If you are the only investor in your business enterprise, it would be advisable to establish a French sole proprietorship because this type of entity is for those people who don’t want to invest large amounts of money, have a small business, etc. When you open a company in France as a sole proprietorship, also known as an entreprise individuelle, you should know that our French agents are at your service with in-depth support.
| Quick Facts | |
|---|---|
| Who can register sole proprietorships in France? | Local and foreign entrepreneurs who want to do business on their own. |
A sole trader is also known as | Entreprise Individuelle (EI) |
Legislation | Commercial Law in France |
| Authority in charge of registration | Chamber of Commerce in France |
| Minimum share capital | Not imposed |
| Documents | – ID/passport, – standard forms, – residence permit for foreign investors, – clear criminal record, – proof of address, etc. |
| Local agent required | Not imposed, but recommended. Our French agents can represent entrepreneurs in registering a sole proprietorship in France. |
| Status | Micro-entrepreneur |
| Administrative costs | Minimal |
| Social security registration | Mandatory with URSSAF (Unions de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiales) |
| Tax registration required (YES/NO) | YES |
| Taxation of sole traders in France | Progressive income tax, starting from EUR 223 to EUR 531 for annual revenue of up to EUR 10,000. |
| Time frame to register a sole trader in France | Around 7-15 working days |
| Precautions | Foreigners must pay attention to the business license requirements, tax regime, approvals, and business insurance. |
| Costs for establishing a sole trader in France | For: – incorporation, – trade license, – office rental, – local agent, – notary fees, etc. |
Formalities for opening a sole trader in France
Company formation in France can mean for foreign entrepreneurs the establishment of a sole trader or entreprise individuelle, as it is also known. In the following lines, you can find out some of the most important formalities and conditions, which our French agents can take care of:
- persons aged at least 18 are eligible to set up a sole trader in France.
- the name of a sole trader must be verified and reserved before being used. Trademark registration is also recommended to protect the business.
- depending on the activities to be carried out as a sole trader in France, entrepreneurs must register the business either with the Chambre de Métiers et de l’Artisanat (CMA) (craft activities) or with the Chambre de Commerce et d’Industrie (CCI) (commercial activities).
- in terms of documents, the following are required: ID/passport, proof of residency, a clear criminal record, or police clearance from the country of origin.
- businessmen coming from non-EU countries must first obtain a residence permit in order to set up a sole proprietorship in France.
- entrepreneurs must obtain a SIREN number from the French National Institute of Statistics and Economic Studies. With the ID, the business can be easily identified in France.
- SIRET is the ID used for identifying the sole trader in France for tax & social security purposes, establishment/location of the firm.
- opening a bank account for your sole proprietorship in France is also required. You can choose from French local banks or from branches of foreign financial institutions established in this country.
You may explore this infographic with details on this topic:
Features of a French sole proprietorship
To open a company in France as a sole proprietorship means that you and your business will be treated as one entity. Your personal assets and those of the business will be merged into one. As a consequence of your French sole proprietorship, you will be personally liable for all the obligations of your business. That is why the French government created a new form of sole trader enterprise, which limits the liability of the businessman. It is called enterprise individuelle a responsibilite limitee or limited liability sole proprietorship. Under this structure, the French sole trader only has to allocate a certain amount of his personal assets as part of the business, and his liability will only be up to such allocation.
Taxation of sole traders
French sole proprietors are taxed under the progressive personal income tax. Since there is no separate legal entity, the income of the business is also considered the income of the proprietor. Under the personal tax system, sole proprietors are either subject to a regime called Benefice Industrial Commercial, if the business is commercial, trade-based, or industrial, and Benefice Non Commercial if the sole proprietorship is of a professional nature.
The status of a sole trader in France
Sole traders in France carry out their activities as self-employed. In fact, sole traders in France do not receive a salary and are directly responsible for the profit and losses in the firm. Compared to employees of a company, sole traders have lower social security costs, which makes this business structure not only flexible but also appreciated and popular. You can learn more about sole proprietorship in France by working with our specialists.
About the French economy in a few lines
Entrepreneurs prefer business destinations where the climate is stable and the economy is on positive trends. If you also want to open a sole proprietorship in France and want to know where you will conduct your business, these statistics can help you:
- An economic growth of up to 1% (0.8% according to specialists) is estimated in France in 2025.
- Around USD 3.162 trillion was the total GDP value of France in 2024.
If you are ready to start a sole proprietorship in France, you can benefit from our complete services. We can also provide you with a French accountant to know all the rules and formalities. Please explore this article and then contact our specialists in company incorporation in France for specialized assistance.
We can also help you if you want to open a sole trader in other countries, such as Finland.