Running a business in France
The legal form of business
There are four main types of companies in France:
Entreprise Individuelle, Entreprise Individuelle à Responsabilité Limitée, Société à Responsibilité Limitée, and Société Anonyme Par Actions.
- An Enterprise Individuelle à Responsabilité Limitée is a company with no personal liability and without the need to form a separate legal identity.
- A Société à Responsibilité Limitée company is the most common type of business in France for small to medium-sized companies.
- A Société Anonyme Par Actions is the most frequently used business model for large companies.
Bank account, banking regulations
Opening a bank account in France will make local payments easier if you are living and working in France. For some transactions, such as renting or buying French property, a bank account may even be obligatory, therefore sorting one out can become a critical first step to getting settled in France.
If you relocate before opening a bank account in France, you can manage your finances and make payments using an overseas account. Most French businesses accept cards such as Visa and Mastercard. You can use ATMs at banks for free but you should check for any charges issued by your home bank. If you are intent on opening a bank account in France, you can do so in advance of your move. Some French banks offer non-resident accounts (compte non-resident) that can be operated from overseas. Many multinational banks also have branches in France, so if your home bank has a French base, you shouldn’t have a problem transferring. Additionally, some French banks will help you set up an account before you move if you can prove that you will be a long-term resident in the country and can provide a French address.
You can find more information here: https://www.expatica.com/fr/finance/banking/opening-a-bank-account-in-france-101158/#before
Tax rules: Corporation tax
There are five tax rates and bands on net income earned in 2020 (taxable in 2021), as follows:
- up to €10,084 – 0%,
- between €10,085 - €25,710 – 11%,
- to €73,516 – 30%,
- to €158,222 – 41%,
- above €158,222 – 45%.
Import/export regulations
At the European level, agricultural products are protected within the Common Agricultural Policy and textile products from China, Belarus, North Korea, Montenegro, Kosovo, and Uzbekistan are subject to particular formalities and import licenses or control procedures (export document, monitoring document).
Among the non-tariff barriers are France's regulations and bureaucratic procedures, its complex safety standards, and it's testing and certification requirements. Import duty and taxes are due for goods imported to France from outside of the European Union - whether by a private individual or a corporate entity. France is a party to the European Union’s Common Customs Tariff, therefore preferential rates apply to imports from countries with which the EU has signed agreements with duties range from 0-17%, with the general tariff averaging 4.2%. However, foodstuffs, textiles, and clothing still experience some protection measures (quotas, higher tariffs, etc.). Some imports are subject to anti-dumping duties.
Customs threshold (from which tariffs are required): EUR 150
https://import-export.societegenerale.fr/en/country/france/regulations-customs
VAT registration thresholds
Goods €85,800; Services €34,400
Customer preferences
Willing to buy from foreign sellers
In 2019, 36 % of French online shoppers bought from foreign e-merchants, and 62% of e-merchants established in France received orders from customers abroad.
https://www.trade.gov/country-commercial-guides/france-ecommerce
Most popular countries for import of goods
Countries that imported the most French shipments by dollar value during 2020:
Germany: US$69.1 billion (14.5% of total French exports)
United States: $37 billion (7.8%)
Italy: $36.8 billion (7.7%)
Spain: $35.2 billion (7.4%)
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