Establishing a Company in France for Turkish Entrepreneurs: Residency, Company Types, Taxes, and the Establishment Process

Can Turkish entrepreneurs establish companies in France? A comprehensive legal guide explaining company formation in France under SAS, SASU, SARL, and EURL licenses, including requirements for unique registration, capital, bank accounts, taxes, VAT, legal declarations, beneficiary declarations, and residency permits.

For Turkish entrepreneurs, establishing a company in France means more than just entering a new market; it also means positioning oneself within a strong legal system, a large consumer market, and an institutional investment ecosystem within the European Union. However, company formation in France is not exactly the same as the process in Turkey. The choice of company type, capital investment, determination of company headquarters, legal notification, beneficiary declaration, digital registration, bank account, tax, and residence status are all interconnected. Therefore, Turkish entrepreneurs wishing to establish a company in France should view the process not merely as a commercial registry transaction, but as a multi-layered legal project. (entreprendre.service-public.fr)

The first critical distinction regarding company formation in France is this: Will the Turkish entrepreneur without settling , or will they move to France and manage the company themselves ? Official French sources clearly distinguish between these two situations. According to Entreprendre Service Public, a non-EU foreigner who wants to conduct independent commercial, industrial, or craft activities in France needs a residence status that permits this. In contrast, a person who does not intend to live in France can complete the incorporation formalities without special prior permission; however, the same official source emphasizes that a person who does not reside in France mandataire social , i.e., official director, in the company. Since Turkish citizens are considered in the category of non-EU foreigners by France, this distinction is directly important for them. (entreprendre.service-public.fr)

Therefore, a Turkish entrepreneur must first answer this question: “Will I own a company in France, or will I manage the company myself while living in France?” If the aim is only a partnership or investment, it is possible to establish the company in France and create a remote ownership structure. However, if the aim is to actually live in France and manage the business, official public service pages clearly state the need for a visa and then a suitable residence permit. Entreprendre Service Public particularly the talent-porteur de projet regime in this scenario, along with sub-paths such as company formation, innovative projects, or direct economic investment. Bpifrance also states that in long-term visa applications for foreign project owners, the economic viability of the project and its capacity to generate resources at least at the SMIC level are examined. (entreprendre.service-public.fr)

Which type of company is more suitable for a Turkish entrepreneur in France?

In France, the most common company types are SAS , SASU , SARL , EURL , and SA for larger structures . According to the official comparison page, the choice of company type directly affects the number of shareholders, capital structure, the status of the director, the social security regime, and the tax structure. Therefore, the question "which is the most popular company type?" is not the only correct question; what matters is which structure best suits your business model. ( entreprendre.service-public.fr )

For Turkish entrepreneurs starting alone, SASU and EURL are often the first serious options. In SASU, capital is freely determined and the theoretical minimum €1; at least half of the cash capital is paid at the time of establishment, and the remainder can be completed within five years. EURL also has no minimum capital; however, at least 20% is invested at the time of establishment, with the remainder invested within five years. In both structures, there is only one partner, and the partners' liability is generally limited to their capital contribution. However, in SASU, the manager of chairman, while in EURL, gérant ; this difference is not just a difference in name, but also has consequences in terms of management and social status. (entreprendre.service-public.fr)

In companies established with multiple partners, SAS and SARL stand out. When comparing SA, SAS, and SARL in the official table, it is seen that the minimum number of partners for an SAS is 1, while for a SARL it ranges from 1 to 100 partners; capital can be freely determined in both SAS and SARL; however, the minimum capital for an SA €37,000 . The same comparison also distinguishes the roles of the SAS chairman and the SARL director. In practice, SAS/SASU are more frequently preferred in startups and structures aiming to attract investment, while SARL/EURL are more often preferred in smaller businesses that prefer a more closed partnership relationship and traditional structure. Therefore, the goal of a Turkish entrepreneur should not only be to reduce initial establishment costs but also to plan for partner acquisition, attracting investors, transferring shares, or working with family members after one or two years. (entreprendre.service-public.fr)

How does the company registration process work in France?

In France, the first legal step in establishing a company is the preparation and signing of the articles of association. According to Entreprendre Service Public, a company is established with the signing of the articles of association; registration is a formality that follows. In other words, the legal framework of the company is born not in the commercial register, but first in the articles of association. The company name, field of activity, registered address, rights of shareholders, transfer of shares, powers of the director, and decision-making procedures are all included in this document. While in Turkey, the concept of articles of association is quickly addressed using ready-made templates, in France, especially in structures like SAS/SASU, it becomes a much more strategic area. (entreprendre.service-public.fr)

The second step is determining the company's headquarters. In France, domiciliation is mandatory and must be completed before registration. Official sources state that the company's headquarters are crucial in terms of management and administrative authority; it can be established at a home address, a private office, a coworking space, a domiciliation company, or an incubation center. However, if a home address is used, the lease agreement, apartment layout, and zoning/urban planning regulations must not prevent this. Therefore, in France, choosing an address is not just a matter of a post office box; it is one of the validity requirements of the incorporation file. (entreprendre.service-public.fr)

The third step is the investment of capital. According to Service Public, in the establishment of commercial companies, capital is in most cases deposited into a special blocked account and is not released until registration is complete. Capital can be deposited by check, wire transfer, or cash; however, in practice, the most important step for foreign entrepreneurs is opening a bank account. Official sources state that a professional bank account is virtually mandatory for establishing a commercial company, as the capital deposit is made through this account. If a French bank refuses to open an account, the entrepreneur has the right to seek a solution through legal means similar to "droit au compte"; the bank is obliged to document the refusal. (entreprendre.service-public.fr)

The fourth step is the publication of the legal notice. In France, company incorporation does not end with mere notification to the administration; a public notice is also required. According to Service Public, the incorporation notice is published in an authorized journal d'annonces légales or authorized online press service in the department where the company's headquarters are located. The notice includes the company name, type, capital amount, registered address, business activity, duration, information on the directors, and the registry to be registered with. The attestation de parution, obtained after publication, is a mandatory part of the registration file. This shows that French company incorporation introduces the principle of public disclosure from the very beginning. (entreprendre.service-public.fr)

The fifth step is the declaration of the effective beneficiary. In France, disclosing the true controlling parties behind the company is mandatory, and this formality is completed during incorporation. Service Public's cost sheet clearly shows that the beneficiary declaration is a separate and mandatory item. For Turkish entrepreneurs, this is particularly important in cases where the company is to be established through a holding company or foreign partners rather than a single entity; because if the apparent partner and the actual beneficiary structure are inconsistent, banking, administrative, and compliance processes become more difficult. (entreprendre.service-public.fr)

The sixth step is submitting the entire incorporation file the guichet unique des formalités des entreprises . The official portal states that since January 1, 2023, it has been the central gateway for all incorporation, amendment, document submission, and termination of operations. For commercial companies, the Service Public has long of €35.59 plus an additional €20.34 for the beneficiary declaration fee; however, the official website notes that these rates may change and must be verified at the time of application. Therefore, Turkish entrepreneurs should check the current rates on the day of application, rather than relying solely on figures found in blog posts. (formalites.entreprises.gouv.fr)

Can a Turkish entrepreneur set up a company in France without living there?

Yes, official French sources acknowledge this. It is explicitly stated in Service Public that there is no special pre-authorization procedure for non-EU foreigners who do not intend to reside in France; only the normal company formation steps must be followed. However, the same source makes a crucial warning: a non-resident of France mandataire social , or legal director, in a company established in France. This distinction is critically important for Turkish investors. Because becoming a partner in a French company from Turkey is not the same legally as becoming the president or director of that company in France. Partnership is possible; however, taking over actual management involves residence and immigration law. (entreprendre.service-public.fr)

Therefore, the Turkish entrepreneur's strategy must be clear from the outset. If the goal is simply to invest capital in a French company and management will remain with the local team, the residency plan is different. If the goal is to move to France and manage the company personally, the company incorporation file and the visa/residence application file must be prepared together. Entreprendre Service Public lists four main conditions for foreigners establishing a company, especially the talent-porteur de projet – parcours création d'entreprise path: at least a master's degree or 5 years of similar experience, a genuine and serious company establishment project, an annual full-time gross €21,876.40 , and at least €30,000 in project funding. This data shows that establishing a company in France does not automatically create a residence permit for every foreigner; it only opens the door to a residence permit for specific profiles and projects. (entreprendre.service-public.fr)

Tax and fiscal regime: What does a Turkish entrepreneur face?

For Turkish entrepreneurs establishing a company in France, the most fundamental tax is corporate tax . According to the official website of the Ministry of Economy, the standard corporate tax rate is 25% . Additionally, some small companies may be eligible for a reduced rate of 15% on the first €42,500 of profit under certain conditions . This requires a company turnover of less than €10 million and fully paid-in capital. Micro-enterprise regimes, however, cannot opt-in to corporate tax. Therefore, Turkish entrepreneurs wishing to establish a company in France must clarify from day one whether they are applying for income tax, corporate tax, a sole proprietorship, or a corporation. ( economie.gouv.fr )

The general VAT rate 20%; however, reduced rates such as 10% and 5.5% may apply to certain goods and services. This rate affects not only pricing but also cash flow and contract formation. Familiarity with the VAT system in Turkey provides an advantage in France; however, the rates, reduced category logic, and invoicing formalities in France should be evaluated separately. For Turkish entrepreneurs working in B2B, technology, consulting, e-commerce, or import, the VAT registration and reporting system should be properly planned from the very beginning of the establishment process. (impots.gouv.fr)

After establishing a company, simply obtaining a tax identification number is not enough; the invoicing regime and digital compliance also begin. According to Service Public, in France, company invoices must include information such as the company name, SIREN number, registered address, legal form, and capital amount. Furthermore, the e-invoicing reform is being implemented gradually: the obligation to receive electronic invoices for businesses will begin on September 1, 2026 , and the obligation to issue e-invoices for SMEs and micro-businesses will begin on September 1, 2027. Therefore, Turkish entrepreneurs establishing a company today should set up their accounting and invoicing infrastructure to be digitally compliant from the outset to avoid having to rebuild the system a year later. ( entreprendre.service-public.fr )

Practical risks of the first year

One of the most common mistakes made by Turkish entrepreneurs establishing companies in France is believing that company registration is the end of the process. However, there is a significant difference between company registration and operational preparation. This includes opening a bank account, establishing an accounting system, creating management minutes books and mandatory company records, and setting up employee recruitment procedures when necessary. Service Public clearly states that mandatory records and accounting books are required from the moment of incorporation. Therefore, obtaining a corporate registration certificate (KBIS) may mark the beginning of commercial life, but it is not the end of legal compliance. (entreprendre.service-public.fr)

The second major mistake is confusing the type of company with the purpose of residency. Establishing a SASU (State Economic Enterprise) does not automatically grant the right to live in France; being a partner in a SARL (State Commercial Enterprise) does not automatically create the right to stay in the country as a director. If a foreign entrepreneur intends to live in France, they must prepare both their company and immigration files simultaneously. Bpifrance's website for foreign entrepreneurs explains this very clearly: for long-term visa applications, the economic viability of the project and its ability to generate income at least at the SMIC (State Economic Enterprise) level are examined; after arriving in France, a residence permit with the relevant activity statement is required. Therefore, establishing a company in France may be an incomplete strategy for a Turkish entrepreneur without an immigration law plan. (bpifrance-creation.fr)

The third mistake is underestimating the banking and capital process. Official sources clearly show that opening a capital account is mandatory when establishing a commercial company, and that the bank has the freedom to choose its clients. Therefore, the passport, address, company headquarters, ownership structure, beneficiary information, and source of funds documents to be submitted to the bank must be meticulously prepared. Especially in the case of capital inflows from Turkey, documents explaining the origin of the money are often practically decisive. This result is a natural consequence of the structure of the French banking integration system. (entreprendre.service-public.fr)

Conclusion

It is possible for Turkish entrepreneurs to establish a company in France; however, the right outcome depends not only on choosing the type of company, but also on establishing the complete company-residence-bank-tax chain. Owning a company without residing in France is not the same as moving to France and managing the company there. For single-shareholder ventures, SASU and EURL are often the main options, while for multi-shareholder projects, SAS and SARL are the primary choices; each has different capital, management, and social regimes. The establishment process consists of preparing the articles of association, determining the registered address, depositing capital into a blocked account, legal notification, beneficiary declaration, and registration of the unique share certificate. (entreprendre.service-public.fr)

The most accurate approach is to design a company in France not as a "quickly established structure," but as a "legal architecture with future investment, residency, banking, and tax implications." For Turkish entrepreneurs, four questions are particularly crucial: Will I live in France? Which company type suits my growth objectives? Are my banking and capital documents ready? Am I establishing my tax and invoicing infrastructure correctly from the first year? When these questions are answered correctly from the outset, France offers a strong and predictable foundation for company formation. If the answers are incorrect, problems often arise not at the time of registration, but in the first few months after registration. (entreprendre.service-public.fr)