For many Americans, the French outlook is a romantic one, and hugely popular films and television series such as Amelie, Chocolat and Emily in Paris have cemented France’s reputation for glamor, glamor and luxury. However, while the charm of the French lifestyle and culture is undeniable, there are some lesser known things about this country. It’s a business opportunity that an American entrepreneur with an international outlook will quickly seize.
by estimate 4,500 US companies Already operating in France, it is clear that the country is an attractive prospect for American businessmen, and La République française has the potential for great success. However, if you want to start a business in France (or expand there) as a US citizen, you should plan well, avoid common pitfalls, and acquire as much in advance as possible to maximize your chances of business success. It is recommended that you be aware of
Why France?
As the third largest economy in Europe (and the seventh largest in the world), there are many reasons why France is attractive to businessmen.
- France is a vibrant and diverse country that boasts a skilled workforce, a large consumer population and access to the world’s largest trading bloc through its membership in the European Union.
- It is also welcoming and business-friendly as the French government offers financial incentives to both new and existing companies and invests heavily in research and development.
- France’s strategic location, supported by a highly developed transport infrastructure, greatly contributes to the ease of domestic and international travel and transport. For example, London can be reached in less than two and a half hours on the Eurostar from Paris.
- France is not only big economically. In terms of land area, France is the largest country in Europe and consists of 13 regions, all of which offer unique opportunities for entrepreneurs. It also borders eight countries and has Strait, Atlantic and Mediterranean coasts.
- An international business hub, the Paris region enjoys global status as a major business hub and is the number one region in Europe with the headquarters of the world’s top 500 companies.
5 Tips for Starting a Business in France
one: Prepare to navigate the bureaucracy
If you are a founder of a foreign company from a country other than the EU, EEA or Switzerland, there are i and t to cross the dots when setting up a company in France and the process can be time consuming. there is. That said, France is welcoming enough to entrepreneurs that they find there are fewer hurdles to jump than they first expected, and more resources to access to ease the process. maybe.
In France, anyone can set up a company in France by registering a company address and opening a bank account. must apply for a long-stay visa As an “Entrepreneur/Self-Employed Person” (VLS-TS) Temporary Residence Permit.
Eligibility is determined by factors such as your ability to provide evidence that you will engage in economically viable activities during your stay, and once approved, your visa permits residency for a period of 12 months. During this period, you are permitted to live in France and engage in the commercial activities specified in your application.
This includes a trip to one of the 10 French Consulates in major US cities. Once established, the French business must be registered according to the correct category of company. It is also important to note that France has specific regulations across various business sectors and employment practices that require a minimum capital investment for French corporate banks.
two: start learning a language
Multilingualism is not uncommon in the United States, with a population born in every corner of the globe. One in five of her US adults speaks a language other than English at home (Spanish being the most common). However, even though the United States does not have an official language, it is safe to say that English is the de facto language, especially in the world of business.
English is also the most widely understood language in the EU, with a significant percentage of Europeans speaking it as a second language (an impressive 25% speak two languages in addition to their mother tongue). can do). Additionally, 39% of French people report being able to speak English, and many expats move to the country without speaking French.
Nevertheless, it would be wrong to assume that one could easily prosper by default using English while doing business in France. and the French take considerable pride in their language.
English may be widely spoken in the business world, but demonstrating a willingness to learn and use French greeting phrases is highly valued, and proficiency in English is not a given. Something to keep in mind. Over time, many expats find that honing their French skills is key to taking advantage of everything the country has to offer.
We also have to consider the fact that French is the only accepted language for official documents and contracts. Also, 61% of her French do not speak English, so there will need to be a plan to smooth out language incompatibilities in business operations.
three: Consider new audiences
In many important ways, France is not very different from the United States, but it is important not to underestimate the cultural differences when starting or expanding your business in France. France is certainly smaller than the US, but it’s also important to remember that France is by no means small by European standards.
Whether it’s for a simple reason like France’s high adult smoking rate (about 33% compared to about 12% in the US) or a lack of prevalence of tipping culture, or more complex nuances of language, politics and history. , you may be surprised about France as an American, if for a simple reason. For this reason, it is advisable to seek the advice of someone who knows France well in many respects of the business to understand how to land on the French customer base.
There are also differences in laws and regulations that can affect your business, so always be thorough when drafting your French business plan to identify and account for factors that may not apply in the United States. It’s worth doing some research.
four: Understand French work culture
America’s work culture is far removed from its European friends, and American citizens generally work long hours, take fewer vacations, and eat lunch (if they don’t skip it). at their desk. It’s also not uncommon for people to call or respond to emails outside of work hours, and employers tend to be more flexible when it comes to hiring and firing.
The French, on the other hand, tend to live more leisurely lives, both due to government-mandated worker protections and working population expectations at all points of the pay scale. Some adjustments may be required and planning is required. However, if you choose to live in France, you can also enjoy this slower pace of life.
Here are some things to consider about French work culture:
- The French take their lunch breaks away from their desks, so they aren’t great for making phone calls, meetings, and emails (if you need a quick reply) unless you plan a specific lunch trip.
- Not only are they entitled to far more vacation time than Americans normally enjoy, they actually get it (whereas the average U.S. employee who receives paid vacation teeth, Only 54% of allotted time is actually spent each year.) This is usually most noticeable in July and August, when business slows down significantly, and many employees book more vacation around the holidays, so it’s beneficial to plan for these times. is.
- Starting in 2017, managers and employees at companies with more than 50 employees are no longer required to respond to emails outside of working hours. Employees of smaller companies may also follow suit.
- French corporate operations are, for the most part, highly hierarchical. When dealing with other companies, take the time to understand the chain of command and talk to the right people to get results.
- Hiring in France is an expensive proposition. Employers must consider high personal taxes when determining employee wages and the list of employment benefits employees are expected to provide. Although these costs are high, those doing business in France tend to be rewarded with a skilled and safe workforce.
- Networking is often the key to success in the French business world, and personal endorsements often mean more than accolades and titles. It can be difficult (although the cooperative nature of American business can quickly turn to your advantage).
There are many opportunities for American entrepreneurs to discover when they take the plunge and start a business in France. With proper research, a comprehensive business plan, and that famous American work ethic, Française’s success is within your reach. .
This post was written by Katya Puyraud, a company formation expert at EuroStart Entreprises helping entrepreneurs. start a business in france We take the headache out of setting up a company abroad.
