Business licence France: Who needs one and how to apply

In 2024, France witnessed the establishment of over 1.1 million new businesses, marking a 6% increase from the previous year. This surge underscores the nation’s dynamic entrepreneurial landscape and its appeal to both domestic and international investors. For foreign enterprises, France stands as Europe’s leading destination for foreign direct investment, attracting 1,815 investment projects in 2023 alone, which collectively created or preserved over 59,000 jobs.

However, embarking on business operations in France necessitates navigating a structured regulatory framework. Securing a valid business license is not merely a procedural formality; it is a legal obligation that ensures compliance with national and regional regulations.

This comprehensive guide provides a step-by-step process for obtaining a French business license, encompassing registration procedures, sector-specific regulations, and renewal processes.

France Business License Requirements (2025 Update)

Compliance with French business license rules is a cornerstone of legal operations in the country. The French government requires businesses to follow strict licensing protocols to ensure regulatory oversight, protect consumers, and maintain industry standards.

International entrepreneurs frequently encounter challenges due to the diverse legal frameworks in their home countries. In France, the CFE (Centre de Formalités des Entreprises) acts as the primary national registration body. Businesses obtain a SIREN or SIRET number upon registration, which identifies them officially for tax and regulatory purposes.

Obtaining a French business license offers several benefits beyond legal compliance: it establishes credibility with suppliers, investors, and customers; ensures eligibility for banking and financing; and protects against contract disputes.

Does France Require a Business License?

Yes, France mandates business licenses; however, the requirements vary by sector and jurisdiction. Most businesses are required to register at the national level with INSEE and CFE to obtain official identification numbers; however, local and sector-specific permits may also be necessary for certain operations.

Foreign-owned businesses must follow the same registration procedures as domestic companies. However, specific sectors, such as finance, healthcare, or food services, may require additional approvals or compliance certificates. 

For example, a foreign restaurant chain in Paris would need both municipal permits and national registration, as well as health and safety clearances.

France enforces licensing rigorously to prevent unregulated commercial activity. Operating without a valid license exposes businesses to fines, criminal liability, and restrictions on banking operations or contractual enforcement.

France Business License vs Regional / Municipal Licenses

In France, business licensing operates on two levels: national registration and local permits. National registration establishes a legal entity through the CFE/INSEE and provides a SIREN/SIRET number, which identifies the business for tax and regulatory purposes. 

Local authorities, however, may impose additional requirements depending on the city, municipality, or region.

• Paris: Businesses in food, alcohol, or environmental sectors must register with local authorities. Special permits are required for restaurants, bars, and environmentally sensitive operations.
• Lyon: Health and safety documentation is crucial, particularly for food service, construction, and industrial operations. Municipal authorities may request additional inspections or certificates.
• Marseille: Environmental and tourism-related permits are enforced for businesses serving visitors or operating near coastal areas.

Understanding both national and municipal licensing requirements ensures comprehensive compliance. While national registration validates the company’s legal standing, regional permits ensure that operational activities comply with local standards, safety regulations, and environmental laws.

Occupational & Professional Licenses in France

Certain professions in France require specialized occupational licenses in addition to a standard business license. These licenses protect public safety, ensure professional competence, and maintain industry standards. Key examples include:

• Law: Practitioners must register with the Ordre des Avocats, demonstrating credentials and adherence to professional ethics.
• Accounting: License holders register with the Ordre des Experts-Comptables, ensuring compliance with financial regulations.
• Healthcare: Hospitals, clinics, and individual practitioners obtain licenses from the Agence Régionale de Santé (ARS), which oversees medical and public health standards.
• Construction: Municipal planning permits regulate construction, zoning, and safety inspections.
• Food Service: The Direction Départementale de la Protection des Populations (DDPP) issues health and safety certificates for restaurants, catering, and other food-related businesses.

These occupational licenses are mandatory in addition to standard registration, and failure to obtain them can result in suspension, fines, or criminal prosecution. Entrepreneurs must identify which licenses apply to their specific activities and comply accordingly.

Sales Tax / VAT / GST License in France

All businesses operating in France must obtain a VAT (Value Added Tax) registration if their revenue exceeds specified thresholds. VAT registration is essential for ensuring tax compliance and maintaining a lawful business operation. The process is managed by the Service des impôts des entreprises (SIEE) through the INPI online portal.

To apply, businesses must submit:

• The CERFA 15928*01 registration form.
• Proof of national registration and company statutes.
• Identification documents of directors.
• Justification of the company’s activity.

The process generally takes about 40 days. Once approved, businesses must file VAT returns online at impots.gouv.fr. Renewals align with the annual tax cycle, and timely submission is required to avoid penalties. Proper VAT registration also allows businesses to claim input tax credits and maintain legal compliance with French tax authorities.

Federal / National Licenses in Addition to a French Business License

Some industries require additional licenses beyond a standard French business license due to national-level regulatory oversight. These include:

• Aviation: Licenses are issued by the Directorate General for Civil Aviation, ensuring safety and operational compliance.
• Broadcasting: The Conseil supérieur de l’audiovisuel governs the licensing of radio and television.
• Food & Drug: Pharmaceuticals and medical products require approval from the Agence nationale de sécurité du médicament et des produits de santé (ANSM).
• Firearms: Licensing is controlled by the Ministry of the Interior.
• Import/Export: Businesses must obtain an EORI number and comply with customs regulations for cross-border operations.

It is important to note that a standard French business license does not automatically authorize activities in these regulated sectors. Entrepreneurs must secure additional federal permits as required.

How to Get a French Business License- Step by Step

Obtaining a French business license is a crucial requirement for both domestic and foreign entrepreneurs. The process is structured but involves multiple steps across national and regional authorities. 

Below is a detailed step-by-step guide to help you understand how to obtain a business license in France in 2025.

Step 1: Obtain a SIRENE Number (INSEE Registration)

Every business in France is required to be registered with the National Institute of Statistics and Economic Studies (INSEE). Once registered, you receive a SIRENE number, which acts as your official business identifier for taxation, compliance, and legal purposes.

How to register:

• Submit your application through the Centre de Formalités des Entreprises (CFE), providing details such as your business activity, location, and ownership structure.
• Upon approval, INSEE assigns your business a SIRENE number, enabling you to proceed with further registrations.

Step 2: Select the Right Business Structure

Choosing the correct legal structure is critical because it determines your liability, taxation obligations, and management flexibility.

Common structures in France include:

• Société à Responsabilité Limitée (SARL): Best for small to medium enterprises, offering limited liability.
• Société par Actions Simplifiée (SAS): Popular with startups due to governance flexibility.
• Entreprise Individuelle (EI): A sole proprietorship for independent entrepreneurs.
• Société Anonyme (SA): Suited for larger companies, especially those considering public listing.

For international companies, working with an Employer of Record (EOR) such as Multiplier can simplify the process. An EOR manages legal employment, payroll, and tax compliance, enabling you to operate in France without establishing a full-fledged local entity.

Step 3: Prepare and Submit Documentation to the CFE

Once your structure is chosen, you must prepare and file official documents to complete your registration.

Required documents include:

• Articles of Association describing your business purpose and governance.
• Proof of address for the company’s registered office.
• Identification documents for directors and shareholders.
• Bank certification confirming deposit of share capital (if required).

Submitting these documents through the CFE ensures that your business receives legal recognition.

Step 4: Open a Business Bank Account

A corporate bank account in France is mandatory to manage company operations, pay taxes, and receive client payments.

Options include:

• Traditional banks such as Société Générale and BNP Paribas.
• Fintech platforms like Qonto or Wise offer faster, digital-first solutions.

Documents required:

• Business registration certificate.
• Articles of Association.
• Proof of identity for all account signatories is required.

Opening a bank account can take time due to compliance checks. Companies operating globally may benefit from payroll platforms like Multiplier, which streamline multi-currency payments and compliance.

Step 5: Register for Taxes and Regulatory Compliance

Tax compliance is mandatory once your business is registered.

Key obligations include:

• Registering for VAT if your turnover exceeds the threshold.
• Filing for corporate income tax and payroll taxes if you employ staff.
• Maintaining accounting records as required under French law.
• Submitting annual financial statements to authorities.
• Ensuring compliance with labor and social security regulations.

Following these structured steps ensures that your company secures its French business license, maintains tax compliance, and is legally recognized to operate across France.

How Much Is a French Business License?

The cost of a French business license depends on the business type, sector, and location:

• Standard registrations: Typical fees range from €50 to €300, covering national registration and basic permits for most small and medium enterprises.
• Regulated industries, such as finance, healthcare, and construction, often incur higher fees, potentially exceeding €1,000, due to the additional professional certifications and occupational permits required.
• Municipal fees: Large cities may charge extra fees for local permits related to environmental compliance, food service, alcohol sales, or tourism activities. Paris, Lyon, and Marseille are examples where costs can be higher due to local inspections and sector-specific requirements.

Entrepreneurs should anticipate the total cost, including administrative, occupational, and municipal fees, when budgeting for business formation. Early financial planning helps prevent delays or legal complications during the license approval process.

Renewing a French Business License

France requires periodic renewal of business licenses to maintain legal compliance and ensure ongoing eligibility to operate. Key points include:

• Frequency: Renewal timelines vary by sector. Standard businesses may renew annually, while regulated industries or municipalities may impose biennial or rolling renewal cycles.
• Process: Many renewals can now be completed online via municipal or national portals. Specific industries, such as healthcare or food service, still require in-person submissions for inspections or document verification.
• Penalties: Late renewal can result in fines, temporary suspension of operations, or permanent revocation of the business license. This can disrupt contracts, banking arrangements, and overall business operations.

Maintaining accurate records and setting reminders for renewal deadlines ensures uninterrupted operations and legal protection. Entrepreneurs should keep copies of all licenses, receipts, and communications related to renewals, as well as any other relevant documents.

Penalties for Operating Without a French Business License

Operating without a valid French business license exposes a business to severe legal and financial consequences:

• Civil fines: Businesses can face fines up to €100,000, particularly for regulated products such as alcohol, food, pharmaceuticals, or financial services.
• Cease-and-desist orders: Local authorities may immediately halt business operations until compliance is achieved.
• Criminal liability: Repeat or serious violations, including the sale of illegal tobacco or firearms, can result in criminal charges against business owners or directors.
• Suspension/revocation: Authorities may temporarily or permanently revoke trading rights, preventing further operations.

Proactive compliance ensures protection against these risks. Entrepreneurs should consult legal or professional advisors to confirm licensing requirements before commencing business activities.

Best France Business License Services (2025)

Several professional services simplify the process of obtaining and managing a French business license:

• Commenda: Provides end-to-end support for entity formation, license applications, renewals, and compliance automation. Commenda’s platform also integrates VAT/GST filings and payroll compliance.

These services reduce administrative burdens, prevent missed deadlines, and help businesses stay compliant with both national and municipal requirements.

How Commenda Simplifies French Business Licensing

Commenda provides a comprehensive, all-in-one platform for managing French business license compliance:

• Entity incorporation & license filing: Handles national registration, local municipal filings, and sector-specific permits.
• Automated renewals & reminders: AI-powered dashboards track deadlines for license renewals, VAT filings, and municipal permits.
• VAT/GST and payroll compliance: Seamless integration ensures businesses remain compliant with tax authorities and labor regulations.

Entrepreneurs and international businesses can initiate their France business license filing with Commenda through a complimentary consultation, facilitating a seamless market entry without administrative delays.

Conclusion & Next Steps

Securing a French business license is a fundamental requirement for all companies seeking to operate legally in France. The process involves national registration, municipal permit filings, sector-specific licenses, VAT registration, and ongoing renewals. Failure to comply can result in significant fines, suspension of operations, or legal action.

Professional services such as Commenda streamline the entire process, including entity formation, license acquisition, compliance management, and renewals. This allows businesses to focus on operations, growth, and market expansion.

Entrepreneurs, especially international companies, should schedule a complimentary consultation with Commenda today to ensure full compliance and a seamless launch of their French business operations.

FAQs: France Business License (2025)

1. How do I get a business license in France?

To obtain a French business license, first choose your legal entity type (sole proprietorship, SARL, SAS, or branch) and assign the appropriate NAF code. Next, register with the CFE/INSEE to receive your SIREN/SIRET number, then apply for a VAT number if required. Depending on your sector, obtain the necessary occupational or professional permits and submit them to the relevant municipal or regional authorities. Finally, pay the associated fees to secure your license.

2. How much does a standard business license cost in France?

Standard French business licenses typically range from €50 to €300, covering national registration and basic permits. For regulated industries such as finance, healthcare, or construction, total costs may exceed €1,000. Additional municipal fees may apply in cities like Paris, Lyon, or Marseille.

3. What happens if I operate without a license?

Operating without a French business license can result in severe penalties, including civil fines up to €100,000, cease-and-desist orders, criminal liability for repeat violations, and suspension or revocation of trading rights.

4. Do home-based businesses need a business license?

Yes. Even home-based businesses in France must comply with national and local regulations. Depending on the activity, you may need municipal approval or sector-specific permits in addition to registering with CFE/INSEE.

5. Is a VAT/GST certificate the same as a business license?

No. A VAT number is required for tax purposes and enables legal invoicing, but it does not replace a French business license, which is a legal authorization to operate. Both are often required for compliance.

6. How long does approval take in France?

National registration through CFE/INSEE typically takes 1–4 weeks for standard applications. VAT registration may take up to 40 days, while sector-specific or municipal permits can add additional processing time depending on inspections and document verification.

7. Can I transfer a business license if I expand to another region?

A French business license cannot always be transferred. Businesses expanding into new regions typically need to register locally and comply with local regulations, in addition to maintaining their national registration.

8. What documents are required to renew?

Renewal documents vary by sector but typically include proof of registration, updated statutes, director identification, and compliance certificates for regulated activities. Renewals can often be submitted online, though some sectors may require in-person verification.

9. Do foreign-owned companies need additional licenses?

Yes. While foreign-owned businesses follow the same registration process as domestic entities, specific sectors may require extra permits or compliance certificates, particularly in healthcare, finance, and food services.

10. Which service offers the best license filing support?

Services such as Commenda, Corpbiz, and Multiplier specialize in providing business license support in France. Commenda is considered a top choice for end-to-end registration, compliance automation, renewals, and VAT/GST integration.

11. Does the federal government override regional licenses?

No. National registration grants legal recognition, but local authorities maintain jurisdiction over municipal permits and sector-specific approvals. Both levels must be satisfied to operate legally in France.

12. How does Commenda help with business license compliance?

Commenda streamlines France business license compliance by managing entity incorporation, sector-specific permits, municipal filings, automated renewal reminders, and VAT/GST integration. Entrepreneurs can start their license filing process with a free consultation, ensuring full legal compliance.