How to Start a Business in France 2026: SAS vs EURL vs Micro-Entrepreneur — Step-by-Step for Foreign Founders

France has the second-largest consumer market in the EU, a globally recognised brand for design, food, fashion and luxury, and a surprisingly generous start-up ecosystem (la French Tech, BPI, Crédit d'Impôt Recherche). It is also famous — fairly or not — for paperwork. Since the 2023 unification on the Guichet Unique INPI portal, the bureaucracy is genuinely lighter than it used to be, but for a non-resident founder there are still several traps. This 2026 guide compares the main entity types and details the full formation path for a foreign founder.

TL;DR — 5 Key Facts for 2026

1. Total formation cost (SAS, single shareholder): approximately EUR 300–800 including INPI registration, mandatory legal announcement (JAL ~EUR 200), and bank account setup. Micro-entrepreneur registration is free.
2. Minimum capital: EUR 1 for SAS, SASU, SARL and EURL — the famous EUR 1 social capital. AS / SA still requires EUR 37,000.
3. Time to register: 5–15 business days for a SAS once documents are complete. Micro-entrepreneur status can be live within 48 hours.
4. Tax burden (2026): corporate income tax 25% standard, reduced rate of 15% on the first EUR 42,500 of profit for qualifying SMEs. Dividend WHT 12.8% PFU (Prélèvement Forfaitaire Unique) plus 17.2% social levies for residents; 12.8%–25% for non-residents subject to DTT.
5. Best entity for a foreign founder: SASU for solo founders wanting flexibility, limited liability, and a "président" social regime that avoids the heavy TNS social charges of an EURL.

Informational content, not legal or tax advice. Company formation is complex; engage a French notary or expert-comptable.

Entity Types Comparison

Recommended Entity for a Foreign Founder

For most non-resident founders launching a software, consultancy, agency or DTC e-commerce business in France, the SASU is the modern default. Reasons:

• The president is treated as an assimilé-salarié, paying social charges only when actually drawing a salary. This makes a SASU drastically cheaper than an EURL in the early "no salary yet" months.
• It is the structure venture investors and accelerators expect.
• It accepts foreign shareholders and directors with no nationality test.
• It can elect for IR (income tax pass-through) during the first five years if the company is loss-making.

An EURL is preferable if you want lower social charges as a working director once the business is profitable (TNS regime ~45% on net remuneration vs ~80% loaded cost for SASU président), and you do not need the share flexibility of a SAS.

A micro-entrepreneur registration is excellent for freelancers earning below EUR 77,700 (services) or EUR 188,700 (commerce) per year, but is generally not available to non-residents without a French tax address.

Step-by-Step Formation Process (SASU / SAS / EURL)

1. Choose a name and trademark check. Search the INPI trademark database to avoid conflicts. Reservation is not strictly required but recommended.
2. Draft the statuts (articles of association). Must include corporate purpose (objet social), share capital, share allocation, governance rules. Bilingual (FR/EN) is fine but the FR version prevails.
3. Open a corporate bank account and deposit capital. Capital can be split across cash and in-kind. The bank issues a Certificat de dépôt des fonds.
4. Appoint a commissaire aux apports if in-kind contributions exceed EUR 30,000 or represent more than half of share capital.
5. Publish a legal announcement (annonce légale) in an approved journal (JAL). Cost is regulated by decree: approximately EUR 138–193 depending on département.
6. File the formation file via the Guichet Unique INPI (which replaced the CFE network in 2023). The file forwards automatically to the Greffe du Tribunal de Commerce, INSEE (for SIREN/SIRET), URSSAF, and the Service des Impôts des Entreprises (SIE).
7. Receive the KBIS (extrait Kbis) — the company's official registration certificate. Issued within 1–8 working days of file acceptance.
8. Activate VAT (TVA intracommunautaire). Allocated by the SIE; usually within 1–4 weeks. Foreign founders may face additional KYC.
9. Register beneficial owners (RBE) at the Greffe within 30 days of incorporation.
10. Optional but recommended: trademark filing at INPI (EUR 190 for one class), domain registration (.fr requires EU presence — your SASU qualifies).

Required Documents (Non-Resident Founder)

• Passport copy (apostilled if not presented in person)
• Proof of address (utility bill, bank statement under three months)
• Sworn declaration of non-conviction (déclaration sur l'honneur de non-condamnation) and filiation (parents' names)
• Lease, domiciliation contract or owner's authorisation for the French registered office
• Bank certificate of capital deposit
• JAL receipt
• Signed statuts and minutes of incorporation (PV de constitution)
• Tax ID from your country of residence (NIF/NIP)

Capital Requirements — Paid-Up vs Subscribed

For SAS, SASU, SARL and EURL the legal minimum is EUR 1. In practice, banks and large clients react better to capital of EUR 1,000–10,000. Cash contributions: at least 50% (SAS) or 20% (SARL) paid in at incorporation, balance within 5 years. In-kind contributions must be fully transferred at incorporation. Contributions in industry (compétences) are allowed in SAS but cannot count toward share capital.

Ongoing Obligations

• Bookkeeping: Double-entry mandatory for SAS, SASU, SARL, EURL on IS. Micro-entrepreneurs keep only a simple revenue book.
• Annual filings: Financial statements (bilan, compte de résultat, annexe) filed with the Greffe within 7 months of fiscal year end. Small SAS can request confidentiality of the income statement.
• Audit threshold: A statutory auditor (commissaire aux comptes) is required if two of: balance sheet EUR 5M, revenue EUR 10M, 50 employees.
• Shareholder meetings: Annual general meeting within 6 months of fiscal year end to approve accounts.
• Beneficial owner register (RBE): Updates within 30 days of any change.
• CFE (Cotisation Foncière des Entreprises): Local business tax, due even in year 1 in many municipalities; minimum a few hundred euros.

Tax Overview (2026)

• Corporate income tax (Impôt sur les Sociétés, IS): 25% standard rate. Reduced rate of 15% on first EUR 42,500 of profit for SMEs with capital fully paid-in, revenue below EUR 10M, and at least 75% held by individuals.
• Dividend tax for individual residents: 12.8% PFU + 17.2% social = 30% flat (or option for progressive scale).
• Dividend WHT non-residents: 12.8% by default, reducible under DTT (Poland: 5% if Polish corporate shareholder holds ≥10%; 15% otherwise for individuals).
• VAT (TVA): Standard 20%, intermediate 10%, reduced 5.5%, super-reduced 2.1%. Franchise en base TVA threshold (2026): EUR 37,500 services / EUR 85,000 commerce.
• Payroll tax: Withholding at source (prélèvement à la source) for employees.
• Employer social security: Approximately 42–45% on top of gross salary for typical employees; reduced via "réduction générale" (Fillon) up to 1.6× SMIC.
• CVAE: Being phased out, full abolition planned by 2027.

Bank Account Opening

Traditional French banks (BNP, Société Générale, Crédit Agricole, LCL, Crédit Mutuel) require an in-person meeting with the legal representative and proof of French ties. For non-residents, this often delays the process by weeks. Fintechs accepted by the Guichet Unique for capital deposit include Qonto, Shine, Finom, Blank, and Memo Bank. Qonto is the dominant choice for SASU/EURL — issues an IBAN within 24–72 hours, accepts non-resident directors, and is widely recognised by the Greffe.

Hiring and Employment

• Minimum wage (SMIC 2026): approximately EUR 11.88/hour gross, EUR 1,802/month for a 35-hour week.
• Employer cost on top of gross salary: roughly 42–45%. A EUR 60,000 gross salary therefore costs around EUR 84,000–87,000 loaded.
• Notice period: 1 month under 2 years tenure, 2 months above (cadre rules differ — typically 3 months).
• Mandatory paid leave: 5 weeks (25 working days) + RTT depending on convention collective.
• Probation period: 2 months for employees, 4 months for cadres, renewable once.

Tracking Business Cashflow + Personal Finances Separately + Multi-Currency Runway

French entrepreneurs juggle SASU revenue in EUR, occasional GBP/USD invoices, and personal accounts that need to survive months of "no dividend yet". A tool like Freenance is built for this split — it keeps business and personal cashflow on distinct ledgers, supports multi-currency balances, and computes a Financial Freedom Runway that tells you how many months your household and your SASU can each survive at current burn. That horizon is particularly useful when planning the timing of your first dividend or salary increase, since both trigger immediate social and tax friction in France.

When to Choose France

• You sell B2C in France or DACH-adjacent markets — French clients heavily prefer invoicing from a French SIREN.
• You want access to Crédit d'Impôt Recherche (CIR) — up to 30% of R&D costs refundable for software/biotech.
• You need EU work permit (Passeport Talent for founders raising EUR 30,000+).
• You plan to apply to la French Tech accelerators or BPI funding.

When NOT to Choose France

• You are a solo digital nomad with no French clients — Estonia, Bulgaria or Cyprus are cheaper and lighter on social.
• You expect to draw a large director salary fast — the assimilé-salarié regime adds ~80% loaded cost.
• You want minimal admin — France still requires more filings per year than most low-tax EU jurisdictions.
• You cannot fund a French domiciliation and at least basic French-speaking accountant.

Worked Example — Non-Resident Founder, EUR 50,000 Capital, EUR 200,000 Y1 Revenue

Setup: solo founder incorporates a SASU with EUR 10,000 capital (EUR 40,000 held as shareholder current account loan), generates EUR 200,000 net revenue, EUR 60,000 OpEx, and pays themselves a modest EUR 30,000 gross president's salary in year 1 to keep social charges manageable.

• Profit before tax: EUR 200,000 − EUR 60,000 OpEx − EUR 30,000 salary − EUR 24,000 employer social (~80%) ≈ EUR 86,000.
• Corporate tax: 15% × EUR 42,500 = EUR 6,375; 25% × (EUR 86,000 − EUR 42,500) = EUR 10,875. Total IS ~EUR 17,250 (effective ~20%).
• Net profit after IS: EUR 68,750. Distributed as dividend: 12.8% PFU + 17.2% social = 30% (resident) → EUR 20,625 deduction.
• Founder net dividend: EUR 48,125.
• Combined with EUR 30,000 salary (post-employee social ~22% and IR scale ~14%): take-home ~EUR 20,000.
• Combined founder net cash Y1: ~EUR 68,000 on EUR 200,000 revenue.

Polish Reader Angle — Forming a French Company From Poland

A Polish citizen incorporating a SASU while remaining Polish tax-resident must consider:

• CFC rules: A normally operating French SASU paying full IS is generally outside CFC scope; passive holding companies need review.
• Exit tax (PL): Triggered when transferring tax residency abroad with worldwide assets above PLN 4,000,000.
• Poland-France DTT (2024 protocol): Dividends taxed at 15% French WHT (5% for Polish corporate shareholders with ≥10% holding). Credit method applies in Poland.
• ZUS: Director with no salary may still owe Polish health insurance unless covered as French employee or self-employed elsewhere.
• Permanent establishment risk: Operating the SASU substantively from Poland can create a Polish PE. Mitigations: French co-director, French office, French staff.
• Société de famille option: Allows IR taxation under family conditions; rarely useful for non-residents.

FAQ

Do I need to live in France to be president of a SASU? No. Foreign nationals can be sole shareholder and president without French residency. EU/EEA citizens face no extra hurdles; non-EU citizens may need a long-stay visa if they intend to physically operate from France.

Can my registered office be a virtual address? Yes — domiciliation companies (sociétés de domiciliation) provide compliant addresses from EUR 25–80/month, with mail forwarding. The contract must be signed before filing.

How long until I get a French VAT number? 1–4 weeks typically; longer (up to 12 weeks) if the tax office requests additional KYC. Some Greffes pre-allocate it on KBIS issuance, but activation requires SIE approval.

Can I be paid in dividends without a salary? Yes for SASU (président without salary). Note that SARL/EURL TNS gérants pay social charges on dividends exceeding 10% of share capital plus current account balance.

What is the CIR (Crédit d'Impôt Recherche)? A tax credit equal to 30% of qualifying R&D expenditure up to EUR 100M, then 5% beyond. Refundable in cash for SMEs under specific conditions. Heavy documentation required.

Is a French expert-comptable mandatory? Not legally, but recommended. Filings, social declarations and IS computations are entirely in French. Expect EUR 1,500–4,500 per year for SASU bookkeeping plus annual accounts.

What is the CFE and when do I owe it? The CFE (Cotisation Foncière des Entreprises) is a local business tax payable from the second year of operation (year 1 is generally exempt for new SASUs). The minimum CFE depends on revenue and ranges from roughly EUR 240 to EUR 7,000+ in dense business districts. It is owed even if the SASU is dormant and is the most commonly overlooked French SME tax.

Can I take dividends in lieu of a salary as président of an SASU? Yes. Unlike EURL gérants majoritaires, the SASU président pays no social charges if no salary is drawn. Dividends are taxed under the 30% PFU (12.8% IR + 17.2% social levies). However, repeated dividend-only compensation may attract URSSAF scrutiny if you also benefit from social security coverage — long-term mix of small salary and dividends is the prudent path.

Are there any nationality restrictions on being SASU president? None. Any natural person of any nationality, resident or non-resident of France, may be sole shareholder and president. Non-EU nationals planning to physically work in France need an appropriate visa (often the Passeport Talent — Création d'Entreprise for founders with a EUR 30,000+ project).

What happens if I fail to file annual accounts on time? The Greffe du Tribunal de Commerce can impose a financial penalty and, after persistent failure, place the company in "radiation d'office" (struck off the register), which freezes bank accounts and exposes the president to personal liability for ongoing acts. File even if accounts show zero activity.

Sources

• French Tax Administration (Direction Générale des Finances Publiques)
• National Institute of Industrial Property (INPI) — Guichet Unique
• French Commercial Court Registries (Greffes des Tribunaux de Commerce)
• URSSAF — social contributions for assimilé-salarié and TNS
• Service-Public.fr — legal forms guidance
• Poland–France Double Tax Treaty (2024 protocol)
• Code de Commerce, Code Général des Impôts