Initiating your own enterprise is a thrilling yet complex journey. If you’re contemplating launching a business in France as an expat, you’ll find a wealth of opportunities – from digital entrepreneurship to skilled trades, and from tourism to services catered towards fellow expats. However, as enticing as these avenues may seem, they come with their unique set of challenges.
First, let’s address the elephant in the room: the French market is already heavily saturated with tourism-related businesses, including Gîtes and B&Bs. According to Insee, the French National Institute of Statistics and Economic Studies, France received 89 million foreign tourists in 2021, thus maintaining its rank as the world’s top tourist destination. However, this has led to an oversupply of accommodation businesses, with growth in this sector remaining flat in recent years.
Therefore, if you’re keen on setting up a business in this sector, conduct thorough market research to understand the competition and to identify potential niches within the market that are less saturated. It is also recommended to diversify your offerings to retain and attract customers.
One potential area for business is in the skilled trades sector. With France currently experiencing a construction boom, there’s significant demand for professionals such as plumbers, carpenters, electricians, etc. According to the French Ministry of Labour, the construction industry in France employed around 1.44 million people in 2022, reflecting a steady increase from previous years.
However, while service-based businesses that cater to the expat community (like relocation services) might seem like a lucrative option, the reality is a bit different. With a wealth of free advice available online, many people are hesitant to invest in such services.
Instead, consider an internet-based business. With the pandemic accelerating digital transformation, there’s an increasing trend towards online businesses. According to the French Digital Economy Observatory, the number of digital startups in France has increased by 30% since 2021.
However, remember that setting up a digital business takes time. A solid business plan, effective marketing strategies, and a considerable time investment are essential for success.
To set up your business in France, you must first register it with the appropriate authority, which depends on your business’s nature. Skilled trade businesses are registered with the “Chamber de métiers”, service businesses with the “Union de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiale” (URSSAF), and commerce-related businesses with the “Chamber de Commerce”.
Taxation is another crucial aspect to consider. According to the French General Tax Code, taxes must be paid regardless of profit, and while you can delay payments, eventually, they will need to be paid. In the first year, the tax burden is €2,979, which increases to €4,443 in the second year. From the third year onwards, the tax is calculated at 45% of sales (less expenses).
Starting a business in France as an expat involves navigating a unique landscape, from understanding market dynamics to legal and fiscal requirements. Hence, it is highly recommended to seek professional advice, attend informational sessions like ‘Info-Créateurs’, and carry out comprehensive research before setting out on your entrepreneurial journey.