Starting Your Business Abroad: The Expat Entrepreneur’s Guide to France

Published on January 14, 2026 and written by Cyril Jarnias

Moving abroad and launching your own venture is a dream for many expatriates. When the destination is France, this dream comes with a powerful economic environment, an extremely dynamic tech ecosystem… but also a hefty dose of regulations, specific cultural codes, and paperwork. This guide aims to give you a clear and realistic overview of what awaits you in France when you want to start a business there as an expat, without drowning the subject in legal jargon.

Understanding the Playing Field: Why France Attracts Foreign Entrepreneurs

Before talking about forms and legal statuses, you need to understand the backdrop. France is the world’s sixth-largest economy, the second-largest in the European Union, with a GDP around $3.2 trillion and an impressive fabric of large corporations, including nearly 40 Fortune 500 groups. The country relies on a dominant service sector (nearly 80% of GDP), a still-solid industry, and the EU’s leading agricultural sector.

France is also the world’s most visited country, with over 70 million tourists each year, one of Europe’s largest e‑commerce markets, and sectors of excellence in aeronautics, luxury goods, fashion, tourism, finance, insurance, wines and spirits, as well as AI, fintech, and biotech.

For an expat entrepreneur, this means a domestic market of 67 million inhabitants, a direct gateway to the European single market of 450 million consumers, top-tier transportation infrastructure, and a generally well-trained workforce. In 2024, over 1.1 million new businesses were created there: the country is far from stagnant.

A Highly Structured Startup Ecosystem

France’s other asset is the structuring of its tech ecosystem. Under the banner of “La French Tech,” the state and local authorities have set up a network of hubs in 13 major cities and 4 regions, support programs, accelerators, and a set of simplified visas for foreign talent. It already counts over a dozen unicorns, and Paris is regularly ranked as the best European city for startups.

A Demanding Fiscal Environment… But Full of Incentives

France’s reputation regarding social charges and taxes is well-established. Yet, for a business founder, reality is more nuanced. The corporate tax rate has been reduced to 25%, with a reduced rate of 15% on the first portion of profits for small and medium-sized enterprises meeting certain turnover and shareholder conditions. Add to that an arsenal of extremely generous tax credits and exemptions, especially for innovation and industry.

To get a synthetic overview, it’s useful to compare some of the key fiscal and social parameters that every expat entrepreneur will encounter.

Key Element	Situation in France (main lines)
Standard corporate tax	25% of profit
Reduced SME rate	15% on up to ~€38–42k of profit, depending on conditions
Standard VAT	20%
Employer social charges	Approximately 45–50% of gross salary (depending on company size)
Employee social charges	Approximately 25–28% of gross salary
Research Tax Credit (CIR)	30% of eligible expenses up to €100M, then 5% beyond that
Innovation Tax Credit (CII)	30% of innovation expenses (cap of €400k/year for SMEs)
Aided zones (ZRR, FRR, etc.)	Exemptions from taxes and local levies for several years

For an expat, the challenge is not to become a tax expert, but to understand that the system is complex, structured, very protective of employees, and that it clearly rewards innovative projects and establishments in certain priority zones.

Choosing the Right City and Region for Your Project

Starting a business in France does not necessarily mean settling in Paris. The Hexagon is particularly diverse: each major metropolis has its areas of specialization, costs, lifestyle, and international positioning. Choosing your starting base well is a major strategic lever.

Paris and the Île-de-France Region: The Global Showcase

Paris alone concentrates over 23% of the country’s jobs, one third of senior executives, and 40% of university graduates among the active population. The skill level of engineers and developers is very high, with a very high proportion of master’s degrees and over 10 years of experience for many of them. Dominant sectors range from tech to finance, including fashion, aeronautics, machine tools, chemicals, automotive, textiles, electronics, and agri-food.

It’s also one of the most expensive cities. A one-bedroom apartment in the center often starts around €1,200–1,300 per month, with property prices easily exceeding €10,000 per square meter. The average salary there is around €3,200 monthly, higher than the national average. For an expat founder, the equation is clear: unparalleled access to investors, partners, talent, and clients, but at the price of a higher cost of living and salaries.

City / Region	Avg. 1-Bed Rent City Center*	Approx. Avg. Monthly Salary	Key Sectors
Paris	€1,200–1,300+	~€3,230	Tech, finance, luxury, fashion, industry, advanced services
Lyon	€700–850+	~€3,460	Tech, banking, pharma, biotech, video games
Montpellier	€650+	~€2,830	Digital, video games, health, R&D
Nice / Côte d’Azur	€900+	~€3,440	Tourism, SaaS, fintech, electronics, biomed
Toulouse	€700+	~€3,240	Aeronautics, space, IT
Bordeaux	€800+	~€3,320	Wine, tech, tourism, aeronautics
Marseille	€615–1,360	~€3,080	Port, tourism, logistics, health, telecoms
Rennes	€530–1,270	~€3,030	IT, cybersecurity
Angers	€500–1,550	~€2,910	Tech, green city, agri-food, digital innovation

Order of magnitude, variable depending on neighborhood and period.

Lyon: The Second Economic Lung

Lyon, the country’s second-largest urban area, combines the status of a business hub, industrial center, and gastronomic capital. It stands out for its R&D intensity: over 13,000 researchers, 5,400 PhD students, a volume of patent filings ranking it second nationally, and strong collaboration between universities and companies.

The city has developed a huge digital hub with several thousand digital companies, including video game studios of global renown. Innovation is supported by structures like Novacité, a specialized business center that supports about 150 projects per year with a success rate over 90%. Rents remain well below Paris, making it an attractive target for expats seeking a good compromise between quality of life, costs, and business potential.

Montpellier, Toulouse, Nice, Bordeaux, Marseille: Other Hubs to Know

Montpellier boasts one of the country’s highest population growth rates and a very young population (more than half the inhabitants are under 35). Its medical school is the oldest still active in Europe, and the digital sector thrives there with several thousand digital companies and a strong presence of La French Tech.

Nice and the French Riviera, beyond the postcard image, are home to Sophia Antipolis, Europe’s first technology park, often described as the French Silicon Valley. Over 2,000 companies employ tens of thousands of people there, with a focus on SaaS, fintech, telecoms, electronics, and biotech.

Bordeaux capitalizes on its wine fame, but also develops a tech and services ecosystem, with real estate costs intermediate between the provinces and major metropolises.

Marseille, France’s oldest port, is oriented toward Mediterranean trade, logistics, and a fabric of SMEs very focused on tourism.

Finally, cities like Nantes, Rennes, Grenoble, or Angers bet on sustainable tech, cybersecurity, renewable energy, micro and nanotechnologies, or creative industries. For an expat, these regional metropolises offer a credible alternative to the capital, with more moderate costs and highly specialized niches.

Legal and Fiscal Framework: Choosing the Right Structure for Your Project

The question of the “type of company” is central from the start, as it determines your liability, social charges, taxation, ability to raise funds, and to bring in new partners.

Quick Overview of Main Forms

In France, several major families of structures coexist:

– the sole proprietorship (entreprise individuelle, or EI), possibly under the micro-entreprise regime;

– limited liability companies (SARL and its single-member version, the EURL);

– joint-stock companies (SAS and its single-member version, the SASU, then SA for larger structures).

Micro-entreprise / Auto-entrepreneur: The Simplest Entry Point

The micro-entreprise regime is not technically a company, but a simplified fiscal and social status attached to a sole proprietorship. It suits freelancers, consultants, craftspeople, and small retailers starting with limited turnover.

Formalities are minimal: online registration, simplified bookkeeping, no requirement for accounting statements, charges calculated as a percentage of turnover, no VAT to charge or reclaim as long as you stay under certain thresholds. In return, you cannot deduct actual expenses or structure a funding round with investors.

SARL / EURL: The Classic Structure for SMEs and Family Businesses

The SARL is the French equivalent of a “limited liability company” (LLC). It is well-suited for small and medium-sized enterprises with stable ownership. Shareholders’ liability is limited to the amount of their contributions, the number of partners is capped (up to 100), and operations are largely defined by law, which secures internal relations but offers less contractual flexibility.

Management is handled by one or more managers. The social status of this manager depends on their share of capital: a majority manager is affiliated with the self-employed (TNS) regime, with lower social charges but no traditional payslip; a minority or equal manager is considered an employee, affiliated with the general regime, with heavier charges but better social protection.

The EURL is its single-member version. It is a good compromise for a solo entrepreneur who wants to limit liability, keep a legal framework known to banks and partners, and later facilitate conversion to a multi-member SARL.

SAS / SASU: The Darling Form of Startups and Investors

The SAS has become the most commonly used form for recent creations, especially among startups. The reason lies in its great flexibility: many rules can be freely defined in the bylaws, whether concerning the manager’s powers, voting rights, approval clauses, exit mechanisms, stock options, or successive funding rounds.

Management is handled by a president (individual or legal entity), possibly assisted by general managers. This president is considered an employee and falls under the general regime, with higher social charges than a TNS, but more comfortable protection and a clearer image for investors and employees.

The single-member version, the SASU, is highly favored by expats who want to set up a flexible structure, potentially welcome investors later, or pay themselves a mix of salary/dividends. In return, social costs on the manager’s remuneration are significantly higher than in a SARL with a TNS manager.

SA: The Tool for Large Groups and Listed Projects

The SA (société anonyme) is mainly for large companies, companies destined to be listed, or those with fragmented ownership. With a minimum capital of €37,000, the obligation to appoint a statutory auditor and a board of directors, it is rarely the first option for an expat entrepreneur.

Comparing Forms from an Expat Perspective

From abroad, the choice often comes down to micro-entreprise, EURL/SARL, and SASU/SAS. A synthetic view helps to navigate.

Form	Liability	Bylaw Flexibility	Manager’s Status	Attractiveness to Investors
Micro	Unlimited (business assets separate from personal assets since 2022, but not a company)	Low	Self-employed individual	Very Low
EURL / SARL	Limited to contributions	Medium (strong legal framework)	Self-employed manager or considered employee	Medium
SASU / SAS	Limited to contributions	Very High	President, considered employee	High
SA	Limited to contributions	High but very codified	President / General Manager, considered employees	Very High

For an expat aiming for a tech startup funded by venture capital, the SAS or SASU is generally the way to go. For a retail store, agency, or small service activity with few employees, a SARL or EURL remains very suitable. The micro-entreprise can serve as a springboard, but should be thought of as a step, not a sustainable structuring method for an ambitious project.

The Immigration Aspect: Visas and Residence Permits to Create in France

The issue of the right to reside and work is decisive for a non-European entrepreneur. The status you will benefit from depends on your nationality, your project (innovation, investment, regulated or non-regulated profession), and your personal situation (degrees, tenure in a group, family).

EU / EEA / Switzerland: A Highly Simplified Situation

If you are a national of a European Union country, the European Economic Area, or Switzerland, you have the right to settle and carry out professional activity in France without a specific visa or work permit. You will, however, need to register, open a structure, and respect social and fiscal formalities like any resident.

For Non-Europeans: Overview of Main Entrepreneurial Visas

Several schemes exist to allow a foreign national to create or take over a business in France. They take the form of long-stay visas valid as residence permits (VLS‑TS) or multi-year residence cards. The common point: you must demonstrate a viable economic project, sufficient resources (at least equivalent to the French minimum wage, the SMIC), and a compatible criminal record.

– the VLS‑TS “entrepreneur / liberal profession” for an independent commercial, craft, industrial, or liberal activity;

– the “passport talent” residence card for business creators, investors, highly qualified employees, and founders of innovative startups;

– the “French Tech Visa” program tailored for founders, investors, and employees of innovative startups;

– job-search or business-creation visas for recent graduates of a French institution.

General Conditions to Anticipate

Beyond the visa type, French authorities look at a few key points:

– the economic viability of the project, attested by a detailed business plan and realistic financial projections;

– the project’s ability to generate an income at least equal to the annual SMIC (over €21,000 per year according to latest references) for the founder;

– the expected contribution to the French economy (job creation, investment, innovation, establishment in a priority zone, etc.);

– no threat to public order and a compatible criminal record;

– valid health coverage and proof of accommodation for the stay.

The procedures are first done at the French consulate in your country of residence, then, once arrived, via an online platform for validating the long-stay visa, before a potential visit to the prefecture for renewal or change of status.

Creating and Registering Your Company: The French Administrative Mechanics

France has undertaken a simplification of its procedures, but to a foreign eye, the journey remains dense. The advantage: if you get assistance from a lawyer or an accountant, most steps can be handled in a very structured manner.

The Main Steps of Creation

The procedures vary depending on the legal form, but generally follow a common framework when it comes to a company (SARL, SAS, etc.):

First, you check if your activity is regulated (health, transport, restaurants serving alcohol, security, legal or medical professions, etc.) and, if applicable, obtain the necessary authorizations or diplomas. Next, you choose a company name and check its availability with the INPI (French IP office). This is also the time to define your corporate purpose, i.e., the official description of your activity, which will determine your collective bargaining agreement and certain insurance risks.

The bank comes in at this stage to open a blocked capital account, deposit the cash contributions, and then issue a certificate of fund deposit. You must also publish a notice of incorporation in a legal announcements newspaper, a formal but mandatory step for publicizing your company.

Finally, you submit a creation file to the single business formalities office, which forwards your elements to the competent commercial court registry. Upon completion, you receive your Kbis extract, the true “identity card” of your company, with your SIREN number, your SIRET (establishment identifier), and your APE code.

The Professional Bank Account: A Mandatory but Tricky Step for Expats

All French companies are required to open a professional bank account. For a non-resident entrepreneur, this is often the most delicate step, especially with traditional large banks that require physical meetings, a bundle of often translated and legalized supporting documents, and are cautious with international cases.

If your application is refused by several banks, there is a “right to an account”: the Bank of France can designate an institution that must open an account for you, but this is a heavy procedure to be reserved for deadlocks. More and more expats are turning to professional neobanks or specialized providers, which allow remote opening, though not all can issue the deposit certificates needed for the incorporation phase.

Hiring and Managing a Team: Navigating French Labor Law

One of the major cultural shocks for a foreign entrepreneur starting to hire in France is the density of labor law. The Labor Code, supported by hundreds of collective bargaining agreements, sets a very protective framework for employees, with a clear logic: when several texts exist, the rule most favorable to the employee prevails.

Employment Contracts: The Norm is the Permanent Contract (CDI)

In France, the employment relationship is supposed to be formalized by a written contract. It can be indefinite-term (CDI), the reference form, or fixed-term (CDD), strictly regulated and reserved for specific cases (replacement, temporary surge in activity, seasonal work, etc.). A CDD concluded without valid reason or outside legal conditions risks being reclassified as a CDI, with significant financial consequences.

The contract must be written in French, even if you provide a translated version in the employee’s native language. In case of conflict between versions, the French version prevails, except in special cases where the employer has expressly accepted that the foreign version is the only one enforceable against the employee.

Drafting the employment contract

Trial periods are also regulated by law and collective agreements: they are around 2 months for employees, 3 months for supervisors and technicians, 4 months for managers, with sometimes the possibility of one renewal if provided for.

Working Time, Social Rights, and Labor Costs

The legal working time is set at 35 hours per week. Beyond that, you enter the realm of overtime hours, paid with a premium (generally 25% for the first 8, 50% beyond), or compensated with time off. The weekly maximum remains regulated (48 hours absolute, 44 hours on average over 12 consecutive weeks), with specific rules for night work or managers’ annualized days.

For an expat entrepreneur, what matters especially is the order of magnitude of a total employee cost. For the same gross salary, you need to add about 45–50% in employer charges for a structure with more than 10 employees (slightly less below), and 25–28% in employee charges. In other words, an employee paid €60,000 gross per year can cost the company around €86,700.

This level of charges finances, in return, a social protection system renowned for its quality (the French Health Insurance is regularly ranked among the world’s best healthcare systems), with a life expectancy averaging 83 years and high health spending as a share of GDP.

Dismissal, Termination, and Labor Courts: Anticipate Rather Than Suffer

Unlike in Anglo-Saxon countries, “at-will” employment does not exist in France. To terminate a CDI, the employer must justify a real and serious cause: personal grounds (misconduct, professional inadequacy, unfitness) or economic grounds (financial difficulties, technological changes, reorganization necessary to safeguard competitiveness, etc.). The procedure requires a preliminary meeting, written notification, respect of deadlines, and payment of legal or contractual severance.

To avoid conflicts, many companies resort to the “mutual termination agreement” (rupture conventionnelle), a legally framed amicable separation, with a minimum severance and administrative validation, popular with both employees and employers.

French Business Culture: What Every Expat Founder Must Integrate

Beyond legal rules, what will make an expatriate entrepreneur successful in France is their ability to understand and respect the implicit codes of the local professional environment.

A Hierarchical, Intellectual Culture Attached to Debate

The business world in France remains marked by hierarchy and formality. Great importance is given to titles, degrees, intellectual rigor, and the quality of arguments. Meetings and negotiations are often seen as spaces for structured debate, where the solidity of ideas is tested, where people contradict and challenge, without this necessarily being a sign of conflict or blockage.

It is common for decisions not to be made during the meeting, but afterwards, by higher hierarchical levels who did not always attend the meeting. Hence the importance of producing well-structured written summaries to feed these decision-making circuits.

Communication: The Weight of Nuance

Professional exchanges almost always start with a formal “vous”, and the use of first names or “tu” is only offered after some time or in more relaxed environments (startups, agencies, etc.). Eloquence, clarity of reasoning, the ability to articulate a thesis, antithesis, synthesis are highly valued.

Negotiating with French Partners

Negotiations can seem long, sometimes theatrical, with “good cop / bad cop” role-playing in the teams across the table. Partners will challenge your assumptions, question your business model in detail, ask for proof, comparisons. The stated price is almost never perceived as fixed; room for negotiation is often expected.

Work and Private Life: A Clear Separation

In France, the boundary between professional and personal life remains relatively marked, especially in the first years of a relationship. There is less socializing with colleagues outside work than in some Anglo-Saxon countries, though this depends on sectors. The right to disconnect, enshrined in law, illustrates this desire to limit solicitations outside working hours.

In summer, and particularly in August, a large number of companies slow down or even close completely. For a foreign entrepreneur, this is a point to integrate into your launch planning, fundraising, or contract signing schedule.

Corporate Taxation: Knowing Where the Risk Zones and Opportunities Are

Once your company is created, it enters a particularly detailed fiscal environment. You are not required to delve into all the intricacies, but it is useful to distinguish between what is “normal cost” and what can become a comparative advantage.

Corporate Tax, VAT, and Local Taxes

The profits of companies subject to corporate tax are taxed at 25%. Small and medium-sized structures can benefit from a reduced rate of 15% on a first slice of profits, if their turnover does not exceed a certain threshold and their capital is majority-owned by individuals.

Add to that local taxes like the territorial economic contribution (CET), which combines the business property tax (CFE, based on the rental value of premises) and, for companies of a certain size, a contribution on value added (CVAE), slated to gradually disappear in the coming years. Partial or total exemptions exist for several years for new businesses established in certain priority rural or urban zones.

Powerful Incentives for Innovation and Reindustrialization

One of the most interesting levers for an expat founder in tech, industry, or energy is the tax credits and favorable regimes. Beyond the CIR and CII already mentioned, France has implemented a “patent box” regime taxing at 10% the income from certain industrial property rights (patents, software, etc.), subject to meeting substance and documentation conditions.

The new tax credit dedicated to green industry, meanwhile, boosts production projects for equipment related to the energy transition, with rates that can rise for SMEs and in certain regions.

For a foreign entrepreneur, the challenge is to identify during the business plan phase if their project ticks the boxes of these regimes, in order to integrate these aids into their financial model and choose the right location.

Integrating into the Ecosystem: Networks, Hubs, and Support for Expats

Creating in France is not just about filling out forms. Networks play a key role, especially for someone arriving without an address book. Several layers of actors can help you accelerate your integration.

French Tech Hubs, Incubators, and Grandes Écoles

In major cities, labeled French Tech hubs bring together incubators, accelerators, coworking spaces, investment funds, and administrations dedicated to welcoming entrepreneurs. In Paris, Station F concentrates thousands of founders, but Lyon, Montpellier, Toulouse, Nice, or Nantes also have support structures driven by metropolitan areas, chambers of commerce, or private operators.

Public Agencies, Private Firms, and Online Platforms

At the national level, organizations like Business France or Bpifrance play a key role in attracting and supporting foreign investment. Business France offers detailed resources in English, regional contacts, and, with the French Tech mission, schemes for welcoming international talent.

Tax and social administrations also have advance ruling services and partnerships to help companies secure certain positions (e.g., on transfer pricing or eligibility for tax credits).

Building Your Own Network

For an expatriate, joining professional communities and more informal networks – both English-speaking and French-speaking – is an effective way to decode practices, find partners, or make your first hires. Major metropolises host business networking groups, bilateral chambers of commerce, international executive clubs, entrepreneur associations, regular sector events.

Being visible on LinkedIn (a very widespread tool in France for professional networking), participating in tech meetups or conferences like VivaTech in Paris, or getting involved in associative and mentoring structures can make a big difference in the speed of integration.

Market Entry Strategy: Adaptation, Quality, and Patience

Launching your business in France also means facing particular consumers, attached to quality, origin, design, and increasingly to environmental impact. A few principles help build a credible strategy.

Serious market studies are essential, whether done by yourself or via a firm. France has rich public sources, like INSEE, INC, or sectoral agencies (health, food, housing, energy…) that produce usable data. For an expat, this is a good way to move beyond tourist clichés and understand consumption realities by region, age, income.

On the operational side, it is crucial to realistically plan administrative lead times: visa obtaining, bank appointments, registration, aid applications, recruitment. The decision cycle of large companies and administrations is slower than in some Anglo-Saxon cultures, which requires planning a sufficient cash cushion to get through the first months.

In Summary: A Demanding Environment, But Very Supportive for Prepared Expats

Starting your business in France as an expatriate means accepting to deal with a very present State, dense labor law, detailed taxation, and an administration still largely French-speaking. But it also means benefiting from a rich market, solid infrastructure, a high-level healthcare and social protection system, and a particularly dynamic entrepreneurial ecosystem, especially in tech, cutting-edge industry, sophisticated services, and activities geared toward the ecological transition.

France is sometimes summed up by a famous joke attributed to Charles de Gaulle: “How can you govern a country with so many varieties of cheese?” For an expat entrepreneur, this diversity is above all an immense palette of opportunities: provided you come armed with patience, rigor, and a real desire to commit for the long term.