Many entrepreneurs are considering how to open a business in France. This country has long been considered one of the most attractive for running its own business. More than thirty thousand new enterprises are opened in France annually. About 31% of foreign businessmen already had experience doing business in this country. As a rule, foreign entrepreneurs are younger than the French: 22% - up to 30 years, 61% - up to 40 years.
State and business
It is not difficult to open a business in France, as both the state and society perceive foreign entrepreneurs normally. In this country, there are practically no restrictions, there are no rigid frameworks. Foreign businessmen create more jobs than local entrepreneurs. This is determined by the type of their activity, which is mainly more labor-intensive than the service sector, for example.
What type of activity is better to choose a foreigner
Anyone can open their own business in France. Of course, there are also industries in which a French diploma, a special license, or a professional card are required. In some areas, it is enough to have minimal experience.
For example, such areas include educational activities, medical or legal. Business immigration to France is mainly carried out to open a business in such areas as construction, catering, real estate, trade, information technology and the hotel industry.
What is required to start your own business in France
To open a business in France, a foreign entrepreneur must apply for a long stay visa at the embassy of that country. And this must be done before he begins to carry out commercial activities here.
Then you need to apply for a temporary identity card, that is, a residence permit with a mark of type of activity. Each foreign entrepreneur opening a business in France should have such a card.
This permission is issued by the Chamber of Commerce and Industry, it also evaluates the profitability of the business plan and decides whether this activity is needed in the selected economic sector. To speed up decision-making, it is worth mentioning in the business plan about creating new jobs for local citizens.
Opening and registration of own company in France
To open your own business in France, you must perform a number of operations, in particular:
- you need to enter the company in the consolidated register of firms and companies;
- then you need to register it in the national list of institutions;
- then, without fail, you need to get a tax identification number;
Finally, the company should be included in the Official Bulletin of Civil and Commercial Announcements.
In France, there are five legal forms of doing business: EURL (as a Russian LLC); EURL-SARL (sole organization LLC); SNC (partnership); SARL (LLC and joint-stock company); SA (joint stock company).
To create any of the above firms, the founders need to sign an agreement in which they express a desire to conduct joint activities and to distribute profit and loss among themselves. The legal form of doing business, the size of the authorized capital, as well as the location and name of the company are agreed in this agreement.
More often to France business visa drawn up in connection with the opening of enterprises with legal form SARL and SA. The registration process of such companies has been simplified since 2004, and now in order to open such a company, you will need from 14 to 30 days.
The first few years, the company may exist without its own address, it is enough to have the address of the manager. In addition, there is no need to start bookkeeping, since in France all the accounting is taken care of by specialized certified rooms.
Features of the tax system in France
Immigration to France in connection with the opening of their own business in this country requires a detailed study of the local tax system. Remember, it is unlikely to hide from paying taxes here. They will try to make you pay everything that is due, by any available means.
So, if you work legally, then taxes in France will have to be paid twice. In addition to the social tax, which will be deducted monthly from your salary, you will need to pay once a year a percentage of the total annual income. Social tax is approximately 18-20% of your salary. With these funds, the state pays you compensation for sick leave, medicines, unemployment benefits, and so on.
How and where to find out about paying taxes?
Typically, a request for income statement arrives by mail in February. You need to fill out this document and send it to the tax center at the place of stay no later than the twentieth of March. If you have been working for the first year and have not yet paid taxes in France, then you yourself must come to the center for paying taxes and request a declaration to fill out.
From the second year, you will pay tax on annual profits in three steps. The first time you will need to pay a third of the tax you paid for the previous year. You will receive a letter requesting payment in the middle or end of January.
The tax must be paid before mid-February, otherwise you will be charged a fine of 10% of the amount. The second tranche should be paid in mid-May, and the balance should be paid only in September, after filing the declaration and recalculating taxes for the current year.
If you don’t know in time what tax in France you need to pay or delay filing, then you will face a fine. For providing incorrect information - too. The declaration should include all your income for the past year, including from rented real estate, interest accrued to your bank account, and so on.
How to get a merchant card
According to French law, an entrepreneur who wants to open a business in this country must receive a merchant card. To obtain it, he must meet the established requirements regarding education, professional experience, business morality and financial condition. Persons who have a criminal record, are declared bankrupt or subject to various sanctions cannot receive a merchant card and, therefore, cannot acquire a business in France.
To conduct certain types of activities, such as "Travel Agent" or "Real Estate Agent", you need to get a professional card. The conditions for access to each regulated industry are defined by French law.
The merchant’s card gives the entrepreneur the right to obtain a residence permit in this country. If the applicant wants to move to France with his family, then a residence permit can also be obtained for its members.
This document is issued for a period of one year and is renewed annually for an unlimited period. After three years in France, a businessman can receive a resident card with a validity period of ten years, which gives the right to permanent residence in this country and the right to work.
Subtleties of French Entrepreneurship
To start your own business in France, you can choose a form such as a representative office, which is the cheapest option.In this case, you can limit yourself to only renting an office, receiving a mailing address and paying for the services of a representative. The form of a legal entity does not have such an organizational form. She does not keep accounting, does not pay taxes.
And another interesting feature of entrepreneurship in France: in this country it is impossible to immediately take advantage of the profit. You can earn your income monthly as a salary or once a year in the form of dividends.
Approximately 50% of the salary will be spent on taxes, but at the same time, the state provides huge opportunities for social and insurance coverage. But the annual payments of such guarantees do not provide due to lack of contributions.
interested in what documents to obtain a merchant card