Economic & Business Laws — France

Economic and Business Laws for Immigrants to France

*Note: French immigration and business law changes periodically (e.g., through annual "Loi Immigration" reforms and Finance Laws). Figures below reflect general 2024 conditions — always verify with official sources like service-public.fr, France Visas, or a French immigration lawyer/notaire before making decisions.*

Right to Work by Visa/Residence Permit Type

Short-Stay Visa (Schengen Visa)

• No right to work in France
• Business visitors can attend meetings/conferences but cannot be employed or paid by a French entity

Long-Stay Visas (VLS-TS) and Residence Permits (Titres de Séjour)

• "Visiteur" (Visitor) permit: Explicitly prohibits any professional activity; requires proof of sufficient means (~€1,383/month, SMIC-based) and health insurance
• "Salarié" (Employee) permit: Tied to a specific employer and job; employer must generally prove no suitable candidate exists in the EU labor pool (via DREETS authorization), though this requirement is waived for many skilled/shortage occupations
• "Passeport Talent" (Talent Passport): Multi-year permit (up to 4 years) for:
• Qualified employees (salary ≥ 1.8x SMIC, ~€3,100+/month gross)
• Business creators/entrepreneurs
• Investors (minimum €300,000 direct investment)
• Researchers, artists, innovative company founders
• Allows work rights for accompanying spouse automatically
• "Étudiant" (Student) permit: Allows work up to 964 hours/year (~60% of full-time)
• "Recherche d'emploi/création d'entreprise": 12-month permit for recent graduates or Talent Passport holders to seek work or start a business
• 10-Year Resident Card ("Carte de résident"): Full, unrestricted right to work in any profession

EU/EEA/Swiss Citizens

• Free movement rights; no work permit needed

Asylum Seekers

• Cannot work during first 6 months of application processing
• After 6 months without a decision, may apply for work authorization

Starting a Business as a Foreigner

Legal Structures

• Micro-entrepreneur (auto-entrepreneur): Simplified regime, revenue caps (~€77,700 for services, ~€188,700 for sales in 2024), simplified tax/social charges
• EURL/SARL: Limited liability company structures, no minimum capital requirement (as low as €1)
• SAS/SASU: Flexible corporate structure popular with startups and investors

Requirements for Non-EU Nationals

• Must hold appropriate residence permit allowing commercial activity (Talent Passport "entrepreneur" category or equivalent)
• Non-residents *can* legally create a French company remotely, but actually working in it as a director/operator in France requires proper immigration status
• Registration through INPI (Institut National de la Propriété Industrielle) via the guichet unique (single business window, replacing former CFE system)
• Need a French business address (domiciliation) and, for regulated professions, specific qualifications/diplomas recognized in France

Talent Passport – Entrepreneur Track

• Requires investment of minimum ~€30,000 in the business project
• Viable business plan and relevant qualifications/experience required
• Valid up to 4 years, renewable

Foreign Investment Restrictions

Screening Regime (Contrôle des Investissements Étrangers en France - IEF)

• Managed by the DGT (Direction Générale du Trésor) under the Ministry of Economy
• Non-EU investors face mandatory prior authorization when acquiring control (or in some cases >10% stake for listed companies) in "sensitive sectors":
• Defense, security, dual-use technology
• Energy infrastructure
• Critical data processing, AI, semiconductors
• Water supply, media, agri-food security-related sectors
• Penalties for non-compliance include fines up to 2x the investment value and potential nullification of the transaction

General Foreign Investment

• Most sectors have no restrictions on foreign ownership
• EU nationals generally exempt from IEF screening (with some exceptions)
• Real estate and general commercial investment remain open

Property Ownership Rights for Non-Citizens

• No nationality-based restrictions: Foreigners (residents or non-residents) can freely purchase real estate in France
• No residency requirement to buy property
• Notaire (public notary) is mandatory for all property transactions — handles legal verification, contracts, and registration
• Taxes on purchase:
• Notaire/registration fees: ~7-8% of purchase price for existing properties, ~2-3% for new builds
• Ongoing: taxe foncière (property tax) and formerly taxe d'habitation (now largely abolished for primary residences)
• IFI (Impôt sur la Fortune Immobilière): Wealth tax on real estate assets exceeding €1.3 million net (applies to worldwide property for French tax residents; only French property for non-residents)
• Foreign owners of French property must file French tax returns if generating rental income, regardless of residency status
• No permanent residency or citizenship benefit is gained merely through property purchase (France does not offer "golden visa" residency-by-investment through real estate alone)

Banking Access for New Immigrants

Right to a Bank Account ("Droit au compte")

• French law guarantees this right even to those denied by banks — via Banque de France intervention
• Process: if refused by a bank, obtain a "refusal certificate" (attestation de refus), then apply to Banque de France, which assigns a bank obligated to provide basic services within 3 business days

Practical Requirements

• Proof of identity: passport/national ID
• Proof of address: justificatif de domicile (utility bill, rental contract, or attestation d'hébergement)
• Proof of status: residence permit or visa (titre de séjour or VLS-TS)
• Some banks accept just a passport + address proof for basic accounts; others are stricter

Common Banks for Newcomers

• Traditional banks: BNP Paribas, Société Générale, Crédit Agricole, La Banque Postale (often more flexible for newcomers, linked to postal service)
• Online/neobanks: N26, Revolut, Boursorama — often easier onboarding, though some require an EU address or existing EU bank account initially

Business Banking

• Opening a professional bank account is mandatory for most company structures (SARL, SAS) before registration
• Micro-entrepreneurs technically must have a dedicated account for business transactions (simplified requirements)

Labor Law Protections for Immigrant Workers

Core Protections (Apply Regardless of Nationality)

• Code du Travail protections apply equally: minimum wage (SMIC: €11.65/hour gross as of 2024), 35-hour workweek standard, overtime rules, paid leave (5 weeks/year minimum)
• Anti-discrimination law: Discrimination based on nationality, origin, or immigration status in hiring/employment is illegal (Article L1132-1 Code du Travail)
• Collective bargaining agreements (conventions collectives): Sector-specific rules on wages, benefits often apply regardless of immigration status

Specific Safeguards

• Undocumented workers: Even without proper authorization, French law entitles workers to back pay, damages for illegal employment, and protection if exploited — employers face heavy fines/criminal liability for hiring undocumented workers (not the worker)
• Contract types: CDI (permanent), CDD (fixed-term) — immigrants on work-tied visas often start with CDI/CDD tied to permit sponsorship; job loss can affect visa renewal (except Talent Passport holders who have more flexibility)
• Union rights: Immigrant workers can join and be represented by unions (CGT, CFDT, etc.) regardless of status
• Inspection du Travail: Labor inspectorate can be contacted confidentially for workplace violations, wage theft, or unsafe conditions

Visa-Employment Interdependency Risks

• For "salarié" permit holders, job loss can jeopardize permit renewal — must find new employer and update authorization within a defined window (generally must reapply/transfer sponsorship)
• Talent Passport and 10-year card holders have far more job mobility freedom, not tied to single employer

Key Recommendations

• Consult a French immigration lawyer (avocat en droit des étrangers) for permit-specific work authorization questions
• Engage a notaire for any property purchase — mandatory and protects against fraud
• Verify visa category work rights directly via France Visas or your local préfecture before signing employment contracts
• For business creation, consult INPI and Business France (official foreign investment agency) for updated procedures
• Check DGT sensitive sector list before foreign investment/acquisition in strategic industries
• Monitor annual Finance Law changes affecting SMIC, tax thresholds (like IFI), and visa salary requirements, as these are typically updated each January

More about immigrating to France