Navigating Entrepreneurship in France: Lessons from an MBA Student

It’s 8 AM on a crisp, foggy morning in the southwest of France, and my thoughts drift between business ideas and coursework from my International MBA courses at the International School of Management. Starting a business in France requires careful planning, even for a local—let alone a foreigner—but the process itself is fairly straightforward if you know where to begin. After talking to friends with local businesses and doing my own research since moving to France one year ago, I’ve narrowed down the general steps required for starting your own business in France.

1. Fine-Tune Your Business Idea
Before diving into the French administrative maze, make sure your business idea is rock solid. Whether it’s opening a surf shop along the Basque coast or launching an online coaching platform, clarity is key.

2. Choose Your Legal Structure
This is where things get serious! France offers several types of business structures, so you’ll need to decide what works best for you:

• Auto-entrepreneur (Micro-entrepreneur): A simple, hassle-free option for small-scale freelancers or side hustles.
• SARL (Société à Responsabilité Limitée): A more formal structure that protects your personal assets but requires stricter regulation.
• SAS (Société par Actions Simplifiée): The most flexible option, great for larger businesses or for bringing in investors and expanding.

3. Register Your Business
Once you’ve settled on a structure, you’ll need to officially register your business with the Centre de Formalités des Entreprises (CFE).

Although this process can feel daunting, people like Canadian-born Jon find that the effort is worthwhile in the end.

“Moving abroad to France was nerve-racking, and not speaking French fluently was a hurdle I was determined to jump over,” reflects Jon, who operates an agence immobilière (a real estate brokerage company). “I knew one day I would be able to interact with the locals in French. The sense of accomplishment once you make it past all the administrative hurdles is through the roof.”

4. Open a Business Bank Account
France requires you to have a separate business bank account, which helps keep everything organized when it comes to taxes and finances. As a non-European, opening a bank account was one of the longer, more drawn-out processes for me when I first moved. It took almost two months of back-and-forth emails and in-person meetings at the branch, but in the end, it was worth the effort.

5. Get Insurance
Depending on your industry, you might need professional liability insurance. For example, industries like food service, finance, legal services, and real estate typically require insurance.

6. Obtain Licenses or Permits
If your business involves food service or construction, you’ll need the appropriate licenses. Be aware of what’s required, as these can take time to process.

7. Understand Your Taxes
Taxes in France are...complicated. From VAT to social contributions, it may be wise to get professional advice, as it requires careful planning and attention.

Social contributions cover healthcare, retirement pensions, and unemployment benefits. As Orienne, a French local with experience as an entrepreneur in both France and the U.S., explains: “The French government does take a large portion of what you make, so you must be prepared for that, especially if you’re coming from the United States. However, there are benefits, like assurance chômage, which covers your unemployment benefits for a select amount of time should your business in France end.”

Some Things to Keep in Mind:

• Language: Navigating French bureaucracy can be tough if you’re not fluent. It’s extremely helpful to ask for help from local contacts, especially when dealing with legal paperwork. Being part of local and online communities is a big help, as is improving your French while living abroad.
• Flexibility is key: With ISM’s hybrid MBA program, I’ve been able to work on the early stages of a business project while keeping up with my studies. The flexibility to balance academic commitments and practical business applications has been invaluable.
• Bureaucracy: Be prepared for some delays. Paperwork takes time in France, but patience and persistence pay off! A mix of determination and patience goes a long way in any administrative process here.

Starting a business while pursuing an MBA might sound overwhelming, but I’ve found that the two complement each other beautifully. At ISM, the skills I’m developing in courses like entrepreneurship and financial management are directly applicable to my day-to-day challenges. The hybrid format gives me the freedom to explore opportunities outside the classroom while staying on top of my academic goals.

If you’re considering opening a business in France, my advice is simple: prepare, plan, and take full advantage of the resources available to you.

As I finish writing this, the sun is setting over the Atlantic Ocean. Time to get back to work – but first, maybe a quick surf!