For a lot of Americans, the prospect of France is romantic, and hugely popular movies and TV series reminiscent of Amelie, Chocolat, and Emily in Paris reinforce France’s repute as a place of glamour, glamour, and self-indulgence. But while the appeal of France’s lifestyle and culture is undeniable, the country also offers something lesser-known – a range of business opportunities ready to be exploited by American entrepreneurs with a world mindset.
With estimate 4,500 US firms already operating in France, it is obvious that the country is a sexy prospect for American businessmen, and La République française has the potential for great success. Nevertheless, if you want to start a business in France (or expand your small business there) as a US citizen, it all the time pays to know as much as possible in advance to plan fastidiously, avoid common pitfalls and provides your small business one of the best probability of prosperity.
Why France?
Because the third largest economy in Europe (and seventh in the world), there’s a long list of the reason why France is so attractive to business people, a few of which include:
- France is a vibrant and diverse country that boasts a expert workforce, a large consumer population and access to the world’s largest trading bloc thanks to its membership of the European Union.
- Additionally it is friendly and business-friendly, with the French government offering financial incentives to each recent and existing firms and investing heavily in research and development.
- France has a strategically useful location based on a highly developed transport infrastructure, which greatly facilitates travel and transit each inside and out of doors the country. For instance, London might be reached by Eurostar from Paris in lower than 2 and a half hours.
- Not only is France large economically, France is the biggest country in Europe by land area and consists of thirteen regions, each offering unique opportunities for entrepreneurs. It also borders eight countries and has the English Channel, Atlantic and Mediterranean coasts.
- As a world business hub, the Paris region enjoys global status as a major business hub and is primary in Europe for the situation of the world’s 500 largest corporate headquarters.
Five tips for starting a business in France
One: Prepare to navigate bureaucracy
For foreign company founders from outside the EU, EEA or Switzerland, there are, as you might expect, a few ‘i’s to cross out when setting up a company in France, and the method can take a while. That said, France is entrepreneur-friendly enough though that you may find there are fewer hurdles to hop over than you initially expected, and there are many resources you can access to make the method easier.
Anyone can set up a business in France by taking steps reminiscent of registering a business address and opening a checking account in the country, but when you want to move to France to start a recent enterprise, you should apply for a long run visa often known as the “Entrepreneur” temporary residence permit /self-employed” (VLS-TS).
Eligibility is decided by aspects reminiscent of the flexibility to provide proof that you will engage in an economically viable activity during your stay, and once approved, your visa will allow you to stay for 12 months. During this time, you can live in France and perform the industrial activity you mentioned in your application.
This involves a visit to the French consulate, of which there are ten in the biggest cities in the USA. Once established, you will need to register your French company according to the relevant category of your enterprise. Also note that France has specific regulations in various business sectors and employment practices, and company banks in France require a minimum capital investment.
Two: Start learning the language
With a population that hails from every corner of the globe, multilingualism just isn’t unusual in the US – one in five American adults speaks a language aside from English at home (Spanish being probably the most common). But while there is no such thing as a official language in the US, it’s protected to say that English is the de facto, and particularly in the business world.
Additionally it is a indisputable fact that English is probably the most widely understood language in the EU, and a significant proportion of Europeans speak English as a second language (a formidable 25% are able to hold a conversation in two additional languages in addition to their mother tongue). Furthermore, 39% of French people say they speak English, and plenty of expats move to the country without speaking French.
Still, it could be a mistake to assume that you can easily default to English and thrive by running a business in France. The population of France speaks mainly French, each in a personal and skilled context, and the French take pride in the language.
English could also be widely spoken in business circles, but a willingness to learn and use French greeting phrases could be greatly appreciated. Please note that proficiency in English just isn’t a given. Over time, many expats find that perfecting their French language skills is key to having fun with all that the country has to offer.
You must also consider the indisputable fact that French is the one accepted language for official documents and contracts, and since 61% of French people don’t speak English, you will need a plan for resolving language discrepancies in your small business operations.
Three: Take into consideration a recent audience
In lots of essential ways, France just isn’t too different from the USA, however it continues to be essential not to underestimate cultural differences when setting up or growing a business in the country. While it’s definitely smaller than the USA, it’s also essential to keep in mind that France just isn’t small by European standards, and just like the differences between US states, there’s considerable regional variation across the country.
Whether it’s something easy, reminiscent of higher rates of smoking amongst French adults (around 33% versus 12% in the US) and the dearth of a widespread tipping culture, or more complex subtleties in language, politics and history, there are lots of things which may surprise you about France as an American. That is why we propose you seek advice from individuals who know the country well at many points in your small business to understand how it would appeal to your French customer base.
There are also differences in laws and regulations which will affect your small business, so it is often price doing thorough research when developing a French marketing strategy to discover and factor in aspects that will not apply in the US.
Four: Understand the French work culture
The American work culture is quite different from its European friends, with US residents generally working longer hours, taking less vacation time and eating lunch (in the event that they don’t skip it) at their desks. It is also not unusual for people to answer phones and emails outside of working hours, and employers tend to have more flexibility when it comes to hiring and firing.
The French, then again, tend to have a quieter pace of life, helped each by the protection of government-contracted staff and the expectations of their working population at every point of the pay scale. This may increasingly require some adjustments when running a business and is something you need to plan for – however the advantage is that if you have chosen to live in France, you will find a way to enjoy a slower pace of life!
Some things to consider regarding the French work culture are:
- The French will take a lunch break from the desk, so unless you arrange a specific lunch trip, this just isn’t a good time for phone calls, meetings and emails (if you need an instantaneous response).
- Not only have they got much more vacation entitlements than Americans typically do, they really take them (while the typical U.S. employee who gets paid vacation it takes up only 54% of the allocated time every year.) This tends to be most noticeable in July and August when business slows down significantly, and since many employees book more day without work around bank holidays, it pays to plan for these times of 12 months.
- Since 2017, managers and employees of firms with greater than 50 employees should not required to respond to emails outside of working hours, and employees of smaller firms are likely to follow suit.
- French corporate operations are mostly very hierarchical. When doing business with one other company, take the time to understand the chain of command to ensure you’re talking to the correct people to get results.
- Employment in France is an expensive proposition. Employers must take note of high individual taxes when determining employees’ wages and the list of worker advantages they’re supposed to provide. Although these costs are high, people doing business in France typically receive a expert and secure workforce.
- Networking is commonly the key to success in the French business world, and private recommendations often mean greater than praise and titles. Establishing business relationships in France might be tougher than in America (although the character of collaboration in American business can provide you a ready-made advantage), but they have a tendency to last a very long time, making them well well worth the effort.
There may be a world of opportunities for American entrepreneurs who determine to take the leap and begin a business in France, and with the correct research, a comprehensive marketing strategy, and America’s famous work ethic, success à la française may very well be within sight.
This post was written by Katya Puyraud, a company formation expert at EuroStart Entreprises who helps entrepreneurs set up a company in France and eliminate the headache of opening a business abroad.