Starting a Company in France
Discussion
Hi all,
Very, very early stages but I'm thinking their could be a gap in the French market for what my current company does in the UK. In case it's relevant the company would not sell a physical product but would be an agency with staff in Paris.
As part of my research I wondered if anyone here had experience of doing business in France, if you incorporated there or set up a branch of your UK Co.
Thanks in advance.
Al.
Very, very early stages but I'm thinking their could be a gap in the French market for what my current company does in the UK. In case it's relevant the company would not sell a physical product but would be an agency with staff in Paris.
As part of my research I wondered if anyone here had experience of doing business in France, if you incorporated there or set up a branch of your UK Co.
Thanks in advance.
Al.
Firstly, I wouldn't do anything until after March next year when we'll (hopefully) have a bit of clarity in Brexit.
At the moment, as an EU citizen, you are free to establish a business there providing you have a residency permit and be domiciled there. Most countries do not permit companies to be majority owned by a non-national and or non-domiciled individuals. Assuming you don't want to move there then you'll need to find a trusted partner who will have to have 51% of the company.
As mentioned, it's not the easiest place to set up shop (nor run one). There's a lot of bureaucracy to levels that make our processes seem lackadaisical. But there are benefits too. I seem to recall that banks are legally obliged to offer start-ups financial support
I would recommend speaking to you local Department of International Trade rep'. They will give you all the up-to-date advice and guidance and may even have a few grant pots to help you on your way.
Any reason why Paris? Like London, the French capital is very expensive,
Caveat to all of the above,,,,we did look at France to set up a new business but went for Bulgaria instead.
At the moment, as an EU citizen, you are free to establish a business there providing you have a residency permit and be domiciled there. Most countries do not permit companies to be majority owned by a non-national and or non-domiciled individuals. Assuming you don't want to move there then you'll need to find a trusted partner who will have to have 51% of the company.
As mentioned, it's not the easiest place to set up shop (nor run one). There's a lot of bureaucracy to levels that make our processes seem lackadaisical. But there are benefits too. I seem to recall that banks are legally obliged to offer start-ups financial support
I would recommend speaking to you local Department of International Trade rep'. They will give you all the up-to-date advice and guidance and may even have a few grant pots to help you on your way.
Any reason why Paris? Like London, the French capital is very expensive,
Caveat to all of the above,,,,we did look at France to set up a new business but went for Bulgaria instead.
Just like any EU national can set up a business in the UK, so you have the right to do likewise in France. At lest, until 30th March 2019.
As others have mentioned, bureaucracy tends to kill most small businesses.
You will not find a welcome mat anywhere desperately trying to help you succeed, you will find plenty of establishments, looking to skim a slice off any profits. Social charges alone are 45% of profits, employing someone is for life, so no culture of hire and fire.
Paris might be different, but elsewhere, you will not find any functionaries who are able communicate in anything other than rapid French.
You will also tend to find customers are very conservative- there seems to be wide distrust of PayPal, for example. Paying by cheque is normal as many people do not have a bank card.
Given looming Brexit, I agree that finding a hardworking partner who can develop your ideas is possibly a good way to start. If the project is scaleable, then you can make the switch, once you are certain that the idea translates into a viable French business.
As others have mentioned, bureaucracy tends to kill most small businesses.
You will not find a welcome mat anywhere desperately trying to help you succeed, you will find plenty of establishments, looking to skim a slice off any profits. Social charges alone are 45% of profits, employing someone is for life, so no culture of hire and fire.
Paris might be different, but elsewhere, you will not find any functionaries who are able communicate in anything other than rapid French.
You will also tend to find customers are very conservative- there seems to be wide distrust of PayPal, for example. Paying by cheque is normal as many people do not have a bank card.
Given looming Brexit, I agree that finding a hardworking partner who can develop your ideas is possibly a good way to start. If the project is scaleable, then you can make the switch, once you are certain that the idea translates into a viable French business.
iphonedyou said:
rdjohn said:
so no culture of hire and fire.
As an equity partner of a small LLP that has a number of issues with legacy staff, I don't recognise a 'hire and fire' culture in the UK. Sadly..!A good example is that male youth unemployment is pushing towards 40% because no-one will commit to employing under the current social regime, only natural wastage creates the new jobs.
Conversely, productivity is much higher than the UK as companies will invest in equipment and machinery to replace the workforce. In the UK there is a constant supply of people willing to work for minimum wages and flexible contracts.
Thanks all for the brilliant advice!
Paris because I would be targeting big French brands in cosmetics, beverages and luxury goods and unfortunately they all seem to be located there.
Frimley111R said:
I worked in the M&A arena for many years and one thing that relates to this is that most companies opening up themselves in foreign countries fail and the successful ones bought businesses that were already there. It might not be an option but its well worth mentioning.
Interesting idea, trouble is I can't find anyone doing what I do there but I'm sure they exist. Going about finding them will be the hardest part I think. StevieBee said:
Assuming you don't want to move there then you'll need to find a trusted partner who will have to have 51% of the company.
I would recommend speaking to you local Department of International Trade rep'. They will give you all the up-to-date advice and guidance and may even have a few grant pots to help you on your way.
Any reason why Paris? Like London, the French capital is very expensive
Interesting on the bit about finding a trusted partner, in theory not difficult as I have a lot of French National/Permanent Resident Brits who are close friends living in France. But I've always gone alone and concerned about going in to business with a friend. I would recommend speaking to you local Department of International Trade rep'. They will give you all the up-to-date advice and guidance and may even have a few grant pots to help you on your way.
Any reason why Paris? Like London, the French capital is very expensive
Paris because I would be targeting big French brands in cosmetics, beverages and luxury goods and unfortunately they all seem to be located there.
rdjohn said:
Just like any EU national can set up a business in the UK, so you have the right to do likewise in France. At lest, until 30th March 2019.
As others have mentioned, bureaucracy tends to kill most small businesses.
You will not find a welcome mat anywhere desperately trying to help you succeed, you will find plenty of establishments, looking to skim a slice off any profits. Social charges alone are 45% of profits, employing someone is for life, so no culture of hire and fire.
Paris might be different, but elsewhere, you will not find any functionaries who are able communicate in anything other than rapid French.
You will also tend to find customers are very conservative- there seems to be wide distrust of PayPal, for example. Paying by cheque is normal as many people do not have a bank card.
Given looming Brexit, I agree that finding a hardworking partner who can develop your ideas is possibly a good way to start. If the project is scaleable, then you can make the switch, once you are certain that the idea translates into a viable French business.
Thanks for the info, much appreciated. Finding a partner actually shouldn't be too difficult, as mentioned above I'm fortunate to have quite a lot of contacts over there who are native level in both French and English. Bureaucracy could be a killer though looking at that social charge you mention. As others have mentioned, bureaucracy tends to kill most small businesses.
You will not find a welcome mat anywhere desperately trying to help you succeed, you will find plenty of establishments, looking to skim a slice off any profits. Social charges alone are 45% of profits, employing someone is for life, so no culture of hire and fire.
Paris might be different, but elsewhere, you will not find any functionaries who are able communicate in anything other than rapid French.
You will also tend to find customers are very conservative- there seems to be wide distrust of PayPal, for example. Paying by cheque is normal as many people do not have a bank card.
Given looming Brexit, I agree that finding a hardworking partner who can develop your ideas is possibly a good way to start. If the project is scaleable, then you can make the switch, once you are certain that the idea translates into a viable French business.
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