- Category: 5 Why choosing France?
Starting a business in France
If you’re creating a company, then you know that there are a lot of questions you should ask yourself. Among them, a very important question is: “Where do I even set up my company?” Here, we’re going to analyze the pros and cons of setting up a company in France so that you can make an informed decision.
The advantages of setting up in France:
A simplified procedure:
Contrary to popular belief, setting up in France isn’t always that complicated. There are only 7 steps to create a company, which is lower than the average for G-20 countries (7.6 steps). Furthermore, all of this can be done in only a week, when you’d need 22 days on average to do this in G-20 countries. Well, it can be harder to set up if you don’t speak the language, so asking professionals will probably make your life much easier.
Access to the European Market:
Not only is it historically one of the main founders of the European Union, but its geographical location grants it wide borders with some of the strongest European economies.
Many state grants and subsidies to help company creation:
There are subsidies for entrepreneurs from a poor background, for specific activities, for specific locations, as well as tax credits, honor loans… The state will often help your company creation!
An economic landscape favorable to company creation
With its 1000 different business incubators, France is surprisingly fit for company creation. There are also devices such as wage-porting that make it easier for you to test the waters before starting to set up your company.
An improving entrepreneurship culture
It’s true that France has had a business culture somewhat hostile to company creation for a long time, but this has completely faded over the past few decades. In fact, it now houses the largest start-up hub in the world.
The disadvantages of setting up in France:
A high taxation rate:
It’s no surprise that French taxes are high. Although, it’s worth noting that companies don’t pay taxes until they actually start making a profit, and that the corporate tax will be lowered from 33% to 25% by 2022.
A lot of paperwork:
Getting through the procedures to create a company can be fast, but it is still a hassle. Indeed, business creators still need to contact several different organizations in order to have their company be properly registered, and that’s all the more difficult to do when you don’t speak French.
Though, much like with taxes, there are plans to have a “one-stop” website to make this easier.
An expensive workforce:
Unfortunately, hiring an employee in France is expensive. Granted, it makes sense, because French workers have a very good education and are thus very productive, but it is expensive nonetheless. Thankfully, it is still cheaper than what you would find in Norway, Denmark or Belgium, though.