How to Start a Business in France
Starting a business as an individual entrepreneur in France involves several key steps. One of the first decisions you’ll face is whether to establish a brand-new business or take over an existing one. This choice influences the registration process, your tax and social security obligations, and the level of accounting required.
Step-by-Step Guide to Creating a Business
1. Select the Legal Structure
Choosing the right legal form depends on various factors such as the number of partners, required capital, and liability. Here are the main business structures available in France:
| Legal Structure | Key Features | Eligible Professions |
|---|---|---|
| General Partnership (SNC) | Requires at least 2 partners. Partners are jointly liable for business debts. No minimum capital. | Craftspeople, traders, industrialists, liberal professionals (excluding legal, judicial, or most health professions, except pharmacists). |
| Public Limited Company (SA) | Typically for larger enterprises. Requires at least 2 shareholders. Shareholder liability is limited to their contributions. | Craftspeople, merchants, industrialists. |
| Limited Liability Company (SARL) | Suitable for 2 to 100 partners. Liability is limited to the capital each contributes. No minimum capital. | Craftspeople, traders, industrialists, liberal professionals (excluding legal, judicial, or most health professions, except pharmacists). |
| Single-Member LLC (EURL) | SARL with a single partner. Limited liability. No minimum capital. | Same as SARL. |
| Company for Liberal Professions (SEL) | Tailored for regulated liberal professions. | Regulated liberal professions only. |
| Simplified Joint-Stock Company (SAS) | Flexible legal structure. At least 2 members. Operating rules are freely defined in the bylaws. No minimum capital. | Craftspeople, traders, industrialists, and some liberal professionals (excluding legal, judicial, or most health professions). |
| Single-Person SAS (SASU) | A one-person version of the SAS. Full flexibility. No minimum capital. | Same as SAS. |
| Professional Civil Company (SCP) | Allows several professionals to practice jointly. Partners are taxed individually on their share of profits. | Regulated professions (excluding speech therapists, podiatrists, pharmacists, midwives, certain insurance agents, accountants, dietitians, psychologists). |
| Worker Cooperative (SCOP) | Can take the form of an SA, SARL, or SAS. Employee-members must hold at least 51% of the share capital. | Open to various professions, including liberal professions such as architects or surveyors. |
2. Choose a Company Name
When registering your business, you’ll need to assign it a name—either a corporate name or a business name. This name serves as the business’s legal identity, distinct from its founder, and must be unique.
Often, the name reflects the nature of the business’s activity. Legal ownership of the name is secured at the time of registration.
3. Establish the Registered Office
The registered office serves as the legal address of the business, where all official documents and correspondence are sent. It must appear on all business documents such as quotes and invoices.
This address does not have to be the same as the place where business operations or production occur. It represents the administrative headquarters and is specified in the company’s bylaws upon formation.
The company cannot be registered without an official address. If the address changes later, it is considered a relocation of the registered office and must be declared to the appropriate business registration authority.
