Can Foreigners Own 100% of a Company in France? Debunking the Myths

As an entrepreneur considering opening a company in France, you’ve likely encountered conflicting information about foreign ownership laws. Some might tell you that France’s business laws heavily restrict foreign ownership, while others paint a picture of unlimited opportunities. So, which is true? Can foreigners own 100% of a company in France, or is this simply a myth?

In this blog post, we’ll clear up any confusion around this topic, providing clarity on the laws surrounding company formation in France and what foreign investors need to know to establish their businesses in this thriving European market.

The Basics: Company Registration in France

Before diving into the specifics of foreign ownership, it’s crucial to understand how company registration in France works. France has a highly developed business infrastructure, making it an attractive destination for entrepreneurs globally. Foreign nationals are permitted to register a company in France, and the process is relatively straightforward if you follow the correct legal framework.

The two most common types of companies you’ll come across when considering company formation in France are:

• Société à Responsabilité Limitée (SARL): This is the French equivalent of a limited liability company (LLC). It’s suitable for small to medium-sized businesses.

• Société par Actions Simplifiée (SAS): This is a more flexible business structure often used by larger businesses or startups with high growth potential.

Both types allow foreign investors to be shareholders, and both can be fully owned by foreign nationals. Now, let’s delve deeper into the aspect of foreign ownership.

Can Foreigners Own 100% of a Company in France?

The short and clear answer is: Yes, foreigners can own 100% of a company in France.

This is one of the biggest myths in the business world that we are here to debunk. There are no specific restrictions in France that prevent a foreigner from holding complete ownership of a French company, whether they are a citizen of the European Union (EU) or a non-EU country.

However, this doesn’t mean that there are no regulations or steps to follow. There are certain legal, tax, and administrative considerations that need to be addressed when setting up a company as a foreigner. Let’s take a closer look at some of these.

Important Considerations for Foreign Entrepreneurs

1. Legal Framework and Business Structures:
   When you’re opening a company in France, the structure of your business matters. The two main types of companies—SAS and SARL—allow foreign ownership. You can have one shareholder or multiple, and as a foreigner, you can own 100% of the shares.

2. Registered Office Requirement:
   One important requirement is that the company must have a registered office in France. This means you need a physical address where all official documents and communications can be sent. This is a standard requirement for any company registration in France, regardless of the nationality of the business owner.

3. Minimum Capital Requirements:
   The minimum capital requirement can differ depending on the type of company you choose to form. For an SAS, the minimum share capital is only €1, while for an SARL, it starts at €1, but is often higher in practice to ensure the company’s credibility. This is particularly important when you’re planning your company formation in France, as this impacts how much you need to invest upfront.

4. Tax Considerations:
   Like any country, France has its own tax system. As a foreign owner, you will be subject to the same taxes as French nationals, including corporate tax, VAT, and others. Depending on your business structure, profits may also be subject to social security contributions, and dividends paid to you may be taxed. It’s advisable to consult with a tax advisor who specializes in French business law to understand the implications for your specific situation.

5. Managing Your Business from Abroad:
   While you can own 100% of a French company, you don’t necessarily need to live in France to run it. Many foreign business owners manage their French companies remotely or hire local staff to handle day-to-day operations. However, if you plan to take a more active role in the business, you may need a visa or residence permit, depending on the nature of your involvement.

What Are the Benefits of Owning a Company in France?

France is one of Europe’s largest economies and offers numerous advantages to foreign business owners. Some key benefits include:

• Access to the European Union (EU) Market: Owning a company in France opens the door to the entire European market, providing access to over 440 million consumers. France’s strategic location in Western Europe also offers proximity to other major markets such as Germany, Spain, and the UK.

• Highly Skilled Workforce: France is home to a highly educated and skilled workforce, making it an excellent destination for businesses that require technical expertise, creativity, or advanced knowledge in fields like technology, engineering, and design.

• Government Support for Entrepreneurs: France has various incentives to encourage entrepreneurship, including low tax rates for new businesses, simplified company registration processes, and support for innovation and research.

Common Myths About Foreign Ownership in France

There are several myths about owning a business in France that often discourage foreign entrepreneurs. Let’s tackle some of the most common misconceptions:

1. Myth: You Can’t Own 100% of Your Company
   As mentioned earlier, this is simply not true. Foreigners can, and often do, own 100% of their companies in France. The legal structures allow for full foreign ownership.

2. Myth: You Need to Be a French Citizen to Open a Business
   Another myth is that you need to be a French citizen to establish a business in France. As a foreigner, you can easily register your company, as long as you meet the necessary requirements, such as having a French registered office and following the appropriate legal procedures.

3. Myth: Company Registration in France Is Complicated and Expensive
   While company formation in France involves a few steps, such as choosing your business structure, drafting your company bylaws, and opening a bank account, it’s not a particularly complex process. With the right guidance and preparation, opening a company in France is relatively straightforward, and it’s an investment that can pay off in the long term.

Also Read: Documents Needed for French Limited Liability Company

Conclusion

In summary, foreigners can absolutely own 100% of a company in France. The French business environment is welcoming to international entrepreneurs, offering flexibility and opportunities in a dynamic and robust market. By understanding the process of company registration in France and considering key factors like business structure, tax obligations, and the need for a French registered office, you can successfully navigate the path to establishing your business in one of Europe’s most thriving economies.

Whether you're launching a small startup or a large-scale enterprise, opening a company in France can be a smart move for your global business strategy.

FAQs

1. Do I need to speak French to start a business in France?
While speaking French is not a requirement for owning a business in France, having some knowledge of the language can be very helpful, especially when dealing with local authorities or negotiating contracts. However, many services, including legal and accounting, are available in English.

2. Can I open a business in France if I don’t live there?
Yes, you can open and own a business in France even if you do not reside in the country. However, you will need a registered office in France and may need to appoint a local director or representative if you are not planning to be involved in the daily operations of the business.

3. What are the tax rates for businesses in France?
Corporate tax rates in France vary depending on the size and structure of your business. As of 2025, the standard corporate tax rate is 25%. However, there are tax incentives for startups and smaller companies, so it’s advisable to consult with a French tax advisor to understand your specific situation.