Setting up a business in France

In 2005, France adopted the economic initiative law to help small and medium-sized enterprises (SMEs). The main objectives of this law are to ensure the durability of newly created and existing enterprises, improve conditions for passing on and preserving know-how and employment and sustain the growth of SMEs.

Legal requirements

Since 2003, the economic initiative law has allowed entrepreneurs to benefit from many advantages, such as the simplification of administrative procedures and lighter taxation.

Summary of the economic initiative law [FR]

2003-2005: 50 measures for SMEs [FR]

The conclusions of the spring European Council meeting 2006 called for, amongst other things, the setting up of a one-stop shop, a reduction in the time needed to set up a new business and a decrease in set-up costs. This has been done in France:

• the one-stop shop for entrepreneurs is the business start-up centre (Centre des formalités des entreprises - CFE)
• the time needed to set up a new business is less than a week
• the average cost of setting up a new business is 84 euros.

Conclusions of the Council of the European Union [FR]

In France, an entrepreneur can choose between two kinds of legal structure: sole trader (entreprise individuelle - EI) and company (société). All businesses must also be conducted under a legal form, the most common of which are:

• Limited Liability Company (SARL)
• Single Owner Limited Liability Company (EURL)
• Public Limited Company (SA)
• Simplified Joint Stock Company (SAS)
• General Partnership (SNC)

Sole trader [FR]

Company [FR]

Choose your structure [FR]

The different forms of financial support available in France can be extremely useful in setting up a new business.

Access to finance — France

Administrative procedures

To successfully set up a new business project, an entrepreneur must:

• conduct a market study
• make financial forecasts
• build a finance plan
• search for finance
• choose their legal status
• carry out business registration formalities.

Guide to setting up a new business [FR]

Creating, developing and selling your business [FR]

To carry out their administrative procedures, the first port of call for the entrepreneur has to be the business start-up centre (Centre de formalités des entreprises - CFE) relevant to their business activity (market-orientated businesses, artisan businesses, agriculture businesses or independent professionals). The CFE will centralise the registration documents and send them to the relevant bodies and departments (French National Statistics Institute (Insee), fiscal departments, welfare departments, commercial court registrar, job directory and social funds). These procedures can be completed over the Internet.

Business start-up centres (CFEs) [FR]

CFEs for sole traders and companies [FR]

CFEs forartisan companies [FR]

Registration formalities - Infogreffe [FR]

Formalities to be completed by independent professionals [FR]

However, some formalities are not dealt with by the CFE. The entrepreneur therefore also needs to do the following:

• take out insurance, to insure professional liability of the business
• join an ARRCO or AGIRC employee retirement fund
• draw up the articles of association and file them at the tax centre
• publish a notice of establishment in a legal notices publication.

Insurance and business (French federation of insurance companies) [FR]

ARRCO - supplementary employee pensions [FR]

AGIRC - executive retirement fund [FR]

Tax centre [FR]

List of legal notices publications [FR]

Programmes

The Réseau Entreprendre® business network awards interest-free unsecured honour loans and supports entrepreneurs while they set up their new businesses. Entrepreneurs benefit from individual monitoring during set-up as well as during their first few years in business.

Réseau Entreprendre® business network [FR]

The role of the France Initiative Réseau(France Initiative Network - FIR)community network is to finance and support business start-up projects, but also takeovers of existing businesses.

France Initiative Network (FIR) [FR]

Personalised help and advice

The Enterprise Europe Network provides businesses with information and advice through its local partners.

Enterprise Europe Network – contact points – France

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.

SOLVIT – contact points – France

Source: European Commission