Starting a business abroad while working in France: a complete guide

Thinking of opening a business in another country while living and working in France? Here’s what you need to know before you get started.

Consider using a Wise Business account for your international transactions: you’ll be able to send money at the mid-market exchange rate and receive payments in up to 10 currencies without hidden fees.

💳 Get your first
Wise Business card

Starting a business abroad while in France: what’s involved?

Running a company abroad while based in France can mean different things:

• Case 1: You start a business in another country, but your main activity and home are in France.
• Case 2: You set up a business abroad, reside there for a time, but then move back to France to run operations.
• Case 3: You found a business in a third country but manage it entirely from France.

Depending on the case, your tax residency will differ, which directly impacts where you pay taxes and how profitable your business will be.

Why tax residency matters

Your tax domicile is crucial: it determines where you pay income tax and company tax, and influences your long-term profitability.

In France, tax residency is defined by where you live and/or where your wealth is created.

This means you might need to pay taxes in both France and the foreign country. If a tax treaty exists, you will only be taxed in one.

For tailored advice, consult a tax advisor.

Step-by-step: setting up a business abroad while in France

Choosing the right country

When choosing where to establish your company, consider: taxation, market potential, logistics, and distance from France.

If you’ll continue working from France, it’s often simplest to set up your company in Europe. Access to credit and banking is easier within the EU/EEA, and you won’t need a visa within the Schengen zone.

Other jurisdictions may offer tax advantages — for instance, setting up a business in the UK gives access to lower corporate tax rates.

But remember: the further your company is from France, the more expensive travel and administration will be.

Research local law

Each country has its own corporate, tax, and labor laws. Always consult a local law firm to understand requirements before registering.

For example, in Vietnam, foreigners in the communications sector must work with a local partner².

Get support

Several organizations can help you set up your business abroad:

• International Chambers of Commerce – recruitment, prospecting, networking, office space.
• Business France – official French agency supporting exports and international expansion.
• European Structural Funds – EU funding for companies setting up in member states.
• Other French institutions – Economic Expansion Posts (PEE), French Foreign Trade Center (CFCE), COFACE.

Rely on a trusted local partner

If your company operates abroad but is managed from France, a local partner is essential. They should handle:

• Day-to-day operations
• Staff hiring and management
• Local accounting and compliance
• Ensuring tax obligations are met

Be cautious with your tax structure

Domiciling a business abroad while actually working in France can be risky.

The French tax authorities may treat your business as French-based if its operations and value creation happen in France. In this case, you could face audits and lose some of the protections offered by French law.³

For peace of mind, it may be worth registering in France as well. Taxes may be higher, but compliance is clearer.

Choosing the right banking solution

If you manage your business from France, you’ll regularly need international transfers.

• Within the eurozone, SEPA transfers are usually free.
• For non-euro or non-SEPA transfers, French banks often charge:
  • Higher exchange rate margins
  • Transfer fees per transaction⁴

To reduce costs, you can use platforms like Wise Business which apply the mid-market exchange rate and transparent low fees.

Open your Wise
Business account

FAQ – Setting up a business abroad while in France

Do I have to declare my foreign company to the French tax authorities?

Yes. If you are a tax resident in France, you must declare your company and all associated foreign bank accounts.

Can I use a French business account to manage my foreign company?

Sometimes, but fees are often high. Accounts like Wise Business allow you to manage multiple currencies at lower cost.

What documents are required to set up a business abroad?

It depends on the country, but usually:

• Valid ID
• Proof of address
• Business plan or activity description
• Local partner or registered office (in some cases)

What legal structure is best?

It varies. In Europe, an LLC or equivalent is common. In the UK, an LTD offers simplicity. Always check local rules.

Sources:

Last verified on March 28, 2025

This article is a translation of the original article published in French and was translated within 365 days of publication. While the content has been translated for accessibility, the data and sources referenced have not been updated since the original publication date.