Can you start a business in France if you are a foreigner? Before answering this question, it is necessary to clarify what is meant by “creating a business”.
It is necessary to distinguish the fact of attracting funds to a company and, thus, becoming its foreign partner, from the fact of assuming the position of director of the company while being a foreigner. It is this second case, often misunderstood in practice, that we are going to focus on.
Before get KBIS, it is necessary to know what status a foreigner must have in order to be able to create and manage a company in France.
Can you manage a French company if you are a foreigner?
The question here is whether a person who does not have French citizenship can manage, that is, legally represent a company whose head office is in France. To answer this question, it is necessary to distinguish between several situations:
- Whether the potential manager is a European citizen or not;
- the potential manager resides regularly in France or not.
Difference between European and non-European citizens
There are no restrictions for citizens of the European Union, European Economic Area (Iceland, Norway, Liechtenstein) or Switzerland to become a partner and/or director of a company.
When opening a company, it will be enough to provide a copy of a foreign identification document.
Example: A Belgian or Italian citizen may well become a foreign manager of a company in France, regardless of whether he resides in France.
Things are completely different if you want to set up and manage a company without being a European citizen.
Can a foreigner be a partner of SARL?
Yes, without special conditions, if he is a citizen of a European country. No steps need to be taken if a foreigner wants to become exclusively a partner of a company whose liability is limited to contributions (SAS, SASU, SARL, EURL, etc.) Thus, setting up a business in France with a foreign partner is no more difficult than with a partner of French citizenship .
What permission does a non-European citizen need to obtain to conduct business?
Non-European citizens must have a special status that allows them to become a business manager. We'll go into detail about the different titles that exist below:
Foreigner permanently residing in France
To set up a business in France as a foreigner and to be a manager, it is necessary to distinguish between two types of situations depending on the nature of your residence permit.
Thus, if you already have one of the following statuses:
- Resident card;
- Long term resident card "longue durée-UE";
- Algerian resident card valid for 10 years;
- Residence permit “vie privée et familiale” ";
- Residence permit marked “toute profession en France” or “entrepreneur / profession libérale”, if indicated;
- Card marked “bénéficiaire de la protection temporaire” in the case of Ukrainian citizens. This gives the right to carry out professional activities.
You don't need to take any special steps to become a company manager gérant étranger non-résident, registered in France. And you can focus on the steps to set up your business by attaching a copy of your residence permit.
If you already have a temporary residence permit allowing you to engage in self-employment, you can only engage in the activity that was declared at the time of your request. For example, you cannot open a restaurant if you have received a temporary residence permit for transport activities.
If you do not have the statuses listed above, but you have:
- Carte de séjour;
- residence permit as a student, visiteur, scientist or artist;
You must request a change of status to become a Business Manager. The structures that can help in compiling my dossier are the following: La cimade, Gisti, Mrap, Face, Ligue des droits de l'homme and OFII.
You will need to apply for a residence permit allowing you to set up a business and, in particular, to carry out employment activities. Therefore, the employee's residence permit carte de sejour salarié not enough to create a business.
Unlike a residence permit carte de sejour salarié, to set up a business requires obtaining a temporary residence permit, which explicitly states “Commerçant, industriel ou artisan”.
This particular residence permit is issued for a maximum of one year, after which you can apply for a multi-year residence permit for 4 years.
If you have family in France or personal connections, you can also apply for a residence permit "vie privée et familiale".
There are specific features of creating a company in France by a foreign student.
As an international student, you have a long-term visa equivalent to a student residence permit, but this residence permit does not allow you to open a business in France.
Foreigner living abroad
If you want to do business in France, but you do not have French citizenship and are currently living abroad, it is necessary to distinguish between two situations depending on whether you want to live in France or not.
Do you want to live in France
If you want to reside in France to set up and operate a business in France as a foreigner, you must apply for a long-term visa in your home country.
Your file must demonstrate the economic viability of your project to set up a business in France and its ability to generate an income at least equivalent to the minimum wage Smic - 1709.28 € per month. in 2023.
Within two months of your arrival, you must apply for a temporary residence permit commerçant, industriel ou artisan, which will mention your activity.
To create an SCI, a nonresident foreigner must meet the same conditions as to create a SARL or SAS.
Do you want to stay in your country of residence?
If before 2014 you had to make a preliminary declaration at the prefecture, today this is no longer the case. From this point of view, formalities are relaxed!
In fact, it is entirely possible to become a non-resident foreign partner and set up a company in France to be managed from abroad.
It is possible to proceed with setting up a company in France for an Algerian and be a manager (eg SARL manager or SAS president) without having to make any prior statements. You only need to register your company with RCS.
However, keep in mind that running a French company from abroad can be difficult from an operational point of view. This is why this scenario is not recommended.
What are the steps to start a business for a foreigner?
If you're wondering how to set up a business in France when you're a foreigner, know that other than getting all the necessary residence permits, the steps are exactly the same as for all companies.
Necessary :
- Write the charter;
- contribute the authorized capital;
- publish an advertisement in a legal newspaper;
- register the company in the registry.
Development of the charter
The preparation of the charter must be thorough. After all, it is the charter that determines the rules of operation of the company and distributes powers between partners and managers.
Usually the name of the manager is indicated in the articles of association. Otherwise, a separate act on the appointment of a manager must be drawn up.
A declaration of beneficial owners bénéficiaires effectifs must be filed with the registry. It refers to all individuals who directly or indirectly own 25% or more of the company's share capital. This obligation also applies to foreign partners, regardless of whether they reside in France or not.
Deposit of authorized capital
It is mandatory to deposit the authorized capital with an authorized organization, such as a bank, notary or lawyer. The funds will be blocked until the company formation procedure is completed.
In return, you are provided with a certificate of deposit of the authorized capital.
Publication of legal notice
To inform third parties of your intention to form a company, you must publish a notice of formation in a legal notice newspaper, also called a JAL.
The ad text must indicate:
- Company name (its corporate name);
- Organizational and legal form;
- Manager(s) name;
- Address of the company's registered office;
- Start date of activity;
- The register to which the application for registration will be submitted.
Here you are also provided with a certificate confirming the publication of the announcement in JAL.
Registration in the registry
The last step to form a company in France when you are a foreigner is to register the company with the registry to obtain a Siret number.
The following documents must be attached to the application for registration in the register:
- Charter of your company with date and signature of the director;
- Certificate of publication of legal notices in the newspaper;
- The manager's identity card and, if applicable, a residence permit giving him the right to manage the company in France;
- Declaration of no criminal record by the manager;
- Declaration of Beneficial Owners;
- Certificate of occupancy of the premises.
The amount of the registration fee varies depending on the type of business formation.
The process of setting up a company in France as a foreigner can be lengthy and daunting. However, knowing the required residency permits will allow you to move forward effectively in the process of setting up your business!
To learn more about the steps to starting a business, don't hesitate to schedule an introductory consultation.
https://www.economie.gouv.fr/entreprises/etranger-creer-entreprise-france
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