France, with its dynamic market and innovation-friendly ecosystem, attracts many entrepreneurs from all over the world. If you're a foreign national planning to set up a business in France, you're probably wondering about the specific rules that apply to your situation. Understanding the legal framework is an essential first step in securing not only your professional project, but also your personal move to France. This article gives you an overview of the key points you need to know, whether or not you plan to live in France.
Residing in France to do business: the residence permit, an essential prerequisite
Foreign nationals wishing to establish themselves in France (i.e. reside there on a permanent basis) and carry out a self-employed commercial, industrial or craft activity must obtain an appropriate residence permit as a general rule. Gone are the days of the old "foreign trader's permit"; today, several types of residence permit are available for entrepreneurship, each tailored to different profiles and projects.
One of the most common options is a temporary residence permit with the following wording "entrepreneur/professional and the various "talent passport (business start-up, innovative project, investor, etc.). The choice will depend in particular on the scale of your project and your track record. A common and decisive criterion for obtaining these titles is the demonstration of economic viability your project: you will need to convince the authorities that your business can generate sufficient income to enable you to live.
For a detailed presentation of the different residence permit options and to find out exactly who is affected by this requirement, please consult our Guide for resident foreign entrepreneurs.
Who doesn't need a specific residence permit to start a business?
Fortunately, certain categories of foreign nationals do not need to apply for a specific residence permit to start up their business in France. This is mainly the case for :
- From citizens of the European Union, the European Economic Area (Iceland, Liechtenstein, Norway) and Switzerland. Thanks to freedom of movement and establishment, they can do business in France without a residence permit, simply registering at the town hall.
- Foreigners who already hold certain residence permits that give them a broader right to work, such as the resident card (valid for 10 years) or the residence permit "private and family life.
The full list of exemptions and the precise conditions are available in our Guide for resident foreign entrepreneurs.
Procedures: anticipate to succeed
Obtaining the right residence permit involves specific administrative procedures. If you are still abroad, the procedure generally begins with an application for a long-stay visa from the French consulate. If you are already in France under another status (student, employee, etc.), you will need to apply for a change of status with your prefecture.
In both cases, the creation of a solid case is essential. It should contain evidence of your identity and personal situation, but above all evidence of your entrepreneurial project (business plan, provisional budget, financial evidence, etc.). Preparing this application takes time and method.
Once you've got the title, don't forget that you'll need to renew periodically. At the time of renewal, the authorities will check that your activity is still effective and that it provides you with sufficient income (generally at least the equivalent of the minimum wage).
To understand the precise stages of the initial application or renewal procedures and the nature of the documents required, please refer to our dedicated article : Specific procedures for obtaining an entrepreneur's residence permit.
What if you don't live in France? A simplified situation
For a long time, foreign nationals wishing to carry on a commercial or craft activity in France without residing there had to make a specific prior declaration to the prefecture. This procedure added to the administrative complexity.
The good news is that this constraint has been lifted. The law of 2 January 2014 abolished this system of prior declaration. for non-resident foreign traders and craftsmen (by repealing the former article L. 122-1 of the French Commercial Code).
In practical terms, this means that a foreign entrepreneur who does not live in France no longer has to complete any specific administrative formalities. on the grounds of nationality before setting up a new structure (e.g. a branch) or registering with the Registre du Commerce et des Sociétés or the Répertoire des Métiers. Of course, they are still subject to all the other rules of French commercial, tax and employment law applicable to their business, just like any other entrepreneur.
The importance of appropriate legal advice
As you will have gathered, the regulatory landscape for foreign entrepreneurs in France, although simplified for non-residents, remains dense and subject to change for those wishing to set up in France. Laws change (such as the Immigration Act of 2024), case law clarifies the interpretation of texts, and administrative requirements can seem complex.
Trying to navigate this maze on your own can be risky: choosing the wrong residence permit, putting together an incomplete or poorly argued application or ignoring an obligation can delay or even compromise your plans. Calling on the services of a lawyer specialising in immigration law and business law will enable you to benefit from an expert view of your situation, to choose the most appropriate administrative strategy, to prepare an optimised application and to secure your steps so that you can concentrate calmly on developing your business.
Every business project and every personal situation is unique. To benefit from tailor-made advice and put all the chances on your side, our firm is at your service.
Frequently asked questions
Do foreign nationals still need a residence permit to set up a business in France?
Yes, if you intend to reside in France, a residence permit authorising self-employment is generally required, except for EU/EEA/Swiss citizens and certain residents who already hold other permits (e.g. residence permit).
What authorisation replaces the old foreign trader card?
The old foreign trader's card has been abolished and replaced by various specific residence permits, such as the "entrepreneur/liberal profession" card or the "talent passport".
What are the main residence permits for foreign entrepreneurs living in France?
The main options include the "entrepreneur/professional" residence permit, various "talent passport" options (creator, innovative project, investor, etc.), and the "job search or business creation" permit for young graduates/researchers.
Do EU citizens need to apply for a residence permit to do business in France?
No, citizens of the EU (as well as the EEA and Switzerland) enjoy freedom of establishment and do not need a residence permit to do business in France.
Can a resident permit holder set up a business without any other permit?
Yes, the resident's card (or the "private and family life" card) already authorises the exercise of any professional activity, including setting up a business.
How does the authorities assess the viability of a foreign business project?
It examines the real and serious nature of the project, often by means of a business plan and provisional budget, to ensure that it can generate sufficient income (generally at least the minimum wage).
Is it necessary to obtain a visa before setting up a business in France?
Yes, if you live outside France and plan to set up a business there, you must first obtain an appropriate long-stay visa from the French consulate.
Is it possible to switch from student to entrepreneur status directly in France?
Yes, it is possible to apply to the prefecture for a change of status in order to obtain an "entrepreneur" or "talent passport", or to apply for a "job search or business creation" card if you meet the conditions.
What is the main condition for renewing an "entrepreneur" residence permit?
The essential condition is that you can prove the continuity of your business and that it generates sufficient income, at least equivalent to the minimum wage.
Does a non-resident foreigner have to make a declaration before practising in France?
No, the prior declaration requirement specific to non-resident foreigners was abolished by the law of 2 January 2014; they are subject to the same registration rules as French nationals.
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