Starting a small business in France is a practical and achievable option for both French residents and foreign nationals. Whether you’re launching a freelance service, opening a shop, or registering as a micro-entrepreneur, France offers a range of business structures, tax options, and support systems for new entrepreneurs.
This guide outlines 10 essential steps to help you start a business in France legally and efficiently. It covers choosing the right business structure, registering with the appropriate authorities, understanding taxes and social charges, and setting up your financial and marketing foundations.
If you’re planning to work as a self-employed expat, start a micro-enterprise, or launch a full-scale company, this article will walk you through what you need to know.
➡️ For more resources, visit our full category: Starting a Business in France
Table of Contents
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Step 1 - Define your business idea and market
Before registering your business in France, you need a clearly defined concept that aligns with the local market. Whether you’re offering a service, launching a product, or opening a physical shop, identifying your audience and confirming demand is essential.
Key questions to consider
- Is there a demand for your product or service in France?
- Are you targeting French clients, international customers, or both?
- Will language or cultural barriers affect your business operations?
- Are there local competitors offering similar services?
Conduct market research
- Review French consumer behaviour and pricing expectations
- Look at existing businesses in your niche (search via Google.fr or local directories)
- Join expat or entrepreneur groups in France to gain insight
- Consider differences in regulations or customer expectations compared to your home country
Localisation matters
To succeed in France, your business idea should be adapted to French preferences, even if your model has worked elsewhere. That may involve translating materials, pricing appropriately in euros, or aligning with local expectations on quality and customer service.
➡️ Need help developing your strategy? Read: Creating a Business Plan for Your Small Business in France
Step 2 - Choose the right legal structure (statut juridique)
Selecting the correct legal structure for your business in France is essential. It affects your taxes, social charges, accounting obligations, and personal liability. France offers several business types, but the most common for small businesses and expats are:
Common business structure
| Structure | Best For | Key Features |
|---|---|---|
| Micro-entrepreneur | Freelancers, sole traders, part-time work | Simplified taxes, low turnover thresholds |
| EURL / SARL | Single owner or partnerships | Limited liability, more admin |
| SASU / SAS | Freelancers or startups with growth plans | Flexible, scalable, social security benefits |
Micro-entrepreneur (auto-entrepreneur) regime
This is the most popular option for expats starting small or freelance businesses. It offers:
- Simplified registration process
- Flat-rate social charges
- No VAT unless thresholds are exceeded
- Quarterly or monthly tax payments
Ideal for testing your business idea or working as a self-employed individual.
➡️ Full guide: Micro-Entrepreneur in France: How It Works
EURL / SARL
These are limited liability companies. They are more complex to set up but suitable if:
- You’re starting a business with a partner
- You expect higher revenue or risk exposure
- You want a formal business presence with separation of personal assets
SASU / SAS
Flexible and often preferred by startups or freelancers expecting to grow. Advantages include:
- Ability to hire employees
- Fewer restrictions on business activities
- Scalable structure if bringing in investors
Choosing the right option
- For solo service providers or small side businesses: Micro-entrepreneur
- For full-time businesses with growth or risk: EURL or SASU
- For startups needing investment flexibility: SAS
Choosing the wrong structure can increase costs or limit your flexibility, so it’s worth consulting a business advisor or accountant.
➡️ See also: More articles on starting a business in France
Step 3 - Estimate startup and ongoing costs
Before launching your business in France, it’s important to understand both the initial setup costs and the ongoing monthly expenses you’ll incur. Costs can vary widely depending on your business model, legal structure, and location.
Common startup costs
| Expense Type | Estimated Cost |
|---|---|
| Business registration (e.g. legal fees) | 0 € - 500 € (free for micro-entrepreneurs) |
| Accountant (optional but advised) | 50 € - 120 €/month or 500 €+ set up support |
| Business insurance (RC Pro, etc.) | 200 € - 1000 €/year |
| Website & branding | 300 € - 2000 € (depending on needs) |
| Equipment, stock, tools, or software | Varies based on industry |
Monthly or recurring costs
- Social charges: Based on revenue and structure (flat rate for micro-entrepreneurs, higher for EURL/SASU)
- Professional insurance: Required for many regulated professions
- Bookkeeping or accounting software
- Co-working space or office rental (if applicable)
- Business bank account fees: Typically 10 € – 25 €/month
Plan for at least 6 months of operating capital
Even small businesses need a buffer while building income. Calculate your minimum operating expenses and set aside funds to cover at least 3-6 months. This improves financial stability and visa application credibility (if applicable).
➡️ For a full breakdown, read: How Much Does It Cost to Set Up a Business in France?
Step 4 - Draft a simple business plan
A business plan is not just for banks and investors, it’s a valuable tool to clarify your goals, understand your finances, and prove your viability to French authorities (especially if applying for a visa). Even a short plan is useful when setting up a micro-enterprise or freelance business.
Why you need a business plan in France
- Required for some visa applications (e.g. Profession Libérale or Talent Passport)
- Useful for opening a business bank account
- Helps track cash flow, pricing, and growth targets
- Necessary if applying for loans or grants from French institutions
What to include in your plan
| Section | Purpose |
|---|---|
| Executive Summary | Brief overview of your business concept |
| Market Analysis | Who your customers are, and what makes your offer valuable |
| Product/Service Description | What you’re selling and how it’s delivered |
| Pricing Strategy | How you set your prices and remain competitive |
| Marketing Plan | Channels you’ll use (website, local outreach, social media) |
| Revenue Projections | Monthly/annual income targets and expense breakdown |
| Legal Structure & Admin | Statut chosen, taxes, registration details |
Tools and templates
- Use a simple spreadsheet to map your financials
- Online templates (in English or French) are available via Bpifrance or Pole Emploi
- You can draft it in English initially but may need to translate it if requested by French authorities or banks
➡️ Need help getting started? Read: Creating a Business Plan for Your Small Business in France and download your free Business Plan template.
Step 5 - Understand taxation and social charges
Understanding how taxes and social contributions work in France is essential when starting a small business. Your obligations depend heavily on your legal structure, income level, and business activity. Failing to comply can lead to unexpected penalties or back payments.
Key tax elements to know
- Income Tax (Impôt sur le revenu): Business profits are usually taxed under personal income tax. You may choose between the micro-fiscal regime (flat-rate deduction) or real regime (deduction of actual expenses).
- Value-Added Tax (TVA): If you exceed the TVA threshold (e.g. 36,800 €/year for services), you must register, charge VAT, and submit quarterly returns.
- Business Tax (CFE – Cotisation Foncière des Entreprises): A local business tax applied annually, based on your location and turnover. Most micro-entrepreneurs are exempt in their first year.
Social charges (cotisations sociales)
These contributions cover your access to public healthcare, pension rights, family benefits, and more. They are paid to URSSAF and calculated as a percentage of your turnover or profits.
| Structure | Typical Social Charges |
|---|---|
| Micro-entrepreneur | 12.3% (sales) or 21.2% (services, liberal) |
| EURL/SARL | Based on salary + dividend structure |
| SASU/SAS | Higher charges but broader social security access |
Tip: Micro-entrepreneurs can opt for prélèvement libératoire, combining income tax and social charges into one simplified payment.
Registration for tax and URSSAF
- All businesses must register with URSSAF or the relevant body (e.g. Chambre de Métiers or INSEE)
- You’ll receive a SIRET number, which is your official business ID
- File monthly or quarterly declarations—even if your turnover is zero
➡️ For more info on URSSAF, explore: Understanding URSSAF when working in France
Step 6 - Register your business (online or in-person)
Once your business idea, structure, and financial plan are in place, the next step is to officially register your business in France. Registration requirements vary depending on the legal structure and type of activity (commercial, artisanal, or professional).
Where to register
| Business Type | Register With |
|---|---|
| Micro-entrepreneur (freelancer or liberal) | URSSAF via autoentrepreneur.urssaf.fr |
| Artisanal activity (e.g. trades, crafts) | Chambre de Métiers et de l’Artisanat (CMA) |
| Commercial activity (e.g. shops, e-commerce) | Chambre de Commerce et d’Industrie (CCI) |
| EURL / SASU / SARL / SAS | One-stop shop via INPI or your local CFE |
Documents required
- Valid passport or ID
- French address or domiciliation (can be rental or co-working space)
- Business activity description (in French)
- Proof of professional qualifications (for regulated professions)
- Business plan (if applying with visa or banking support)
Once your application is processed, you’ll receive:
- SIRET number: Unique business ID used for invoicing and official documents
- Code APE: Classifies your business activity for tax and statistical purposes
- Affiliation to URSSAF or the relevant social security body
How long does it take?
- Micro-entrepreneur: 1–2 weeks online
- SASU / EURL / SARL: 2–4 weeks, including notarised statutes and publication of legal notice
- You may begin trading once you receive your SIRET and registration confirmation
Optional: Domiciliation services
If you don’t yet have a permanent address in France, you can register your business through a domiciliation service, allowing you to receive mail and register legally without renting full premises.
➡️ Want more detail on legal setup options? Visit: How much does it cost to set up a business in France
Step 7 - Open a business bank account in France
Once your business is registered and you’ve received your SIRET number, the next step is to open a dedicated business bank account. This is a legal requirement for most business structures and strongly recommended for micro-entrepreneurs once turnover exceeds 10,000 € for two consecutive years.
Do you need a business account?
| Legal Structure | Is a Business Account Required? |
|---|---|
| Micro-entrepreneur | Not required below 10,000 € turnover, but recommended |
| EURL / SARL / SASU | ✅ Yes, mandatory before registration is completed |
| Auto-entrepreneur (with TVA) | ✅ Yes, if registered for VAT |
Documents you'll need
- Passport or national ID
- Proof of French address (utility bill or rental agreement)
- SIRET number
- Business plan or activity description (some banks may request this)
- Proof of business registration (K-bis extract if applicable)
Tips for smooth setup
- Choose a bank that aligns with your business volume and admin needs
- Don’t delay, some structures (e.g. SASU) require a bank account to deposit share capital before full registration
- Ask whether the account includes invoicing or bookkeeping tools
➡️ For related information, see: Opening a French Bank Account for Expats – The Complete Guide
Step 8 - Arrange business insurance and accounting support
Once your business is active, you’ll need to secure the right insurance policies and decide how you’ll manage bookkeeping and accounting. Some professions in France require mandatory coverage, while others benefit from optional protection and financial support services.
Mandatory and recommended business insurance
| Insurance Type | Is it Required? | What It Covers |
|---|---|---|
| RC Pro (Professional Liability) | ✅ Required for regulated professions | Client damage, errors, legal claims |
| Multirisque Pro | Optional | Equipment, inventory, business interruption |
| Legal Protection | Optional | Legal advice, contract disputes |
| Auto for business use | ✅ If using a vehicle | Covers work-related driving |
Some industries (e.g. construction, health, transport) are strictly regulated. You may need proof of coverage before launching services.
Finding business insurance in France
- Use comparison platforms (e.g. LeLynx, Assurland)
- Ask your Chambre de Métiers or URSSAF for trusted providers
- Look for policies tailored to auto-entrepreneurs or SMEs
Accounting and bookkeeping: What you need
For micro-entrepreneurs, bookkeeping can be straightforward. But as your business grows or if you use a complex structure (e.g. SASU, EURL), working with an accountant (expert-comptable) is highly recommended.
| Structure | Accounting Needs |
|---|---|
| Micro-entrepreneur | Basic record of income, simple ledger |
| EURL / SASU / SARL | Full bookkeeping, annual balance sheet |
Step 9 - Set up your online presence and marketing
Having a strong online presence is essential for small businesses in France, especially if you’re targeting clients beyond your local area. Whether you’re selling services or products, visibility and credibility online will directly impact your success.
Essentials for your digital launch
Professional website
- Register a domain (preferably .fr for local credibility)
- Include service pages, contact details, and legal mentions (Mentions Légales)
- Use French and English if targeting both local and international clients
Google My Business listing
- Add your business address, hours, and description
- Helps with local SEO and visibility in map results
- Clients can leave reviews and boost credibility
Social media profiles
- Choose platforms relevant to your audience (e.g. Facebook, Instagram, LinkedIn)
- Use French hashtags and geotags to reach local users
- Share testimonials, updates, and promotions
Marketing tips for the French market
- Adapt your messaging to local culture and language
- Use directories like PagesJaunes.fr for visibility
- Network locally with business groups, Chambres de Commerce, or expat entrepreneur meetups
Tip: Even if you’re a small business, presenting yourself professionally online in both French and English can significantly improve trust and lead generation.
Step 10 - Stay compliant and monitor your growth
Once your business is up and running, staying legally compliant in France is essential. You’ll need to manage your declarations, track income, and ensure you’re meeting evolving obligations, especially if your revenue increases or your business structure changes.
Key ongoing responsibilities
- Submit monthly or quarterly revenue declarations via URSSAF or your tax portal
- Pay social charges and taxes on time (automatically calculated for micro-entrepreneurs)
- Issue invoices with correct legal mentions, SIRET number, and VAT if applicable
- File an annual income tax declaration, even if you’re under the micro regime
- Update your business information if your address, activity, or structure changes
When your business grows
If your income surpasses certain thresholds (e.g. 77,700 € for services under the micro regime in 2025), you may need to:
- Switch to the régime réel simplifié, with more detailed accounting
- Register for and charge TVA (VAT)
- Consider changing your structure to EURL, SASU, or SARL for scalability and tax optimisation
Plan for long-term stability
- Consider hiring a bilingual accountant as your business grows
- Regularly review legal and financial obligations, rules can change
- Explore subsidies or training programmes offered by URSSAF, Bpifrance, or regional business support services
FAQs - Starting a small business in France
Can foreigners start a small business in France?
Yes. EU and non-EU citizens can open a business in France, but non-EU nationals must hold the appropriate visa or residency permit. Long-stay visas like profession libérale or talent entrepreneur are common options.
Do I need to speak French to run a business in France?
Basic French is highly recommended, especially for dealing with clients, administration, and legal obligations. However, many expats run successful businesses using English, particularly in tourism, real estate, and digital services.
What is the easiest business structure to set up?
The micro-entrepreneur regime is the simplest option, especially for freelancers, sole traders, and part-time activities. Registration is free, admin is light, and you can start quickly.
Can I run a business from home in France?
Yes, many small businesses operate legally from home, especially in service-based sectors. Be sure to check zoning rules (règlement de copropriété) or local mairie restrictions for home-based work.
What taxes will I pay as a small business owner?
You’ll pay social charges and income tax based on turnover or profits. Some structures also pay VAT and business tax (CFE). Micro-entrepreneurs benefit from simplified flat-rate charges.
💬 Need personal guidance for your move to France?
Book a free 30-minute consult with one of our experts and get help with rentals, banking, and transfers.
👉 Book Your Free Call
Conclusion - Ready to start your business in France?
Starting a small business in France is entirely possible for foreigners. From choosing the right legal structure and registering your activity to understanding taxes, banking, and growth strategies, each step ensures you’re compliant, protected, and ready for success.
Whether you’re a freelancer, artisan, or service provider, France offers a range of support options and simplified regimes to help entrepreneurs thrive. Take it step by step, seek help when needed, and use available resources to grow confidently.
➡️ Explore more helpful content here: Starting a Business in France – Articles & Guides
Useful resources
See below a few resources that might be helpful if you are contemplating starting a small business in France.
Business France: Click here to visit the official website
Business France is the national agency supporting the international development of the French economy. They provide valuable information, resources, and services for entrepreneurs looking to establish businesses in France.
INPI (Institut National de la Propriete Industrielle): Click here to visit the official website
INPI is the authority for registering business names, logos, and patents. Here, you can protect your intellectual property and learn about trademark registration.
AFNIC (Association française pour le nommage Internet en coopération): Click here to visit the official website
If you need to register a French business domain name, AFNIC is the place to go. Ensure your online presence aligns with your business’s identity.
Chambre de Commerce et d’Industrie France: Click here to visit the official website
Connect with your local Chamber of Commerce in France for guidance on qualifications, business registration, and valuable insights into your chosen industry.
Service-Public.fr: Click here to visit the official website
Service-Public.fr is a comprehensive government resource offering information on various administrative procedures, taxation, and business-related regulations in France.
CPME (Confédération des Petites et Moyennes Entreprises): Click here to visit the official website
CPME is an organisation dedicated to supporting small and medium-sized enterprises in France. They offer resources and advocacy for business owners.
First published: September 2023
Updated: June 2025
