For many Americans, the prospect of France is romantic, and hugely popular movies and TV series comparable to Amelie, Chocolat, and Emily in Paris reinforce France’s status as a spot of glamour, glamour, and self-indulgence. But while the appeal of France’s lifestyle and culture is undeniable, the country also offers something lesser-known – a spread of business opportunities able to be exploited by American entrepreneurs with a world mindset.
With estimate 4,500 US corporations already operating in France, it is obvious that the country is a sexy prospect for American businessmen, and La République française has the potential for excellent success. However, if you wish to start a business in France (or expand what you are promoting there) as a US citizen, it at all times pays to know as much as possible prematurely to plan rigorously, avoid common pitfalls and provides what you are promoting the very best likelihood of prosperity.
Why France?
As the third largest economy in Europe (and seventh on the planet), there’s an extended list of the reason why France is so attractive to business people, a few of which include:
- France is a vibrant and diverse country that boasts a talented workforce, a big consumer population and access to the world’s largest trading bloc because of its membership of the European Union.
- It can be friendly and business-friendly, with the French government offering financial incentives to each recent and existing corporations and investing heavily in research and development.
- France has a strategically useful location based on a highly developed transport infrastructure, which greatly facilitates travel and transit each inside and outdoors the country. For example, London could be reached by Eurostar from Paris in lower than 2 and a half hours.
- Not only is France large economically, France is the most important country in Europe by land area and consists of thirteen regions, each offering unique opportunities for entrepreneurs. It also borders eight countries and has the English Channel, Atlantic and Mediterranean coasts.
- As a world business hub, the Paris region enjoys global status as a significant business hub and is primary in Europe for the placement of the world’s 500 largest corporate headquarters.
Five suggestions for starting a business in France
One: Get able to navigate bureaucracy
For foreign company founders from outside the EU, EEA or Switzerland, there are, as you may expect, just a few ‘i’s to cross out when organising an organization in France, and the method can take a while. That said, France is entrepreneur-friendly enough though that you could find there are fewer hurdles to hop over than you initially expected, and there are many resources you possibly can access to make the method easier.
Anyone can arrange a business in France by taking steps comparable to registering a business address and opening a checking account within the country, but when you wish to move to France to begin a recent enterprise, it’s best to apply for an extended term visa referred to as the “Entrepreneur” temporary residence permit /self-employed” (VLS-TS).
Eligibility is decided by aspects comparable to the flexibility to offer proof that you’ll engage in an economically viable activity during your stay, and once approved, your visa will assist you to stay for 12 months. During this time, you possibly can live in France and perform the industrial activity you mentioned in your application.
This involves a visit to the French consulate, of which there are ten in the most important cities within the USA. Once established, you’ll need to register your French company in line with the relevant category of your enterprise. Also note that France has specific regulations in various business sectors and employment practices, and company banks in France require a minimum capital investment.
Two: Start learning the language
With a population that hails from every corner of the globe, multilingualism will not be unusual within the US – one in five American adults speaks a language aside from English at home (Spanish being probably the most common). But while there isn’t any official language within the US, it’s secure to say that English is the de facto, and particularly within the business world.
It can be a proven fact that English is probably the most widely understood language within the EU, and a big proportion of Europeans speak English as a second language (a powerful 25% are capable of hold a conversation in two additional languages along with their mother tongue). Moreover, 39% of French people say they speak English, and plenty of expats move to the country without speaking French.
Still, it could be a mistake to assume that you may easily default to English and thrive by running a business in France. The population of France speaks mainly French, each in a private and skilled context, and the French take pride within the language.
English could also be widely spoken in business circles, but a willingness to learn and use French greeting phrases could be greatly appreciated. Please note that proficiency in English will not be a given. Over time, many expats find that perfecting their French language skills is vital to having fun with all that the country has to supply.
You must also consider the proven fact that French is the one accepted language for official documents and contracts, and since 61% of French people don’t speak English, you’ll need a plan for resolving language discrepancies in what you are promoting operations.
Three: Think a few recent audience
In many vital ways, France will not be too different from the United States, however it remains to be vital to not underestimate cultural differences when organising or growing a business within the country. While it’s definitely smaller than the United States, additionally it is vital to do not forget that France will not be small by European standards, and just like the differences between US states, there’s considerable regional variation across the country.
Whether it’s something easy, comparable to higher rates of smoking amongst French adults (around 33% versus 12% within the US) and the dearth of a widespread tipping culture, or more complex subtleties in language, politics and history, there are numerous things that may surprise you about France as an American. That’s why we advise you seek advice from individuals who know the country well at many points in what you are promoting to grasp how it’d appeal to your French customer base.
There are also differences in laws and regulations that will affect what you are promoting, so it is often value doing thorough research when developing a French marketing strategy to discover and think about aspects that won’t apply within the US.
Four: Understand the French work culture
The American work culture is relatively different from its European friends, with US residents generally working longer hours, taking less vacation time and eating lunch (in the event that they don’t skip it) at their desks. It’s also not unusual for people to reply phones and emails outside of working hours, and employers are inclined to have more flexibility on the subject of hiring and firing.
The French, however, are inclined to have a quieter pace of life, helped each by the protection of government-contracted staff and the expectations of their working population at every point of the pay scale. This may require some adjustments when running a business and is something you want to plan for – however the advantage is that if you could have chosen to live in France, you’ll have the opportunity to enjoy a slower pace of life!
Some things to think about regarding the French work culture are:
- The French will take a lunch break from the desk, so unless you arrange a particular lunch trip, this will not be a great time for phone calls, meetings and emails (should you need a direct response).
- Not only have they got much more vacation entitlements than Americans typically do, they really take them (while the common U.S. employee who gets paid vacation it takes up only 54% of the allocated time annually.) This tends to be most noticeable in July and August when business slows down significantly, and since many employees book more time without work around bank holidays, it pays to plan for these times of yr.
- Since 2017, managers and employees of corporations with greater than 50 employees aren’t required to reply to emails outside of working hours, and employees of smaller corporations are prone to follow suit.
- French corporate operations are mostly very hierarchical. When doing business with one other company, take the time to grasp the chain of command to make sure you’re talking to the suitable people to get results.
- Employment in France is an expensive proposition. Employers must take note of high individual taxes when determining employees’ wages and the list of worker advantages they’re alleged to provide. Although these costs are high, people doing business in France normally get a talented and secure workforce.
- Networking is commonly the important thing to success within the French business world, and private recommendations often mean greater than praise and titles. Establishing business relationships in France could be harder than in America (although the character of collaboration in American business can provide you with a ready-made advantage), but they have an inclination to last an extended time, making them well well worth the effort.
There is a world of opportunities for American entrepreneurs who resolve to take the leap and begin a business in France, and with the suitable research, a comprehensive marketing strategy, and America’s famous work ethic, success à la française could possibly be within sight.
