How to Set Up a Company in France as a Non-Resident: Complete 2026 Guide

France is one of Europe's most attractive markets for international entrepreneurs: a domestic market of 68 million consumers, a dynamic startup ecosystem, robust legal infrastructure, and tax treaties with over 125 countries. And unlike many people assume, you do not need to live in France to own and run a French company.

This guide by Hayot-expertise.fr — a Paris-based accounting firm specializing in cross-border business structuring — covers everything a non-resident needs to know: which legal structure to choose, the complete registration process, tax obligations, banking realities, practical case studies, and the pitfalls that most international entrepreneurs encounter.

Yes — French Law Has No Residency Requirement#

French commercial law allows any individual or legal entity — regardless of nationality or country of residence — to incorporate a company in France. There is no minimum residency requirement for directors or shareholders.

However, several practical requirements must be anticipated:

• Your company must have a registered address in France (physical office or commercial domiciliation service)
• You must open a French professional bank account to deposit share capital before registration
• Some formalities may need to be performed by proxy if you cannot be present in France

Non-EU Nationals: Check for a Trading Authorization#

If you are a citizen of a country outside the European Union, you may need a commercial trading authorization to manage a French company while physically residing in France. However:

• If you will manage the company entirely from abroad, this requirement generally does not apply
• You can also designate a French-resident director while you retain ownership
• EU/EEA/Swiss nationals face no restriction whatsoever

SAS and SASU: The Preferred Choice for International Entrepreneurs#

The SAS (Société par Actions Simplifiée) and its single-shareholder variant SASU are by far the most popular structures for foreign founders. Think of the SAS as France's equivalent of a U.S. corporation or LLC — with the flexibility of a Delaware LLC combined with the credibility of a fully incorporated entity.

Why SAS/SASU dominates for non-residents:

• Extraordinary bylaw flexibility: bylaws can accommodate remote management, electronic voting, power of attorney, and English-language parallel versions
• Minimum share capital of €1: no significant capital lock-up required
• No shareholder ceiling: unlimited shareholders, any nationality, any residence, including corporate shareholders (U.S. LLC, offshore holding, etc.)
• Clean dividend distribution: dividends can be voted at any time, without mandatory distribution calendar
• Investor-ready: SAS is the standard vehicle for French venture capital and private equity

The SASU is identical but with a single shareholder. It converts automatically to a SAS when a second shareholder joins.

Full comparison of structures:

SARL: Better for Family or Regulated Activities#

The SARL is France's equivalent of a multi-member LLC. It works well for regulated professions (pharmacy, regulated trades) and family businesses, but the majority manager (gérant majoritaire) status creates complex social charge obligations for non-resident directors, and share transfers require all partner approval — limiting flexibility.

SA: For Large-Scale Operations Only#

The Société Anonyme requires a minimum of €37,000 in share capital and at least 7 shareholders. Relevant only for large companies or those planning a French IPO.

Step 1 — Draft the Company Bylaws#

For non-residents, several specific provisions in your bylaws are critical:

• Remote governance clauses: allowing decisions by written consultation, video conference, or electronic voting — essential if directors are overseas
• Power of attorney: explicit authorization for a French representative to sign documents on your behalf
• Bilingual version: the official version must be in French, but a parallel English version is acceptable for internal use

Best practice: Have bylaws drafted by a French accounting firm or business attorney. Generic online templates frequently create problems at the banking or registration stage.

Step 2 — Establish a French Registered Address#

Your company must have a physical address in France. Options:

• Commercial domiciliation service (€40–200/month): the most practical option — provides a legal address, handles mail forwarding, fully accepted for all banking and administrative purposes
• Coworking space with a lease: genuine operational address, adds credibility with French partners
• Your accountant's address: some French firms offer registered address services for their clients

Step 3 — Open a French Professional Bank Account#

Share capital must be deposited in a French bank account in the company's name before registration. The bank issues a certificate of deposit that is included in your registration dossier.

For non-residents, traditional French banks (BNP Paribas, Société Générale, Crédit Agricole) typically require an in-branch meeting. Easier alternatives:

• Qonto: France's leading fintech bank for SMEs — 100% online, accepts non-resident founders, account opened in 48–72 hours
• Shine: Similar to Qonto, with strong accounting tool integrations
• Revolut Business: European option widely used by international companies

Step 4 — Register via the Guichet Unique#

Since January 2023, all French company registrations go through the Guichet Unique (guichet-entreprises.fr) — France's centralized one-stop online portal. For U.S. readers, think of it as equivalent to filing with your state's Secretary of State, but entirely online and centralized nationally.

Documents to prepare:

• Signed bylaws (original or certified copy)
• Certified bank deposit certificate
• Government-issued ID of the director (passport)
• Proof of French address (lease or domiciliation contract)
• Completed M0 registration form

A proxy holder (mandataire) can perform all Guichet Unique formalities on your behalf. Review and validation takes 5–10 business days.

Step 5 — Receive Your Official Identifiers#

Once registered, your company receives:

• SIREN number (9 digits): national company identifier — analogous to a U.S. EIN for tax and identification purposes
• SIRET number (14 digits): SIREN + 5-digit establishment code identifying your specific office location
• Kbis extract: France's official company registration certificate — equivalent to a U.S. Certificate of Good Standing, required for all banking and contract purposes
• EU VAT number (format: FR + 11 digits): for invoicing French and European clients

Total timeline: 2–4 weeks from kick-off to Kbis receipt, depending mainly on banking speed.

Corporate Income Tax (Impôt sur les Sociétés — IS)#

All French companies are subject to French corporate income tax on their French profits:

• 15% reduced rate on the first €100,000 of taxable profit
• 25% standard rate above €100,000

The company must maintain French GAAP-compliant accounts (Plan Comptable Général) and file an annual corporate tax return (liasse fiscale) with the French tax authorities.

U.S. parent company note: A French SAS wholly owned by a U.S. entity may be subject to Subpart F or GILTI provisions on the U.S. side. A QBU election or other treaty positions may apply. Cross-border tax advice is essential before structuring.

VAT (Taxe sur la Valeur Ajoutée — TVA)#

French VAT applies at 20% on most goods and services (reduced rates of 10% and 5.5% for specific categories), and is mandatory above €36,800 in annual service revenue. VAT is fundamentally different from U.S. sales tax — it is a multi-stage tax deducted at every supply chain step by VAT-registered businesses. For B2B transactions within the EU, reverse-charge typically applies.

Withholding Tax on Dividends to Non-Residents#

When your French company pays dividends to a non-resident shareholder, France may apply a withholding tax:

• Standard rate: 12.8% for EU residents, 30% for non-EU residents
• Treaty-reduced rates: 15% under the France-USA treaty (5% for holdings ≥10%)

Careful structuring here can significantly reduce your net tax burden.

French R&D Tax Credit (Crédit d'Impôt Recherche — CIR)#

One of France's most powerful incentives: 30% tax credit on qualifying R&D expenditure (engineer salaries, external research costs, patents). A French subsidiary conducting genuine R&D can claim this credit — it can exceed the entire IS liability and generate a cash refund within 12 months.

Case Study 1: Canadian Digital Agency — Paris SASU#

Situation: Marc, based in Montreal, wants to create a French digital agency to serve European clients and hire a small Paris-based team.

Solution: SASU with:

• Commercial domiciliation in Paris 8th (€80/month)
• Qonto account opened online in 48 hours, €1,000 share capital
• Bylaws drafted with power of attorney for his French accountant
• Marc appointed as President (director), managing from Canada via electronic signatures

Timeline: 3 weeks from kick-off to Kbis.

Tax outcome: SASU subject to French IS. When Marc takes dividends, France withholds 15% (France-Canada treaty). He claims a corresponding foreign tax credit in Canada. Result: no double taxation.

Case Study 2: U.S. Software Company — French SAS Subsidiary#

Situation: A California-based SaaS LLC wants to hire 10 French engineers and position Europe as a second operating center.

Solution: SAS with the U.S. LLC as sole shareholder:

• Capital €50,000
• French-resident VP Engineering appointed as President
• R&D Tax Credit (CIR) claimed: 30% of qualifying French engineering salaries
• Jeune Entreprise Innovante (JEI) startup status applied — significant employer social charge reductions

Timeline: 4 weeks (bank account opening was the bottleneck).

Outcome: CIR savings exceeded €150,000 in Year 2. JEI status generated additional payroll savings. Transfer pricing documentation prepared for intercompany IP licensing.

1. Inadequate registered address A mailbox-only address that doesn't reflect actual operations can create credibility issues with banks, clients, and the tax authorities. Use a proper commercial domiciliation service.

2. Missing mandatory payroll formalities Before hiring your first French employee: file a Déclaration Préalable à l'Embauche (DPAE), register with URSSAF (France's social security agency), and set up monthly DSN payroll filings. French employment law — and the cost of getting it wrong — is routinely underestimated by foreign employers. Note that French labor law is far more protective than U.S. at-will employment.

3. Assuming accounting is optional with zero revenue Every French company must maintain GAAP-compliant accounts and file annual documents, even with zero revenue. Missing annual account deposits at the Commercial Court results in automatic fines and can trigger strike-off proceedings.

4. Ignoring withholding rules on cross-border payments Dividends, fees, and royalties paid from your French company to foreign shareholders or service providers may be subject to French withholding tax. Always analyze the applicable treaty before structuring.