up an SARL or SELARL
A non-trading société civile

Learn more about these different types of companies in our next section.

An Indian business which is interested in setting up a formal company in France has the option to first set up a liaison office in France. This does not require registration and is a way to identify French partners and understand the business environment before opening a legal entity in France. A branch or subsidiary may also be opened but will require a legal identity in France.³

Different types of companies in France

Here are the different types of business constitutions entrepreneurs can establish in France.^{4 5}

Microentrepreneur - A micro entrepreneur is a sole owner small business with turnover less than €72,600-€176,200 EUR, depending on the nature of the business. Microentrepreneurs need to be registered and can take advantage of tax benefits.
Single Businessperson or Sole Proprietor (EI) - Sole proprietorship has no minimum capital requirements. The entrepreneur is solely responsible for running the business and fully controls the company. It does not incur any registration costs, but the business is subject to income tax.
Individual entrepreneur with limited liability (EIRL) - This business entity resembles EI but with the difference that entrepreneurs can limit their financial liability. Secondly, the entrepreneur can choose between income tax and corporation tax. However, this decision is final.
Limited liability company (SARL) - Most entrepreneurs prefer establishing a limited liability company in France. This business constitution requires a minimum of two partners and a maximum of 100. Share capital is not mandatory, but the partners can determine the capital according to the company’s size. The liability is limited but can extend to personal property if there is an administrative failure in the company. A SARL’s profits are subject to corporation tax, but family-constituted companies can opt for income tax.
Sociedad Anonima (SA) - Usually, large businesses choose this business structure because there is no limitation on the maximum number of partners. However, the minimum is 2 or 7 (in the case of a publicly traded company). The minimum share capital requirement is €37,000 EUR. Registration is compulsory, and the company’s profits are subject to corporation tax.
Corporations Simplified (SAS) - This business structure requires a minimum of one or more partners, whereas the maximum depends on the company’s size and activity. Registration is compulsory, and the company’s profits are subject to corporation tax.
Unipersonal Simplified Stock Company (SASU) - This business structure is becoming popular in France because it allows entrepreneurs to create the business alone.

Other types of business structures found in France include the Cooperative and Participatory Society (Scop). Speak with a business advisor or professional to identify the right structure for your business

Requirements to start France company from India

Generally, business entities prefer to establish an EURL or SARL in France. The registration process can be completed on the Guichet-Enterprise website.⁵

Select the business structure - The business entity applying for registration must select the appropriate business structure according to its needs.
Check the name - The business entity’s name must be unique and not be offensive. The name can be checked at the Commercial Court Registry and the French Patent and Trademark Office website.
Open a bank account - The company must open a business account to deposit the share capital.
Register the business - The company can submit the registration application at the Centre de Formalités des Entreprises website.
Release the legal incorporation notice - The company must announce the incorporation of the company in a regional newspaper.
Receive the Identification Number - The company will receive the following identification numbers: SIRET - System Informatique for the Repertoire of Enterprises; SIRENE - Supplementary Information Request at the National Entries; NAF - Nomenclature of Activities.

The company must typically produce the following documents at the time of registration:

Business creation declaration
Proof of domiciliation
Certificate of publication of the notice of creation
Original copy of the company’s statute
Proof of registration of the auditor on the official list of CACs

You may have additional requirements depending on your type of business.

What does it cost to run a France company?

Starting any business can incur upfront costs. When you want to start a business in France, there are a number of factors to consider like the number of employees, location and scale of the business. Each business is different so the costs to run a company will differ too. Here are some general expenses a business owner can expect when opening a company, although there may be others:

Employee salaries: Employee salaries can make up a large part of your starting expenses when opening a business in France. The salaries can also depend on if your employees are in a major city like Paris, or are based in more rural areas. There also may be extra administrative costs if you hire foreign workers.
Social Security contributions: Social security contributions in France can be a large expense when compared to India. There are a number of schemes to provide benefits to workers in France. Make sure you are providing the appropriate benefits and are complying with all labour laws.
Office and maintenance: Opening a physical space in France can be expensive, or not, depending on its location. Many modern businesses run from coworking spaces or from home. Identify your work culture and work backwards from there to determine the office costs you may incur.
Taxes: Paying all your local, regional and national taxes including VAT (Value Added Tax) is an important part to stay compliant in France. A local tax accountant can help you navigate the tax system and make sure you are not hit with any penalties and fees.
Professional services: Local professionals can help you in understanding of the business, government and regulatory environment. This can include local lawyers, notaries and accountants, or a translator, who can help smooth the process to open and run your business.
Licenses and Permits: You may need licenses and permits to operate your business, especially if you are selling goods or services. Identify which ones you will need and have them in place before you start operating.

Starting costs for setting up the company

To register a SARL, SASU or SA, the cost is €37.45 EUR. Other business structures may have a different registration cost. This does not include the cost of a notary or commercial agent.⁶

Fees for compliances, annual filings

Companies will need to comply with statutory regulations, like renewing patents and trademarks. Tax filing is compulsory annually before April 30. There may be fees, depending on your type of company, for annual filings.

Taxes and Government Fees

Many consider France to have some of the highest taxation rates in Europe, and the cost should be considered in your expenses. Here are some examples of tax rates in France:⁷

Type of tax	Tax rate
Corporate tax	25%
Value added tax	20%, but may be lower for specific goods and services.
Withholding tax	25%

You may face additional taxes depending on the number of employees and your industry.

Starting a business account for France company

You will need to open a business bank account when starting a company in France. A business bank account will help keep your business transactions separate from your personal expenses, provide a record of expenses, and can help you access additional financing through your bank.

Identify a bank that suits your requirements and ensure you have all the paperwork beforehand to make the account opening process smoother. It is a good idea to compare different banks in France, like BNP Paribas, Credit Agricole and others, to find a bank with low fees.

Want to open a personal bank account in addition? Read our full guide to opening a business bank account in France.

Challenges in opening and managing accounts from India

Managing a bank account from abroad can be easy now with online banking and mobile apps. You can check your balance and transactions anytime of day. But banks continue to charge expensive fees when sending money internationally. Want to save money next time you send a payment overseas for work? Check out Wise.

Send global payments with the Wise Business Account

Send money to suppliers, vendors and freelancers around the world with Wise Business Account.

The Wise Business Account lets you send money directly to local bank accounts globally, so your team can get paid quickly and on time. Wise uses smart tech to make payments secure, fast and cheap. You only have to pay one low transfer fee and you’ll get the mid-market exchange rate on currency conversion.

Our online process lets you open and verify your France business account from India. With our customer support available in English and our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Clients can make payments easier too. The Wise Business Account will provide bank details in multiple currencies so clients can pay you in the currency that is best for them. You can keep track of all your transactions with Wise and integrate them into accounting software like Quickbooks.

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Moving to France from India

The French government offers an easy-to-use tool to identify the type of visa and residency permit you will need if you want to move and start a company in France. You can enter in the details of whether you currently reside in the country or abroad and what type of business you want to open. The tool will provide you with options to consider.

Generally, non-EU nationals can apply for business visas to visit France and establish a company. Here are examples of some visas available:⁸

Temporary Residence Permit for Entrepreneurs/Professionals Visa - This visa allows for entrepreneurs to reside in France up to a year for a business idea. Applicants must show funds of €20,966.40 EUR to qualify.
Multi-year Residence Card: Talented Passport Company Creator Visa - This is a four-year-long resident visa for qualifying applicants with at least a Master’s degree, showing the availability of €20,966.40 EUR and an investment of at least €30,000 into the company.
French Business Visa - This 90-day visa allows holders to attend business meetings and training and look for a viable business area in France. Individuals can apply for the visa at the French Embassy’s portal online.
Tech Visa for Founders - This visa offers a 4-year residence permit in France to enable holders to start tech-related businesses or ecosystems in France. Your project must be recognized by a public body to qualify.
Long-stay visa - This visa is valid for one year, and the holder must validate it within 15 days of entering France. It is ideal for self-employed professionals.

Most entrepreneurs must apply for a residence permit by entering France on a business visa.

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Sources used for this article:

Sources verified on 30 November 2023.

Cover photo by Sigmund on Unsplash.

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