Good to know
Good to Know
- EU/EEA/Swiss citizens can set up and run a French company exactly like a French national — no visa, residence permit, or local partner needed at any point.
- Non-EU founders do NOT need a residence permit just to own or remotely manage a French company (e.g., as SASU president) — the permit only becomes necessary if you plan to physically live in France and personally run the business day-to-day.
- The single biggest real-world obstacle for foreign founders is not the registry process itself but opening a compliant French business bank account — budget extra time and consider a French-friendly neobank if a traditional bank's KYC process stalls.
- A virtual office / domiciliation contract is accepted for the mandatory registered office address, so you don't need to lease physical premises just to incorporate.
- The legal minimum share capital is only €1 for an SAS/SARL/EURL/SASU, but banks and business counterparts generally expect to see a more credible amount (often €1,000–€5,000) before taking the company seriously.
- Below roughly EUR 50,000-70,000 in annual revenue, most freelancers in Paris find the micro-entreprise regime simpler and cheaper than forming a company — but it taxes gross turnover, not profit, so it penalizes anyone with high real business expenses.
- Non-EU nomads need a valid residence permit that authorizes self-employment (e.g. an entrepreneur/profession libérale card or a Talent Passport) sorted out before they can even register a micro-entreprise — this is a prerequisite step, not a formality that happens alongside registration.
- If you invoice international clients above the VAT exemption thresholds (currently EUR 37,500 for services), you'll need to register for and file VAT — factor this into pricing before you cross the threshold.
- A SASU/SARL gives real limited liability and lets you deduct real costs, but budget for an accountant — it's rarely optional in practice even though not strictly required by law.
- France's 2026 Finance Law kept the core corporate tax structure stable (25% standard / 15% reduced), but always check for the current year's finance law before committing to a structure, since thresholds and surtaxes are revisited annually.
VAT Tva
- Standard Rate Percent
- 20
Reduced Rates Percent
- 10
- 5.5
- 2.1
Small Business VAT Exemption Franchise
- Goods Threshold
- €85,000
- Services Threshold
- €37,500
- Note
- Below these turnover thresholds a freelancer or small company does not charge or reclaim VAT; above them, registration and monthly/quarterly VAT returns (CA3) become mandatory
Operating Structures For A Foreigner
- Break Even Guidance
- Multiple French accounting sources suggest the micro-entreprise remains simpler and usually cheaper below roughly EUR 50,000-70,000 in annual revenue; above that, especially with real expenses over about 30% of revenue, a SASU/EURL structure typically becomes more tax-efficient — but this depends heavily on individual expense structure and is not a fixed rule.
Freelancer Micro Entreprise
- Cons
- No true limited liability protection in practice compared to a company, hard revenue ceilings, weaker pension/social-protection accrual than an employee-style structure, and no ability to deduct real costs
- Pros
- Fastest and cheapest way to legally invoice as a nomad; minimal bookkeeping (a simple revenue ledger); no minimum capital
- Taxation
- Tax and social contributions are calculated on gross turnover received (not on profit) — no deduction for real business expenses beyond a fixed flat-rate allowance
- What It Is
- A simplified sole-proprietor tax and social-security regime (not a separate legal form); the business and the individual are legally the same entity, though a 2022 law separated personal and business assets somewhat
- Registration
- Free registration through the Guichet Unique; you receive a SIRET number and are automatically enrolled with URSSAF
- Who Can Use It
- EU citizens follow the same registration process as French nationals; non-EU citizens need a valid residence permit (e.g. 'entrepreneur/profession libérale' or 'Passeport Talent') in place before registering
Revenue Caps
- Services
- €77,700
- Goods And Lodging
- €188,700
Full Company SASU SARL EURL
- Cons
- Real setup cost and ongoing accounting cost, more paperwork, and social charges on any salary drawn (roughly 40-45% of gross for an assimilated-employee president)
- Pros
- Real limited liability, no turnover ceiling, ability to deduct actual costs, more credible for B2B/international clients and future investors or hiring
- Taxation
- Taxed by default under corporate income tax (IS) at 15%/25% on real profit after deducting genuine business expenses and salary; the owner is separately taxed only on what they personally draw as salary or dividends
- What It Is
- A separate legal entity from its owner; SASU (single-shareholder simplified joint-stock company) and EURL (single-member limited liability company) are the two common solo structures, with SARL/SAS for multiple partners
- Who Can Use It
- A foreigner, resident or non-resident, can found a SASU or SARL in France, though non-residents may face extra documentation/banking steps and it is commonly recommended to use a lawyer or chartered accountant (expert-comptable) for setup
- Capital Requirement
- No legally required minimum share capital — a SASU can technically be formed with EUR 1, though this is not advisable in practice
- Accounting Obligations
- Full double-entry accounting (journal, general ledger, balance sheet, income statement) is required; hiring a chartered accountant is not legally mandatory but is practically essential
Dividend Note
If profit is distributed as dividends from a company (rather than personal salary), it is generally subject to France's flat tax ('prélèvement forfaitaire unique'); sources vary on the exact combined rate cited (commonly around 30%, with some describing a 31.4% single flat withholding depending on components included), so a French accountant should confirm the exact figure applicable to a given year.
Who Is Taxed And How
- Corporate Income Tax IS
- Companies such as SARL/EURL, SAS/SASU and SA are taxed on company profit at the IS rate; the director/shareholder is then personally taxed only on salary drawn and on dividends distributed, not on undistributed profit
- Branch Option
- A foreign company can open a French branch (succursale) without creating a new legal entity; the branch pays the standard 25% CIT on its French-source profits, with no additional French withholding tax when profits are sent back to the foreign parent
- Foreign Owned Company Liability
- A business is taxable in France as soon as it carries out a profit-generating activity there, regardless of the owner's nationality or the country where the parent company is based; only French-source profit (or profit attributed to France by treaty) is taxed here
- Personal Income Tax IR Transparent Entities
- Sole proprietorships and the micro-entreprise regime are 'transparent': all profit is taxed directly on the individual's personal income tax return whether or not it is actually withdrawn from the business
Corporate Tax Headline
- Standard Rate Percent
- 25
- Reduced Rate Threshold
- €42,500
- Reduced Rate Eligibility
- Turnover under EUR 10 million, share capital fully paid up, and at least 75% of shares held directly or indirectly by individuals (not by another company)
- Reduced SME Rate Percent
- 15
- Large Company Surtaxes
- Companies with turnover above roughly EUR 1 billion face an additional exceptional surtax for fiscal years ending in 2025 and 2026; a 3.3% social contribution on corporate tax applies to companies whose CIT liability exceeds a set allowance — neither is relevant to a typical solo nomad-run company
- Notes
- The 25% flat standard rate has applied to fiscal years opened on or after 1 January 2022, down from 33.3% in 2016-2017
Filing Obligations Company IS
- Penalties
- Late payment interest of 0.20% per month plus a 5% penalty on unpaid amounts; late filing penalty of 10% of tax due
- Installments
- Four quarterly advance payments due the 15th of the 3rd, 6th, 9th and 12th months of the fiscal year, required once prior-year IS exceeds EUR 3,000
- Registration
- One-stop registration via the Guichet Unique / INPI portal, which also serves as the Centre de Formalités des Entreprises
- Annual Return
- Form 2065-SD plus the full 'liasse fiscale' (balance sheet and income statement, forms 2050-2059), filed electronically via impots.gouv.fr
- Deadline Calendar Year Companies
- Return due the second business day after 1 May; final IS balance due by 15 May (3 months and 15 days after a 31 December year-end)
Incorporation Process And Requirements
- Overview
- Since January 1, 2023, all company formation in France (and since Jan 1, 2025, subsidiary formations specifically) must be processed through the Guichet Unique, a single online portal operated by INPI (Institut National de la Propriété Industrielle) that forwards filings to the tax authority, INSEE, URSSAF and the Commercial Court. There is no residency requirement to own or register a French company, but living/operating physically in France as a non-EU national requires separate immigration clearance.
- Official Registry Link
- https://formalites.entreprises.gouv.fr/
Typical Cost
- Legal Notice Publication Fee
- €121
- Ongoing Annual Accountant Fee
- €2,000
Typical yearly cost for an expert-comptable to handle bookkeeping and annual accounts, commonly needed once a company (not micro-entreprise) is running.
Basic Self Filed Registration
- Low
- €260
- High
- €320
- Description
- Bare-minimum registry/publication fees if you handle everything yourself without legal help.
Full Service Lawyer Led Package
- Low
- €799
- High
- €4,500
- Description
- Flat legal/formation-agency fees quoted by French law firms and formation agencies, on top of mandatory registry and publication fees.
Total DIY With Some Professional Input
- Low
- €250
- High
- €1,500
Typical Full Incorporation Foreign Founder
- Low
- €1,000
- High
- €3,500
- Description
- Average total spend for foreign founders including basic legal/professional support.
Realistic Timeline
- Standard Range
- 10 to 30 working days from submission of a complete file to receipt of the Kbis certificate, once the bank capital deposit is in hand.
- Biggest Bottleneck
- Opening the French business bank account as a non-resident — banks apply extensive KYC/anti-money-laundering checks on foreign directors, and this step alone can take 1 to 3 weeks with a traditional bank (faster, often 24–72 hours, with neobanks like Qonto, Shine, or Revolut Business).
- Well Prepared Case
- As little as 1 to 2 weeks if all documents (translations, notarizations, bank certificate) are ready in advance and there are no name/document errors.
- With Formation Agent Or Law Firm
- Some providers quote 5 to 10 working days once the bank certificate is issued.
Required Documents
- Valid passport(s) / ID for all directors and shareholders
- Proof of registered office address in France (lease or domiciliation contract)
- Signed Articles of Association (Statuts)
- Bank certificate confirming share capital deposit
- Certificate of publication of the legal notice
- Certified translations of any foreign-language documents
- For non-EU founders relocating physically: proof of visa/residence permit status
Step By Step Process
- Choose a legal structure (SASU/SAS, EURL/SARL, SA, micro-entreprise, or branch) based on liability and growth goals.
- Check and reserve the company name via the INPI database.
- Draft the Articles of Association (Statuts) — for SAS/SASU this is flexible but complex enough that legal help is strongly advised.
- Open a French business bank account and deposit the share capital to obtain a capital deposit certificate (attestation de dépôt de fonds) — this is typically the slowest and most friction-heavy step for non-residents.
- Secure a registered office address (home address, leased premises, or a domiciliation/virtual-office contract).
- Publish a legal incorporation notice (Avis de Constitution) in an authorized legal-announcements journal.
- File the complete application (statutes, bank certificate, proof of address, ID documents, publication certificate) online via the Guichet Unique (INPI).
- Authorities review the file; once approved, the company is entered in the national business register (RNE) and Trade and Companies Register (RCS).
- Receive the Kbis certificate (official proof of incorporation) plus SIREN/SIRET numbers and VAT ID — the company is now legally operational.
Minimum Share Capital
- Sa Minimum Capital
- €37,000
- SAS SASU SARL EURL
- €1.00
- Typical Practical Capital
- €1,000
- Typical Practical Capital Upper
- €5,000
- Note On Practical Minimum
- Legal minimum is €1, but banks and business partners generally expect a more credible figure.
Common Legal Structures
- SASU / SAS (Société par Actions Simplifiée, single- or multi-shareholder) — most popular with foreign founders for its flexible governance and limited liability.
- EURL / SARL (single- or multi-member limited liability company) — simpler, more rigid governance rules.
- SA (Société Anonyme) — for larger companies, requires a minimum share capital of €37,000.
- Micro-entreprise / entreprise individuelle — sole-proprietor status with simplified filing, but unlimited personal liability and revenue caps.
- Branch office — an extension of an existing foreign parent company; not a separate legal entity, still requires RCS registration and a local legal representative.
Local Partner Or Sponsor Mandate
- Non EU Citizens
- No local partner, sponsor, or French co-shareholder is legally required to incorporate — a non-EU individual can own 100% of an SAS, SASU, SARL or EURL and act as sole director/president. A local resident director is not a legal requirement either. However, if the founder intends to physically live in and personally operate the business from France, a long-stay visa/residence permit is required (commonly the 'entrepreneur/profession libérale' visa or the Talent Passport for qualifying founders/investors). If the founder stays outside France and manages remotely, no residence permit is needed.
- EU EEA Swiss Citizens
- None. EU/EEA/Swiss nationals have full freedom of establishment and can create and run a French company under the same rules as French citizens, with no visa, residence permit, or local partner required.
- Practical Local Presence
- While not a legal mandate, most foreign founders end up engaging a local accountant, lawyer, or domiciliation/virtual-office provider because a French registered office address is mandatory and because opening the mandatory French bank account (for capital deposit) is significantly easier with local assistance.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
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Data last updated July 2026 · Verify anything important.