How to Open a Business in France as a UK Company

─── THE LANDSCAPE

What changed post-Brexit and what UK operators are missing.

Before Brexit, UK businesses could operate in France under freedom of establishment within the EU. The regulatory environment was complex but the right to operate was straightforward. Post-Brexit, UK businesses no longer have that automatic right. The compliance requirements that were previously navigated within a common framework now require a more deliberate and sector-specific approach.

This is not insurmountable. Thousands of UK-owned businesses operate successfully in France. But the path to compliant operation requires deliberate mapping of requirements rather than the assumption that UK standards translate directly. They often do not.

─── COMPLIANCE

What compliance actually covers for a French operation.

Compliance for a UK business in France covers several layers. Registration is the foundation: a French legal entity must be registered with the relevant authority, which varies by business type, and will receive a siret number that is required for all commercial and tax activity.

Professional licences apply in regulated sectors. Hospitality, healthcare, financial services, food production and certain trades all require sector-specific licences or registrations that are separate from the general business registration. These are not automatically carried across from UK equivalents.

Insurance requirements in France are specific and mandatory in many sectors. The types of cover required, the minimum levels and the specific French policy structures needed can differ significantly from UK norms. A UK policy is unlikely to satisfy French requirements on its own.

─── EMPLOYMENT

French employment law for UK operators.

French employment law is significantly more protective of employees than UK employment law and contains specific requirements that many UK operators encounter unexpectedly. Collective bargaining agreements apply by sector and determine minimum terms that override individual contracts. Trial periods, notice requirements and dismissal procedures are more tightly regulated. Social charges on employment in France are substantially higher than UK national insurance contributions.

For a business employing seasonal or part-time staff in a hospitality context, the relevant sector collective agreement applies automatically and determines the minimum pay, working time and leave entitlements for all staff. Understanding these requirements before making the first hire is considerably less expensive than discovering them after.

─── SEQUENCING

What needs to be in place before trading begins.

The most common and costly mistake UK businesses make when entering France is launching the commercial activity before the compliance structure is in place. The pressure to begin generating revenue is understandable. The regulatory and reputational consequences of operating without the correct structure are not always immediately visible but they accumulate.

The correct sequence is: establish the legal entity, complete sector-specific registration and licensing, secure appropriate insurance, understand and comply with the relevant collective bargaining agreement before making any employment decisions, and only then begin commercial activity. This sequence adds time before launch. It prevents problems that would otherwise add considerably more.