Good to know
Good to Know
- A foreign shareholder who stays passive (not personally running day-to-day trade) generally does not need the special SEFI trader card — that requirement is specifically for foreigners who will personally act as the commerçant/manager.
- Any capital you contribute in cash gets locked in a blocked 'compte de formation' (STFO) at a bank or notary and only becomes available once your Kbis/Extrait K registration certificate is issued — plan cash flow around this.
- You cannot register a company without a genuine local business address — a home address, notary-provided address, or licensed domiciliation service is required; registration is refused without proof of address.
- The CDFE (Centre de Développement et Formalités des Entreprises) inside CCISM is designed as a one-stop shop for these formalities and can help non-French-speaking founders fill out the required 'Imprimé M1' form.
- Exact government fees in CFP francs for registration/publication were not clearly published in the official sources checked — confirm current amounts directly with CCISM/CDFE before budgeting.
- French Polynesia runs its own tax code, separate from mainland France's — there's no personal income tax here, but corporate tax, VAT/TVA, and business-level withholding taxes on foreign firms all still apply, so 'no income tax' does not mean 'no business tax'.
- The commonly used minimum capital to open an SARL is just 1 XPF (effectively nothing), which is why it's the default structure for small foreign-owned businesses here, but going this route still commits you to French-language annual accounting and RCS filings.
- If you're just invoicing occasional local clients rather than running an ongoing local operation, a one-off 15% withholding tax regime for non-established foreign companies may be simpler than incorporating — but it's a flat withholding on gross payment, not a net-profit tax, so it isn't always cheaper.
- Given the mix of French administrative law and local territorial tax rules (and some inconsistency across sources on new-business tax holidays and top-bracket corporate rates), engage a Papeete-based accountant or the CCISM directly before committing to a structure.
Corporate Tax Is
- Administering Authority
- Direction Générale des Impôts et des Contributions Publiques (DGICP)
Minimum Tax
- Status
- Fully legal and regulated
- Cap Per 12 Months
- CFPF 4,000,000
- Floor Per 12 Months
- CFPF 50,000
- Description
- A minimum tax applies where standard corporate tax due is lower than this floor: 0.5% of gross income (0.25% in a loss-making year), creditable against corporate tax owed in the same year but not carried forward.
Standard Rate
- Rate Note
- 25% standard rate, reduced from 27% effective 1 January 2022.
- Status
- Fully legal and regulated
- Description
- Standard corporate income tax (Impôt sur les Sociétés) on net profits of companies operating in French Polynesia.
Higher Rate Sectors
- Status
- Fully legal and regulated
- Description
- Mining companies, financial/credit institutions, and leasing companies pay a higher rate that is being phased down annually toward the standard rate by around 2027.
- Note On Conflicting Figures
- Sources differ on the exact starting rate for this category (33% vs 35%) — treat this figure as approximate and confirm directly with a local accountant before relying on it.
New Business Relief
- Status
- Fully legal and regulated
- Description
- New companies benefit from a corporate tax exemption for an initial period after incorporation, and are also exempt from the minimum tax during that period.
- Note On Conflicting Figures
- Sources disagree on the exact exemption window (one source cites the first 3 tax years, another cites the first 12 months) — confirm the current rule with the DGICP or a local accountant before relying on it.
Reduced Rate Sectors
- Status
- Fully legal and regulated
- Description
- A reduced 20% rate applies to companies in renewable energy production, and (effective 1 January 2022) to companies in R&D and to companies operating exclusively in the digital sector (software, IT hosting/maintenance, data processing, etc.).
Freelancer Vs Company Structures
- Practical Guidance
- For a foreign solo operator just testing the waters, the auto-entrepreneur/EI route is fastest and cheapest but leaves personal assets exposed and caps turnover; forming an SARL or SAS costs more in setup and annual compliance (French-language accounts, RCS filings) but caps liability at the capital contributed and looks more credible to local banks and clients — most foreign-owned small businesses on the ground end up as SARLs.
Sa
- Who Its For
- Larger operations, multiple shareholders, or businesses wanting a formal board structure and the ability to issue transferable shares.
- Note
- More demanding capital and governance requirements than an SARL/SAS, making it overkill for most solo or small-team nomad businesses.
SAS
- Liability
- Separate legal personality; shareholder liability generally limited to capital contributed.
- Who Its For
- Increasingly popular with entrepreneurs and startups wanting flexible governance and easier investor/shareholder structuring than an SARL.
SARL
- Liability
- Each associate's liability is capped at their capital contribution; the entity has separate legal personality from registration.
- Who Its For
- The most popular structure for small and medium foreign-owned businesses wanting liability protection.
- Minimum Capital
- CFPF 1
Branch Office
- Liability
- Not a separate legal entity — the parent company retains full liability; profits from local activity are taxed locally and withholding tax may apply on remittances to the parent.
- Who Its For
- An established foreign company testing the French Polynesian market or managing existing local clients without full local incorporation.
Entreprise Individuelle Ei
- Liability
- Carries no separate legal personality; the proprietor and the business are legally identical, so personal assets remain exposed to professional liabilities.
- Who Its For
- Sole proprietors who have outgrown or don't qualify for the micro regime but still want a single-owner structure without forming a company.
- Practical Note
- Simple and cheap to set up, but offers no liability protection — a real consideration for a foreign owner with limited local legal recourse.
Auto Entrepreneur Micro Entreprise
- Liability
- No separate legal personality — proprietor and business are legally identical; personal assets are exposed to business liabilities.
- Who Its For
- Simplified regime for low-turnover self-employed/freelance activity, adapted locally from the metropolitan French auto-entrepreneur scheme.
- Practical Note
- Lightest paperwork of any structure, but capped turnover thresholds make it unsuitable once a nomad's local business grows past a small side-income level.
VAT Tva
- Services Rate Percent
- 13
- Standard Rate Percent
- 16
- Status
- Fully legal and regulated
- Solidarity Levy
- An additional 1.5% Solidarity Levy applies on top of VAT on all taxable transactions since April 2022; it is not deductible as input tax for businesses.
- Registration Trigger For Foreign Digital Sellers
- Non-resident businesses selling digital products/services to customers in French Polynesia are generally expected to register and charge VAT from their first local sale.
- Description
- French Polynesia has its own VAT (TVA) system, separate from mainland France's VAT. Standard rate applies to most goods; a reduced rate applies to services. Businesses remit VAT collected after deducting VAT paid on their own expenses/investments.
Foreign Ownership Rules
- General Rule
- Foreigners are generally permitted to fully own and establish businesses in French Polynesia, with no blanket restriction on foreign ownership outside a small number of regulated sectors (e.g. defense, strategic resources).
- Certificat D Investissement
- Foreigners establishing a business or purchasing property may need to obtain a 'Certificat d'Investissement' from local authorities, used to verify the legitimacy of the source of funds — budget time for this step in your setup timeline.
Filing And Administration
- Registration Body
- Centre de Formalités des Entreprises (CFE), administered locally by the Chambre de Commerce, d'Industrie, des Services et des Métiers (CCISM), with entries recorded in the Registre du Commerce et des Sociétés (RCS) in Papeete under the Tribunal Mixte de Commerce de Papeete.
- Ongoing Obligations
- Companies must file annual accounts with the RCS; VAT returns are filed periodically (collected VAT less input VAT); corporate tax and minimum tax are assessed annually by the DGICP.
- Language Requirement
- Formation documents, company name, and filings must be in French.
Dividend Distribution Withholding
- Status
- Fully legal and regulated
- Description
- A specific tax applies to profits distributed by capital companies (including director attendance fees and certain interest payments to individuals other than banks), withheld at source by the company when payment is made. Profits of companies headquartered outside French Polynesia but operating within it are taxed proportionally on their local activity.
Withholding Tax On Nonresident Companies
- Status
- Fully legal and regulated
- Alternative
- If the foreign company's activity in French Polynesia is spread over time (e.g. a multi-stage construction project), it may opt for local tax representation and be taxed under the standard regime instead of the flat withholding.
- Description
- A foreign company carrying out a one-off taxable operation in French Polynesia without being locally established is subject to a 15% withholding tax on the price of the operation, withheld by the Polynesian client at payment.
Incorporation Process And Requirements
- Timeline
- Formalities should be completed no earlier than one month before, and no later than one month after, the actual start of business operations, and RCS registration must be requested within 30 days of adopting the statutes. In practice, once documents are complete, the CDFE/RCS registration itself typically moves in a matter of weeks. Foreign individuals who also need the SEFI foreign-trader authorization and an underlying residence permit should budget considerably longer — the authorization itself lapses if the holder does not obtain a residence permit within 6 months of the decision, so total lead time for a foreign individual planning to personally trade can realistically run to several months rather than weeks.
- Typical Cost
- No official consolidated fee schedule in CFP francs was found in primary sources for this specific step. Confirmed cost drivers include: the legal-notice publication fee (paid via the ARERE/lexpol.pf teleservice or at the Régie de recettes counter), any notary fees if the statutes or capital deposit are handled notarially, translation/apostille costs for foreign documents, and ongoing domiciliation/registered-address fees if using a virtual office provider. Because exact CFP-franc figures are not published on the official CCISM/service-public.pf pages we reviewed, prospective founders should confirm current fees directly with the CDFE at CCISM.
- Legal Framework
- French Polynesia is a French overseas collectivity whose commercial law is derived from the French Code de commerce as extended and adapted locally. Company registration is handled through the Registre du Commerce et des Sociétés (RCS), held at the Tribunal Mixte de Commerce de Papeete, with formalities centralized by the CDFE (Centre de Développement et Formalités des Entreprises) inside the CCISM (Chamber of Commerce, Industry, Services and Trades) and by the ADE (Agence de Développement Économique).
Official Links
Step By Step Process
- 1. Choose the legal structure (entreprise individuelle, EURL/SARL, SAS, or succursale) and, if a foreign individual will personally trade/manage, apply for the SEFI carte de commerçant étranger.
- 2. Draft the statuts (articles of association) — either as a private deed, using a CCISM template, or via a notarial act.
- 3. Deposit any cash capital contribution into a blocked bank/notary account (the 'compte de formation' or STFO); funds stay blocked until the company is officially registered and the Kbis/Extrait K is issued.
- 4. Register the signed statuts with the Direction des Affaires Foncières (DAF) in Papeete.
- 5. Publish a legal notice of incorporation in an authorized legal-announcements journal (via the ARERE teleservice on lexpol.pf, or a print journal such as the Imprimerie Officielle).
- 6. File the registration dossier with the CDFE at CCISM, which forwards documents to the RCS, ISPF (statistics institute), DICP (tax directorate), and CPS (social welfare fund).
- 7. The legal representative must formally request RCS registration within 30 days of the statutes being adopted.
- 8. Receive the Extrait K/Kbis (proof of RCS registration), the TAHITI identification number and APE activity code from ISPF — this unblocks the capital account.
Common Legal Structures
- Entreprise individuelle (sole proprietorship) — simplest form, declared directly at CCISM
- EURL / SARL — single-member or multi-member limited liability company, the most commonly registered structure
- SAS — simplified joint-stock company, more flexible governance
- Succursale (branch of a foreign company) — not a separate legal entity, parent retains liability
Documents Typically Required
- Valid passport/ID copies of managers and shareholders
- Proof of a physical registered business address in French Polynesia (domiciliation agreement, lease, or utility bill) — registration is refused without proof of address
- Signed statuts (articles of association)
- Proof of capital deposit in the blocked formation account
- Sworn declaration of no criminal record and parentage certificate for the manager(s)
- For foreign individual traders: the SEFI professional merchant card (carte de commerçant étranger)
- Non-French documents generally need certified translation and, for documents issued abroad, an apostille under the Hague Convention
Foreign Ownership And Local Partner Rules
- Shareholding
- There is no blanket requirement for a local French Polynesian or French partner/shareholder in a standard SARL, EURL or SAS — foreign individuals and foreign companies may hold shares.
- Director Residency
- For an SARL, the managing gérant(s) have no general residency requirement to hold the role; an SAS président can be any nationality.
- Individual Foreign Trader Authorization
- A distinct, mandatory gate applies to any foreign individual who personally wants to act as a 'commerçant' (trader/manager running day-to-day commercial activity, as opposed to a purely passive foreign shareholder). This person must apply for a carte d'identité de commerçant étranger (special foreign trader identity card) through SEFI (Service de l'Emploi, de la Formation et de l'Insertion Professionnelles) in Papeete.
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.