How to Start a Consulting Company in France?: Steps, Requirements & Benefits

Are you considering starting a consulting company in France? As the gateway to Europe, France offers immense opportunities for foreign entrepreneurs looking to expand their business in one of the world’s most dynamic markets. 

France, the seventh-largest economy in the world, is renowned for its rich culture, robust infrastructure, and pro-business environment. Entrepreneurs from all over the globe find France an attractive destination to launch and grow their ventures. Among the thriving industries, consulting stands out as a dynamic and lucrative sector. 

If you’re considering starting a consulting company in France, this comprehensive guide will walk you through the benefits, requirements, and steps to turn your dream into reality.

Why Start a Consulting Company in France?

Starting a consulting business in France offers numerous opportunities due to the country’s thriving business ecosystem and diverse market.

Here’s why France is an ideal location:

Strategic Location in Europe: 

France’s position at the heart of Europe provides easy access to a large market of over 450 million consumers. Entrepreneurs can leverage this geographical advantage to offer cross-border consulting services.

Booming Consulting Sector: 

The consulting industry in France has grown consistently, with an estimated market value exceeding €7 billion in 2023. This growth spans across various niches like IT, management, financial, and HR consulting.

Supportive Business Environment: 

The French government actively supports entrepreneurship through initiatives like “La French Tech” and grants for new businesses. Moreover, a streamlined business registration process and tax incentives for startups make it easier to set up and operate.

Access to a Skilled Workforce: 

France boasts a highly educated workforce, with over 35% of adults holding a tertiary degree. This provides consulting businesses access to a pool of talented professionals.

Types of Consulting Businesses You Can Start in France

Before you register a consulting company in France, it’s essential to identify the niche that aligns with your expertise and market demand.

Common types of consulting businesses include:

• Management Consulting: Focus on improving organizational efficiency and strategy.
• IT Consulting: Provide expertise in technology solutions, software integration, and cybersecurity.
• Financial Consulting: Help businesses with financial planning, investment strategies, and risk management.
• HR Consulting: Advice on talent acquisition, employee retention, and HR compliance.
• Marketing Consulting: Offer insights into branding, digital marketing strategies, and market research.

Legal Requirements to Start a Consulting Company in France

Before launching your consulting firm, ensure you meet the legal and regulatory requirements:

1. Business Structure: Choose an appropriate legal structure, such as:

• Société À Responsabilité Limitée (SARL): A limited liability company in France suitable for small to medium-sized businesses.
• Société par Actions Simplifiée (SAS): A simplified joint-stock company offering greater flexibility.
• Registration with RCS: Register your company with the French Trade and Companies Register (“Registre du Commerce et des Sociétés”).

2. Tax Identification Number (SIRET): Obtain a SIRET number to operate legally.

3. Professional License: Depending on your consulting niche, certain licenses or qualifications may be necessary.

Steps to Register a Consulting Company in France

Here’s a step-by-step guide to help you register a consulting company in France:

Select a Name for Your Company

• Choosing a distinctive company name is crucial to setting your firm out from the competition. Ensure the name aligns with French naming conventions, avoiding any terms that might be misleading or inappropriate.
• You can check the availability of your chosen name through the Institut National de la Propriété Industrielle (INPI), which maintains a registry of trademarks and business names. Performing this check guarantees that your name is distinctive in the marketplace and avoids potential legal problems.

Draft the Articles of Association

• This foundational document is a critical requirement when registering your company. It outlines your business’s structure, including details about ownership, roles, and governance.
• The articles should also specify the decision-making processes, profit-sharing arrangements, and procedures for admitting new partners or shareholders. 

Set up a Corporate Bank Account

• Once your business name and articles of association are ready, the next step is to set up a corporate bank account in France. Choose a reputable bank that offers services tailored to startups and SMEs.
• Deposit the required initial capital, which varies based on your company’s legal structure. For example, a SAS requires a minimum share capital of €1, while a SARL typically starts at €1 but often involves higher contributions. The bank is going to provide a certificate of deposit, which is mandatory for registration.

Register with the Commercial Court

• Submit your incorporation documents, including the business plan, articles of association, and bank certificate, to the Commercial Court (Tribunal de Commerce).
• This step formalizes your company’s existence and allows you to operate legally. You will be issued an official certificate of registration upon approval.

Obtain a SIRET Number

• The SIRET number, issued by the Centre de Formalités des Entreprises (CFE), is your company’s unique identifier in France. It consists of 14 digits and is required for all official transactions, such as invoicing and tax reporting.
• To prevent delays in this crucial step, make sure all of your documentation is correct and comprehensive.

Register for VAT

• Registering for VAT (Value Added Tax) is a crucial part of starting your business. Depending on your annual turnover, you may qualify for simplified VAT regimes.
• Additionally, ensure you understand corporate tax obligations, which include filing annual tax returns and paying social contributions. 

Key Benefits of Starting a Consulting Company in France

1. Diverse Market Opportunities: With industries ranging from technology and finance to healthcare and manufacturing, consultants can cater to a broad spectrum of clients.
2. Government Incentives: France offers attractive incentives such as tax credits (e.g., the Research Tax Credit) and funding programs for small businesses and startups.
3. Innovation-Friendly Environment: France is a hub for innovation, ranked among the top 20 innovative countries globally. This fosters growth for consulting firms specializing in technology and business transformation.
4. Stable Economy: Despite global economic fluctuations, France maintains a resilient economy, making it a safe and promising destination for investment. 

Taxation and Accounting for Consulting Companies in France

Understanding France’s taxation system is crucial to running a successful consultancy company.

Here are the key aspects:

Corporate Tax:

• The standard corporate tax rate in France is 25% as of 2024.
• Startups may benefit from reduced rates during their initial years.

Value Added Tax (VAT):

• VAT applies to most goods and services at a standard rate of 20%.
• Consulting companies must register for VAT and file periodic returns.

Social Contributions:

Employers must contribute to social security, which includes pensions, healthcare, and unemployment benefits.

Accounting Requirements:

Maintain accurate financial records, including invoices, receipts, and tax filings.

Conclusion

Starting a consulting company in France is an excellent opportunity for entrepreneurs looking to tap into a vibrant and diverse market. With access to qualified talent, a positive business climate, and a strategic location, France offers the perfect backdrop for your consulting venture. By understanding the legal requirements, leveraging the available incentives, and staying compliant with tax regulations, you can successfully launch and grow your consultancy business in France.

If you’re ready to start a consulting business in France, connect with our industry experts from OnDemand International. We can assist you in registering your consulting business in France, ensuring a seamless and efficient setup process. With the right strategy, your consultancy company in France could soon become a trusted name in the industry!